Friday, 27 July 2012

Great Western Minerals launches PEA for Steenkampskraal

Great Western Minerals (CVE:GWG)(OTCQX:GWMGF) announced Thursday the launch of a preliminary economic assessment for its Steenkampskraal rare earth element project in South Africa, contracting Snowden Mining Industry Consultants to complete the study.
Snowden was chosen for the project as it is familiar with the South African mining and legislative environment, Great Western said.
The company also completed the National Instrument 43-101 technical report and resource calculation for the past-producing Steenkampskraal project.
"The engagement of Snowden to complete the PEA will enable our company to further develop and communicate financial projections for our complete corporate structure based on independent analysis of the mining of rare earth-bearing monazite, extraction to mixed chloride, separation of oxides, and metal and alloy production, as encompassed by our fully integrated, value-added business model," said Great Western`s president and CEO, Jim Engdahl.
In early July, the company reported on the latest phase of its drill program at Steenkampskraal, that doubled the area of interest at the site.
The 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.
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%, the company noted.
Great Western Minerals is an integrated rare earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries.

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