GeoMegA Resources Inc.
TSX VENTURE : GMA

GeoMegA Resources Inc.

December 15, 2011 10:54 ET

GeoMegA Drills 2% TREO/327m and 0.75% Nb2O5/32.9m in MVL-11-26

Initial results of Phase 2 confirm REE mineralization enrichment in south-west section of Core Zone

MONTREAL, QUEBEC--(Marketwire - Dec. 15, 2011) - Geomega Resources Inc. (GéoMégA) (TSX VENTURE:GMA) announces the initial results of Phase 2 drill program on its Montviel REE project located 97 km north of Lebel-sur-Quévillon, Québec. Highlights include 2% total rare earth oxide (TREO) over 327 m and 0.75% niobium oxide (Nb2O5) over 32.9 m in hole MVL-11-26.

"Phase 2 drill program is progressing according to plan. Initial results confirm our expectations of defining a significant NI 43-101 Measured resource with an average grade closer to 2% TREO. This level of resource certainty combined with metallurgical tests results will allow us to skip either the Preliminary Economic Assessment or Pre-Feasibility Study required prior Bankable Feasibility Study. The 0.75% Nb2O5 over 32.9 m intersection in MVL-11-26 is a valuable surprise (Nb2O5 = US$63/kg. Asian Metals, FOB China, December 13, 2011). Looking forward to begin 2012 with Metallurgical and Engineering developments." comments Simon Britt, CEO of GéoMégA.

MONTVIEL CORE ZONE

Significant Assay Results - Phase 2 drill program

DDH No. Dip Az Drill
Section
From
(m)
To
(m)
Core length
(1)
(m)
TREO
(2)
(%)
Nd2O3
(3)
(%)
Ratio
MHREO
TREO
Nb2O5
(3)
(%)
MVL-11-26 -55 330 5+90 W 40.3 471 430.7 1.80 0.29 4.3% 0.22
Incl. 144 471 327 2.00 0.31 3.8% -
Incl. 144 176.9 32.9 - - - 0.75
MVL-11-25 -55 330 5+90 W 80.4 407.7 327.3 1.39 0.24 3.7% 0.13
Incl. 95 180 85 1.98 0.39 4.1% -
MVL-11-24 -55 330 5+90 W 38.5 342 303.5 1.24 0.22 4.7% -
Incl. 70 146 76 2.05 0.35 3.0% -
MVL-11-23 -55 330 7+20 W 186 276 90 1.54 0.21 3.2% -
Incl. 220.5 255.8 35.3 - - - 0.20
1) True width is estimated to be 85% of core length.
2) Cerium, Lanthanum, Neodymium, Praseodymium are the most abundant REO.
3) 0.1% = 1 kg/t.

The 90-meter drilling pattern (needed for indicated resources), totaling 9,100 m over 22 diamond drill holes (DDH), has been completed over the majority of the published NI 43-101 resources area. The two drill rigs are now focusing on a 45-meter in-fill drilling pattern aimed at defining a 50 to 70 Mt starter pit in the enriched south-west part of the Montviel ferro-carbonatite Core Zone. An estimated 15,700 m over 39 DDH will be required to complete the in-fill drilling. Next series of DDH will be disclosed when assays are available.

MONTVIEL EXPLORATION

Significant Assay Results - Phase 2 drill program

DDH No. Dip Az From
(m)
To
(m)
Core length(1)
(m)
TREO(2)
(%)
Nd2O3(3)
(%)
Ratio
MHREO
TREO
MVL-11-21 -55 240 37 131 94 0.89 0.12 6.4%
MVL-11-22 -55 330 183 230.5 47.5 1.07 0.20 9.4%

Two explorations DDH were drilled at the fringe of the published NI 43-101 resources area. DDH MVL-11-21 extended the mineralized carbonatite approximately 300 meters further to the west. DDH MVL-11-22, drilled north of hole MVL-11-09 (breccia of 17.1 meters grading 0.76% TREO with 28% MHREO/TREO including 210 ppm dysprosium oxide), intersected the junction of three breccias over 47.5 meters grading 1.07% TREO with 9.4% MHREO/TREO including 70 ppm dysprosium oxide.

NI 43‐101 Disclosure

Alain Cayer, Geo., MSc., Chief Geologist, and Jacquelin Gauthier, P.Eng., Geo., VP Exploration, are the Qualified Persons who supervised 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.

Major Rare Earths discovery for Québec - MONTVIEL NI 43-101: 183.9Mt Indicated averaging 1.45% TREO

The initial NI 43-101 compliant resource calculation, released on September 29, 2011, totalled 183.9 million tons Indicated averaging 1.45% total rare earth oxides (TREO) in addition to 66.7 million tons Inferred averaging 1.46% TREO. Montviel has the potential to play a significant near term role in the clean technologies of the 21st century due to its proximity to infrastructure and available labour.

About GéoMégA

GéoMégA, which owns 100% of the Montviel property, is a young Québec mining exploration company focused on finding economically viable deposits of elements needed by Clean Technologies. GéoMégA is committed to meeting stringent mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.

GéoMégA currently has 22,355,899 common shares outstanding.

On behalf of the Board of Directors of GéoMégA

Simon Britt, Chief Executive Officer

Forward-Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Venture Exchange and its regulatory service provider (as defined in the TSX-V Rules) cannot be held responsible for the accuracy or veracity of this release.

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