Great Western Minerals Group to launch Preliminary Economic Assessment for Hoidas Lake Rare Earth Project
TSX Venture Symbol: GWG
CUSIP: 39141Y 10 3
SASKATOON, Sept. 25, 2012 /PRNewswire/ - Great Western Minerals Group Ltd. ("GWMG" or the "Company"), (TSXV: GWG) is pleased to announce it will undertake a Preliminary Economic Assessment ("PEA") for its Hoidas Lake rare earth project based on promising large-scale lab results.
Combined beneficiation/metallurgical test work has successfully produced a rare earth rough concentrate as well as a phosphate concentrate. That was followed by further hydrometallurgical test work that produced a mixed rare earth carbonate and fertilizer that can either be saleable products or used for further rare earth separation.
The large-scale lab results received from the Chinese institute with which GWMG has been working during the past two years included the following:
(Summary report at http://www.gwmg.ca/_gwmg-nr-25-sep-12.html):
- The test results for the magnetic separation-flotation process indicate that the total rare earth recovery in the rare earth and apatite concentrates is 89.45%.
- The hydrometallurgical treatment of the rare earth rough concentrate included sulfuric acid roasting, water leaching, double-salt precipitation, caustic soda transformation, hydrochloric acid selective dissolution, radium removal and precipitation by ammonium carbonate. It resulted in a rare earth recovery of 78.62% in the produced mixed rare earth carbonate.
- Extraction of rare earths and phosphorus from apatite concentrate using the developed process included nitric acid treatment, neutralization and precipitation, sulfuric acid roasting of the residue, water leaching and preparing rare earth product, plus gypsum precipitation and liquid ammonia neutralization of the filtrate. It resulted in a rare earth recovery of 78.64% in the produced mixed rare earth carbonate.
- The combined beneficiation-metallurgical process resulted in an overall rare earth recovery of 70.33%, comprised of 38.68% from rare earth rough concentrate and 31.65% from apatite concentrate. The phosphate recovery from the apatite concentrate was 92.5% in the produced Nitrogen-Phosphorous complex fertilizer. The specifications of both the mixed rare earth carbonate and the fertilizer, according to GWMG's preliminary assessments, meet market requirements.
GWMG President and Chief Executive Officer Jim Engdahl said, "The promising test results for our Neodymium-enriched Hoidas Lake project have confirmed the validity of our original assumptions on the processes that are most likely to be successful. The positive results from the large-scale lab work have led GWMG to move ahead with a PEA for Hoidas that will also address the issues of its remote location now that we have removed the metallurgical bottlenecks from the project."
Gary Billingsley, C.A., P.Eng., P.Geo., Executive Chairman of GMWG, is the Qualified Person responsible for supervising the preparation of the contents of this news release.
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 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, reliance on third parties to meet projected timelines, commencement of production at Steenkampskraal, risks related to the receipt of all required, 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 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 and Canada, radioactivity and related issues, dependence on a limited number of mineral projects, 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 annual information form available at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.