MONTREAL, QUEBEC--(Marketwired - Jan. 21, 2014) - Geomega Resources Inc. (TSX VENTURE:GMA) -
Highlights of the news release:
- Heavy rare earths zone defined over 150 m (East-West) by 130 m vertical and still open
- Dysprosium enrichment of 400% compared to the Core Zone
- Drill hole #78 intersects 384 ppm Dy2O3, 90 ppm Tb2O3, 242 ppm Eu2O3 and 4 667 ppm Nd2O3 over 7.5 m
Geomega Resources Inc. ("GéoMégA" or the "Company") (TSX VENTURE:GMA) is pleased to announce the initial results of the Phase 3 diamond drill programme ("Phase 3") on its rare earth elements ("REE") project Montviel in Quebec. Completed on December 10, 2013, Phase 3 was conducted to define extensions of the heavy REE zone of Montviel intersected during the Phase 2 diamond drilling programme.
"The stellar intersect of 384 ppm dysprosium oxide and 4,667 ppm neodymium oxide over 7.5 m contains an exceptional enrichment in heavy REE for fluoro-carbonate minerals. With the intersection of drill hole #78, the heavy REE zone currently draws a table area of more than 150 m (East-West) by 20 m (North-South) by 130 m vertical. The heavy REE zone, located in the south wall rock of the Core Zone, is open laterally and at depth (CLICK HERE)." comments Alain Cayer, Vice-President Exploration of GéoMégA.
Highlights of the partial results from drill hole MVL-13-78:
|1. True width is estimated at 75% of core length based on structural interpretation of the heavy REE zone.
|2. Cerium, Lanthanum, Neodymium, Praseodymium are the most abundant rare earth oxides.
|3. Some samples exceeded the analytical limit (Ce, Pr) and are actually being re-assayed.
|4. 0.1% = 1 kg/ton ; 1 ppm = 1 gram/ton
Phase 3 totalled 2,058 m on 7 holes (including MVL-13-78) and was conducted to define the extensions of the heavy REE zone enriched in dysprosium. The complete results and interpretation of the heavy REE zone are expected by the end of the month.
Global market for permanent magnets to reach $US 22.9 billion by 2018
Currently, the most critical REE are neodymium (Nd) and dysprosium (Dy) due to the growing demand for high-performance permanent magnets. Global market projections indicate a high growth rate of 8.7% annualized over the next 5 years and a value of $US 22.9 billion in 2018 ($US 13.9 billion in 2012)(1).
Under the terms of the Technology Agreement dated September 30, 2013, GéoMégA issues 1,000,000 common share purchase warrants ("Warrants") to Dr. Pouya Hajiani ("Hajiani") in exchange for all rights, title and interest in two (2) patents related to the physical separation technology. The Warrants become exercisable upon demonstration of high purity (>99%) separation, in a pilot plant using the separation technology, of the following REE from the Montviel concentrate: neodymium (Nd), dysprosium (Dy), europium (Eu) and praseodymium (Pr). Each Warrant entitles Hajiani to subscribe to one common share at an exercise price of $0.15 expiring July 1st, 2018
The completion of the Technology Agreement is subject to the approval of the TSX Venture Exchange.
NI 43‐101 Disclosure
Alain Cayer, Geo., MSc., VP-Exploration, is the Qualified Person under NI 43-101 guidelines who 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.
Heavy REE are Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu plus Y.
About GéoMégA (www.geomega.ca)
GéoMégA, which owns 100% of the Montviel rare earth elements/niobium project located in Québec, is a mineral exploration and development company focused on the discovery and sustainable development of economic deposits of metals, such as rare earth elements, niobium and graphite, in Québec. GéoMégA is committed to meeting Canadian mining industry standards and distinguishing itself with its innovative engineering, stakeholders engagement and its dedication to local transformation benefits.
GéoMégA currently has 42,825,238 common shares issued and outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
(1) BCC Research, Permanent Magnets: Technologies and Global Markets.