Great Western Minerals Group (CVE:GWG) said Wednesday it will be granted the prospecting rights for the region surrounding its Steenkampskraal rare earth mine in South Africa.
Shares of the junior miner were up 1.7 per cent in the morning at 29.5 cents.
The company received notification for the grant of rights from the department of mineral resources of South Africa.
Western made the application for the prospecting rights through its 74
per cent owned subsidiary, Steenkampskraal Monazite Mine Ltd.
The prospecting rights cover roughly 547 square kilometres surrounding the Steenkampskraal mine site.
rare earth miner said it believes "a number of known monazite
outcroppings" outside the Steenkampskraal mine site area warrant
This is in addition to "strong exploration results" already reported at the mine site in April, Great Western added.
success in this appeal process is a critical win for the company as it
enables us to extend the Steenkampskraal exploration program past the
current boundaries and into the surrounding region," said company
president and CEO, Jim Engdahl.
"From a long term perspective, for Steenkampskraal and for GWMG, this represents a very important step forward."
Western combines upstream resource exploration and extraction at its
Steenkampskraal mine in South Africa, with downstream metals processing
facilities in the US and UK. The company makes specialty alloys, which
are used in the battery, magnet and aerospace industries.
development program at Steenkampskraal is central to ensure a strong
flow of feedstock for its downstream processing - as the company intends
to be one of the first to produce significant quantities of the more
valuable heavy rare earth oxides, which are important materials for
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.
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.
said in May an 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
In addition to the exploration program at Steenkampskraal,
Great Western Minerals also holds interests in four rare earth
properties in North America.