Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

October 11, 2007 10:53 ET

Great Western Minerals Group Updates Strategic Plan

SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 11, 2007) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) ("GWMG" or "the Company") is pleased to provide an update of its "mine-to-market" strategy to become a fully integrated explorer and developer of rare earth elements and other strategic metals in North America.

The recent financing of $9,775,000 significantly increased the Company's cash position, allowing it to proceed more aggressively with development plans on its flagship Hoidas Lake rare earth element property, conduct further exploration on the recently acquired Utah rare earth property, and further evaluate its other strategic metals properties in North America including Chuckwalla (California), Copper Hill (Nevada) and Crescent (California / Oregon).

In addition, the growth strategy includes Great Western Technologies Inc. ("GWTI"), the Company's wholly-owned subsidiary located in Troy Michigan.

Hoidas Lake: The mineral targets on this 10,188 hectare property are the rare earth elements, with the potential for a phosphate byproduct. Phosphate is an integral component of fertilizer and other products for which there is a readily available market. GWMG has allocated $1,500,000 for further work on the Hoidas Lake project and continues to stake more ground in the area

GWMG is waiting for the final Preliminary Economic Assessment Report from Wardrop Engineering. The company expects to receive the first draft report prior to October 15, 2007 and expects to provide a further update within 3-4 weeks once the report has been received and reviewed.

In addition, Lakefield Research continues with Phase 2 metallurgy evaluation to develop the most cost-effective method for enhancing grades and minimizing costs in the processing and refining of GWMG's rare earth samples. Initial results, using state-of-the-art sorting technology, combined with a finer ore grind and a weaker acid-leach, have been very positive. Further testing is in progress and, if subsequent results confirm the initial results, the Preliminary Economic Assessment Report will be updated to reflect the process changes.

GWMG's "mines-to-market" leadership strategy has attracted the attention of prospective industrial users, governments, and development partners worldwide. In recognition of this strategy, the Company also continues to be presented with other rare earth opportunities. These opportunities of merit are primarily in North America but often originate from other parts of the world as well. GWMG will continue to investigate such properties of merit, particularly those in North America. An example of this approach is the recently acquired property in Utah.

Utah Project: The mineral targets on this recently acquired 17,094 hectare property are the rare earth elements. GWMG has budgeted $500,000 for Phase 1 of the exploration program, which was previously announced on 18 September 2007. The program includes systematic mapping and sampling of the property; detailed analysis of the samples to identify the minerals present in the sands; assaying for all potentially economic elements including rare earths; assessing the effectiveness of various screening and sorting techniques; and prioritizing target areas for Phase 2 follow-up drilling.

The goal of the Phase 1 and Phase 2 programs is to compile sufficient data to complete a 43-101 compliant resource estimate, suitable for a Preliminary Economic Assessment Report and move toward a feasibility study. Phase 1 field work will be completed, and assay results are expected to be received and compiled over the next two months. The Phase 2 work program should be defined by January 2008.

Great Western Technologies Inc. is an integral component in GWMG's "mines-to-market" strategy. Industry and Government both understand that without readily available domestic rare earth supply and without North American production and processing facilities, there will be a significant negative impact on the development of new products and technologies that rely on those elements.

GWTI already produces many specialized alloys for a wide variety of industries that rely on rare earth elements, and continues to work with a cross-section of major industrial users in the auto, aerospace, magnet, battery and other specialized industry sectors. GWTI continues to make progress in acquiring contracts and collaborative agreements within these sectors and anticipates positive cash flow during the 2008 calendar year.

GWMG also plans additional work on its other strategic metals projects. The overall objective will be to increase shareholder value by further developing the potential of these properties through additional exploration work. The Company will also review opportunities to best achieve shareholder value from these properties, while maintaining its primary focus of becoming a "fully integrated mines-to-market rare-earth and strategic metals production company".

Chuckwalla: The mineral targets on this property include copper, gold, and silver. GWMG has an option to earn a 100% interest in 55 claims on this 500 hectare property in San Bernardino County in California.

Santa Fe Mining Company, from its previous work, described the "South Andesite Block A" on this property as having a tonnage potential of 20 million tons grading 3.7% copper using a 0.5% cutoff. Santa Fe also described the second target, the "South Andesite Block B", as having a tonnage potential of 6 million tons with the same grade as Block A. Santa Fe also noted that both target blocks contain high-grade gold values, but did not quantify those values in terms of an average for the two target blocks. It is important to note that these results are provided as historic information only. The previous work is not NI 43-101 compliant and, as such, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources.

The Company has completed a significant amount of work on the property including surface mapping and sampling; ground geophysical surveys; and ground geochemistry surveys. This work did outline two extensive areas of anomalous copper/gold/silver mineralization from which several drill targets were selected. Permits have been obtained for the drilling.

During the next 12 months, GWMG budgeted $500,000 for this property, mainly on drilling and assaying/metallurgy.

Copper Hill: The mineral targets on this 2,200 hectare property include copper, molybdenum, gold and silver. This property also includes several former producing gold mines. These were all mined near surface, and there is excellent potential for a significant bonanza gold target at depth. The area has produced over 500,000 ounces of gold from these workings. Results from GWMG's exploration work, including surface alteration mapping, ground geophysical surveys, and two extensive Mobile Metal Ion surveys, outlined a significant copper/molybdenum anomaly in the western portion of the property and a highly anomalous gold signature over most of the eastern part of the property, both of which require further exploration.

During the next 12 months, GWMG expects that $750,000 will be spent on exploration activities including further ground geophysics, drill target selection and drilling.

The Crescent Nickel/Cobalt Project is currently under review. In consideration of the Company's ambitious exploration and development plans for its other projects, the Company feels that its staff and financial resources can be more effectively utilized on other, higher potential properties, to ensure that resources are available for the higher priority, more advanced projects. The company however is exploring several joint venture opportunities on this property as well as other properties that have been staked on the Oregon side of these claims.

Additional information about each project is available on the website at .

"We have a very aggressive work program going forward" says Jim Engdahl, President and CEO of Great Western Minerals Group. He adds, "With the unprecedented reliance on China for rare earth elements and the available demand significantly outstripping supply, new sources of rare earths are needed to meet the demand, not only in North America, but globally. In addition, prices for rare earth elements continue to increase, which will benefit existing and future producers of rare earth elements."

Mr. Engdahl says, "Our primary focus remains our rare earth projects, but we also want to increase the value of our other strategic metals properties making them attractive to potential joint venture partners, or as a potential spin off. We look forward to providing further updates as we progress toward our goal of becoming that fully-integrated explorer and developer of rare earth elements and other strategic metals in North America."

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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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