SASKATOON,
Aug. 30, 2012 /PRNewswire/ -
Great Western Minerals Group Ltd. ("GWMG" or
the "Company") Corporate Holdings:
- 1 former producing mine: Steenkampskraal mine in South Africa: Under development.
- 1 rare earth mixed chloride production plant at
Steenkampskraal: Under development.
- 1 rare earth solvent extraction separation plant near
Steenkampskraal: Under development.
- 2 rare earth alloy manufacturing plants: Less Common Metals
Limited ("LCM") in Birkenhead,
U.K. and Great Western Technologies Inc. ("GWTI") in
Troy, Michigan: In operation.
- 5 rare earth exploration projects: 1 at Steenkampskraal, 4 in
North America.
Exploration:
GWMG continues to focus its efforts on being an
integrated mine-to-market permanent magnet alloy producer. With the
continuing, positive developments at the Company's South African
operations, the Company is actively evaluating strategic
alternatives relating to the spinoff of the exploration assets
outside of South Africa. The
purpose is to continue to focus GWMG on achieving the completion
of, and first cash flows from, the Steenkampskraal operation.
Due to the continuing and highly successful
exploration drilling program at Steenkampskraal, the Company plans
to provide an updated National Instrument 43-101 technical report
and resource estimate in 2012. It is to include the assay results
reported in GWMG news releases to date.
Mine Refurbishment:
The surface refurbishment of the Steenkampskraal
project is moving toward its scheduled completion with the
construction of containment ponds and the finalization of the
headgear, winder and associated electrical equipment.
The development of the Steenkampskraal Monazite
Mine is managed in accordance with the requirements of the National
Nuclear Regulator of South Africa,
with all activities and authorizations being up to date. Recent
progress has been achieved in authorization of pumping and storage
of mine water, approval from the Department of Energy for transport
of materials, and submission of worker safety assessments for the
forthcoming chloride plant building phase.
GWMG is in the process of awarding the contract
for the next phase of underground mining preparations that focuses
on the bottom portion of the decline. It is expected this part of
the refurbishment project can be completed in approximately two
months.
Mixed Chloride Production:
The first monetization of the output of
Steenkampskraal will come on the completion of the mixed chloride
plant that will be completed on the site of the mine itself. At
this point, the Company continues to estimate that the build time
remains as projected at the time of the convertible bond offering
(see: GWMG news release, March 14,
2012).
The decision on the final position of the mixed
chloride production plant to be located at the Steenkampskraal site
has been revisited twice since the two initial locations proved,
after sterilization drilling, to have significant monazite
mineralization beneath them. A final site has now been selected and
approved for construction.
As communicated during the CEO Conference Call
of August 22, 2012 the final DRA
report on capital expenditures, operating expenditures and time
lines for the mixed chloride production plant is expected to be
received in September 2012.
Solvent Extraction Separation:
Savannah Environmental (Pty) Ltd., of Gauteng,
South Africa, has prepared a Basic
Assessment Report, which addresses all regulatory and environmental
requirements for projects located on the industrial zoned land on
which GWMG plans to construct its separation plant. As part of the
public consultation process, which concluded on July 31, 2012, Company officials have been
meeting with municipal officers and members of the public at
community forums. (Report at
www.gwmg.ca/savannah)
As communicated during the CEO Conference Call
of August 22, 2012 the Ganzhou
Qiandong Rare Earth Group Ltd. ("GQD") report on capital
expenditures, operating expenditures and time lines for the solvent
extraction separation plant is expected to be received in
September 2012.
Metal and Alloy Manufacturing:
As Less Common Metals works toward its first
commercial shipment of alloys using the new strip cast furnace, LCM
is also planning for the installation of its second strip cast
furnace, scheduled for delivery in 2012.
The first two cells required for metal making,
which are fully permitted under U.K. environmental regulations, are
installed.
LCM will monitor the progress of the
Steenkampskraal mining operation and from that it will determine
its schedule for the installation of additional metal making cells
in a manner that matches LCM's production capacity with the
availability of oxides from Steenkampskraal.
GWMG Corporate:
The CEO recruitment process continues to be
guided by the Search Committee consisting of GWMG Board members
Robert Quinn, George Ireland and Ian
McNaughton. Strong candidates, with a successful history of
leading integrated companies in complex industries, are being
interviewed. If current candidates do not meet the criteria of the
Search Committee, an international executive recruitment firm will
be mandated to conduct the search. The Company expects the
recruitment process to be completed in 2012.
Great Western Minerals Group Summary:
Great Western Minerals Group Ltd. 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 aluminum, nickel, cobalt and
Rare Earth Elements. As part of the Company's vertical integration
strategy, GWMG also holds 100% equity ownership in Rare Earth
Extraction Co. Limited, which owns a 74% equity interest in the
Steenkampskraal Mine. In addition to an exploration program at
Steenkampskraal, GWMG also holds interests in four active rare
earth exploration and development properties in North America.
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.
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 successful and timely completion of its preliminary
economic assessment and its results, the construction,
commissioning and operation of the proposed monazite processing
facility and separation facility, mine refurbishment activities,
reliance on third parties to meet projected timelines, commencement
of production at Steenkampskraal, risks related to the receipt of
all required approvals including those relating to the commencement
of production at the Steenkampskraal mine, delays in obtaining
permits, licenses and operating authorities in South Africa and China, environmental matters, water and land
use risks, 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, uncertainty of
estimates and projections of production, costs and expenses, risks
that future Steenkampskraal and region exploration results may not
meet exploration or corporate objectives, the adequacy of the
Company's financial resources and the availability of additional
cash from operations or from financing on reasonable terms or at
all, political risks inherent in South
Africa and China, risks
associated with the relationship between GWMG and/or its
subsidiaries and communities and governments in South Africa, radioactivity and related
issues, dependence on one mineral project, loss of key personnel,
the factors discussed in the Company's public disclosure record,
and other factors that could cause actions, events or results not
to be as anticipated. 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.
Except as required by law, GWMG does not assume any obligation to
update forward looking statements as set out in this news release.
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 annual information form available
at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.