Update on Kipawa JV
Matamec Announces Update on Kipawa JV Heavy Rare Earth Project
Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) is pleased to provide an update on the upcoming plans for the Kipawa Joint Venture ("JV") Heavy Rare Earth Elements Project ("HREE").
As planned, the Matamec team met recently with Toyotsu in Nagoya, Japan, for the first time since the completion of the positive feasibility study. It was agreed to commence the second pilot plant for beneficiation with the expectations of achieving higher rare earths recovery rates which would be a first step toward improving the economics of the project. Beneficiation in the case of the Kipawa project is mainly magnetic separation after crushing and grinding.
Both companies will meet this fall to finalize the upcoming budget and strategies for the optimization, permitting and financing phase of the project we are presently in and to review the progress made over the past several months.
Matamec would like to make very clear reference to the feasibility study press release that it strongly believes it can achieve greater success with bringing the IRR above 25% by only slightly reducing the CAPEX and OPEX per tonne of concentrate produced while improving the recovery. There are a number of opportunities that have the potential to add additional value for the Company to optimize.
"We are committed to improving the economics of the Kipawa project and feel confident we will be able to achieve stronger results," said Andre Gauthier, President and CEO of Matamec. "The completion of the feasibility study was a very important step for Matamec to achieve as it has initiated several new exciting opportunities which have come about with the completion of the study. There is growing interest from potential end-users with our Zeus property now that Matamec has demonstrated a positive feasibility study on the Kipawa deposit which sets the next phase of growth for the Company. While Matamec is focused on developing its Zeus rare earth property, we are presently evaluating opportunities to monetize some of our gold properties which we will communicate once finalized."
The second pilot plant for beneficiation is starting today at SGS Minerals Services (Lakefield site). The plant consists of crushing and grinding circuits, followed by 2 stages of dry magnetic separation. The last results regarding beneficiation testwork confirmed 85% recovery in the variability sample program which has been used in the Feasibility Study. The second pilot plant for beneficiation will be done with a "Master Composite" of ore representing the overall ore deposit. From recent testwork it is reasonable to anticipate improvement in recovery for this beneficiation process.
Technical information in this press release was reviewed and adopted by Bertho Caron, VP Project Development & Construction (Eng.) and Aline Leclerc, VP Exploration (Geo.),Matamec's Qualified Persons for this press release.