"PEA Indicates $555 Million
After-Tax NPV, 66% After-Tax IRR for Steenkampskraal
Project"
TSX Venture Symbol: GWG
OTCQX: GWMGF
CUSIP: 39141Y 10 3
SASKATOON, March 18,
2013 /PRNewswire/ - Great Western Minerals Group Ltd.
("GWMG" or the "Company", TSX:V - GWG) today announced positive
results from a Preliminary Economic Assessment ("PEA") of the
Company's Steenkampskraal rare earth element ("REE") project that
indicates strong potential for GWMG's integrated business
model.
Project highlights (all amounts in
this news release are in $ Cdn. unless otherwise
indicated):
- $555 Million after-tax net
present value ("NPV") applying a 10% discount rate and a 28% South
African corporate tax rate
- 66% after-tax internal rate of return ("IRR")
- 4.3 year estimated Project payback period, on an after-tax
basis, from start of underground mining production.
- 11 year potential life of mine
GWMG President and Chief Executive Officer Marc LeVier said, "The PEA conducted on the
Steenkampskraal project confirms our internal projections of a high
grade and excellent distribution of the critical rare earth
elements. The impressive, high-grade nature of Steenkampskraal
translates into lower tonnages for processing, which in turn,
results in low capital cost requirements relative to other REE
projects. The work undertaken on the project to date and the
accelerated metallurgical testing program is intended to enable
GWMG to advance the project rapidly. This 'early mover' status,
combined with GWMG's existing alloy manufacturing capacity,
positions GWMG very favourably."
Financial and Operating Highlights
|
After Tax at 10% discount rate and 28% tax rate |
Revenue: |
|
|
|
|
|
Total Rare Earth Oxides ("TREO") basket price per
kilogram |
|
|
$53.13 |
|
|
Total revenue over life of mine |
|
|
$2.65 Billion |
|
|
Average steady state annual revenue at full
production (approximately 5,000 tonnes/year) |
|
|
$257.2
Million |
Operating Costs: (per kilogram
of contained rare earth oxide "REO") |
|
|
|
|
|
Mining |
|
|
$1.68 |
|
|
Rare earth chloride ("RECl") |
|
|
$5.98 |
|
|
Separated REOs |
|
|
$5.13 |
Capital Costs: |
|
|
|
|
|
Mining operations and RECl Plant - pre-production
of RECl |
|
|
$44.53
Million |
|
|
Mining operations and RECl Plant - post-production
of RECl |
|
|
$40.76
Million |
|
|
Sustaining capital - post-production of RECl |
|
|
$10.51
Million |
|
|
RE Separation Plant |
|
|
$62.06
Million |
|
|
Contingency |
|
|
$17.69 Million |
|
|
Cash on hand at December 31, 2012, exclusive of
US$7.2 million segregated and escrowed for interest payments on
bonds |
|
|
$51.4 Million |
Life of Mine: |
|
|
|
|
|
Tonnes of Run of Mine ("ROM") in potential mining
inventory in situ (excluding tailings) |
|
|
578,130 |
|
|
Tonnes TREO content in situ (excluding
tailings) |
|
|
70,532 |
|
|
Inclusive of 124 drill holes reported, exclusive
of 84 drill holes as yet unreported |
|
|
11 years |
The PEA is preliminary in nature and includes an economic
assessment of Indicated Mineral Resources and Inferred Mineral
Resources (terms which have the meanings ascribed to them by the
Canadian Institute of Mining, Metallurgy and Petroleum, CIM
Definition Standards on Mineral Resources and Mineral
Reserves).
The Inferred Mineral Resources are quantified
based on the potential viability of the Resource Estimate of the
Steenkampskraal project and are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as Mineral Reserves (CIM
Definition, Standards on Mineral Resources and Mineral
Reserves).
Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability and there is no
certainty that the results of the preliminary economic assessment
will be realized.
The PEA contains a sensitivity analysis which
demonstrates that the Project valuation is most sensitive to
changes in REO prices. The Project valuation is least
sensitive to changes in capital expenditures.
REO Pricing
GWMG has selected the midpoint of the Roskill 2015 forecast of
rare earth prices for the PEA. The forecast prices are the averages
of the high and low ranges to a midpoint.
Midpoint of Roskill 2015 Forecast
Oxide |
Price
($US/kg) |
La2O3 |
27.50 |
CeO2 |
12.50 |
Pr6O11 |
100.00 |
Nd2O3 |
100.00 |
Sm2O3 |
54.00 |
Eu2O3 |
1,100.00 |
Gd2O3 |
58.00 |
Tb4O7 |
1,100.00 |
Dy2O3 |
900.00 |
HoErTmYbLu |
- |
Y2O3 |
50.00 |
Pricing Sensitivity
|
NPV Sensitivity to
Change in
Basket Price at 10% Discount Rate |
REO Price |
|
|
|
NPV ($ Million) |
80% |
|
|
|
376 |
90% |
|
|
|
466 |
100% |
|
|
|
555 |
110% |
|
|
|
644 |
120% |
|
|
|
734 |
Timelines
Production of mixed RECl (concentration and
hydrometallurgical stages) is projected to commence within 24
months of the completion of required Project financing, at a design
capacity of approximately 5,000 tonnes per year of contained
REOs.
Production of separated REOs is projected to
commence within 12 months of the commencement of RECl production at
a design capacity of approximately 5,000 tonnes per year of
separated REOs per annum.
Resource Estimate Highlights
The PEA is based on the Resource Estimate for
the Project, as filed on SEDAR on March 7,
2013, which reports 278,000 tonnes of Inferred Mineral
Resources at an average grade of 15.2% TREO and 176,000 tonnes of
Indicated Mineral Resources at an average grade of 18.2% TREO, each
using a 1% TREO cut-off grade. The Resource Estimate includes
the historic mine area (the "Monazite Mine Area"), and the
exploration areas to the east and west of the past producing
Monazite Mine Area (the "EXP Area") as well as the historic upper
tailings and lower tailings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource
Estimate(1) |
|
|
Tonnes |
|
|
Grade
TREO% |
|
|
Contained
TREO tonnes |
|
|
LREO(2)
tonnes |
|
|
HREO(2)
tonnes |
|
Monazite Mine Area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated |
|
|
71,500 |
|
|
23.0 |
|
|
16,400 |
|
|
15,200 |
|
|
1,200 |
|
|
Inferred |
|
|
95,800 |
|
|
17.1 |
|
|
16,400 |
|
|
15,100 |
|
|
1,300 |
|
EXP Area within
Existing Mining Right |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated |
|
|
68,200 |
|
|
18.1 |
|
|
12,400 |
|
|
11,400 |
|
|
1,000 |
|
|
Inferred |
|
|
181,000 |
|
|
14.2 |
|
|
25,600 |
|
|
23,500 |
|
|
2,100 |
|
Upper Tailings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated |
|
|
8,000 |
|
|
9.3 |
|
|
750 |
|
|
690 |
|
|
60 |
|
|
Inferred |
|
|
1,200 |
|
|
7.5 |
|
|
90 |
|
|
80 |
|
|
10 |
|
Lower Tailings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated |
|
|
28,600 |
|
|
8.8 |
|
|
2,500 |
|
|
2,300 |
|
|
200 |
|
|
Inferred |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
Category Totals
for
Resource Estimate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated |
|
|
176,000 |
|
|
18.2 |
|
|
32,100 |
|
|
29,600 |
|
|
2,500 |
|
|
Inferred |
|
|
278,000 |
|
|
15.2 |
|
|
42,100 |
|
|
38,700 |
|
|
3,400 |
Previous (May 2012)
estimate
Total (Monazite Mine Area,
Upper and Lower Tailings) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated |
|
|
82,090 |
|
|
16.8 |
|
|
13,800 |
|
|
12,700 |
|
|
1,100 |
|
|
Inferred |
|
|
87,160 |
|
|
16.2 |
|
|
14,100 |
|
|
13,100 |
|
|
1,100 |
(1) For the Resource Estimate, "tonnes"
and "grades" were rounded to 3 significant figures. Apparent errors
in the totals may occur due to rounding.
(2) "LREO" means lanthanum (La2O3), cerium
(CeO2), praseodymium (Pr6O11), neodymium (Nd2O3) and samarium
(Sm2O3). "HREO" means europium (Eu2O3), gadolinium (Gd2O3),
terbium (Tb4O7), dysprosium (Dy2O3), holmium (Ho2O3), thulium
(Tm2O3), ytterbium (Yb2O3) lutetium (Lu2O3) and yttrium
(Y2O3). "TREO" includes yttrium.
For a complete description of the Resource Estimate
and Technical Report please refer to the Resource Estimate, as
filed on SEDAR on March 7, 2013, at
www.sedar.com.
Steenkampskraal Project Overview
The Project is comprised of three activities, as part of GWMG's
overall five-part integrated business model, namely (i) the
underground mine and future reprocessing of tailings; (ii) the RECl
Plant that produces mixed RECl; and (iii) the solvent extraction
separation plant (the "RE Separation Plant") that produces
separated REOs. Thereafter, GWMG's integrated business model
includes installation of metal making capacity and expansion of
current alloy production capacity at Less Common Metals Limited
("LCM"), GWMG's subsidiary located in the United Kingdom.
The Project is based on a high grade / narrow vein underground
mine, which was successfully operated by Anglo American to recover thorium between 1952
and 1963. GWMG's proposed mining method, ventilation and
overall operations consist of common and conventional processes and
procedures, of which there are numerous analogues throughout
South Africa. The Project is
estimated to hoist approximately 165 tonnes per day of ROM
material.
In addition, and very importantly to the directors and
management of GWMG, the Project has been designed to, concurrently
with production, rehabilitate historical environmental impacts
caused by former operators.
Steenkampskraal Monazite Mine (Pty) Ltd ("SMM"), a subsidiary of
GWMG, was awarded a New Order Mining Right (the "Mining Right")
permitting mining operations in an area of approximately 474
hectares for a 20-year period commencing June 2, 2010. SMM also holds a Certificate
of Registration ("COR") with the South African nuclear regulators,
which authorizes processing of radioactive material with respect to
the Steenkampskraal site, including the long term storage of the
thorium by-products that will be produced. The COR also
allows SMM to apply for and obtain specific approvals for proposed
methods of storage of by-products.
Through its subsidiary Rare Earth Extraction Co. Limited, GWMG
has embarked on a mine refurbishment program which includes
establishment of surface infrastructure, rehabilitation of the
existing shaft, opening underground access and main haulages, the
re-survey of existing underground workings, and the installation of
temporary ventilation to facilitate preliminary activities.
Furthermore, the general refurbishment has permitted extensive
in-fill and exploratory diamond drilling on surface, as well as
several campaigns of underground sampling for assay and
metallurgical testwork, and geotechnical investigations.
These undertakings and investigations have facilitated the Resource
Estimate and the preparation of the PEA. In the interest of health
and safety, and to ensure efficient operations, a program of
re-vamping the raises, drives, cross-cuts and re-equipping of
services such as compressed air lines, water lines, power supply,
rails and ground handling box fronts has commenced.
Production Estimate
Production Statistics |
Main mine |
Exploration
Area |
Tailings |
Total |
Units |
Tonnes Processed |
254,714 |
323,416 |
37,753 |
615,883 |
tonnes |
TREO Grade for Base case (40% dilution of
ROM) |
12.77% |
11.75% |
8.84% |
11.99% |
percent |
TREO content |
32,515 |
38,017 |
3,337 |
73,870 |
tonnes |
RECl Plant Flotation TREO recovery |
85.0% |
85.0% |
85.5% |
N/A |
percent |
RECl Plant Hydromet TREO recovery |
85.0% |
85.0% |
77.8% |
N/A |
percent |
RECl Plant product TREO content |
23,492 |
27,467 |
2,220 |
53,179 |
tonnes |
Weighted Average RE Separation Plant recovery |
93.62% |
93.62% |
93.62% |
93.62% |
percent |
RE Separation Plant Production |
21,993 |
25,714 |
2,078 |
49,786 |
tonnes |
Mining, RECl and RE Separation Summary
The underground host rock demonstrates notable
competence as even after 50 years the majority of the excavated and
remaining old mining area shows no visible signs of stress or
instability.
The underground Monazite Mine Area will use a combination of
conventional and shrinkage stoping for flat and steeply dipping
sections of the mine, respectively. Conventional jack leg
drilling and blasting will be used, with cleaning being done by
winches scraping the broken rock down the raises to main
haulages.
The underground EXP Area is immediately adjacent to the
underground Monazite Mine Area, both contained within the New Order
Mining Right. Access to the EXP Area is planned to be through
a new separate shaft for personnel and materials. This shaft will
also be used for the intake ventilation to the workings and there
will be a separate exhaust return air raise. For the purpose
of the PEA, it has been assumed that the EXP Area mine layout will
be similar to the existing Monazite Mine Area.
The ultimate objective of the RECl Plant is to
extract the REE's from the hoisted ROM material and convert them to
a purified mixed RECl. This will be performed via comminution
processes, followed by concentration, and then several stages of
leaching to remove impurities.
The RECl Plant is being designed to treat 70,000
tonnes per annum, or approximately 192 tonnes per day, of hoisted
ROM feedstock, which is estimated to be sufficient to produce RECl
containing up to 6,000 tonnes of REOs per annum. The ROM will be
stockpiled on surface to be conveyed to the RECl Plant.
Preparation of ROM will include primary and secondary crushing
followed by ball milling. The milled material will then be floated
to remove copper and iron sulphides, followed by a monazite float
to concentrate the REE-containing monazite. This will be cracked
and followed by water and acid leaching to remove impurities and
convert the REEs to a mixed RECl. Flotation tails and precipitated
impurities will be stockpiled under controlled conditions pending
re-use or recycle. The mixed RECl will be hauled to the RE
Separation Plant at Vredendal in the Western Cape of South Africa, located approximately 100
kilometres from the Steenkampskraal mine site.
There exists the potential to produce an
alternative product in the form of a RE carbonate from the RECl
Plant, subject to process development and proof of economic
feasibility. Operations at the Steenkampskraal site are
designed to remediate historical environmental impacts from
previous operators.
The mixed RECl will then be separated and
converted into individual REOs using a series of solvent extraction
steps. Metals from the purified solutions will subsequently be
precipitated and calcined to convert to REOs. No waste products
will be stored at the RE Separation Plant.
Certain individual REOs (mainly those used in
magnet alloys) will be shipped to and utilized by LCM for further
processing into metals and alloys for its customers, while the
balance of the REOs produced will be sold into the spot
market. This comparatively short-term spot market approach is
the industry norm. However, GWMG is investigating the potential for
off-take arrangements.
Human Resources Summary
The Company's project management team will deal with an EPCM
contractor who will manage all contractors during the planning,
construction and operations phases of the Steenkampskraal
operation. Led by the Project Director, the team will include a
cross-section of experience and skills to ensure that appropriate
expertise is available for comprehensive review of all areas of the
mine, RECl Plant and RE Separation Plant.
It is anticipated that approximately 450 employees will be
required throughout the operation including the mining, chloride
production and separation components. It is also anticipated
that the Company will engage in a significant level of staff
training in order to ensure that sufficient multi-skilling and
cross-training are achieved in order to minimize staffing
levels.
Mineral Processing and Metallurgical Testing
Various mineral processing and metallurgical
investigations have been undertaken on samples from the Project,
including test work by SGS South Africa (Pty) Ltd. The
current testing program consists of accelerated parallel testing at
Mintek (South Africa) in respect
of optimization of flotation and hydrometallurgical leaching tests,
as well as by the Saskatchewan Research Council.
Conceptually, processing of the monazite-rich concentrate will
consist of two basic components. Beneficiation, which produces a
mineral concentrate and consists of crushing, milling, and
concentration technology such as gravity, magnetic, and flotation
techniques and leaching which takes the mineral concentrates and
produces a liquid chloride solution of mixed RECl.
The mixed RECl Plant will be constructed at the
Steenkampskraal mine site, where thorium will be separated from the
concentrate to meet the required specifications for the RE
Separation Plant and to meet regulations to allow shipment.
Design work for the mine and processing plants
commenced under the guidance of DRA Mineral Projects of
South Africa ("DRA"). DRA
has an excellent track record of utilizing world class standards in
its design work and is well qualified for the Project.
The monazite concentrate has been successfully
tested to create a mixed RE chloride solution, with the potential
to produce an alternative product, namely an RE carbonate,
currently being evaluated as an opportunity to advance cash flow.
The testwork continues to further optimize process conditions and
reagent consumptions for all stages of treatment.
Environmental Plan
The Steenkampskraal Project is being advanced under an existing
and valid Environmental Management Programme and Environmental
Impact Assessment that has been reviewed and accepted by the
applicable governing bodies of the Government of South Africa. As changes in Company
plans or government regulations arise, the Company will take all
necessary steps to ensure it remains fully compliant with current
regulatory requirements.
On site, secure, fortified, long term storage will be authorized
under the Company's COR, and consequently there will be no
requirement for off-site transportation of any radioactive
materials. The final storage procedure is to be assessed and
confirmed according to National Nuclear Regulator and international
standards.
Options under Evaluation
Although the PEA focuses on the Steenkampskraal Project, the
Company is convinced it is uniquely positioned within the rare
earth sector due its ownership of LCM. The alloy manufacturing
capability of LCM provides the Company with ready access to
international markets. The Company's fully integrated
business model and the long established business relationships
earned by LCM over a 21 year time frame, provide a high level of
competitive advantage.
In the course of evaluating its strategic options for the
development of rare earth separation capacity, the Company has
focused on the construction of the RE Separation Plant at Vredendal
in the Western Cape of South
Africa, located approximately 100 kilometres from the
Steenkampskraal mine site. In addition to constructing the RE
Separation Plant, and as a means to achieve revenue in the shortest
timeframe, the Company continues to evaluate the potential for
entering into a tolling arrangement whereby the mixed rare earth
product produced at the RECl Plant could be separated through the
facilities of a third party. This strategy, if followed and
successful, would significantly reduce initial capital requirements
for the Project, thereby positively impacting the Net Present
Value.
There also exists the potential to produce an alternative
product in the form of a RE carbonate from the RECl Plant, subject
to further examination of chemical and economic feasibility.
The Company recognizes the funding requirements
to deliver the project and the primary objective of generating cash
flow at the earliest date possible, and is aggressively pursuing
its options with the following priorities:
- Reductions in capital requirements through the additional
studies currently underway as recommended by the Company's advisors
and building to the standard of "fit for purpose" and
- Investigating the potential for an off-take arrangement
leveraging off of our existing knowledge of downstream customers
and the interest in securing a long term supply of metals.
The PEA is based on a Mineral Resource estimate
and Technical Report (the "Resource Estimate") prepared in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101"), as announced and
filed on SEDAR on March 7,
2013. The current Resource Estimate indicates a
material increase in resources at the Steenkampskraal project (the
"Project") as compared to the May 31,
2012 resource estimate. The Company will file a technical
report in respect of the PEA within the next 45 days on SEDAR under
GWMG's profile at www.sedar.com. The PEA was prepared by
Snowden Mining Industry Consultants (Pty) Ltd. ("Snowden") of
Johannesburg, South Africa.
Qualified Persons
The PEA was prepared by Mr Bill McKechnie, BSc. (Hons), Pr.Sci.Nat, MSAIMM,
MGSSA, the General Manager, Africa Region of Snowden Mining
Industry Consultants (Pty) Ltd. Mr. McKechnie consents to the
inclusion in this news release of the matters based on his
information in the form and context in which it appears. Mr.
McKechnie has sufficient experience relevant to the activity which
he is undertaking to qualify as a Qualified Person as defined under
NI 43-101 and supervised the preparation of the contents of the PEA
disclosure in this news release.
The Resource Estimate was prepared by Mr.
Ivor Jones, B.Sc. (Hons.), MSc,
FAusIMM, CP Geo., the Group General Manager - Geosciences of
Snowden Mining Industry Consultants (Pty) Ltd. Mr. Jones
consents to the inclusion in this news release of the matters based
on his information in the form and context in which it
appears. Mr. Jones has sufficient experience relevant to the
activity which he is undertaking to qualify as a Qualified Person
as defined under NI 43-101 and reviewed the contents of the
Resource Estimate disclosure in this news release.
Snowden was assisted by Dr. John Hancox, Pr.Sci.Nat., General Manager,
Africa of Caracle Creek
International Consulting (Pty) Limited of Johannesburg in the preparation of the
Resource Estimate. Dr. Hancox provided geological
interpretations and the drillhole and underground channel sampling
database for the Resource Estimate. Dr. Hancox has sufficient
experience relevant to the style of mineralization and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Qualified Person as defined under NI
43-101 and has reviewed the contents of the Resource Estimate
sections of this news release.
Brent C.
Jellicoe, B.Sc. (Hon.), P.Geo., Director of International
Exploration for GWMG, is the Qualified Person responsible for
supervising the preparation of the technical content of this news
release.
Conference Call
A Conference Call to discuss the results of the
PEA news release with President & CEO Marc LeVier as well as members of the GWMG
management team is scheduled for Wednesday,
March 20 at 1:00 p.m. Eastern
Standard Time, 5:00 p.m.
London Time.
Participants can sign up for the conference call
as follows:
- Conference ID: 23429365
- 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/detail/1128523/1230937
Conference call numbers: |
North American Toll Free: |
1-888-231-8191 |
Local Dial-In #: |
(647) 427-7450 |
International Toll-Free Dial-In Number(s): |
Australia |
1-800-287-011 |
Belgium |
0-800-74-310 |
China, North |
10-800-714-1191 |
China, South |
10-800-140-1195 |
Germany |
0-800-183-0171 |
Hong Kong |
800-901-563 |
India |
000-800-100-8120 |
Japan |
00-53-11-60-858 |
Netherlands |
0-800-022-1164 |
South Africa |
0-800-983-113 |
United Kingdom |
0-800-051-7107 |
|
Encore presentation of conference call: |
Toll Free Dial-in Number: |
1.855.859.2056 |
Local Dial-in Numbers: |
403.451.9481 |
778.371.8506 |
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Encore Password: 23429365 |
Encore Dates: March 20, 2013 at
16:00 ET to March 27, 2013 at 23:59 ET |
Corporate Summary
Great Western Minerals Group Ltd. is engaged in
becoming an integrated rare earth producer. 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 Ellesmere, U.K. and Great Western Technologies Inc. in
Troy, Michigan, these alloys
contain transition metals including nickel, cobalt, iron 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 controls the Steenkampskraal monazite
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.
Cautionary Statements
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 assumptions and estimates
in the preliminary economic assessment of the Steenkampskraal
project proving to be accurate over time; the construction,
commissioning and operation of the proposed monazite processing
facility and separation facility within estimated parameters;
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, including
those estimated in the preliminary economic assessment of the
Steenkampskraal project; 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.
Cautionary Note For US Investors Concerning
Estimates of Indicated and Inferred Resources
This press release uses the terms "Indicated"
and "Inferred" resources. United
States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States Securities and Exchange
Commission does not recognize them. "Inferred" mineral resources
have a great amount of uncertainty as to their existence, and as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an Inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred
mineral resources may not form the basis of feasibility or other
economic studies except in limited circumstances and with specific
notification to the reader. United
States investors are cautioned not to assume that all or any
part of any mineral resources will ever be converted into mineral
Reserves (as defined under NI 43-101). United States investors are also cautioned not
to assume that all or any part of an Inferred mineral resource
exists, or is economically or legally mineable.
SOURCE Great Western Minerals Group Ltd.