GWMG Update on Steenkampskraal Rare Earth Chloride Plant, LCM Alloy Production, GWTI Project, CEO Search and PEA
November 26 2012 - 8:57AM
OTC Markets
Corporate Update – As at
November 26, 2012
“Update on
Steenkampskraal Rare Earth Chloride Plant, LCM Alloy
Production,
GWTI Project, CEO
Search and PEA”
Steenkampskraal:
Great Western Minerals Group’s (“GWMG”) wholly-owned
South African subsidiary, Rare Earth Extraction Co. Limited
("Rareco") has contracted with DRA Mineral Projects (Pty) Ltd.
("DRA") of South Africa to review and complete the remaining work
relating to the decline shaft refurbishment and hoisting equipment
commissioning. Rareco has terminated its contract with East Rand
Engineering Services for these services due to a commercial
disagreement. DRA is part of a highly qualified and experienced
South African based mining and engineering group with a global
customer base of mining and processing companies. DRA is also
continuing with the design and engineering work as the main
contractor for the mixed rare earth chloride facility at
Steenkampskraal.
Less Common
Metals:
Less Common Metals (“LCM”) of Birkenhead, United Kingdom,
has been actively working with its customers to deliver rare earth
alloys using the new strip cast furnace. A series of trials
designed to optimize melt conditions that produce various grades of
product have been conducted enabling LCM to thoroughly investigate
the full range of furnace process parameters. Through that rigorous
process, LCM has established best practices and has achieved
reproducible, standardized melts on a routine basis. These melts
have been submitted to one of LCM’s key customers for evaluation.
Programs have also been established to supply all other LCM
customers with evaluation materials.
The second strip cast furnace ordered from the same
Chinese supplier is now completely fabricated and LCM personnel
were at the manufacturer’s plant in November for inspection and
commissioning trials. The second furnace for LCM’s Hooton Park
location is scheduled to arrive in the latter part of the
1st Quarter 2013 with the plan that it will be fully
operational early in the 2nd Quarter
2013.
The general markets for rare
earth alloys have remained relatively healthy, albeit exhibiting a
limited degree of impact from low rates of global economic growth.
LCM notes that there has been a concentrated and potentially
successful effort on the part of customers and researchers to
reduce the use of Dysprosium, an element that remains in short
supply globally, in many of these alloys. This has, in turn, led to
renewed confidence on the part of customers in respect to the
sustainability of the rare earth supply chain, notably for
Neodymium, which remains the material of choice for the high
performance permanent magnet market.
The recent softening of rare
earth prices has also restored confidence levels on the part of LCM
customers who have continued to express strong support for GWMG’s
corporate vision to provide rare earth materials via a supply chain
that is reliable, sustainable and free from political
restriction.
The Company will conduct a tour
of the LCM facilities for analysts and newsletter writers on
Thursday, November 29, 2012.
Great Western Technologies
Inc.:
As announced on
October 1, 2012, GWMG’s wholly owned subsidiary, Great Western
Technologies Inc. (“GWTI”) of Troy, Michigan, was selected by the
United States Department of Defense to conduct a supply chain
assessment of military use of high-purity Yttrium oxide and a
study of material optimization and recycling methods. The study is
now underway with a team comprised of GWTI personnel and external
resources. GWMG expects the project can position the Company as a
valued participant in the United States rare earth
industry.
CEO
Search:
The CEO recruitment process continues to progress toward the
appointment of a new Chief Executive Officer. The Search Committee,
consisting of Interim CEO Robert Quinn, and independent Directors
George Ireland and Ian McNaughton, are working through the
selection process with the assistance of the highly experienced
executive recruitment agency Korn/Ferry International.
Preliminary Economic Assessment
(“PEA”):
GWMG reports excellent progress
on the part of Snowden Mining Industry Consultants Inc.
(“Snowden”), the independent contractor working on the up-date of
the resource calculation and completion of the PEA within the
previously stated time target of the 4th Quarter of
2012. The Company looks forward to the release of the PEA as an
opportunity to communicate confirmation of its capital expenditure
projections for the Steenkampskraal operation, financial
projections for its fully integrated “Mines-to-Metals” business
model and key elements of the Company’s operations going
forward.
Great Western Minerals Group
Summary:
Great Western Minerals Group Ltd. intends to
be an integrated rare earth producer. The Company currently
produces specialty alloys which 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.
For further information, please contact Dwight
Percy, Manager of Investor Relations at (306) 659-4516. Email
inquiries should be made to info@gwmg.ca and the company website is
located at www.gwmg.ca. Inquiries by direct mail should be
addressed to Great Western Minerals Group Ltd., 219 Robin Crescent,
Saskatoon, SK S7L 6M8.
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 and the results of its
preliminary economic assessment of the Steenkampskraal project, 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
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 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
Professional Securities Market listing particulars available at
www.sedar.com.
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