Matamec Explorations inc.
TSX VENTURE : MAT

Matamec Explorations inc.

July 07, 2011 08:00 ET

Matamec Provides Additional Information Regarding Updated Resource Estimate

MONTREAL, QUEBEC--(Marketwire - July 7, 2011) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT) would like to take the opportunity to provide additional information regarding its press release of Thursday, June 30, 2011.

Infill drilling has upgraded the Kipawa Deposit resource and indicated resources have increased by 67% at a 0.2% TREO cut-off. The table below now provides the TREO cut-off grades for the Kipawa Deposit for November 2010 and June 2011. Depending on the cut-off grade applied, the recently completed definition drill program has increased the indicated resource by between 40% (cut-off of 0.5% TREO) and 67% (cut-off of 0.2% TREO) and the indicated resource now stands at between 72% and 84% of the total resource.

If we compare current resource (June 2011) with the resource of November 2010 at an equivalent cut-off:

  • It increases the volume of the REE zones inside the overall mineralized envelope of the deposit.

  • It increases the RE Oxide content in the REO envelope (at 0.2% TREO).

  • It increases of the size of the indicated mineral resources.

RE Oxide Zones:

  • At a cut-off grade of 0.3% TREO, mineral resources in the Indicated category show an increase from 8.3 Mt to 12.5 Mt with little change in grade. This represents an increase of 51% in Rare Earth Oxide content.

  • More than 94% of the mineral resources grade higher than 0.2% TREO in each category.

Matamec's metallurgical tests suggest that a 0.2% TREO cut-off could be a realistic mining scenario for this deposit. At this cut-off the current resource stands at 17,645,000 tonnes in the indicated category and 6,805,000 tonnes in the inferred category. The resources contain 76,800 tonnes total rare earths and yttrium (TREO) in the indicated category and 25,200 tonnes TREO in the inferred category. The heavy rare earths (HREO+Y) average 36% of the TREO content. The contained dysprosium increases from 1,800 tonnes to 2,800 tonnes in the indicated category.

June 2011 Resource Estimate

Cut-off Grade Category Tonnes ZrO2% Y2O3% LREO %* HREO %** TREO %***
Mineral envelope tonnage Indicated 18,720,000 0.911 0.094 0.269 0.058 0.420

Inferred

7,175,000

0.862

0.077

0.234

0.049

0.361
0.2 % TREO Indicated 17,645,000 0.909 0.097 0.278 0.060 0.435
Inferred 6,805,000 0.866 0.080 0.241 0.051 0.371
0.3% TREO Indicated 12,472,000 0.913 0.114 0.327 0.070 0.512
Inferred 3,842,000 0.912 0.101 0.299 0.063 0.463
0.4% TREO Indicated 8,249,000 0.912 0.134 0.381 0.081 0.596
Inferred 2,011,000 0.949 0.127 0.367 0.079 0.572
0.5% TREO Indicated 4,988,000 0.912 0.155 0.445 0.093 0.693
Inferred 985,000 0.944 0.158 0.450 0.098 0.706
*: LREO sum of all light rare earths oxides (Lanthanum to Samarium).
** : HREO sum of all heavy rare earths oxides (Europium to Lutetium).
*** : TREO sum of all rare earths in oxides plus yttrium oxide.
Effective date 01 June 2011

November 2010 Resource Estimate

Cut-off Grade Category Tonnes ZrO2% Y2O3% LREO %* HREO %** TREO %***
Mineral envelope tonnage Indicated 10,960,000 0.898 0.099 0.272 0.047 0.447

Inferred
9,490,000 0.948
0.107

0.280

0.050

0.468
0.2 % TREO Indicated 10,570,000 0.889 0.101 0.292 0.064 0.457
Inferred 9,390,000 0.949 0.108 0.296 0.067 0.471
0.3% TREO Indicated 8,250,000 0.874 0.113 0.329 0.071 0.513
Inferred 7,800,000 0.966 0.118 0.321 0.073 0.513
0.4% TREO Indicated 5,750,000 0.863 0.129 0.375 0.080 0.584
Inferred 5,180,000 0.987 0.139 0.370 0.085 0.594
0.5% TREO Indicated 3,560,000 0.860 0.146 0.432 0.091 0.669
Inferred 3,040,000 0.972 0.164 0.433 0.100 0.698
*: LREO sum of all light rare earths oxides (Lanthanum to Samarium).
** : HREO sum of all heavy rare earths oxides (Europium to Lutetium).
*** : TREO sum of all rare earths in oxides plus yttrium oxide.
Effective date 29 November 2010

The figures below show the 2011 and the 2010 versions of two block models of the deposit. A large portion of the Eastern and Western portion of the deposit are now classified in the indicated category.

http://media3.marketwire.com/docs/Block_Model0707.pdf

The new resource strengthens the foundations of the ongoing preliminary economic assessment (PEA) study and allows Matamec to securely advance to the next step of exploration, namely focusing on finding more tonnage along possible east-west and at depth extensions of the deposit as well as locating similar rare-earth enriched lenses elsewhere on the property. To this end, a ground exploration program is presently underway, to be followed by an extensive diamond drilling campaign.

Andre Gauthier, the president of Matamec, states that: "The grade and tonnage at Kipawa are now well-known and predictable. This in turn strengthens the foundations of the ongoing scoping study. Matamec remains confident that the Kipawa deposit will become a world-class producer of heavy rare-earths in a timely manner."

NI 43-101 Mineral Resources Update by SGS Geostat

The resource data comes from the new updated NI 43-101 resource estimate of the Kipawa deposit received from the independent firm SGS Canada Inc. - Geological group Geostat ("SGS Geostat"). For reference, the original estimate (as of May 20, 2010) was filed on SEDAR September 17, 2010 and the first update (as of November 29, 2010) was issued January 20, 2011.

The mineralization is located within a syenite body in the Kipawa Alkalic Complex. It plunges 20 degrees to the south and its width varies between 40 and 65 meters. Within this unit, there are three layers of enriched TREOs whose thicknesses vary between 2 and 28 meters. The three layers form the "Geological TREO-Enriched Zone". The TREO-enriched resources are detailed in the following tables at different cut-off grades.

Cut-off (0.2% TREO) (represents 94% of the mineral envelope tonnage)
Category Indicated Inferred
Tonnage 17,645,000 6,805,000
Grade % Tonnes Ox Grade % Tonnes Ox
Y2O3 0.097 17,100 0.080 5,400
LREO* 0.278 49,100 0.241 16,400
HREO* 0.060 10,600 0.051 3,400
TREO* 0.435 76,800 0.371 25,200
La2O3 0.063 11,200 0.055 3,700
Ce2O3 0.128 22,600 0.111 7,600
Pr2O3 0.016 2,700 0.014 900
Nd2O3 0.058 10,300 0.050 3,400
Sm2O3 0.013 2,300 0.011 800
Eu2O3 0.0017 300 0.0014 100
Gd2O3 0.013 2,300 0.011 700
Tb2O3 0.0024 400 0.0020 100
Dy2O3 0.016 2,800 0.013 900
Ho2O3 0.0034 600 0.0029 200
Er2O3 0.011 1,900 0.009 600
Tm2O3 0.0017 300 0.0014 100
Yb2O3 0.010 1,800 0.009 600
Lu2O3 0.0014 200 0.0012 100
ZrO2 0.909 160,400 0.866 59,000
*Light rare earths (LREO) = La2O3 to Sm2O3, Heavy rare earths (HREO) = Eu2O3 to Lu2O3, TREO = LREO + HREO + Y2O3.
Cut-off (0.3% TREO)
Category Indicated Inferred
Tonnage 12,472,000 3,842,000
Grade % Tonnes Ox Grade % Tonnes Ox
Y2O3 0.114 14,300 0.101 3,900
LREO* 0.327 40,800 0.299 11,500
HREO* 0.070 8,700 0.063 2,400
TREO* 0.512 63,900 0.463 17,800
La2O3 0.074 9,300 0.068 2,600
Ce2O3 0.151 18,800 0.138 5,300
Pr2O3 0.018 2,300 0.017 600
Nd2O3 0.068 8,500 0.063 2,400
Sm2O3 0.015 1,900 0.014 500
Eu2O3 0.0020 200 0.0018 100
Gd2O3 0.015 1,900 0.014 500
Tb2O3 0.0028 400 0.0026 100
Dy2O3 0.018 2,300 0.017 600
Ho2O3 0.0041 500 0.0037 100
Er2O3 0.013 1,600 0.011 400
Tm2O3 0.0019 200 0.0017 100
Yb2O3 0.012 1,400 0.011 400
Lu2O3 0.0015 200 0.0014 100
ZrO2 0.913 113,800 0.912 35,000
* Light rare earths (LREO) = La2O3 to Sm2O3, Heavy rare earths (HREO) = Eu2O3 to Lu2O3, TREO = LREO + HREO + Y2O3.

Technical details of the NI 43-101 mineral resources estimation by SGS Geostat

SGS Geostat included data from up to April 2011 to calculate the mineral resource update. It includes Unocal Canada's historic drill holes (30 drilled in 1988-1990), Matamec's drill holes from 2009 to 2011 totalling 10,278 meters drilled, as well as 631 meters of channel samples (Unocal Canada). A total of 6,733 mineralized intervals were analyzed for 16 elements and are part of the update.

The estimate was made with a block model (10m x 10m x 5m) using the inverse distance squared for the grade interpolation levels. The blocks are classified according to their distance to drill holes. Blocks located in an area drilled at 50m x 50m or less are classified as indicated, while those drilled on larger spacing are classified as inferred. The estimate parameters are similar to those used for the mineral resource update issued in January 2011.

Yann Camus (Eng.) engineer for the independent firm SGS Canada Inc. - geological group Geostat ("SGS Geostat ") is the qualified person under NI 43-101 standards, which supervised the preparation of the resource estimate.

Robert Crépeau (Eng.) and Aline Leclerc (Geo.), Vice-President Exploration of Matamec, qualified person under NI 43-101 standards for the project Zeus, oversaw the preparation of the scientific and technical information. Together, they have verified the information in this press release.

Rare metals pricing

Global prices of TREOs have jumped since Jan. 2011, particularly the five critical elements identified by the US DOE (see table *). Heavy REE shortages are projected as China cuts back on its exports. The Kipawa Deposit is enriched in HREEs.

Individual REO Average 2008 Average 2009 Average 2010 Average 2008-2010 Average Jan 1 2011- June 30 2011
La2O3 8.00 6.00 20.00 11.33 45.00
Ce2O3 5.00 5.00 22.00 10.67 43.00
Pr2O3 28.00 15.00 43.00 28.67 142.00
*Nd2O3 28.00 16.00 46.00 30.00 571.00
Sm2O3 5.00 5.00 15.00 8.33 211.00
*Eu2O3 463.00 455.00 549.00 489.00 2,445.00
Gd2O3 10.00 7.00 21.00 12.67 292.00
*Tb2O3 682.00 357.00 526.00 521.67 2,651.00
*Dy2O3 118.00 108.00 223.00 149.67 1,744.00
Ho2O3 - - - 34.73 381.00
Er2O3 - - - 40.08 492.00
Tm2O3 - - - 96.93 3,182.00
Yb2O3 - - - 26.93 126.00
Lu2O3 - - - 405.75 1,151.00
*Y2O3 16.00 13.00 27.00 32.75 209.00
All prices are in USD/kg. Source: Asian-Metals and Metal-Pages.
*5 most critical elements as identified by the US DOE.

Matamec has 117.3 million shares presently outstanding.

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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