MONTREAL, QUEBEC--(Marketwire - May 17, 2012) - Geomega Resources Inc. ("GeoMegA") (GMA.V - News) announces preliminary results obtained in the conception of the processing flow sheet for its Montviel Rare Earths/Niobium project located near Lebel-sur-Quevillon, Quebec.
Highlights from the conception of the preliminary processing flow sheet include:
1. Mineral concentrate with high total rare earth oxides ("TREO") and Nb2O5
("Niobium oxide") recovery using combined gravity/flotation results in:
- Recovery of 87% of TREO (Ce2O3 assays as a proxy) and 95% of Nb2O5;
- 31% whole ore mass reduction.
2. Successful use of ferromagnetic separation on whole mineralized ore
- Recovery of 97% of TREO (Ce2O3 assays as a proxy) and 96% of Nb2O5;
- 16% whole ore mass reduction.
3. Assuming similar success using ferromagnetic separation on mineral
concentrate which contained 80% of the iron mineralization present in
the mineralized ore, pre-concentrate estimated recovery results in:
- Recovery of 85% of TREO (Ce2O3 assays as a proxy) and 90% of Nb2O5;
- 42% whole ore mass reduction.
4. Iron by-product separated during physical pre-concentrate preparation.
5. Processing flow sheet now conceptually defined for inclusion in the
Preliminary Economic Assessment which is currently in progress by G
Mining Services Inc.
"The recovery factor in these preliminary results is excellent. Mr. Pearse, GeoMegA's consulting metallurgist, has added a ferromagnetic separation (step 2) subsequent to gravity/flotation (step 1) which results in additional ore mass reduction and excellent recoveries (97% TREO and 96% Nb2O5), while producing a potential saleable iron by-product. The iron removal triggers further improvements in the pre-concentrate which will reduce hydrometallurgical costs. Additional tests and optimization at every level are ongoing. Aside from location, Montviel has distinct similarities with the world's largest rare earths resource in Bayan Obo (Inner Mongolia), which is primarily an iron ore deposit." comments Simon Britt, CEO of GeoMegA.
COREM Laboratory (Quebec)
COREM, a consortium of applied research for the processing and transformation of mineral substances, was engaged in March 2012 to undertake parallel testing on ferromagnetic separation on a representative sample of Montviel's Rare Earths/Niobium enrichment zone mineralization. Approximately 150 kg of uncrushed drill core was delivered to COREM. Testing and results on different grain size, roasting temperatures and gradient strength are expected to be completed in the coming weeks.
About the Montviel Rare Earths/Niobium Project
The Montviel Rare Earths/Niobium/Iron Project is located approximately 45 km west of the Cree First Nation of Waswanipi and 100 km north of Lebel-sur-Quevillon in the southern, developed, part of Quebec's "Plan Nord" (North of 49th parallel). The Plan Nord is an $80 billion economic, social and environmental development plan of Northern Quebec over a period of 25 years. Montviel's initial NI 43-101 compliant resource calculation at a base cut-off grade of 1% TREO, released on September 29, 2011, totalled 183.9 Mt averaging 1.45% TREO in the Indicated resources category and 66.7 Mt averaging 1.46% TREO in the Inferred resources category. Montviel, one of the largest TREO resource outside China, has the potential for a significant near term role in the growing permanent magnet sector due to its proximity to infrastructure and available labour.
NI 43-101 Disclosure
Gary H.K. Pearse, P.Eng., MSc., metallurgical consultant, is the Qualified Person who supervised the preparation of the technical information presented in the highlights section of this news release.
Alain Cayer, Geo., MSc., VP-Exploration, is the Qualified Person who supervised the preparation of the technical information presented in the section entitled "About the Montviel Rare Earths/Niobium Project" of this news release.
SGS Minerals Services conducted all analyses in their Lakefield laboratory.
Total Rare Earth Oxides ("TREO") include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3.
GeoMegA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Quebec mineral exploration company focused on finding economically viable deposits of Minor Metals in Quebec. GeoMegA is committed to meeting Canadian mining industry standards and distinguishing itself with its expertise, know-how and its support and respect for local communities and the environment.
28,899,113 common shares of GeoMegA are currently issued and outstanding.
/s/ "Simon Britt"
Chief Executive Officer
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecast or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company's filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.