Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

December 04, 2007 17:23 ET

Great Western Minerals Expands Drill Program at Hoidas Lake

SASKATOON, SASKATCHEWAN--(Marketwire - Dec. 4, 2007) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) ("GWMG" or "the Company") is pleased to announce that it is expanding its drill program at its Hoidas Lake Rare Earth Elements ("REE") property located 50 km northeast of Uranium City in Northern Saskatchewan. The purpose of this program is to test the zone along strike and to depth with the objective of increasing the tonnage in this zone to a level that could support a 1,000 tonne per day operation from the current 500 tonne per day base case.

This program is expected to commence in mid-January 2008, and will include a minimum of 6,000 m, stepping out along the previously identified VLF conductor as well as extending the JAK Zone to depth. GWMG will mobilize one drill initially, and possibly add a second drill if and when one becomes available, to increase the amount of drilling to 8000 m. The anticipated cost of this program will be $2MM, and results are expected by late summer 2008.

From previous drilling, the JAK Zone has been drill tested over a strike length of 750 m and to a depth of 150 m. Continuity of the zone has been established to the full depth of 150 m and widths of 3 m to 16 m along multiple vein sets. The zone is open at depth and along strike and has been identified through geophysics (VLF-EM and Magnetics) for a further 250 m to the north and 1000 m to the south.

Wardrop Engineering, in a 2006 Resource Model indicated a total resource of 1.5 MM tonnes measured, indicated and inferred at a cut-off grade of 1.5% Total REE. GWMG sees tremendous potential for increasing the indicated and inferred resources at Hoidas Lake by extending this zone beyond the initial 750 m strike and 150 m depth. In addition, the presence of other REE showings along the 12 km corridor of the Nisikkatch-Hoidas Fault is highly encouraging for increasing the size of the resource, especially in the south Nisikkatch Lake area.

The decision to increase the size of the operation is based on independent projections showing a significant gap between supply and demand by 2012 even if other potential producers come on-stream.

Jim Engdahl, President and CEO of Great Western Minerals Group said, "Although we are completing the Preliminary Economic Assessment Report for Hoidas Lake, given the projected long-term global demand for rare earth elements, we have decided to move ahead more aggressively with the Hoidas Lake project to expand our resource base to support higher production levels".

Engdahl adds, "In a recent industry conference in Hong Kong, the users of rare earths in the industrial, automotive and technology sectors made it very clear that there is a serious concern about an impending potential shortfall in the supply of rare earth elements. The effects of a shortfall could be economically crippling across a wide range of sectors in terms of limiting the development of new technologies that require rare earths in their applications. Under these circumstances, we believe it's the right decision to scale up the Hoidas Lake project to be in the right place at the right time to meet the global demands for rare earth elements."

Gary L. Billingsley, P.Eng., P.Geo., is the Qualified Person responsible for reviewing the contents of this release.

Great Western Minerals Group Ltd. is a Canadian based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiary Great Western Technologies Inc., located in Troy, Michigan, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.

Jim Engdahl, President

CUSIP: 39141Y 10 3

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Contact Information

  • Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 668-0701
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8