Great Western Minerals Group Ltd.
TSX VENTURE : GWG
OTCQX : GWMGF

Great Western Minerals Group Ltd.

January 30, 2012 09:24 ET

Great Western Minerals Group Completes First Phase of Steenkampskraal Rare Earth Evaluation Program

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 30, 2012) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (OTCQX:GWMGF) is pleased to announce that it has completed the first phase of the exploration program at the Company's Steenkampskraal rare earth property in South Africa.

These investigations have two primary goals; firstly, to provide information in support of a fully compliant National Instrument 43-101 resource estimate report and secondly, to focus on a possible expansion of the resource at Steenkampskraal through testing the down-dip extension of the main structure. The program included 39 diamond drillholes totaling 3,780 meters. This included 17 holes for resource delineation (1,932 meters) and 22 holes dedicated to metallurgical sampling (1,848 meters).

Within the resource evaluation component of the drill program, 17 HQ drillholes were completed. Four holes did not intercept obvious mineralization, likely due to the pinch and swell of the vein system. 125 of 143 samples of monazite and mineralized host rock have been shipped to SGS Lakefield in Canada ("SGS") for assay. Additionally, 133 of 173 underground channel samples of monazite and mineralized host rock collected from throughout the three levels of the mine, undertaken as a verification of Anglo American's work prior to the mine closure with the same survey control points, have been sent to SGS for assay. 353 representative samples collected from throughout the historical tailings dams and 78 representative samples from throughout the historical lower grade rock dumps were also shipped to SGS for assay.

Within the metallurgical mini-bulk sampling component of the program, 22 HQ drillholes were completed in 2011 providing 172 kilograms of monazite. An additional 534 kilograms of monazite were recently collected from underground in-situ mineralization through channel sampling in the historic mine workings. The combined 706 kilograms of representative material was shipped to Mintek of Johannesburg, South Africa ("Mintek") for metallurgical characterization as of today. As well, 350 kilograms of representative vein ore and host rock that was collected from underground sites will be shipped to Mintek today for XRF recognition trials. Previously, 2,087 kilograms of tailings dam and rock dump material had been sent to Mintek for metallurgical characterization in November 2011.

Assay results will be reported as they are received from the laboratories.

Brent Jellicoe, B.Sc., P.Geo, Director of International Exploration for GWMG, is the Qualified Person responsible for reviewing the contents of this news release.

Great Western Minerals Group Ltd. is an integrated Rare Earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly owned subsidiaries Less Common Metals Limited in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminium, nickel, cobalt and Rare Earth Elements. As part of the Company's vertical integration strategy, GWMG also holds 100% equity ownership in Rare Earth Extraction Co. Limited, which owns a 74% equity interest in the Steenkampskraal Mine. In addition to an exploration program at Steenkampskraal, GWMG also holds interests in four active Rare Earth exploration and development properties in North America.

Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of GWMG as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to the successful construction, commissioning and operation of the separation facility, refurbishment activities and reliance on third parties to meet projected timelines, the results of the exploration program at Steenkampskraal, a resource estimate and commencement of production at Steenkampskraal, satisfaction of the conditions precedent with respect to GWMG's offtake agreement, receipt of all required approvals (including those relating to the commencement of production at the Steenkampskraal mine) and risks, uncertainties and other factors that are beyond the control of GWMG, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve or resource estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's current annual information form available at www.sedar.com.

CUSIP: 39141Y 10 3

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Contact Information

  • Great Western Minerals Group Ltd.
    Dwight Percy
    Manager of Investor Relations
    (306) 659-4516
    info@gwmg.ca
    www.gwmg.ca

    Great Western Minerals Group Ltd.
    219 Robin Crescent
    Saskatoon, SK S7L 6M8