Gossan Resources Limited

Gossan Resources Limited

May 11, 2009 12:35 ET

Gossan Receives Favourable Phase I Bench-Scale Magnesium Process Results

WINNIPEG, MANITOBA--(Marketwire - May 11, 2009) - Gossan Resources Limited (TSX VENTURE:GSS)(FRANKFURT/FREIVERKEHR XETRA:GSR) has been advised by Process Research Ortech (PRO) of favourable results from its Phase I bench scale testing of the Zuliani Process for extraction of magnesium metal from dolomite. A key finding of the final PRO Report for Phase I was that 98.9% of the magnesium contained within calcined dolomite samples was volatilized under experimental conditions at the desired temperature range. Volatilization, in this case, measures the proportion of magnesium metal that has been released from the calcined dolomite and represents the likely highest possible recovery rate. PRO conducted 8 bench scale tests in Phase I.

Douglas Reeson, President of Gossan commented, "Even under these bench scale experimental conditions, the degree of magnesium volatilization is exceptionally high. Given the nature of the Zuliani Process, recovery rates of magnesium under production conditions could be 20% to 25% higher than the typical recovery rates provided by the Pidgeon Process used by the dominant Chinese producers. Higher recovery rates coupled with the use of electricity could potentially lower the environmental impact of magnesium production dramatically. The volatility findings imply exceptionally high raw material utilization efficiency and gives further credence to the Zuliani Process ultimately providing the lowest operating cost per pound of magnesium produced - by a material margin."

Phase II bench scale testing at PRO is now underway with the test design finalized and equipment on order. The Phase II tests are designed to facilitate a complete mass balance plus confirm the quality of the magnesium metal and respective by-products produced. The Phase II tests are expected to be completed within the next 8-10 weeks.

Gossan will showcase the Inwood Magnesium Project at the 66th Annual World Magnesium Conference being held from May 31 to June 2 in San Francisco California (Booth - 110).

Gossan holds a very large high-purity magnesium dolomite property at Inwood, Manitoba and the world-wide rights for the Zuliani Process, a new, high efficiency magnesium production process projected to significantly reduce the direct operating cost of magnesium metal production. Should additional testing prove to be successful, Inwood has the potential to restore magnesium production in Canada with a technology capable of bringing costs down sufficiently to compete globally.

The new process being developed by Douglas Zuliani is designed to achieve operating cost savings by process efficiency improvements that significantly reduce both energy and key raw material requirements. These enhancements to the traditional Magnetherm method should materially improve both magnesium recovery and silicon reduction efficiency without the need for a high vacuum. Energy use is reduced by development of a technically straightforward method that maximizes raw material utilization and recovery plus will ensures highly efficient condensation of liquid magnesium metal. Low cost hydro electricity is abundantly available in Manitoba. For further information refer to Gossan NR-07-02 dated March 16, 2007.

Process Research ORTECH Inc. (PRO), a private corporation formed from ORTECH, an Ontario Government crown corporation established 80 years ago, provides extensive facilities and services to develop bench scale, pilot, pre-commercialization plant environment to industries in the mining, metallurgical, environment, energy and specialty chemicals sectors with emphasis on clean technologies and renewable energy. Its 40,000 sq. foot industrial facility, located in Mississauga, Ontario, is equipped with the necessary regulatory and environmental permits and supports a number of diverse initiatives and customers simultaneously. PRO's capabilities to support the mining and metallurgical sector include Mineral Processing, Hydrometallurgy and Pyrometallurgy.

Dr. R. Sridhar, Ph.D., and Dr. V. I. Lakshmanan, Ph.D., of Process Research Ortech (PRO) supervised the Phase I Technical Report on the Zuliani Process and has reviewed and approved the contents of this press release. This Report contains proprietary information and will not be filed with SEDAR.

Gossan Resources Limited is engaged in mineral exploration and development in Manitoba and northwestern Ontario. It has a well-diversified portfolio of properties hosting gold, platinum group and base metals, as well as the specialty and minor metals, tantalum, lithium, chromium, titanium and vanadium. The Company also has a large deposit of magnesium-rich dolomite, the world-wide rights to the Zuliani magnesium production process, and a silica sand deposit. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr & Xetra Exchanges and has 29,020,900 common shares outstanding.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include but are not limited to those identified and reported in Management's Discussion and Analysis for the interim period ended September 30, 2008. Circumstances or management's estimates or opinions could change, and management disclaims any obligation to revise or update forward-looking statements, whether for new information, future events or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

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