Matamec Explorations inc.
TSX VENTURE : MAT

Matamec Explorations inc.

July 21, 2011 08:00 ET

Matamec Improves Economics of Kipawa Deposit With Metallurgy

MONTREAL, QUEBEC--(Marketwire - July 21, 2011) - Matamec Explorations Inc. ("Matamec") or the "Company"(TSX VENTURE:MAT) is pleased to announce that it is now able to produce a pre-concentrate containing 90% of the contained yttrium in only 35% of the original ore mass of the Kipawa Deposit. This is significant in lowering the amount of acid required downstream and consequently lowering the operating cost of the project. Furthermore, the optimisation of Matamec's straightforward proprietary leaching method has dramatically reduced the amount of heat, acid, water and time required in solubilising the rare earths. Seven leach tests utilizing this proprietary method have been completed to date resulting in an excellent overall REE recovery of 88%, and an even higher 89% recovery for HREE+Y.

Since the start of the test work program in March 2010 at SGS Minerals Services, Matamec has been focused on both the pre-concentration and the leaching processes for treating the unique coarse grained eudialyte ore. Matamec believes that a combination of these two steps is vital in developing a successful, low-cost rare earth project.

The achievement of concentrating 90% of the yttrium values into 35% of the original ore mass is a considerable improvement from the previously reported values of 52.8% original ore mass (press release March 8, 2011) and 40% original ore mass (press release June 6, 2011). This advancement in optimizing the pre-concentration of the ore has been made by applying a coarse grind and employing a dry permanent magnetic separator for the elimination of gangue minerals from the ore.

A major breakthrough in the leaching of the pre-concentrate has also been achieved. The proprietary leaching method developed by Matamec can now successfully leach the eudialyte ore in a simple and low-cost manner. This straightforward leaching method can dramatically reduce the amount of heat, acid, water and time required in solubilising the rare earths. Seven leach tests have been completed to date resulting in an excellent overall REE recovery of 88%, and an even higher 89% recovery for HREE+Y.

These two developments significantly lower the operating and capital costs; and in turn, improve the overall economics of the project.

André Gauthier, president of Matamec, points out that, "with the results of these new pre-concentration and leaching tests, and based on information announced in other REE companies' press releases, Matamec may have defined the lowest cost metallurgical treatment process. With our pre-concentrate we need only lixiviate 35% of the ore mass with acid, and, we have also reduced the heat, residence time and reagent consumption drastically in the leaching process. It is the simplicity and low-cost nature of our metallurgical process which sets the Kipawa deposit apart from its peers." He adds that, "along with these impressive metallurgical results, Matamec will be able to process lower grade mineralization from the Kipawa deposit and increase the life of the mine."

Aline Leclerc, V-P Exploration (Geo.) and Eliza Ngai (P.Eng) are Matamec's Qualified Persons for this press release. Together, they have verified the information in this press release.

About Matamec

Matamec Explorations Inc is a junior mining exploration company whose main focus is in developing the Kipawa deposit and exploring more than 35km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property.

The company is also exploring for gold, base metals and platinum group metals. Its gold portfolio includes the Matheson JV property located along strike and in close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario.

In Quebec, the Company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties. As well, it is exploring for gold together with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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