Geomega Resources (CVE:GMA) reported Monday the completion of phase 2 drilling on its Montviel rare earths project near Lebel-sur-Quevillon, Quebec.
The rare earths miner also hired Golder Associates to perform an
array of tests needed for the preliminary economic assessment for its
Golder will carry out hydrogeological, geotechnical, geomechanical as
well as geochemical tests for the technical report. The mining services
firm sees a potential three mining scenarios at the project, open pit,
underground mining or a combination of both.
Golder will evaluate soil mechanical properties in the potential pit
area, assess conceptual pit design parameters, as well as conduct tests
to determine hydraulic conductivity in both overburden and rock, down to
a depth of 200 metres.
Conclusions of these tests are scheduled for the third-quarter this year.
In addition, the company said its phase 2 drill program – which wraps up this week – totalled 24,234 metres over 50 holes.
Geomega said a cumulative phase 1 and phase 2 program of 35,050
metres has been finished in the ferro- carbonatite core zone at
Montviel, covering a strike area of 750 metres to a vertical depth of
The company noted assay results for the remaining 25 holes are pending.
The impetus of the program was to identify a high grade zone, with
grades closer to 2% total rare earth oxide, and to increase confidence
in the core zone resource, which the company said it achieved.
The miner said its final NI 43-101 compliant resource calculation for
the Montviel core zone is slated to be finished in July 2012.
Last week, Geomega said it was granted a $1.5 million loan by Sidex –
which it plans to use for general and administrative purposes.
The loan, which must be repaid on December 31, 2013 or upon the
receipt of certain tax credits, has an annual interest rate of eight
In connection with the loan, the company also issued 400,000
non-transferable purchase share warrants to Sidex, priced at $1.25 each
Last month, the rare earths miner unveiled phase two drilling results for its Montviel niobium project.
Highlights from the southwest portion of the core zone included 2.08
percent total rare earth oxides (TREO) and 0.22 percent niobium oxide
(Nb2O5) over 245.9 metres from 52.6 metres in hole MVL-11-32D, including
3.28 percent TREO and 0.25 percent Nb2O5 over 31.5 metres from 174
metres and 2.59 percent TREO and 0.55 percent Nb2O5 over 19.5 metres
from 219 metres.
The Montviel rare earth niobium project is 45 kilometres west of the Cree First Nation of Waswanipi and 100 kilometres north of Lebel-sur-Quevillon.
Montviel, one of the largest total rare earth oxide resources outside
of China, has the potential for a major near term role in the growing
magnet sector due to its proximity to infrastructure and labour.