GeoMegA Resources Inc.
TSX VENTURE : GMA

GeoMegA Resources Inc.

June 06, 2012 07:00 ET

GeoMegA Continues to Intersect High Grade TREO and Nb2O5 in the Core Zone

MONTREAL, QUEBEC--(Marketwire - June 6, 2012) - Geomega Resources Inc. (GéoMégA) (TSX VENTURE:GMA) announces significant assay results of diamond drill (DD) holes MVL-11-36 to MVL-11-51 from Phase 2 drilling on its Montviel Rare Earths/Niobium project located near Lebel-sur-Quévillon, Québec. Highlights include:

MVL-11-37: 1.62% total rare earth oxides (TREO) + 0.15% Niobium oxide (Nb2O5) over 780 m from 141 m;
MVL-11-40: 3.02% TREO + 0.20% Nb2O5 over 26.5 m from 140.5 m;
MVL-11-43: 2.80% TREO + 0.51% Nb2O5 over 52.5m from 117 m;
Including: 3.14% TREO + 1.37% Nb2O5 over 11 m from 117 m.
MVL-11-47: 2.22% TREO + 0.33% Nb2O5 over 85.5m from 172.5 m;
Including: 2.96% TREO + 1.49% Nb2O5 over 10.5 m from 172.5 m.
MVL-11-49: 1.95% TREO + 0.25% Nb2O5 over 222 m from 45 m.
MVL-11-50: 2.57% TREO + 0.33% Nb2O5 over 73.2 m from 39.3 m.
MVL-11-51: 2.16% TREO + 0.20% Nb2O5 over 226.5 m from 148.5 m.
MONTVIEL CORE ZONE
Significant Assay Results - Phase 2 drill program (DD holes MVL-11 36 to MVL-11-51)
DD hole Section
(1)
From
(m)
To
(m)
Core
length
(2)(m)
TREO
(3)(%)
Neodymium
Oxide
(%)
(4)
Niobium
Oxide
(%)
Fe2O3
(
%)
MHREO
TREO
(%)
36 6+80W 193.5 550.3 356.8 1.48 0.21 0.13 19.73 3.84
Incl. 280.9 292.5 11.6 1.96 0.27 0.61 15.12 2.71
37 3+00W 141 921 780.0 1.62 0.29 0.15 22.28 3.09
Incl. 616.0 707.8 91.8 2.12 0.40 0.28 32.37 2.98
38 6+35W 54.1 129.0 74.9 1.54 0.27 0.33 25.00 4.03
Incl. 73.7 97.5 23.8 1.81 0.30 0.50 27.58 4.36
39 6+35W 49.5 157.1 107.6 1.57 0.27 0.18 21.15 2.74
Incl. 132.0 142.5 10.5 1.59 0.30 0.54 23.95 3.37
40 5+00W 44.5 258 213.5 1.69 0.29 0.14 21.67 2.56
Incl. 44.5 167 122.5 1.98 0.31 0.16 19.20 2.26
Incl. 140.5 167 26.5 3.02 0.50 0.20 19.49 2.23
41 6+35W 37.0 258.0 221.0 1.53 0.26 0.15 22.43 3.02
Incl. 37.0 88.5 51.5 2.03 0.33 0.19 21.65 2.61
42 5+90W 41.7 105.6 63.9 2.00 0.30 0.25 25.92 3.26
43 6+35W 31.0 330.0 299.0 1.79 0.30 0.27 20.15 3.02
Incl. 117.0 169.5 52.5 2.80 0.44 0.51 19.43 2.73
Incl. 117.0 128.0 11.0 3.14 0.48 1.37 24.11 2.63
44b 5+45W 45.6 247.2 201.6 1.44 0.25 0.11 21.15 2.76
45 6+35W 39.5 366.0 326.5 1.80 0.28 0.16 21.65 3.16
Incl. 142.5 255.0 112.5 2.17 0.21 0.18 16.76 2.83
Incl. 291.0 334.5 43.5 2.21 0.32 0.24 23.43 3.62
46 5+45W 40.5 169.5 129.0 1.61 0.27 0.15 22.26 2.82
Incl. 99.7 142.5 42.8 2.41 0.26 0.24 25.62 2.67
47 6+35W 127.5 435.0 307.5 1.81 0.28 0.22 22.56 3.76
Incl. 172.5 183.0 10.5 2.96 0.49 1.49 15.49 3.65
and 175.5 258.0 82.5 2.22 0.35 0.33 19.45 3.13
and 363.0 424.5 61.5 2.09 0.30 0.29 27.90 5.23
48 5+45W 46.5 150.0 103.5 1.59 0.25 0.12 18.50 2.23
49 6+80W 45.0 267.0 222.0 1.95 0.31 0.25 21.42 3.09
Incl. 48.0 106.5 58.5 2.42 0.38 0.18 19.35 2.68
Incl. 201.0 219.0 18.0 1.84 0.29 0.59 24.97 3.75
50 5+45W 39.3 112.5 73.2 2.57 0.40 0.33 16.74 3.10
Incl. 87.0 109.5 22.5 2.91 0.44 0.71 11.73 3.94
51 6+80W 148.5 375.0 226.5 2.16 0.32 0.20 20.65 3.19
Incl. 180.0 238.5 58.5 2.93 0.39 0.13 18.48 2.66
and 265.5 337.5 72.0 2.29 0.35 0.23 21.14 3.37
and 277.5 321.0 43.5 2.29 0.35 0.31 23.19 3.35
1. Azimuth = N330°, Dip -55° on all DD holes.
2. i. True width is estimated to be 45 to 65% of core length on sections 6+80W and 6+35W.
ii. True width is estimated to be 70 to 85% of core length on sections 5+90W to 5+00W.
3. Cerium, Lanthanum, Neodymium, Praseodymium are the most abundant REO.
4. 0.1% = 1 kg/t.

Most of the intercepts west of section 5+45W are not included in the initial NI 43-101 resource calculation (183.9 Million tonnes averaging 1.45% TREO in the Indicated resources category and 66.7 Million tonnes averaging 1.46% TREO in the Inferred resources category). Assay results of DD holes on these sections should increase both grade and tonnage of the Montviel Core Zone resource. Final results from the remaining Phase 2 assay results, which include over 7,919 meters in 19 DD holes, will be released once check assays have been completed.

MONTVIEL EXPLORATION
Significant Assay Results - Phase 2 drill program
DD hole Section/
Az/Dip
From
(m)
To
(m)
Core
length
(m)
TREO
(%)
Neodymium
Oxide

(%)
Dysprosium
Oxide

(ppm)
Fe2O3
(%)
MHREO
TREO
(%)
30 6+80W/N180/-45 108.0 165.5 57.5 1.00 0.19 147 30.19 14.29
Incl. 131.9 144.2 12.3 1.42 0.27 261 15.19 16.77

Dysprosium

Neodymium and Dysprosium are the critical rare earth components in the Neodymium-iron-boron (NdFeB) permanent magnets. NdFeB permanent magnets accounted for 95% of the magnet applications in 2010, the largest tonnage (33,250 tonnes, 27%) and gross value ($1.1B, 43%) of all rare earth applications. Dysprosium highlights in this DD hole series include:

MVL-11-36: 126 ppm of Dysprosium oxide over 19.5 m from 82.5 m;
MVL-11-42: 100 ppm of Dysprosium oxide over 197.5 m from 264.5 m;
MVL-11-43: 166 ppm of Dysprosium oxide over 16.5 m from 397.5 m;

About the Montviel Rare Earths/Niobium Project

The Montviel Rare Earths/Niobium/Iron Project is located approximately 45 km west of the Cree First Nation of Waswanipi and 100 km north of Lebel-sur-Quévillon in the southern, developed, part of Quebec's "Plan Nord" (North of 49th parallel). The Plan Nord is an $80 billion economic, social and environmental development plan of Northern Quebec over a period of 25 years. Montviel's initial NI 43-101 compliant resource calculation at a base cut-off grade of 1% TREO, released on September 29, 2011, totalled 183.9 Mt averaging 1.45% TREO in the Indicated resources category and 66.7 Mt averaging 1.46% TREO in the Inferred resources category. Montviel, one of the largest TREO resource outside China, has the potential for a significant near term role in the growing permanent magnet sector due to its proximity to infrastructure and available labour. The PEA study, ongoing with G Mining Services Inc., will first focus on the Rare Earths/Niobium enrichment zone of the deposit.

NI 43‐101 Disclosure

Alain Cayer, Geologist, MSc., VP Exploration, is the Qualified Person and Claude Britt, GéoMégA's geological advisor, supervised and approved the preparation of the technical information in this news release.

ALS Global conducted all analyses in their Vancouver laboratory. The analyses were done on every sample using lithium metaborate fusion, followed by ICP analysis and completed by mass spectrometry. Specific XRF assays were conducted on niobium. Quality control and assurance were done by systematically using REE standards, blanks and duplicates.

Total Rare Earth Oxides ("TREO") include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3.

Middle and Heavy Rare Earth Oxides ("MHREO") is the sum of the middle rare earth oxides (Sm2O3, Eu2O3, Gd2O3) and the heavy rare earth oxides (Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3) plus Y2O3 expressed as a percent out of the TREO content.

About GéoMégA

GéoMégA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Québec mineral exploration company focused on finding economically viable deposits of Minor Metals (REE/W/Nb/C) in Québec. GéoMégA is committed to meeting Canadian mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.

29,274,113 common shares of GéoMégA are currently issued and outstanding.

Simon Britt, Chief Executive Officer

Cautions Regarding Forward-Looking Statements

This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company's filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward-looking statements, except as required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information