GeoMega Resources (CVE:GMA) unveiled Tuesday phase two drilling results on its Montviel rare earths-niobium project near Lebel-sur-Quévillon, Québec.
Highlights from the southwest portion of the Core Zone included 2.08% total rare earth oxides (TREO) and 0.22% niobium oxide (Nb2O5) over 245.9 metres from 52.6 metres in hole MVL-11-32D, including 3.28% TREO and 0.25% Nb2O5 over 31.5 metres from 174 metres and 2.59% TREO and 0.55% Nb2O5 over 19.5 metres from 219 metres.
Meanwhile, hole MVL-11-34 intersected 1.84% TREO and 0.30% Nb2O5 over 249.75 metres from 187.5 metres, including 2.25% TREO over 119.25 metres and 0.39% Nb2O5 from 318 metres, and 3.09% TREO over 46.5 metres and 0.60% Nb2O5 from 318 metres.
Investors cheered the news, with shares rising 5.6 percent to 94 cents as of 1:22pm ET.
Phase two definition drilling now totals 17,500 metres over 37 diamond drill holes, with 22 to be fully assayed.
The company said it expects to finish phase two drilling, with another 6,300 metres over 13 new holes, by the end of March, with an NI 43-101 compliant Core Zone resource update by the end of the summer.
GeoMega also said Tuesday that hole MVL-11-09 intersected a breccia of 17.1 metres averaging 0.76% TREO, with 28% MHREO/TREO, including 210 parts per million (ppm) dysprosium oxide. Middle and Heavy Rare Earth Oxides (MHREO) is the sum of the middle rare earth oxides and the heavy rare earth oxides, plus yttrium, expressed as a percent out of the TREO content.
In addition, hole MVL-11-33B intersected six metres in calcio-carbonatite averaging 1.26% TREO with 20.4% MHREO/TREO including 247 ppm dysprosium oxide. The distribution of the mineralization, said the company, is similar in these two intersections which are located approximately 800 metres apart.
In a statement, GeoMega explained: "The significant spacing and location indicates there is a possible dysprosium enriched zone bordering the Montviel Core Zone."
In other news, GeoMega said Tuesday that the company's CFO, René Lacroix, has departed to concentrate on his core business activities. CEO Simon Britt will assume responsibility of CFO on an interim basis.
Lacroix, partner at LacroixFrères Consultants, joined the company in April 2010.