Tuesday, 3 July 2012

Great Western "encouraged" by significant extensions of Steenkampskraal mineralization

Great Western Minerals (CVE:GWG)(OTCQX:GWMGF) Tuesday reported on the latest phase of its drill program at the Steenkampskraal rare earth element (REE) property in South Africa, that has doubled the area of interest at the site.
These most recent drill intercepts were from four areas surrounding the main mine workings, all outside the previously reported NI 43-101 resource calculation.
In May, the company said its NI 43-101 report indicated the presence of 13,823.64 metric tonnes of total rare earth oxides (TREO), including yttrium, under the indicated resource category, and 14,147.76 metric tonnes under the inferred resource category, each using a one per cent cut-off grade.
Among the highlights of the Western Extension drill program, REE-bearing monazite vein mineralization was encountered in seven of eight drill holes and mineralization was up to 3.73 metres true thickness.
In the South Eastern Extension drill program, REE mineralization was encountered in 10 of 12 drill holes, and mineralization was up to 3.0 metres true thickness.
The South Eastern Extension's mineralization extends southeast for approximately 100 metres from the recently modeled resource area of historic mine underground workings, the company said.
At the Eastern Flats Extension, the company said REE mineralization was in 10 of 17 drill holes and mineralization was in excess of 3.0 metres true thickness in three drill holes, including up to 5.11 metres true thickness.
The Eastern Flats Extension covers a broad area roughly 125 metres southeast and east of the known mine mineralization.
REE mineralization was also found in 17 of 20 drill holes at the Office Block Extension with mineralization of up to 2.24 metres true thickness. The boreholes are located approximately 330 metres east of the main mine development area, and around 200 metres east of the thick mineralized zone in the mid-Eastern Flats.
"We are very pleased with the success to date with the new phase of our Steenkampskraal drill program," Great Western Minerals' president and CEO Jim Engdahl said.
"While massive to disseminated REE-bearing monazite does not automatically translate into uniform high grades, we are very encouraged by the significant extensions of mineralization adjacent to the previously announced mineral resource that have doubled the area of interest to over 800 metres along strike.
"These results give the company a high degree of confidence about expanded development of this rare earth project."
Great Western Minerals said that step-out drilling continues along strike and down-dip in this area as the extent of mineralization remains open in all directions.
The historic mine "vein" at Steenkampskraal is comprised predominantly of a rare earth-bearing monazite. The vein is variably south-dipping, and was developed over a strike length of approximately 400 metres.
Past production, and extensive assaying from the first phase of drilling and underground sampling, indicates that the monazite vein material at Steenkampskraal contains from 0.4 to 46% TREO with a modeled average of 18%.
Grades typically are dependent on the amount of diluting materials within the vein structure such as quartz, feldspar, and sulphides, the company noted.
Great Western Minerals is an integrated rare earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries. The company's stock was up nearly 1.3 per cent at 39.5 cents Tuesday Morning.
Detailed drill program data is available at: http://www.gwmg.ca/gwmg-nr-3-jul-12.html

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