Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

January 24, 2007 16:59 ET

Great Western Minerals Group Ltd.: Winter Work Program Underway at Hoidas Lake

SASKATOON, SASKATCHEWAN--(CCNMatthews - Jan. 24, 2007) - Great Western Minerals Group Ltd.(TSX VENTURE:GWG) (PINK SHEETS:GWMGF): The Company is pleased to report that the 2006/2007 winter exploration and development program at the Company's 100%-owned Hoidas Lake rare earth project is underway.

The work program consists of approximately 3,700 m of core drilling with a budget of $1.7 million. Program objectives include:

1. expanding and upgrading the resource estimate by drill testing the down dip extension of the JAK Zone vein system which is currently open in all directions (500 m of core drilling);

2. obtaining approximately 12 to 15 tonnes of unweathered, representative JAK Zone vein material for pilot plant testing (1,500 m of core drilling);

3. carrying out geotechnical testing of the hanging wall rock, foot wall rock and vein system rock for mine planning purposes and for geotechnical testing of the areas of the proposed tailings impoundment area and tailings dams (1,700 m of core drilling).

The geotechnical program is under the direction of Wardrop Engineering Inc., the lead engineering firm for the Preliminary Economic Evaluation Study, and Golder Associates, environmental managers for the project (see news release dated July 31 2006).

Melis Engineering Ltd. is currently conducting the metallurgical testing and includes defining the processing method, conceptual flowsheet and consumables related to processing the Hoidas Lake material. This work is currently taking place at Lakefield Laboratories in Lakefield, ON. Once the optimal process has been defined, Melis Engineering will undertake the Pilot Plant design and testing utilizing the sample that is being collected during the current drilling program.

Great Western Minerals Group Ltd. is a Saskatchewan-based mineral exploration and development company with interests in advanced stage mineral properties hosting rare earth elements, copper, gold and diamonds (through its subsidiary Great Western Diamonds Corp., TSX-V:GWD). The Company's near-term goal is to become the only vertically integrated supplier of rare earth products in North America through the development of the Hoidas Lake project and the operations of its US Subsidiary, Great Western Technologies Inc., currently in production serving clients in the automotive and aerospace industries.

The rare earth elements are key components in many alternative energy applications including the rechargeable batteries and electric motors used in hybrid vehicles-a target market undergoing rapid growth globally. With North America's near-100% reliance on China for REEs, and China increasing consumption of REEs internally along with actively restricting exports of some REEs and increasing export tariffs on all REEs, the need to develop REE sources outside China is now critical.

Gary L. Billingsley, C.A. , P.Eng., P.Geo., Chairman

CUSIP: 39141Y 10 3

(The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the foregoing contents)

Contact Information

  • Great Western Minerals Group Ltd.
    Gordon Dent
    (306) 668-0701
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent, Saskatoon, SK S7L 6H8