GWMG Corporate Update: GWMG Expands Scope of PEA, Retains Q4 2012
Release Target
SASKATOON,
Oct. 31, 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 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.
Preliminary Economic Assessment:
In line with previous guidance, GWMG remains committed to release a
Preliminary Economic Assessment ("PEA") during the 4th
Quarter of 2012. The purpose of the PEA is to further develop and
communicate operational and financial projections for the Company's
complete corporate structure based on independent analysis of the
mining of rare earth-bearing monazite, extraction to mixed
chloride, separation of oxides, and metal and alloy production.
Subsequent to that announcement, the Company has
instructed its PEA consultants, Snowden Mining Industry Consultants
(Pty) Ltd. ("Snowden") of Johannesburg,
South Africa, to extend the original scope of the PEA work
to include a new resource estimate for the area of mineralization
identified by the Company's Steenkampskraal exploration activities
in recent months. The Company anticipates this initiative could
result in additional National Instrument 43-101-compliant Inferred
and Indicated resource tonnages. The Company will then add this to
the provisional mine plan to determine to what extent it could
extend the potential life of mine.
The Company expects that even with the expanded
scope of work under the PEA, its 4th Quarter 2012
release target will be achieved.
Steenkampskraal Exploration:
On September 18, 2012, GWMG reported
on assays varying from 0.02 to 45.81 weight percent ("wt.%") Total
Rare Earth Oxides ("TREO") with an average of 17.74 wt.% TREO from
underground channel, resource drill hole and exploration drill hole
assays. Within the drill program that was reported, covering 83
drill holes, true thickness varied from 0.02 metres to 6.67 metres
and averaged 0.92 metres.
As of October 18,
2012, GWMG has now completed 106 drill holes over a total of
12,634.29 metres. Assay results will continue to be released once
analyzed. Shipments of samples to SGS Laboratories of Johannesburg, South Africa are ongoing and as
a result the Company expects that the Steenkampskraal drill program
will continue to produce assay results subsequent to the cut-off
point for inclusion in the updated resource estimate that is
included in the upcoming PEA.
Steenkampskraal Surface
Refurbishment:
GWMG has recently completed additional work on surface facilities
at Steenkampskraal as it prepares for administration and mining
activity at the Steenkampskraal site. These include:
- An updated survey has been conducted by the Radiation
Protection Officer and his team in preparation for zoning for the
start of construction of the mixed chloride plant.
- The offices near the Steenkampskraal entrance gate are now
fully functional.
- The scrap yard has been cleared up with scrap sorted into
various classifications.
- The surface soil around the old slimes residues has been
remodeled to prevent potential radiation migration.
- The old building ruins that had been in place since mining
activities in the 1960's have been cleared.
- The regular watering of roads in, and to, the Steenkampskraal
site, using water from the reverse osmosis water treatment plant,
has led to significantly reduced levels of dust generation.
- The wash down area for vehicles, the new gate house and weigh
bridge are now installed.
Steenkampskraal Underground
Refurbishment:
GWMG has also completed several underground refurbishment steps as
it prepares for mining activity at the Steenkampskraal site. These
include:
- A new ventilation system with a set of three fans is being
installed near the top of the decline for purposes of pulling air
underground through the mine. Ingress of fresh air will be through
the decline as well as through the vertical secondary exit
shaft.
- The new ropes, winder and head gear will undergo commissioning
trials early in 2013.
Mixed Chloride Plant:
As noted in GWMG's Corporate Update of August 30, 2012, the position of the mixed
chloride plant at the Steenkampskraal site has been finalized after
sterilization drilling at the first two locations found significant
monazite mineralization beneath them. The geotechnical work as well
as the radioactivity survey at the area of the site that has been
chosen for the planned 5,000 tonnes per annum mixed chloride plant
is now complete.
Evaluation of long-lead items and time-critical
project components is underway. In addition, design work has begun
for the installation of tanks, pumps, dispensing, pipework and
blending equipment that will be needed to accept deliveries of
commercial chemicals at the mixed chloride plant. The Company has
selected DRA Group of South Africa
as the contractor on the current work program.
Solvent Extraction Separation Plant:
The preliminary layouts for the solvent extraction separation plant
have been completed in China. GWMG
will now continue to develop those plans according to South African
construction and operations standards.
The solvent extraction separation plant project
is being overseen by GWMG Vice-President Metallurgy Baodong Zhao,
Technical Consultant Xinbin Rui, Rare Earth Extraction Co. Ltd.
("Rareco") Technical Manager Witker Zimba, GWMG Vice-President
Operations Richard Hogan and Rareco
Operations General Manager Vic
Fitzmaurice.
Corporate:
The CEO recruitment process continues to work toward the
appointment of the Company's new Chief Executive Officer within the
previously stated target of 2012. The Search Committee, consisting
of Interim CEO Robert Quinn, and
independent Directors Bill McKnight,
George Ireland and Ian McNaughton, reports that high quality
candidates who are attracted to a unique, multi-faceted, high
growth opportunity have displayed a very strong interest in the
position. The Search Committee is working with Korn/Ferry
International, a global executive recruitment agency which has
conducted in excess of 10,000 senior-level searches worldwide, in
the selection phase of the process.
Baodong Zhao has
been appointed Vice-President, Metallurgy. Dr. Zhao is responsible
for oversight of the implementation of critical technological
applications of metallurgy in all aspects of GWMG's business
development and expansion planning. Dr. Zhao holds a Bachelors and
a Masters Degree in Physical Chemistry in Metallurgical Processes
from the University of Science and Technology in Beijing and a Ph. D. in Chemistry from Queen's
University.
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 South
Africa. 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 at Hoidas Lake; 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 solvent extraction separation
facility, mine refurbishment activities, reliance on third parties
to meet projected timelines and 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 Canada, 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 Hoidas Lake or
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 Canada and South
Africa, radioactivity and related issues, dependence on one
mineral project; loss of, and the inability to attract, 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.