Matamec Explorations inc.
TSX VENTURE : MAT

Matamec Explorations inc.

September 09, 2010 09:21 ET

Matamec Retains Engineering Firm Roche Ltd, Consulting Group, to Assist in the Development of Its Rare Earth-Yttrium-Zirconium Zeus Project

MONTREAL, QUEBEC--(Marketwire - Sept. 9, 2010) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT) is pleased to announce that it has retained the services of the "Mine and Mineral Processing" team of the engineering firm Roche to assist in the development of its rare earths-yttrium-zirconium Zeus project.

The Roche team will consist of professionals experts known in the mining industry:

  • Guy Saucier, Eng. - Vice President Mining and Mineral Processing. Mr. Saucier has over twenty-five (25) years of experience in mining engineering, corporate development and exploration. His expertise includes resources evaluation, open pit mine design, and mine planning. He has been involved in several scoping studies and feasibility studies. He has participated in worldwide projects in gold, base metals, iron ore, coal, bauxite, and industrial minerals.
  • Alain Dorval , Eng. – Manager, Process, Mining and Mineral Processing. Mr. Dorval is a mining engineer specialized in mineral processing having over twenty-seven (27) years of experience in industrial operations, research, engineering, consulting and process auditing. Its expertise includes laboratory testing and pilot plant testing for various minerals, including: iron ores, ilmenite, industrial minerals, sulphide minerals as well as gold and silver. He has (9) years of plant experience in mineral beneficiation. He has considerable experience with most comminution and mineral processing techniques and equipment: crushers, grinding mills, gravity concentration, magnetic separation, electrostatic separation, hydraulic classification and flotation.
  • André Roy, Eng., MBA - Project Manager. Mr. Roy is a geological engineer with a MBA with more than twenty-five (25) years of experience promoting engineering services, in the marketing and sales of industrial minerals and products in the primary and secondary industries. He lead and produced different market studies and price assessment studies for Iron Ore and pellets, Niobium and Tantalum and various industrial minerals as part of feasibility and scoping studies. During the last few years he had different assignments as project manager on different iron ore project in Latin America.

Roche's first mandate is to assist Matamec's Zeus project team in the planning of the NI 43-101 Preliminary Economic Assessment Study (PEA). This study will include the following:

  1. Geology and previous work of the Zeus property: as soon as the full results of analysis of the work carried out between May 1st and July 31st on the Zeus property, which mainly includes the Surprise showing, TH showing, Falaises showing and the Kipawa deposit, will be received and published, the geological data will be updated;
  1. The resource estimation and geological models of the Kipawa deposit: following the first drilling campaign in Fall 2009, the firm SGS Geostat calculated that the Kipawa deposit contains resources of rare earths-yttrium oxides ("TREO") and zirconium oxides ("ZrO2"). The resource has been considered under two scenarios: 1) a resource of rare earths-yttrium with zirconium as a by-product, or 2) a resource of zirconium with rare-earths-yttrium as a by-product. For example, Table 1 below shows the scenario with a chosen cut-off grade of > 0.50% TREO and the tonnage of some rare earths such as neodymium, europium, terbium and dysprosium, as well as yttrium and zirconium, in the indicated and inferred resource classification:
Table 1: SCENARIO 1 - TREO ENRICHED ZONES
Indicated and Inferred NI 43-101 Resources at a cut-off of TREO >0.50%
Zone TREO ENRICHED ZONES
Tonnage 2,510,000 4,730,000
Classification Indicated % Indicated t Inferred % Inferred t
Nd2O3 Neodymium 0.09 2,300 0.09 4,300
Eu2O3 Europium 0.002 100 0.003 100
Tb2O3 Terbium 0.004 100 0.004 200
Dy2O3 Dysprosium 0.023 600 0.025 1,200
Y2O3 Yttrium 0.14 3,500 0.15 7,100
Zr2O2 Zirconium 0.88 22,100 0.97 45,900
Source: SGS Geostat (June 3rd, 2010)

This resource estimate will be updated as soon as all the analyses from the 2000 meters of drilling conducted on the Kipawa deposit will be received. It will also incorporate the latest geological models.

  1. Pit and preliminary mining plans: taking into consideration that the resources are close to the surface, Roche will prepare the preliminary mine plans and the design of the pit and its initial size, operating conditions, management of overburden and waste rock, the preliminary estimation of mining equipment and maintenance facilities.
  1. Process and plant engineering: following the results of metallurgical testing, the establishment of design criteria and determination of the flow sheet, Roche will identify, if necessary, the need for additional metallurgical testing, will review the flow sheet, the design criteria, the mass and water balance and will develop a preliminary process diagram. In addition, Roche will determine the list of major process equipment and energy demand.
  1. Tailings: Roche will develop the preliminary design of the tailings pond, and the management of waste rock
  1. Environment: An environmental base study of the Kipawa deposit will begin shortly. This study will assess the environmental sensitivity of Sairs Lake and will characterize the aquatic and terrestrial environment near the deposit, as well as upstream and downstream. The information collected during this study may serve as a basis for a possible environmental impact study.
  1. Market study: The first mandate that Matamec has given to Roche as part of the PEA study is to conduct a preliminary market study of the global rare earths-yttrium and zirconium market. It will subsequently be refined during the conceptual study which will identify the most favourable products and markets for Zeus project.

    The first market data had shown the potential value of the Kipawa deposit (see press release dated June 17th, 2010). For example, the following table gives an indication of the evolution of world prices for certain rare earths and yttrium since October 2009:
Oxide prices (99%) of TREO in US$/kg (May 28th, 2010)
Types of REO LREO MREO HREO/Yttrium*
Date Nd2O3 Eu2O3 Tb2O3 Dy2O3 Y2O3
Oct. 2009 14,40 460,00 350,00 100,00 14,00
June 2010 32,50-
33,00
505,00-
525,00
490,00-
520,00
190,00-
200,00
22,00-
55,00
Sept. 2010 59,50-
60,00
585,00-
605,00
585,00-
605,00
278,00-
298,00
33,00-
36,00
Source : Source Metal-Pages.com
  1. Capex, Opex and financial analysis: At the completion of the preliminary process diagram and mass balance, the list of major equipment, Roche will prepare a budgetary estimate of capital and operating costs. In addition, Roche will prepare a financial analysis based on estimated sales by market research, and the estimated project costs.

Aline Leclerc, geologist (OGQ) and Matamec's Vice-President Exploration, is Matamec's Qualified Person for this press release write up.

About Matamec

Matamec explores for significant gold deposits in the Timmins mining camp in Ontario of which the Matheson JV property with Goldcorp Canada Ltd. and Goldcorp Inc. is the main target. In Quebec. the Company explores for precious and base metals on its Sakami, Valmont and Vulcain properties. As well, Matamec is exploring for gold together with Northern Superior Resources Inc. on its Lepérance/Wachigabau property.

Concurrently with the above mentioned exploration programs, Matamec's Quebec Tansim property is also being explored for rare metals such as lithium, tantalum and niobium.

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