NR additional reserves Hoidas Lake ore to 2.5mt
posted on
Nov 30, 2009 06:48PM
Great Western Minerals Group Ltd. is a Saskatchewan-based junior exploration company. GWMG is engaged in the acquisition, exploration, and development of rare earth mineral properties in North America.
November 20, 2009 - Saskatoon, Saskatchewan – Great Western Minerals Group Ltd. (“GWMG” or the “Company”) is pleased to announce the results of the Company's new NI 43-101 Technical Report for its Hoidas Lake project prepared by Barr Engineering Company ("Barr").
The Company reports that the overall resource estimate increased by 123% to 2,560,835 tonnes from the previous value of 1,150,000 tonnes. This includes an increase of over 1200% in the Measured category to 963,808 tonnes from the previous estimate of 80,000 tonnes, and an increase of 49% in the Indicated category to 1,597, 027 tonnes from the previous estimate of 1,070,000 tonnes.
This new Technical Report incorporates the results of 32 drill holes completed in the spring of 2008 and includes drilling results from four separate drilling programs conducted from 2001 through to 2008 for a total of 120 core holes located along a strike length of 1150 metres. These core holes, some of which extend to a depth of 398 metres, total 15,222.8 metres of drilling. The rare earth mineralization is open along strike and at depth.
The resource estimate used ordinary kriging, and inverse distance interpolation methods, with the ordinary kriging values used for reporting. Based on preliminary economics generated by the Company, a cut-off grade of 1.5% Total Rare Earth Elements ("TREE") was applied for summary reporting purposes. The resource model uses the assay data provided by the Company.
The tabulated resource data for the Hoidas Lake JAK Zone as calculated by Barr is as follows:
Category | Cut-Off Grade
WT.% TREE |
Tonnes | TREE WT.%1 | TREO2
WT.% |
Measured | 1.5 | 963,808 | 2.142 | 2.568 |
Indicated | 1.5 | 1,597,027 | 1.958 | 2.349 |
Total | 2,560,835 | 2.075 | 2.431 | |
Inferred | 1.5 | 286,596 | 1.784 | 2.139 |
1 Total Rare Earth Elements include lanthanum, cerium, praseodymium, neodymium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, lutetium, yttrium and ytterbium
2 Total Rare Earth Oxide-calculated from TREE for comparison purposes by the Qualified Person.
Eighty seven percent of the average value of TREE is made up of lanthanum, cerium and neodymium with neodymium grades averaging 0.42% of the measured and indicated resource. This high proportion of Nd (used in permanent magnet electric motors) supports the economics of the Hoidas Lake project and moving forward with the Preliminary Economic Assessment Report.
John Pearson, MSc., P.Geo., Vice-President Exploration for GWMG, is the qualified person responsible for reviewing the contents of this news release.
Jim Engdahl, President and CEO of Great Western Minerals Group said "We are certainly pleased to report these results to our shareholders. Our belief always was that we could at least double the resource estimate for this project and this update certainly confirmed that. This reinforces our belief that this could be a much larger deposit since we have drilled a relatively small portion of the property. Once we receive the results of our ongoing metallurgy we will be able to complete the remaining items for the Preliminary Economic Assessment Report."