MD&A out re: 9mo-period ended Feb.28Not much new in the report. Looks like GMA has plenty of cash to complete its Phase 1 drilling program which might be wrapping up soon. As at April 7, 2011 >
Cash position: $2.5 million
Drilling in progress (10,000 m program):
?7,500+ m (15 holes) completed in core;
?500 m completed outside core.
Only 5 holes reported so far.
Key excerpts
During the third quarter, the Company incurred $713,046 in exploration expenses on the Montviel property.
The work described in the table above has allowed the Company to:
- To start the winter drilling program (approximately 4,911 meters) and get the first drilling results
- Prepare access roads to the mining camp and drilling targets ;
- Install a functional mining camp (dormitory, kitchen, office, sampling- shelter, generators, artesian well and septic tanks);
- Obtain all necessary permits to start drilling.
The topography at Montviel is typical of the Abitibi region and generally with a low relief. Bedrock exposures are scarce due to the extensive quaternary deposits covering the area. On the ground, swampy areas alternate with gravel and sandy till zones.
During the quarter, exploration expenditures incurred by the Company of $ 713,046 were for the most part related to the on-start of the Phase I diamond drilling campaign at Montviel. More specifically, a total of $355,315 was directly spent on drilling work that entailed the completion of approximately 4,911 m of NQ-size core drilling in 10 drill holes. The Phase I drill program targeted the eastern portion of the 32 sq.km Montviel Intrusive Complex where REE values had been reported in historical drilling completed by Nomans Resources Inc. in 2002.
The winter drill program undertaken by the Company at Montviel has been greatly successful so far having returned wide intercepts of REE mineralization extending over the entire length of some drill holes. As such, drill intersections grading 1.24% to 1.44% total rare earth oxides (TREO) over core length nearing or exceeding 500 m have been obtained (Table 1). The rare-earth mineral-bearing carbonatite has presently been identified over a strike length of 700 m, a 400-m width and to a vertical depth of 450 m below surface.
The rare-earth elements mineralization consists for the most part of: cerium, lanthanum, neodymium and praseodymium with lesser samarium, gadolinium, yttrium, europium and dysprosium. Neodymium oxide (Nd2O3) represents an important component of the TREO content standing on average at a grade of 0.22% (equivalent to 2.2 kg/ton) in all assay intercepts released to date. In addition, near-surface phosphate mineralization was intersected in drill holes located in the SW corner of the grid area. Best intercept was obtained in hole 11-06 with 6.58% P2O5 over 171m. The phosphate-enriched zone remains open to the south. As well, significant niobium values that could represent a valuable by-product to the REE mineralization were intersected in several of the drill holes. The Company is currently in the process of having niobium-bearing samples from the first five drill holes reanalyzed by the X-ray fluorescence method to obtain more accurate and representative results.
| Planned exploration work on the Montviel property is as follow: Work – Phase 1 | Estimated cost $ | Term |
| Geology | 25,000 | Fall 2010 |
| Logistic and access roads | 200,000 | Fall 2010 |
| Transport, lodging and logistics | 200,000 | Winter 2010-2011 |
| Office, furniture and small tools | 15,000 | Winter 2010-2011 |
| Diamond drilling – 10,000m @ 150$/m, all-inclusive | 1,500,000 | Winter 2010-2011 |
| Permits, insurance and rights | 7,000 | Fall 2010 |
| 1,947,000 |