Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

July 03, 2012 09:00 ET

Great Western Minerals Group Reports on New Phase of Steenkampskraal Rare Earth Drill Program

SASKATOON, SASKATCHEWAN--(Marketwire - July 3, 2012) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG)(OTCQX:GWMGF) today reported on the latest phase of its drill program at the Steenkampskraal rare earth property in South Africa. The following drill intercepts from four areas surrounding the main mine workings, are all outside the previously reported National Instrument 43-101 Resource Calculation (see: GWMG May 31, 2012 news release). A map of the Steenkampskraal drill program is at

The historic mine "vein" is comprised predominantly of a rare earth-bearing monazite. The vein is variably south-dipping, pinches and swells from < 1 cm to > 5 metres, and was developed over a strike length of approximately 400 metres. "Mineralized" intersections of vein material are composed predominantly of a cerium and lanthanum enriched monazite, and contain concentrations of all of the rare-earth elements and yttrium in consistent proportions. Past production, and extensive assaying from the first phase of drilling and underground sampling, indicates that monazite vein material at Steenkampskraal contains from 0.4 to 46% TREO with a modeled average of 18%. Grades typically are dependent on the amount of diluting materials within the vein structure such as quartz, feldspar, and sulphides.

Highlights of the Western Extension drill program include:

  • REE-bearing monazite vein mineralization encountered in seven of eight drill holes, and
  • Mineralization up to 3.73 metres true thickness.

Highlights of the South Eastern Extension drill program include:

  • REE mineralization encountered in ten of twelve drill holes, and
  • Mineralization up to 3.0 metres true thickness.

Highlights of the Eastern Flats Extension drill program include:

  • REE mineralization encountered in ten of seventeen drill holes,
  • Mineralization in excess of 3.0 metres true thickness in 3drill holes, including up to 5.11 metres true thickness.

Highlights of the Office Block Extension drill program include:

  • REE mineralization encountered in seventeen of twenty drill holes, and
  • Mineralization up to 2.24 metres true thickness.
New Extensions South
Total Metres Drilled 1,471.77 763.29 2,283.68 1,982.93 6,501.67
Number of Drillholes 12 8 17 20 57
Drillholes with Mineralization 10 7 10 17 44
Percentage Drillholes With Mineralization 83% 88% 59% 85% 77%
Mineralization Range True Thickness (m.) 0.02 - 3.00 0.19 - 3.73 0.05 - 5.11 0.02 - 2.24 0.02 - 5.11
Mineralization Average True Thickness (m.) 0.60 1.19 1.54 0.62 0.91
* Drillholes STKEXP-001 and STKEXP-002 located in the Western Extension closest to the historic underground workings were included in the recent National Instrument 43-101 Resource Calculation. Notably, the thickest intercept of 3.73 metres was from STKEXP-002. Detailed drill program data is at

GWMG President and Chief Executive Officer Jim Engdahl said, "We are very pleased with the success to date with the new phase of our Steenkampskraal drill program. While massive to disseminated REE-bearing monazite does not automatically translate into uniform high grades, we are very encouraged by the significant extensions of mineralization adjacent to the previously announced mineral resource (see GWMG news release May 31, 2012) that have doubled the area of interest to over 800 metres along strike. These results give the Company a high degree of confidence about expanded development of this rare earth project."

South Eastern Extension:

Mineralization extends southeast for approximately 100 metres from the recently modeled resource area of historic mine underground workings. More infill drilling is required in order to test vein character proximal to the very thick monazite vein encountered in resource evaluation drillhole STK116 and to equally thick vein intersections encountered towards the bounding Eastern Flats Extension.

Western Extension:

As understood to date, monazite mineralization in the Western Extension appears to form a westward oriented wedge at depths of less than 80 metres. The mineralization varies up to 3.73 metres true width, similar to the western side of the known mine mineralization, but is characterized by significant entrained felsics and quartz. While mineralization does appear to pinch out towards surface approximately 100 metres westward from contiguous known mineralization, indications of a southwest down-dip plunge have not yet been tested.

Eastern Flats Extension:

The Eastern Flats Extension covers a broad area approximately 125 metres southeast and east of the known mine mineralization. The significant number of drill holes without intersections of mineralization reflects delineation of an area defined by minimally mineralized structure equivalent to the thinning monazite vein extending east and southeast from the immediate mine area. Beyond this pinched-out area, a significant new zone of mineralization has been partially defined. Three, dipping, north-oriented holes intersected mineralization in excess of 3.0 metres true thickness on 25 metre drill spacing. Step-out drilling thus far has shown a diminution of mineralization within 25 metres on three of the four sides with possible continuity as far as 100 metres further east. This lozenge of mineralization appears similar to locally thicker areas of "pinch and swell" mineralization within the historic mine area. Continued step-out drilling of this feature continues.

Office Block Extension:

Seventeen boreholes in the Office Block Extension intersected mineralization up to 2.24 metres true thickness on 25 metre drill spacing. The boreholes are located beneath the temporary administration camp situated approximately 330 metres east of the main mine development area and approximately 200 metres east of the thick mineralized zone in the mid-Eastern Flats. Step-out drilling continues along strike and down-dip in this area as the extent of mineralization remains open in all directions.

Brent Jellicoe, B.Sc., P.Geo, Director of International Exploration for GWMG, is the Qualified Person responsible for reviewing the technical 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 aluminum, 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.

Email inquiries should be made to and the company website is located at Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.

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, statements relating to expectations of drilling results, the results of assay testing of mineralization, the construction, commissioning and operation of the proposed monazite processing facility and separation facility, mine refurbishment activities, reliance on third parties to meet projected timelines, commencement of production at Steenkampskraal, risks related to the receipt of all required approvals including those relating to the commencement of production at the Steenkampskraal mine, delays in obtaining permits, licenses and operating authorities in South Africa and China, environmental matters, water and land use risks, 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, uncertainty of estimates and projections of production, costs and expenses, risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives, the adequacy of the Company's financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all, political risks inherent in South Africa and China, risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in South Africa, radioactivity and related issues, dependence on one mineral project, loss of key personnel, the factors discussed in the Company's public disclosure record, and other factors that could cause actions, events or results not to be as anticipated. 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. Except as required by law, GWMG does not assume any obligation to update forward looking statements as set out in this news release. 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 annual information form available at

CUSIP: 39141Y 10 3

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Contact Information

  • Great Western Minerals Group Ltd.
    Dwight Percy
    Manager of Investor Relations
    (306) 659-4516

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