Press release from Marketwire
Great Western Minerals Group Reports Additional High Grade Steenkampskraal Rare Earth Assay Results
Thursday, June 07, 2012
Great Western Minerals Group Reports Additional High Grade Steenkampskraal Rare Earth Assay Results09:00 EDT Thursday, June 07, 2012SASKATOON, SASKATCHEWAN--(Marketwire - June 7, 2012) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG)(OTCQX:GWMGF) is pleased to announce assay results for the Company's Steenkampskraal rare earth Project in South Africa. Highlights include:Assays varying from 0.41 to 45.15 weight percent ("wt.%")Total Rare Earth Oxides ("TREO")+Yttrium ("Y2O3") with an average of 19.3 wt.% TREO+Y2O3from channel and core samples from the Main Mineralization Zone. Higher distribution of Neodymium, Dysprosium and Terbium compared to the Company's historical data, all of which are critical elements to GWMG's alloy manufacturing operations.Of 1,319 samples collected to date, this report summarizes analytical results from 972. This includes 198 assays previously reported (See: GWMG media release April 10, 2012). The remaining 347 assays will be included in future updates. All assays included in this media release, with the exception of the Rock Dump assay results, were included in GWMG's National Instrument 43-101 Resource Estimate and Technical Report (See: GWMG media release May 31, 2012).Table 1: Sample DistributionAll Resource Core + Phase 1 U/GPhase 2 U/G + Exploration Core1st+ 2nd Shipment3rd ShipmentAll ShipmentsCategorySamplesQA SamplesTotalSamplesQA SamplesTotalGrand TotalCore2029629813861199497Underground Channels128641929652148340Tailings270125395000395Rock Dump60278700087Totals6593129722341133471,319REE Assays used in the Resource Estimate:972Completed REE Assays:0Detailed tables, a drill plan map and all data used in calculating average Rare Earth Oxides ("REO") and TREO are located on the GWMG website at www.gwmg.ca/gwmg-nr-7-jun-12.html.Assay results were used for confirmation of historical data and were included in the National Instrument 43-101 Resource Estimate and Technical Report ("Resource Estimate") that was completed and disclosed by GWMG on May 31, 2012. These data include results from:Underground channel sampling, Drilling HQ core holes targeting the historic mine workings, Drilling the two tailings dams, and Rock dump sampling through small excavations. The area targeted by drilling and underground channel sampling is referred to as the "Main Mineralization Zone". Assays reported for core and channel samples in this disclosure are weighted-average composites by interval length across each monazite intercept whether in drill core or in an underground channel.GWMG President and Chief Executive Officer Jim Engdahl said, "Steenkampskraal continues to produce very high grade rare earth assay results. We are very pleased that the results to date have continued to meet or exceed the historical data on which GWMG made its decision to acquire the Steenkampskraal project. Equally important is the fact that the distribution of rare earth elements which are critical to GWMG's downstream operations has proved to be even higher than the historical data had indicated. GWMG considers this to be a strong indication of the potential for a robust project at Steenkampskraal." Underground Channel Sampling:Highlights of Underground Channel Sampling (Table 2 www.gwmg.ca/gwmg-nr-7-jun-12.html ):Assay results vary from 6.9 to 38.6 wt.% TREO.Weighted average for all channel samples of 23.4 wt.% TREO. Weighted average for all channel samples of 24.5 wt.% TREO+Y2O3.Phase 1 yielded 127 samples of monazite vein as well as the adjacent hangingwall and footwall material, regardless of rock character or presence of mineralization. Samples were collected from 37 channels across three levels (Levels 2, 2.5, and 3) and over a strike length of approximately 300 metres of the historic Steenkampskraal Monazite Mine. Channels were cut in-situ by rock saw which produces a reliable, representative sample. Thirty-three of the channels were vertical cuts and the remaining four were angled between -45 to -80 degrees. All samples were submitted to SGS Canada for assay after preparation of a pulp at SGS Johannesburg in South Africa. Assay results for both channel samples and drill core were weighted by interval length where more than one sample of mineralization was acquired.HQ Drill Core:Highlights of the HQ Drill Core program (Table 3 www.gwmg.ca/gwmg-nr-7-jun-12.html):Assay results vary from 0.4 to 28.3% wt.% TREO.Weighted average of 12.6 wt.% TREO. Weighted average for all mineralized drill intervals of 13.2 wt.% TREO+Y2O3. Evaluation drill holes were targeted on the monazite vein to provide information on the character of the mineralization and for the recently completed Resource Estimate. 202 samples of split HQ core were collected from mineralized, hangingwall, and footwall intervals in 22 resource and metallurgical drill holes. In general, intervals were 0.5 metres in length, but were adjusted to honour lithological contacts. Intervals of less than approximately 0.4 metres typically included bounding host rock in order to maintain continuity of average sample size for resource modeling. These assay results reflect an inherent measure of dilution. The Steenkampskraal monazite is characteristically Light Rare Earth Oxide ("LREO")-rich with an average LREO to Heavy Rare Earth Oxide ("HREO") ratio of 24:1 (not including Y2O3 with the HREOs).Relative densities for core were measured yielding a range of specific gravity from 2.7 to 4.2, and a weighted average of 3.1. In comparison, a pure Cerium-monazite will have a specific gravity varying from 4.9 to 5.1. Individual Rare Earth Oxide Assay Results for Main Mineralization Zone:Highlights (Table 4 www.gwmg.ca/gwmg-nr-7-jun-12.html):TREO for the combined core plus channel sample dataset varying from 0.39 to 43.44 wt.%.TREO+Y2O3varying from 0.41 to 45.15 wt.% with a weighted average of 19.3 wt.%.LREO* varying from 0.31 to 41.8 wt.%.HREO** varying from 0.02 to 1.6 wt.%.*LREO: Light Rare Earth Oxides, includes the oxides of lanthanum (La2O3), cerium (CeO2), praseodymium (Pr6O11), neodymium (Nd2O3) and samarium (Sm2O3). **HREO: Heavy Rare Earth Oxides includes the oxides of europium (Eu2O3), gadolinium (Gd2O3), terbium (Tb4O7), dysprosium (Dy2O3), holmium (Ho2O3), erbium (Er2O3), thulium (Tm2O3), ytterbium (Yb2O3), lutetium (Lu2O3) and yttrium (Y2O3).Table 4: Individual Rare Earth Oxide Assay Results for Main Mineralization ZoneRE Oxide# of RecordsMin (wt.%)Max (wt. %)Mean (wt. %)La2O31220.08339.45334.0262CeO21220.181720.82998.7321Pr6O111220.02172.31810.9906Nd2O31220.07707.93033.4133Sm2O31220.01281.27860.5345Eu2O31220.00030.02760.0116Gd2O31220.00840.83480.3610Tb4O71220.00110.10230.0429Dy2O31220.00410.42030.1860Ho2O31220.00060.06580.0278Er2O31220.00130.12820.0546Tm2O31220.00010.01230.0051Yb2O31220.00070.05100.0210Lu2O31220.00010.00520.0021Y2O31220.01781.71490.7667TREO1220.390043.439518.4085LREO1220.380041.805917.6967HREO1220.02001.64000.7119LRE/HRE12221.1128.8924.41Density632.544.503.35Hangingwall and Footwall:Similar tables were prepared for the hangingwall (Table 5 www.gwmg.ca/gwmg-nr-7-jun-12.html) and footwall (Table 6 www.gwmg.ca/gwmg-nr-7-jun-12.html) of the monazite vein. Highlights of the Hangingwall and Footwall sampling were:Hangingwall TREO+Y2O3varied from 1.1 to 4.0 wt.% and averaged 2.2 wt.%.Footwall TREO+Y2O3varied from 0.02 to 6.8 wt.% and an average of 2.3 wt.%.Tailings Dams:Highlights of the Tailings Dams sampling (Table 7 www.gwmg.ca/gwmg-nr-7-jun-12.html ):Assays for the Upper Tailings Dam vary from 0.68 to 22.1 wt.% TREO+Y2O3with an unweighted average of 8.6 wt.% TREO+Y2O3. Assays for the Lower Tailings Dam vary from 0.04 to 24.3 wt.% TREO+Y2O3with an unweighted average of 8.7 wt.% TREO+Y2O3.The Upper Tailings Dam (historic processed material) varies in thickness from 0.23 to 3.5 metres and averages 1.5 metres. The larger Lower Tailings Dam varies from 0.14 to 3.35 metres thick and averages 1.3 metres. Both tailings dams were sampled on a 10 x 10 metre grid using a manual coring procedure to the base of the tailings. Rock Dump:Highlights of the Rock Dump sampling (Table 8 at www.gwmg.ca/gwmg-nr-7-jun-12.html ):Assays vary from 0.14 to 12.11 wt.% TREO+Y2O3with an arithmetic average of 4.63 wt.%TREO+Y2O3.Comparison of Tested Distribution to Historical Data:The distribution of REOs in the core and channel samples showed significantly higher values than published historic data for those oxides of importance to GWMG and its alloy processing operations which produce permanent magnet alloys. A comparison of individual REO assay results from combined core plus channels relative to historical results is contained in Table 9 (www.gwmg.ca/gwmg-nr-7-jun-12.html).Highlights of Comparison of Tested Distribution to Historical Data:Neodymium improved by 7%.Samarium improved by 12%.Dysprosium improved by 45%.Terbium improved by 175%.Not including Y2O3, the HREOs as a group increased by over 33%.Table 9: Comparison of Tested REO Distribution to Historical DataOxideCombined Core + Channel Sample Distribution (% REO)Historical Distribution (% REO)Difference Core + Channel Assays vs. Historical (% difference)Tailings Dams Distribution (% REO)La2O321.0021.67-3.120.71CeO245.5446.67-2.444.20Pr6O115.175.00+3.45.12Nd2O317.8016.67+6.817.63Sm2O32.792.50+122.92Eu2O30.060.08-250.07Gd2O31.881.67+132.14Tb4O70.220.08+1750.26Dy2O30.970.67+451.23Ho2O30.140.05+1800.18Er2O30.280.08+2500.36Tm2O30.030.07-570.03Yb2O30.110.07+570.14Lu2O30.010.0100.01Y2O34.005.00-205.01TREO+Y2O3 (rounded)100%100%100%LREO92.2892.51-0.2590.57HREO (not incl. Y2O3)3.712.78+33.54.42In addition to REE analysis, all core, channel, tailings, and rock dump samples are also being assayed for copper, gold, silver, and phosphate content. Results will be disclosed when the entire dataset is received.Sample preparation was conducted by SGS South Africa at their facility in Johannesburg and the REE analyses were completed at the SGS Canada Inc. laboratory in Don Mills, Ontario using a sodium peroxide fusion procedure with ICP-MS finish. SGS is accredited to the ISO 9001 standard and operates according to SGS Group standards consistent with ISO 17025 methods at other laboratories. Strict internal quality control procedures were implemented using randomly inserted blanks, duplicates, and certified reference materials (standards), which were blinded to the analytical laboratory.The analytical results were evaluated by Brent Jellicoe, P.Geo., the Qualified Person responsible for supervising the preparation of the technical portions of this news release, with support by suitably qualified persons from Caracle Creek International Consultants (CCIC) in Johannesburg, South Africa. Great Western Minerals Group Ltd is an integrated Rare Earths 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.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 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 current annual information form available at www.sedar.comCUSIP: 39141Y 10 3 FOR FURTHER INFORMATION PLEASE CONTACT: Dwight PercyGreat Western Minerals Group Ltd.Manager of Investor Relations(306) firstname.lastname@example.orgOR219 Robin CrescentGreat Western Minerals Group Ltd.Saskatoon, SK S7L 6M8www.gwmg.caNeither 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.