Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

September 18, 2007 10:55 ET

Great Western Minerals Announces Phase One Exploration Program on US Rare Earth Property

SASKATOON, SASKATCHEWAN--(Marketwire - Sept. 18, 2007) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) ("GWMG" or "the Company") is pleased to announce the commencement of an exploration program on its recently acquired interest in a rare earth-bearing, heavy mineral sands property in Utah, United States. This 17,094 hectare property is located near Salt Lake City in Juab County which, at one time, was considered to be one of the richest mining districts in the United States. The property is accessible year-round, with rail, roads, and power located adjacent to the property.

GWMG has budgeted $500,000 for Phase 1 of the exploration program, which is already underway. The program includes systematic mapping and sampling of the property; detailed analysis of the samples to identify the minerals present in the sands; assaying for all potentially economic elements including rare earths; and prioritizing target areas for Phase 2 follow-up drilling. The goal of the Phase 1 and Phase 2 programs is to compile sufficient data to complete a 43-101 compliant resource estimate, suitable for a Preliminary Economic Assessment report and move toward a feasibility study. Phase 1 field work will be completed and assay results should be received and compiled over the next two months. The Phase 2 work program should be defined by January 2008.

The project area is underlain by extensive mineral sands, in a series of raised beaches from ancient Lake Bonneville. Within the property area, the mineral sands are known to contain rare earth elements in the form of monazite, xenotime, bastnaesite and apatite, as well as significant iron in the form of magnetite.

The property covers 171 sq. km (66 sq. miles) of mineral sands that are known to persist to depths of at least 80 m (260 ft). The significant tonnage potential is addressed in a geotechnical report on the Iron Ore Potential of the Property prepared by E.D. Black Consulting for the Titan Mining Group:

" --- the tonnage potential of these deposits could be huge. As an example, the Upper Bench , which averages approximately two miles wide by ten miles long (within the Property) ---includes an area of approximately 12,800 acres (20 Sections each 640 acres) --- this area alone, taken to an average depth of 100 feet, could contain in the order of 223,000,000 tons of material per Section, or a gross of about 4.5 billion tons of material. If we include the Middle and Lower Benches, which appear to be 150 feet thick, and possibly equally as extensive, the potential resource could reach 15 billion tons (15BT)."

Black goes on to state, "Currently there are no reserves or resources of any mineral or element on the property." It is important to note that the above data does not represent a reserve or resource and is not 43-101 compliant. As such, a qualified person has not done sufficient work to establish any mineral resource, and this data should not be relied upon to assume any reserve or resource. GWMG is treating this data as a guideline only for developing the work programs necessary to bring results into compliance with NI 43-101.

Initial sampling by Titan Mining and confirmation sampling by GWMG, over widely separated areas of the property, and on different 'beach' elevations, yielded average values for multiple samples ranging from 0.14% to 0.80% Total Rare Earth Oxide (TREO).

Jim Engdahl, President of GWMG states, "We are excited about adding a second REE prospect to our property portfolio, particularly this one, which is an excellent complement to our Hoidas Lake Project. Once we complete Phase 1 exploration on this project, we can more accurately assess the potential and develop the Phase 2 exploration program accordingly." Engdahl adds, "If this property has the potential that we believe it does, then we could provide a wider range of REE products, not only to the North American markets, but to worldwide markets as well."

Gary L. Billingsley, P.Eng., P.Geo., is the Qualified Person responsible for reviewing the contents of this release.

Great Western Minerals Group Ltd. is a Canadian based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiary Great Western Technologies Inc., located in Troy, Michigan, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.

Jim Engdahl, President

CUSIP: 39141Y 10 3

Contact Information

  • Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 668-0701
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK
    S7L 6H8