Matamec Explorations inc.
TSX VENTURE : MAT

Matamec Explorations inc.

April 29, 2010 15:26 ET

Matamec Intersects 1.562% TREO Over 10.5 Metres with 35% HeavyREO+ Y2O3/TREO and .96% ZirconiumO2 Over 73.2 metres in the West Zone on the Kipawa Deposit

MONTREAL, QUEBEC--(Marketwire - April 29, 2010) - Matamec Explorations Inc. ("Matamec") (TSX VENTURE:MAT) is pleased to announce that assay results have been received for the final third group of core samples from the November-December 2009 diamond drilling program on the West and East part of the rare earth-yttrium-zirconium (REE-Y-Zr) Kipawa deposit located within the Zeus property. The best preliminary results are 1.562% TREO (total rare earth oxides) over 10.5 metres in hole Twin-14.

PRESS RELEASE HIGHLIGHTS

  • The Kipawa deposit is in competition with the lateritic superficial clay deposits located in the Lognan/Jiangxi region of Southern China, where 95% of the global heavy rare earths and yttrium production comes from.  These deposits are 3 to 10 meters thick with grades going from .05% to .20% TREO;

  • The mineralization and the host syenite have been traced laterally for a length of 1.2 kilometres, the host syenite being on the average 52 metres thick and known to a depth of 80 metres;

  • The Kipawa Deposit is presently considered open both laterally and at depth;

  • The REE mineralized zones intersected by the ten drill holes of the third preliminary analysis group range from .329% to 1.56% TREO over thicknesses of between 2.5 meters and 24.5 meters.  In these drill hole intersections between 28% to 53% of the TREO is comprised of Heavy REO + Y2O3.

  • In the ten drill holes of the second preliminary analysis group, the REE zones range from .366% to 1.60% TREO over thicknesses from 2.5 meters to 29.4 meters.  These drill hole intersections contain 27% to 48% HeavyREO + Y2O3 / TREO;

  • As well as REE-Y-Zr mineralization, the Kipawa deposit contains thick zones of ZrO2 (zirconium oxide) mineralization.  The total thickness of ZrO2 mineralization of the complete second group of analysis drill holes ranges from 1.11% ZrO2 over 41,6 meters to .96 % ZrO2 over 73.2 meters;

  • In each of the 10 second drill holes, the ZrO2 mineralized zones are accompanied with TREO values.  The totals for each of the drill holes the REE values range from .188% to .562% TREO.  These drill hole intersections contain between 16% and 44% HeavyREO + Y2O3 / TREO;

  • A REE-Y-Zr mineralized zone is present in each of the drill holes for which analytical results have been received, except drill hole KM-45;

  • Upon receipt of all the 2009 assay results, a new NI 43-101 resource estimate will be completed by SGS-Geostat using the new data as well as the historic Unocal data;

  • Mineralogical work is being supervised by Dr. A. Mariano and preliminary metallurgical tests are being done under the auspices of L. Heymann, P.Eng;

The 9 of the 10 Holes for which values are here being released contain REE-Y Zr mineralized zones ranging from 0.329% to 1.56% TREO over thicknesses from 2.5 to 24.5 m, with between 28 and 53% HREO. Hole KM-45 did not contain a mineralized zone, defined as +2.5 m grading +0.1% Y2O3. This is the only hole drilled in the 2009 drilling program (total 31 holes) which did not intersect a REE-Y-Zr zone. The preliminary assay results from the third group of holes are set out in the table below (see Figure 1 for drill hole locations, identified by plain red squares): http://media3.marketwire.com/docs/maca.pdf

Table 1
Interim REE-Zr Zones Assay Results
Third Analysis Group - Incomplete Results
2009 Kipawa Drill Program
Drill Hole From (m) To (m) Width (m) ZrO2 (%) LREO (%)* MREO (%)** HREO (%)*** Y2O3 (%) TREO (%)**** % HREO +Y2O3 /TREO
KM42 19.4 25.7 6.3 .92 .439 .047 .082 .178 .745 35
KM43 16.1 25.1 9.0 1.07 .261 .043 .084 .172 .559 46
KM44 7.0 31.5 24.5 .66 .295 .039 .068 .150 .551 39
KM45     No Zone              
KM46 43.3 45.8 2.5 .98 .363 .035 .060 .130 .587 32
KM47 13.9 18.3 4.4 .75 .273 .029 .058 .110 .470 36
50.9 54.2 3,3 .32 .345 .047 .098 .207 .696 44
57.1 60.1 3.0 .78 .450 .034 .063 .150 .697 30
Twin5 17.4 20.3 2.9 ***** .981 .086 .136 .313 1.515 30
29.1 33.7 4.6 1.09 .306 .023 .047 .108 .485 32
41.9 47.9 6.0 .32 .325 .027 .042 .111 .394 39
Twin7 19.6 23.2 3.6 1.05 .284 .036 .054 .108 .375 43
25.6 29.5 3.9 .84 .310 .035 .056 .114 .401 42
32.5 35.5 3,1 ***** .904 .092 .129 .250 1.374 28
Twin14 3.6 14.1 10.5 1.06 .926 .092 .150 .395 1.562 35
18.6 31.6 13.0 .72 .486 .046 .075 .165 .771 31
Twin20 3.5 8.0 4.5 1.01 .246 .030 .053 .120 .329 53
*Light rare earths (LREO) = La2O3 to Nd2O3.
**Medium rare earths (MREO) =Sm2O3 to Gd2O3
***Heavy rare earths (HREO) = Tb2O3 to Lu2O3.
**** Y2O3 is part of TREO.
***** ZrO2 values await receipt of further over-limit reanalyses.
Note: Judith Chegwidden of Roskill Information Services Ltd. and Dudley Kingsnorth of Industrial Minerals Company of Australia Pty Ltd. on their last presentation entitled "Rare earths – balancing supply & demand" at the 20th Industrial Minerals International Congress & Exhibition on March 21-24, 2010, in Miami divided the 15 REOs in three types: Light (or Ceric) rare earths (LREO) = La2O3 to Nd2O3. Medium rare earths (MREO) =Sm2O3 to Gd2O3. Heavy (or Yttric) rare earths (HREO) = Tb2O3 to Lu2O3.
Note: The fifteen elements which compose TREO of each drill hole will be published when the assay results for all 31 drill holes will be received.
Note: these TR-Y-Zr zones are defined by a 0.1% + Y2O3 cut-off over a minimum of 2.5 meters to conform with the historic Unocal data.

The Twin holes in Table 1 were drilled from the same location and at the same orientation as historic Unocal holes, in order to verify the old Unocal Y, Ce and ZR values. Analysis were done for the remaining REE elements as well, which were not tested by Unocal.

The intersections in Table 1 above and in Tables 2 and 3 below are approximately true width.

This brings to 31 the number of drill holes out of 31 of the 2009 program for which Matamec has received interim results. Every drill hole for which the results have been received has intersected a mineralized zone, except drill hole KM-45. Many of these drill holes contain multiple layers of REE-Y-Zr mineralization.

In addition, complete assays results are now available for the second group of drill holes (10 drill holes, see press release on March 31, 2010). These mainly add the overlimit values for ZrO2. These data are set out in the table below (see Figure 1 for the location of the drill holes which are circled in red):

Table 2
Interim Assay Results
Second Analysis Group - Complete Results
2009 Kipawa Drill Program
Drill Hole From (m) To (m) Width (m) ZrO2 (%) LREO (%)* MREO (%)** HREO (%)*** Y2O3 (%) TREO (%)**** % HREO +Y2O3 /TREO
KM-39 18.7 24.2 5,5 1.30 .413 .052 .089 .181 .735 37
KM-40 8.5 12.9 4.4 1.31 .364 .039 .075 .164 .479 50
KM-41 30.0 32.5 2.5 .614 .431 .056 .104 .213 .804 39
40.2 43.0 2.8 .736 .766 .086 .150 .300 1.30 35
KM-48 26.5 30.2 3.7 .942 .388 .051 .094 .204 .737 46
KM-49 34.3 37.5 3.2 .534 .950 .092 .120 .257 1.42 27
KM-50 14.8 22.5 7.7 .805 .336 .045 .073 .143 .597 36
31.0 35.8 4.8 .467 .572 .059 .074 .168 .872 28
40.6 43.7 3.1 .956 .274 .039 .080 .152 .544 42
KM-51 53.2 58.8 5.6 1.088 .349 .039 .091 .211 .689 44
KM-52 32.0 34.7 2.7 1.413 .194 .029 .066 .131 .420 47
42.9 48.1 5.2 .857 .181 .021 .060 .105 .366 45
70.3 73.8 3.5 .570 .722 .115 .215 .550 1.60 48
KM-53 30.5 41.2 10.7 .863 .384 .041 .066 .136 .627 32
KM-61 24.1 53.5 29.4 .948 .554 .059 .101 .212 .926 34
60.4 64.5 4.1 .739 .250 .031 .065 .121 .467 40
*Light rare earths (LREO) = La2O3 to Nd2O3.
**Medium rare earths (MREO) =Sm2O3 to Gd2O3.
***Heavy rare earths (HREO) = Tb2O3 to Lu2O3.
**** Y2O3 is part of TREO.
Note: Judith Chegwidden of Roskill Information Services Ltd. and Dudley Kingsnorth of Industrial Minerals Company of Australia Pty Ltd. on their last presentation entitled "Rare earths – balancing supply & demand" at the 20th Industrial Minerals International Congress & Exhibition on March 21-24, 2010, in Miami divided the 15 REOs in three types: Light (or Ceric) rare earths (LREO) = La2O3 to Nd2O3. Medium rare earths (MREO) =Sm2O3 to Gd2O3. Heavy (or Yttric) rare earths (HREO) = Tb2O3 to Lu2O3.
Note: The fifteen elements which compose TREO of each drill hole will be published when the assay results for all 31 drill holes will be received.
Note: these TR-Y-Zr zones are defined by a 0.1% + Y2O3 cut-off over a minimum of 2.5 meters to conform with the historic Unocal (1988-1990) data.

The REE-Y-Zr mineralized zones found in the ten drill holes of the second preliminary analysis group range from .366% to 1.60% TREO over thicknesses ranging from 2.5 meters to 29.4 meters. These drill hole intersections contain 27% to 48% Heavy REO + Y2O3 / TREO.

As well as REE-Y-Zr mineralization, the Kipawa deposit contains thick zones of ZrO2 (Zirconium oxide) mineralization with moderate attendant values of TREO. Zones of this type are found in every hole drilled during the 2009 program.

In the second complete results, this Zr mineralization ranges from 1.11% ZrO2 over 41.6 meters to .96 % ZrO2 over 73.2 meters. The majority of the Zr in these zones is suspected to be contained in the mineral vlasovite, a potentially non-refractory Na-Zr silicate. Mineralogical work on this Zr mineralization is being supervised by Dr. A. Mariano and preliminary metallurgical tests are being done under the auspices of L. Heymann, P.Eng. These two world renowned experts are members of the Strategic Committee for Rare Earths advising Matamec's Board of Directors.

Each of the ZrO2 mineralized zones of the second 10 drill holes are accompanied with TREO values (see Table 3 below). These TREO values range from .188% to .562% TREO over thicknesses between 41,6 and 73,2 meters. These intersections contain 16% to 44% Heavy REO + Y2O3 / TREO.

These Zr mineralization zones, from the second group of analyses, are set out in the Table 3 below (they are defined by an arbitrary 0.5% ZrO2 cut-off over a minimum width of 5 m, other than the total for each drill hole). Only those drill holes for which complete over limit analyses have been received are listed below:

Table 3
ZrO
2Zones
Second Assay Results - Complete Results
2009 Kipawa Drill Program
Drill Hole From (m) To (m) Width (m) TREO (%) % HREO +Y2O3 /TREO ZrO2 (%)
KM39 10.7 32.5 21.8 .357 26 1.06
35.6 54.1 18.5 .180 45 1.17
Total : 10.7 54.1 43.4 .278 32 1.05
KM40 2.0 23.5 21.5 .338 25 1.35
29.5 43.6 14.1 .145 22 1.07
Total : 2.0 43.6 41.6 .259 16 1.11
KM41 12.3 28.5 16.2 .168 20 .95
31.5 54.7 23.2 .340 18 1.15
Total : 12.3 54.7 42.4 .280 19 1.02
KM48 22.0 32.5 1.5 .323 14 .76
35.5 64.9 29.4 .155 51 1.32
Total : 22.0 64.9 42.9 .188 44 1.11
KM49 21.9 45.0 23.1 .449 29 .84
52.5 78.4 25.9 .142 41 1.09
Total : 21.9 78.4 56.5 .271 26 .88
KM50 10.0 19.0 9.0 .399 55 .89
22.5 31.0 8.5 .339 37 .72
34.2 48.3 14.1 .392 14 1.12
51.2 63.7 12.5 .084 62 1.30
Total : 10.0 63.7 53.8 .324 23 .92
KM51 37.3 48.2 10.9 .169 35 .85
52.3 91.2 39.0 .197 38 1.01
Total : 37.3 91.2 53.9 .192 37 .93
KM52 21.9 27.8 5.9 .148 23 .57
32.0 77.5 45.5 .289 40 1.31
Total : 21.9 77.5 55.6 .277 40 1.15
KM53 15.1 22.2 7.1 .237 55 .94
32.6 62.8 3.2 .327 31 .95
Total : 15.1 62.8 47.7 .288 34 .83
KM61 17.5 42.6 25.1 .667 25 1.03
47.6 90.7 43.1 .366 19 .98
Total : 17.5 90.7 73.2 .562 16 .96
Note: that the ZrO2 zones in the table above sometimes overlap with or include some of the REE-Zr zones in Table 2.

All mineralized zones intersected to date, both REE-Zr and Zr, are interpreted to dip at about 20o to the southwest, parallel to the layering in the host peralkalic syenite gneiss. The mineralization and the host syenite have been traced laterally for a length of 1.2 kilometres.

Figure 1 shows the surface northeastern limit of the upper (Eudyalite) mineralized zone, which contains all the previously defined non-compliant resources as well as the most continuous mineralized zone intersected in the 2009 drilling program.

The syenite body which hosts the mineralized zones is an average of 52 metres thick and is known to a depth of 80 metres. The Kipawa Deposit is presently considered open both laterally and at depth.

Matamec considers itself a potential source of global supply for REE-Y-Zr. It is in competition with the lateritic surficial clay deposits located in the Lognan/Jiangxi region of Southern China, where more than 95% of the global heavy rare earths and yttrium production comes from. These deposits are 3 to 10 meters thick with grades going from .05% to .20% TREO.

Upon receipt of all the 2009 assay results, a new NI 43-101 resource estimate will be completed using the new data as well as the historic Unocal data. In terms of historic resources, the Kipawa Deposit is composed of the West Main Zone (1.26 Mt @ 0.15% Y2O3 and 0.96% ZrO2) and the East Main Zone (1.09 Mt @ 0.14% Y2O3 and 1.17% ZrO2). Please note that a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, Matamec is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.

Matamec maintains a quality control program conforming to industry best practices in the sampling and analysis of drill core. The NQ core is split, with one half kept for reference at our Val d'Or facilities. Samples were then submitted in batches containing known standards and blanks to the ALS Chemex ("ALS") preparation facility in Val d'Or where the samples are reduced to pulps and couriered to ALS in Vancouver (B.C.) for analysis. The samples were analysed by ICP-MS methods on a 2 gram sample size while the overlimits were handled either by another round of ICP-MS on a diluted solution, for REE overlimits, or by wavelength dispersive XRF on fused beads for Zr overlimits. The samples and core are stored in a secure location until delivered to ALS.

Alex Knox (P.Geol) and Aline Leclerc, geologist (OGQ) and Matamec's Vice-President Exploration, are Matamec's Qualified Persons for the Zeus project. As QP, they supervised the preparation of the scientific and technical information for the Zeus property and verified the data disclosed in this press release. Alex is member of the Strategic Committee for Rare Earths advising Matamec's Board of Directors.

About Matamec

Matamec explores for significant gold deposits in the Timmins mining camp in Ontario of which the Matheson Property (with Goldcorp) is the main target. In Quebec, the Company explores for precious and base metals on its Sakami, Valmont and Vulcain Properties. As well, Matamec is exploring for gold together with Northern Superior Resources Inc. on its Lespérance/Wachigabau Property.

Concurrently with the above mentioned exploration programs, Matamec's Quebec Tansim Property is also being explored for rare metals such as tantalum and lithium.

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