Great Western Minerals Group Ltd. (TSX VENTURE: GWG)(OTCQX: GWMGF)
("GWMG" or the "Company") Corporate Holdings:
-- 1 Rare Earth former producer: Steenkampskraal mine in South Africa. GWMG
holds controlling interest in the mine through its 100% shareholding of
Rare Earth Extraction Co. Ltd. ("Rareco").
-- 2 Rare Earth processing plants: Less Common Metals Limited ("LCM") in
Birkenhead, U.K. and Great Western Technologies Inc. ("GWTI") in Troy,
Michigan.
-- 5 active Rare Earth exploration projects: 1 at the Steenkampskraal site,
4 in North America.
GWMG Corporate Focus:
GWMG continues to execute its strategic plan to become a
leading, fully integrated rare earth producer supplying its own
rare earth inputs into its production and processing cycle.
GWMG CEO Conference Call: "An update on the Company's progress
and plans for Steenkampskraal and Less Common Metals."
Wednesday, September 14, 2011 at 11:00 a.m. EST: CEO Conference
Call with President & Chief Executive Officer Jim Engdahl.
Participants can sign up for the conference call as follows:
Dial - in Numbers:
North American Toll Free 888-231-8191
Local Toronto 647-427-7450
China North 10-800-714-1191
China South 10-800-140-1195
Germany 0-800-183-0171
Switzerland 0-800-835-354
Hong Kong 800-901-563
South Africa 0-800-983-113
United Kingdom 0-800-051-7107
-- Passcode ID: 96592727
-- Participants are advised to dial in 10 minutes prior to start time and
use the URL below if you wish to view the presentation during the call.
To view presentation use link:
-- http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3655080
-- Playback of the call available for 7 days, Replay Dial-in Numbers: 1-
855-859-2056 or 416-849-0833
-- Replay passcode - 96592727
-- Replay PowerPoint Link -
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3655080
GWMG Corporate Coverage:
GWMG is covered by three analysts:
-- Byron Capital Markets: Analyst - Jon Hykawy, Contact points:
jhykawy@byroncapitalmarkets.com, 647-426-1656
-- Euro Pacific Canada: Analyst - Tony Hayes, Contact points:
tony.hayes@europac.ca, 416-933-3357
-- Cormark Securities Inc.: Analyst - Edward Otto, Contact
points:eotto@cormark.com, 416-943-6748
Note: GWMG does not recommend nor endorse any research
reports.
GWMG Continues to Execute its Plan to Become a Fully Integrated
Rare Earth Producer
Synopsis:
Since the most recent Corporate Update on July 21, 2011, GWMG
has made significant progress with the refurbishment of the mine
site, the design work for the chloride processing plant, and the
Heads of Terms agreement with a J/V partner for the design and
construction of the separation plant. GWMG also acquired
additional, highly skilled personnel to advance the Company's
monazite sands and exploration activities and launched an
exploration program designed to confirm historical data and expand
the resources at Steenkampskraal. Meanwhile, GWMG achieved
increased alloy processing margins. The details are as follows:
Launched design work on the Chloride Processing Plant at
Steenkampskraal:
GWMG contracted DRA Mineral Projects (Pty) Ltd. ("DRA") of South
Africa for the detailed design of the Steenkampskraal chloride
processing plant. DRA is highly regarded for managing projects with
a "zero harm" focus and upholding world class quality standards,
systems and procedures, based on ISO standards.
Announced a joint venture partner to build the Separation Plant
for Steenkampskraal:
GWMG negotiated a Heads of Terms with Ganzhou Qiandong Rare
Earth Group Ltd. ("GQD") of China to build a rare earth separation
plant in South Africa, located in proximity to GWMG's
Steenkampskraal operation. The Heads of Terms will form the basis
of the project under which a new joint venture company, Great
Western GQD Rare Earth Materials Co. Ltd. will be created. GWMG
will hold 75% ownership while GQD will hold 25%.
Appointed a highly regarded expert in monazite sands to assist
with additional monazite streams:
John Selby was appointed as a monazite / radiation /
environmental consultant to the GWMG team at Steenkampskraal. He
will advise on the processing of additional monazite streams to be
used as feedstock in GWMG's rare earth processing and separation
facilities in and around Steenkampskraal. Mr. Selby was most
recently with Richards Bay Minerals of South Africa, which is 74%
owned by Rio Tinto and BHP and is one of the world's foremost
producers of titanium minerals, high-purity pig iron, rutile and
zircon.
Appointed a Director of Exploration at Steenkampskraal:
Brent Jellicoe was appointed to the position of Director of
International Exploration wherein his primary responsibility is to
manage the exploration program at Steenkampskraal. In addition, he
has been assigned to locate and evaluate new rare earth projects on
a global basis.
Progressed on schedule with the Steenkampskraal mine site
refurbishment project:
GWMG's refurbishment of the Steenkampskraal mine shaft and
ancillary facilities is proceeding on schedule. East Rand
Engineering Services was contracted for the refurbishment of the
mine access decline, construction of a head gear and winding house,
and the installation of underground infrastructure services such as
ventilation fans and underground stores. The safety procedures
under which all work at the Steenkampskraal site is conducted were
approved in June. The approval of the two shops chosen by GWMG for
steel fabrication work was issued in July and the fabrication work
is now complete. As well, the permanent winder controls are now
complete.
Launched an exploration and resource evaluation program at
Steenkampskraal:
GWMG selected Drillcorp Africa (Pty) Ltd. ("Drillcorp") as the
contractor for the upcoming exploration and resource evaluation
program at Steenkampskraal. The first objective of the program is
to provide geological information, metallurgical characterization,
and assay data in support of a fully compliant National Instrument
43-101 ("NI 43-101") resource estimate report on potential ore
material stockpiled at surface as well as underground in-situ
material. The second objective is to expand the resources at
Steenkampskraal.
Achieved strong alloy processing results:
Highlights of the Company's second quarter of alloy processing
operations included:
-- Manufacturing / processing revenues from GWMG's wholly owned
subsidiaries Less Common Metals Limited ("LCM") and Great Western
Technologies Inc. for the 2nd Quarter of 2011 increased by 63% over the
2nd Quarter of 2010.
-- Gross margins on manufacturing / processing operations for the 2nd
Quarter 2011 represented an increase of 81% over the same period of
2010.
GWMG Plans for the Upcoming Months:
Synopsis:
In the 4th Quarter of 2011, GWMG plans to complete a series of
development steps, continuing to move Steenkampskraal toward
production by early 2013. For Steenkampskraal, a final agreement
with GQD, a series of exploration steps, completion of the mine
refurbishment, and resource calculation work are planned. At LCM,
the addition of a new furnace will increase plant capacity by
approximately 50% for 2012.
The details and projected time frames are as follows:
-- September: Enter into a joint venture agreement with GQD relating to the
design, construction, commissioning, training and operations of a
Separation Plant that will be located in the Steenkampskraal region.
-- September: Initiate collection of representative mini-bulk samples for
metallurgical characterization of the surface rock dumps, tailings dams,
and areas of known underground mineralization.
-- September: Launch sampling programs to collect material for assay and
geological information from the surface rock dumps, tailings dams, and
areas of known underground mineralization that will contribute to an NI
43-101 compliant Resource Estimate.
-- October: Start underground mapping of geological structures and in-situ
mineralization plus channel sampling to supplement recent drill hole and
historical information that will contribute to an NI 43-101 compliant
Resource Estimate.
-- November: SRK is to renew the 3D geological model with new information
from evaluation programs and compile the report framework that will
contribute to the Resource Estimate Report.
-- December: Complete refurbishment of the mineshaft and associated
facilities required for mining operations.
-- December: Complete field acquisition of technical data that will be
included in the upcoming NI 43-101 Resource Estimate.
-- December: Complete the concentrator component of the design work for the
Chloride Processing Plant which is to be located at the Steenkampskraal
mine site.
-- December: Commission the new furnace at Less Common Metals.
Corporate Summary:
GWMG is an integrated rare earth processor. Its specialty alloys
are used in the battery, magnet and aerospace industries. Produced
at the Company's wholly owned subsidiaries Less Common Metals
Limited in Birkenhead, U.K. and Great Western Technologies Inc. in
Troy, Michigan, these alloys contain aluminium, nickel, cobalt and
Rare Earth Elements. As part of the Company's vertical integration
strategy, GWMG also holds 100% equity ownership in Rareco, which
owns a 74% equity interest in the Steenkampskraal Mine. In addition
to an exploration program at Steenkampskraal, GWMG holds interests
in four active rare earth exploration and development properties in
North America.
Inquiries by direct mail should be addressed to Great Western
Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.
Certain information set out in this News Release constitutes
forward-looking information. Forward-looking statements (often, but
not always, identified by the use of words such as "expect", "may",
"could", "anticipate" or "will" and similar expressions) may
describe expectations, opinions or guidance that are not statements
of fact and which may be based upon information provided by third
parties. Forward-looking statements are based upon the opinions,
expectations and estimates of management of GWMG as at the date the
statements are made and are subject to a variety of known and
unknown risks and uncertainties and other factors that could cause
actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. Those
factors include, but are not limited to, the results of the
exploration program, a resource estimate and commencement of
production at Steenkampskraal, satisfaction of the conditions
precedent with respect to GWMG's offtake agreement, receipt of all
required approvals (including those relating to the commencement of
production at the Steenkampskraal mine) and risks, uncertainties
and other factors that are beyond the control of GWMG, risks
associated with the industry in general, commodity prices and
exchange rate changes, operational risks associated with
exploration, development and production operations, delays or
changes in plans, risks associated with the uncertainty of reserve
or resource estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In
light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place
undue reliance upon forward-looking information. Although GWMG
believes that the expectations reflected in the forward-looking
statements set out in this press release or incorporated herein by
reference are reasonable, it can give no assurance that such
expectations will prove to have been correct. The forward-looking
statements of GWMG contained in this News Release, or incorporated
herein by reference, are expressly qualified, in their entirety, by
this cautionary statement and the risk factors contained in GWMG's
current annual information form available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Great Western Minerals Group Ltd. Dwight Percy Manager
of Investor Relations (306) 659-4500 info@gwmg.ca www.gwmg.ca
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