Update on Steenkampskraal Rare Earth Chloride Plant, LCM Alloy
Production, GWTI Project, CEO Search and PEA
Corporate Update - As at November 26, 2012
SASKATOON, Nov. 26,
2012 /PRNewswire/ -
Steenkampskraal:
Great Western Minerals Group's ("GWMG")
wholly-owned South African subsidiary, Rare Earth Extraction Co.
Limited ("Rareco") has contracted with DRA Mineral Projects (Pty)
Ltd. ("DRA") of South Africa to
review and complete the remaining work relating to the decline
shaft refurbishment and hoisting equipment commissioning. Rareco
has terminated its contract with East Rand Engineering Services for
these services due to a commercial disagreement. DRA is part of a
highly qualified and experienced South African based mining and
engineering group with a global customer base of mining and
processing companies. DRA is also continuing with the design and
engineering work as the main contractor for the mixed rare earth
chloride facility at Steenkampskraal.
Less Common Metals:
Less Common Metals ("LCM") of Birkenhead, United Kingdom, has been actively
working with its customers to deliver rare earth alloys using the
new strip cast furnace. A series of trials designed to optimize
melt conditions that produce various grades of product have been
conducted enabling LCM to thoroughly investigate the full range of
furnace process parameters. Through that rigorous process, LCM has
established best practices and has achieved reproducible,
standardized melts on a routine basis. These melts have been
submitted to one of LCM's key customers for evaluation. Programs
have also been established to supply all other LCM customers with
evaluation materials.
The second strip cast furnace ordered from the
same Chinese supplier is now completely fabricated and LCM
personnel were at the manufacturer's plant in November for
inspection and commissioning trials. The second furnace for LCM's
Hooton Park location is scheduled to arrive in the latter part of
the 1st Quarter 2013 with the plan that it will be fully
operational early in the 2nd Quarter 2013.
The general markets for rare earth alloys have
remained relatively healthy, albeit exhibiting a limited degree of
impact from low rates of global economic growth. LCM notes that
there has been a concentrated and potentially successful effort on
the part of customers and researchers to reduce the use of
Dysprosium, an element that remains in short supply globally, in
many of these alloys. This has, in turn, led to renewed confidence
on the part of customers in respect to the sustainability of the
rare earth supply chain, notably for Neodymium, which remains the
material of choice for the high performance permanent magnet
market.
The recent softening of rare earth prices has
also restored confidence levels on the part of LCM customers who
have continued to express strong support for GWMG's corporate
vision to provide rare earth materials via a supply chain that is
reliable, sustainable and free from political restriction.
The Company will conduct a tour of the LCM
facilities for analysts and newsletter writers on Thursday, November 29, 2012.
Great Western Technologies Inc.:
As announced on October
1, 2012, GWMG's wholly owned subsidiary, Great Western
Technologies Inc. ("GWTI") of Troy,
Michigan, was selected by the United States Department of
Defense to conduct a supply chain assessment of military use of
high-purity Yttrium oxide and a study of material optimization and
recycling methods. The study is now underway with a team comprised
of GWTI personnel and external resources. GWMG expects the project
can position the Company as a valued participant in the United States rare earth industry.
CEO Search:
The CEO recruitment process continues to
progress toward the appointment of a new Chief Executive Officer.
The Search Committee, consisting of Interim CEO Robert Quinn, and independent Directors
George Ireland and Ian McNaughton, are working through the
selection process with the assistance of the highly experienced
executive recruitment agency Korn/Ferry International.
Preliminary Economic Assessment
("PEA"):
GWMG reports excellent progress on the part of
Snowden Mining Industry Consultants Inc. ("Snowden"), the
independent contractor working on the up-date of the resource
calculation and completion of the PEA within the previously stated
time target of the 4th Quarter of 2012. The Company
looks forward to the release of the PEA as an opportunity to
communicate confirmation of its capital expenditure projections for
the Steenkampskraal operation, financial projections for its fully
integrated "Mines-to-Metals" business model and key elements of the
Company's operations going forward.
Great Western Minerals Group Summary:
Great Western Minerals Group Ltd. intends to be
an integrated rare earth producer. The Company currently produces
specialty alloys which are used in the battery, magnet and
aerospace industries. Produced at the Company's wholly owned
subsidiaries Less Common Metals Limited in Birkenhead, U.K. and Great Western
Technologies Inc. in Troy,
Michigan, these alloys contain aluminum, nickel, cobalt and
rare earth elements. As part of the Company's vertical integration
strategy, GWMG also holds 100% equity ownership in Rare Earth
Extraction Co. Limited, which owns a 74% equity interest in the
Steenkampskraal Mine in South
Africa. In addition to an exploration program at
Steenkampskraal, GWMG also holds interests in four active rare
earth exploration and development properties in North America.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Certain information set out in this News Release
constitutes forward-looking information. Forward-looking
statements (often, but not always, identified by the use of words
such as "expect", "may", "could", "anticipate" or "will" and
similar expressions) may describe expectations, opinions or
guidance that are not statements of fact and which may be based
upon information provided by third parties. Forward-looking
statements are based upon the opinions, expectations and estimates
of management of GWMG as at the date the statements are made and
are subject to a variety of known and unknown risks and
uncertainties and other factors that could cause actual events or
outcomes to differ materially from those anticipated or implied by
such forward-looking statements. Those factors include, but are not
limited to, the successful and timely completion of its preliminary
economic assessment at Hoidas Lake; the successful and timely
completion and the results of its preliminary economic assessment
of the Steenkampskraal project, the construction, commissioning and
operation of the proposed monazite processing facility and
separation facility, mine refurbishment activities, reliance on
third parties to meet projected timelines and commencement of
production at Steenkampskraal; risks related to the receipt of all
required approvals including those relating to the commencement of
production at the Steenkampskraal mine, delays in obtaining
permits, licenses and operating authorities in Canada, South
Africa and China,
environmental matters, water and land use risks; risks associated
with the industry in general, commodity prices and exchange rate
changes, operational risks associated with exploration, development
and production operations, delays or changes in plans; risks
associated with the uncertainty of resource estimates; health and
safety risks; uncertainty of estimates and projections of
production, costs and expenses; risks that future Hoidas Lake or
Steenkampskraal and region exploration results may not meet
exploration or corporate objectives; the adequacy of the Company's
financial resources and the availability of additional cash from
operations or from financing on reasonable terms or at all;
political risks inherent in South
Africa and China; risks
associated with the relationship between GWMG and/or its
subsidiaries and communities and governments in Canada and South
Africa, radioactivity and related issues, dependence on one
mineral project; loss of, and the inability to attract, key
personnel; the factors discussed in the Company's public disclosure
record; and other factors that could cause actions, events or
results not to be as anticipated. In light of the risks and
uncertainties associated with forward-looking statements, readers
are cautioned not to place undue reliance upon forward-looking
information. Although GWMG believes that the expectations reflected
in the forward-looking statements set out in this press release or
incorporated herein by reference are reasonable, it can give no
assurance that such expectations will prove to have been correct.
Except as required by law, GWMG does not assume any obligation to
update forward looking statements as set out in this news release.
The forward-looking statements of GWMG contained in this News
Release, or incorporated herein by reference, are expressly
qualified, in their entirety, by this cautionary statement and the
risk factors contained in GWMG's Professional Securities Market
listing particulars available at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.