Great Western Minerals Enters Agreement to Acquire Heavy Rare Earth Element Enriched Property in New Brunswick
Thursday January 8, 2:35 pm ET
ca.us.biz.yahoo.com
SASKATOON, SASKATCHEWAN--(MARKET WIRE)--Jan 8, 2009 -- Great Western Minerals Group Ltd. ("GWMG" or the "Company") (CDNX:GWG.V - News) (Other OTC:GMWGF.PK - News) is pleased to announce that it has entered into an option agreement with a third party to acquire a 100% working interest in a Rare Earth Elements property (the "Benjamin River Property") in the Province of New Brunswick, approximately 53 km east-northeast of the city of Bathurst. The agreement is subject to regulatory approval.
This property is located in a mining-friendly jurisdiction, with excellent infrastructure nearby. The major highway is approximately 5 km away with a railroad within 10 km, ports within 50 km, and power lines to the local smelters are also within 50 km.
The Benjamin River Property covers 55 claims totaling 880 hectares (ha) and hosts an apatite-diopside-magnetite vein that has been traced on surface for 800 metres along strike, with an apparent width of up to 50 metres. As part of the agreement, GWMG has staked an additional 436 claims (approximately 9500 ha).
Grab samples of the vein material taken by GWMG range in assay from 0.6% Total Rare Earth Oxide ("TREO") to 1.0% TREO with very low values for potentially deleterious uranium and thorium. While the overall TREO grade appears low compared to some other deposits, the proportion of heavy rare earth oxides (europium through lutetium) is high at over 11%, including a dysprosium content of over 3% of the total rare earth oxide content. Dysprosium is a critical element in the high-temperature magnets used in hybrid vehicle electric motors. In a typical "light" rare earth deposit dysprosium is usually present by proportion at 0.3% or less.
Adding to the potential economics of the Benjamin River Property is a phosphate content of up to 18% and an iron oxide (Fe2O3) content as high as 39%. The fact that the property is located near water, roads, rail and power make large tonnage by-product production plausible.
Under the terms of the agreement, GWMG will pay to the vendor an amount of $5,000 plus 100,000 shares of GWMG on signing; $10,000 plus 50,000 shares on the first anniversary, $30,000 on the second anniversary; $50,000 on the third anniversary; $100,000 on the fourth anniversary, with a final payment of $300,000 on the fifth anniversary date. Upon completion of the prescribed payments, GWMG will own 100% of the property, subject to a 2% NSR payable to the vendor.
Over the course of the next year GWMG plans to carry out airborne and ground geophysics, ground geochemistry, surface mapping and sampling, and diamond drilling to evaluate the property.
Jim Engdahl, President and CEO of Great Western Minerals Group said "Because of what we see as a potential shortfall in critical rare earth elements for permanent magnets, GWMG is expanding its project portfolio to include new projects enriched in those elements. Benjamin River is a great acquisition prospect for us. The initial assessment indicates a high proportion of heavy rare earths, along with relatively high phosphate content. With infrastructure and services nearby, we see great potential for further development".
John Pearson (MSc., P.Geo), Vice President Exploration for Great Western Minerals Group is the Qualified Person responsible for reviewing the contents of this release.
About Great Western Minerals Group Ltd.
Great Western Minerals Group Ltd. is a Canadian-based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiaries of Less Common Metals Limited located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, produce a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing aluminum, copper, nickel, cobalt and the rare earth elements.
Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.
CUSIP: 39141Y 10 3
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Contacts:
Great Western Minerals Group Ltd.
Ron Malashewski
Manager of Investor Relations
(306) 659-4516
Great Western Minerals Group Ltd.
226 Cardinal Crescent
Saskatoon, SK S7L 6H8
Email: info@gwmg.ca
Website: gwmg.ca
Source: Great Western Minerals Group Ltd. |
