SASKATOON, SK, July 25, 2013 /PRNewswire/ - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX.V: GWG / OTCQX: GWMGF), a leader in the manufacture and supply of rare earth-based metal alloys and high purity metals with a low cost, high-grade critical rare earth asset (the "Steenkampskraal Project" or "SKK"), has delivered its high-purity yttrium oxide supply chain assessment to the Department of Defense ("DoD"). In close coordination with major defense contractors, the Company found that military requirements from 2011 to 2015 for high-purity yttria are 40 to 50 tonnes per year higher than previous DoD life-cycle sustainment estimates, and that there are processing gaps in the supply chain.
|DoD Life-Cycle Sustainment Estimate, Average 2011-2015 (Sept. 2012)||126||168||168|
|Additional Demand Identified by Field Work||40||40||50|
|Total Average Military Requirement||166||218||238|
|Mitigation Options (2015)||
Minimum - Maximum Foreign Dependence
% Military Requirement
|Scenario 1: Domestic Raw Yttrium Supply & Processing Only ("Domestic Production")||
(154 - 211)
78% - 89%
|Scenario 2: Domestic Production, DoD Recycling with Foreign Toll-Processing||
(99 - 156)
50% - 66%
|Scenario 3: Domestic Production, Consignment of All non-Chinese Yttrium Supply with Foreign Toll-Processing||
(79 - 136)
40% - 57%
|Scenario 4: Domestic Production, DoD Recycling and Consignment of All non-Chinese Yttrium Supply with Foreign Toll-Processing||
(24 - 81)
12% - 34%
"In addition to the growing magnitude of military requirements, our report concludes that newly-mined and recycled yttria in the United States will be unable to meet this requirement until about 2019," stated GWMG President and CEO Marc LeVier. "Considering the long-lived bottlenecks for raw yttrium production and yttria refining indicated by this work, the high-grade resource at SKK once funded and producing is capable of delivering this critical material to military contractors."
Yttrium oxide is used in a wide variety of ceramics and phosphors for military systems including thermal barrier coatings for jet engines, investment casting of titanium parts, night vision crystals and high-temperature superconductors. Importantly, the Company's Manufacturing Services segment also manufactures specialty metal alloys which include nickel, cobalt, titanium, magnet, aluminum and yttrium.
Great Western Minerals Group Ltd. is a leader in the manufacture and supply of rare earth-based alloys and high purity metals with a low cost, high-grade critical rare earth asset. 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 Port, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain transition metals, including nickel, cobalt, iron and other 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 South Africa. The Company also holds interests in four rare earth exploration and development properties in North America that are not active.
The Company routinely posts news and other information on its website at www.gwmg.ca.
Neither the 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 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 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.