MONTREAL, QUEBEC, Oct 16, 2012 (MARKETWIRE via COMTEX News Network) -- Geomega Resources Inc. ("GeoMegA" or the "Company") (TSX VENTURE:
GMA) announces a project update on its Montviel Rare Earths
Elements/Niobium project. In January 2012, G Mining Services Inc.
("GMSI") was retained to assume overall coordination and
responsibility for engineering and financial evaluation to produce a
Preliminary Economic Assessment study ("PEA") Technical Report in
accordance with NI 43-101 guidelines. The PEA results for the
Montviel project are expected in Q1 2013.
PEA scope of work Contributors ---------------------------------------------------------------------------- Market study Roskill Consulting Group Ltd ---------------------------------------------------------------------------- Geology GeoMegA - Montviel Core Zone ---------------------------------------------------------------------------- Resource estimation Belzile Solutions Inc. ---------------------------------------------------------------------------- Metallurgy and processing SGS Lakefield, CANMET, COREM, G Mining Services Inc. and Gary Pearse. ---------------------------------------------------------------------------- Mine design G Mining Services Inc. ---------------------------------------------------------------------------- Hydrogeology, geochemical, Golder Associates geotechnical and geomechanical ---------------------------------------------------------------------------- Infrastructure G Mining Services Inc. ---------------------------------------------------------------------------- Tailings pond Golder Associates ---------------------------------------------------------------------------- Capital costs G Mining Services Inc. ---------------------------------------------------------------------------- Financial modeling G Mining Services Inc. ---------------------------------------------------------------------------- Legal review Lacroix Freres Consultants Inc. ---------------------------------------------------------------------------- Environmental baseline Geodefor, Roche Consulting Group Ltd ---------------------------------------------------------------------------- Conclusion G Mining Services Inc. ----------------------------------------------------------------------------
Geology
The Phase 2 drilling assays (click here to download) revealed a Heavy
Rare Earths ("HRE") enrichment zone. Located on the southern
periphery of the Core Zone, the HRE enrichment zone ("HRE-S") was
intersected by four (4) drill holes covering 75 metres (east-west) by
45 meters (north-south) by 120 meters vertical (click here to
download). The HRE-S zone is open east, west and at depth and
requires additional drilling to define its full extension.
"The Dysprosium enrichment in the HRE-S zone is an excellent
complement to the Neodymium content in the Core Zone. Neodymium and
Dysprosium are the critical elements for the high performance
permanent magnets. " comments Alain Cayer, VP Exploration of GeoMegA.
Resource estimation
Complete disclosure of the updated NI 43-101 compliant resource
estimate for the Montviel Core Zone is scheduled for December 2012.
The economic elements considered for the cut-off grade will be:
Neodymium, Europium, Praseodymium, Dysprosium, Niobium and
Gadolinium.
Metallurgy and process definition
Beneficiation and hydrometallurgical tests to optimize the recoveries
of both Rare Earths elements ("REE") and Niobium is progressing well.
The PEA process flow sheet design will conclude by the end of Q4
2012.
Based on the results to date, GMSI is developing a conventional
metallurgical recovery process flowsheet including:
-- primary crushing and grinding; -- Flotation beneficiation; -- Leaching of REE from the beneficiated material with hydrochloric ("HCl") acid; -- Amenability of Niobium to a saleable Niobium product from leaching residues; -- Precipitation of impurities from leaching solution; -- Precipitation of REE from leaching solution; -- Leaching solution neutralization; -- Regeneration of HCl acid from neutralized leach solution; -- Conversion of precipitated REE into saleable Rare Earths products.
Mine design
The Montviel orebody will be mined using an underground approach via
ramp access. The mine output will depend on the overall metallurgical
recoveries and head grades. The production plan should aim at
extracting in priority the higher grade material of the Montviel
enrichment zone (click here to download). The throughput is market
driven and based on the Roskill market review, an initial annual
production in the range of 2,000 tonnes of Neodymium oxides is
targeted.
Infrastructure
The Montviel project benefits from public infrastructure and
available labour in the immediate area. The project site is located
approximately 100 km north of Lebel-sur-Quevillon (pop. 2,800) and 45
km west of the Cree First Nation of Waswanipi (pop. 1,800) in the
southern, developed, part of Northern Quebec. Montviel has permanent
access with a high capacity (oversize) logging road connecting to
provincial highway 113.
All infrastructures required for mining and processing of the ore
should be located on site. Anticipated project energy will be
provided by a 45 km long power line connected to the Hydro-Quebec
distribution network.
NI 43-101 Disclosure
Robert Marchand, Eng., GMSI VP mining engineering, Gary H.K. Pearse,
P.Eng., MSc., metallurgical consultant and Alain Cayer, Geo., MSc.,
VP-Exploration, are the Qualified Persons who approve the technical
information presented in this news release.
About GeoMegA (www.ressourcesgeomega.ca)
GeoMegA, which owns 100% of the Montviel Rare Earths/Niobium project,
is a Quebec mineral exploration company focused on finding
economically viable deposits of Minor Metals in Quebec. GeoMegA is
committed to meeting Canadian mining industry standards and
distinguishing itself with its expertise, know-how and its support
and respect for local communities and the environment.
29,274,113 common shares of GeoMegA are currently issued and
outstanding.
/s/ "Simon Britt"
Simon Britt
Chief Executive Officer
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our
intentions and plans. The forward-looking statements that are
contained in this news release are based on various assumptions and
estimates by the Company and involve a number of risks and
uncertainties. As a consequence, actual results may differ materially
from results forecast or suggested in these forward-looking
statements and readers should not place undue reliance on
forward-looking statements. We caution you that such forward-looking
statements involve known and unknown risks and uncertainties, as
discussed in the Company's filings with Canadian securities agencies.
Various factors may prevent or delay our plans, including but not
limited to, contractor availability and performance, weather, access,
mineral prices, success and failure of the exploration and
development carried out at various stages of the program, and general
business, economic, competitive, political and social conditions. The
Company expressly disclaims any obligation to update any forward-
looking statements, except as required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contacts: Simon Britt President and CEO GeoMegA 450 465-0099 info@ressourcesgeomega.ca
SOURCE: GeoMegA Resources Inc.
mailto:info@ressourcesgeomega.ca
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