🕐22.11.09 - 16:45 Uhr
GREAT WESTERN MINERALS GROUP REPORTS A 123% INCREASE IN THE RESOURCE ESTIMATE AT HOIDAS LAKE
Ladies and Gentlemen
Some of you may have already seen this on the newswire on Friday night.
We apologize for the timing, but we expected the report earlier in the week
and have it filed and released on Wednesday or Thursday, before the Hard
Assets Conference in San Francisco.
However, there was a delay in the
receipt/review of the report we were not able to file until late Friday.
In
order to be able to discuss the report at the conference we needed to issue
the release on Friday evening, rather than wait until Monday morning.
GREAT WESTERN MINERALS GROUP REPORTS A 123% INCREASE IN THE RESOURCE
ESTIMATE AT HOIDAS LAKE
November 20, 2009 - Saskatoon, Saskatchewan - Great Western Minerals Group
Ltd.
("GWMG" or the "Company") is pleased to announce the results of the
Companys new NI 43-101 Technical Report for its Hoidas Lake project
prepared by Barr Engineering Company ("Barr").
The Company reports that the overall resource estimate increased by 123% to
2,560,835 tonnes from the previous value of 1,150,000 tonnes.
This includes
an increase of over 1200% in the Measured category to 963,808 tonnes from
the previous estimate of 80,000 tonnes, and an increase of 49% in the
Indicated category to 1,597, 027 tonnes from the previous estimate of
1,070,000 tonnes.
This new Technical Report incorporates the results of 32 drill holes
completed in the spring of 2008 and includes drilling results from four
separate drilling programs conducted from 2001 through to 2008 for a total
of 120 core holes located along a strike length of 1150 metres.
These core
holes, some of which extend to a depth of 398 metres, total 15,222.8 metres
of drilling.
The rare earth mineralization is open along strike and at
depth.
The resource estimate used ordinary kriging, and inverse distance
interpolation methods, with the ordinary kriging values used for reporting.
Based on preliminary economics generated by the Company, a cut-off grade of
1.5% Total Rare Earth Elements ("TREE") was applied for summary reporting
purposes.
The resource model uses the assay data provided by the Company.
The tabulated resource data for the Hoidas Lake JAK Zone as calculated by
Barr is as follows:
Category
Cut-Off Grade
WT.% TREE
Tonnes
TREE WT.%1
TREO2
WT.%
Measured
1.5
963,808
2.142
2.568
Indicated
1.5
1,597,027
1.958
2.349
Total
2,560,835
2.075
2.431
Inferred
1.5
286,596
1.784
2.139
1 Total Rare Earth Elements include lanthanum, cerium, praseodymium,
neodymium, samarium, europium, gadolinium, terbium, dysprosium, holmium,
erbium, thulium, lutetium, yttrium and ytterbium
2 Total Rare Earth Oxide-calculated from TREE for comparison purposes by
the Qualified Person.
Eighty seven percent of the average value of TREE is made up of lanthanum,
cerium and neodymium with neodymium grades averaging 0.42% of the measured
and indicated resource.
This high proportion of Nd (used in permanent
magnet electric motors) supports the economics of the Hoidas Lake project
and moving forward with the Preliminary Economic Assessment Report.
John Pearson, MSc., P.Geo., Vice-President Exploration for GWMG, is the
qualified person responsible for reviewing the contents of this news
release.
Jim Engdahl, President and CEO of Great Western Minerals Group said "We are
certainly pleased to report these results to our shareholders.
Our belief
always was that we could at least double the resource estimate for this
project and this update certainly confirmed that.
This reinforces our belief
that this could be a much larger deposit since we have drilled a relatively
small portion of the property.
Once we receive the results of our ongoing
metallurgy we will be able to complete the remaining items for the
Preliminary Economic Assessment Report."
About Great Western Minerals Group Ltd.
Great Western Minerals Group Ltd.
is a Canadian-based company with six rare
earth exploration and development properties in North America with an option
on a sizable additional property in South Africa.
In addition, as part of
the Companys strategy to pursue a vertically-integrated business model, the
Companys wholly-owned subsidiaries of Less Common Metals Limited located in
Birkenhead UK, and Great Western Technologies Inc., located in Troy,
Michigan, produce a variety of specialty alloys for use in the battery,
magnet and aerospace industries.
These "designer" alloys include those
containing copper, nickel, cobalt and the rare earth elements.
For further information, please contact Ron Malashewski, Manager of Investor
Relations at (306) 659-4516.
Email inquiries should be made to
and the company website is located at www.gwmg.ca.
Inquiries by direct mail
should be addressed to Great Western Minerals Group Ltd., 226 Cardinal
Crescent, Saskatoon, SK S7L 6H8.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Certain information set out in this News Release constitutes forward-looking
information.
Forward-looking statements (often, but not always, identified
by the use of words such as "expect", "may", "could", "anticipate" or "will"
and similar expressions) may describe expectations, opinions or guidance
that are not statements of fact and which may be based upon information
provided by third parties.
Forward-looking statements are based upon the
opinions, expectations and estimates of management of the Company as at the
date the statements are made and are subject to a variety of known and
unknown risks and uncertainties and other factors that could cause actual
events or outcomes to differ materially from those anticipated or implied by
such forward-looking statements.
Those factors include risks, uncertainties
and other factors that are beyond the control of the Company, risks
associated with the industry in general, commodity prices and exchange rate
changes, operational risks associated with exploration, development and
production operations, delays or changes in plans, risks associated with the
uncertainty of reserve estimates, health and safety risks and the
uncertainty of estimates and projections of production, costs and expenses.
In light of the risks and uncertainties associated with forward-looking
statements, readers are cautioned not to place undue reliance upon
forward-looking information.
Although the Company believes that the
expectations reflected in the forward-looking statements set out in this
press release or incorporated herein by reference are reasonable, it can
give no assurance that such expectations will prove to have been correct.
The forward-looking statements of the Company contained in this press
release, or incorporated herein by reference, are expressly qualified, in
their entirety, by this cautionary statement.