GeoMegA Resources hits 2% TREO over 327 metres at Montviel

GéoMégA Resources (CVE:GMA) announced Thursday initial results from its phase 2 drilling program at its Montviel rare earths project, located north of Lebel-sur--Quévillon, Québec.

Notable results included 2% total rare earth oxide (TREO) over 327 metres and 0.75% niobium oxide (Nb2O5) over 32.9 metres in hole MVL-11-26.

"Phase 2 drill program is progressing according to plan. Initial results confirm our expectations of defining a significant NI 43-101 Measured resource with an average grade closer to 2% TREO," said CEO Simon Britt.
"This level of resource certainty combined with metallurgical tests results will allow us to skip either the Preliminary Economic Assessment or Pre-Feasibility Study required prior Bankable Feasibility Study.
"The 0.75% Nb2O5 over 32.9 m intersection in MVL-11-26 is a valuable surprise. Looking forward to begin 2012 with Metallurgical and Engineering developments."
The 90-metre drilling pattern, required for indicated resources, and totaling 9,100 metres over 22 diamond drill holes, was completed over the majority of the published NI 43-101 resources area, the company said.
The two drill rigs are now focusing on a 45-metre in-fill drilling pattern aimed at defining a 50 to 70 million tonne starter pit in the enriched south-west part of the Montviel ferro-carbonatite Core Zone.
An estimated 15,700 metres over 39 holes will be required to complete the in-fill drilling, GeoMegA added.
In addition, as part of the phase 2 program, two exploration holes were drilled at the fringe of the published NI 43-101 resources area.
Hole MVL-11-21 extended mineralization approximately 300 metres further to the west, while hole MVL-11-22, intersected the junction of three breccias over 47.5 metres grading 1.07% TREO, with 9.4% MHREO (middle and heavy rare earth oxides)/TREO including 70 ppm dysprosium oxide.
In September, the company released the initial NI 43-101 compliant resource for the property, estimating 183.9 million indicated tons averaging 1.45% TREO, in addition to 66.7 million inferred tons averaging 1.46% TREO.
GéoMégA owns 100 percent of the Montviel property. Shares were up 3.45 percent on Thursday afternoon, trading at $1.20 as of 1:12pm ET.