GeoMegA Intersects a High Grade Zone of 1.38% Niobium Oxide + 2.06% TREO Over 95.5 Meters, Including 3.08% Niobium Oxide Over 29.6 Meters
For immediate distribution
MONTREAL, May 23, 2012 – Geomega Resources Inc. (TSX.V: GMA) (“GéoMégA” or the “Company”) announces results of diamond drill (“DD”) hole MVL-12-59B completed in Phase 2 drilling for its Montviel Rare Earths/Niobium project located near Lebel-sur-Quévillon, Québec. Highlights include:
|MVL-12-59b:||2.06% total rare earth oxides (“TREO”) + 1.38% Nb2O5 intersected over 95.5 m from 334.5 m;|
|Including: 2.42% TREO + 3.08% Nb2O5 intersected over 29.6 m from 351.4 m;|
MVL-11-32D: 2.59% TREO + 0.55% Nb2O5 intersected over 19.5 m from 219 m;
MVL-11-34: 3.09% TREO + 0.60% Nb2O5 intersected over 46.5 m from 318 m.
DD hole MVL-12-59B intersected silico-carbonatite (host rock) at the start of drilling (0 to 318 metres) and then intersected the ferro-carbonatite from 318 to 501 metres. Additional results from the remaining Phase 2 assay results, which include over 15,569 meters in 35 DD holes, will be released once check assays have been completed.
“The technical team accurately predicted the location of the Rare Earths enrichment zone in preparing Phase 2 drilling. The enrichment in niobium is a bonus. The enrichment zone niobium grade compares favorably to the average grade mined at Niobec (IAMGOLD), the only niobium producing mine outside Brazil, also in Quebec. Following excellent preliminary results on the recovery of pyrochlore, the niobium bearing mineral, the Preliminary Economic Assessment (“PEA”) study will include a niobium oxide concentrate by-product.” comments Simon Britt, CEO of GéoMégA.
Niobium is used in the manufacture of high strength, low alloy steels specifically used in manufacturing green technologies, turbines, aerospace, automobiles, oil and gas. Global annual consumption of ferro-niobium is approximately 90,000,000 kilograms per year and is growing at an annual rate of 5-7%. Long term forecasted price of ferro-niobium is US$45/kg (IAMGOLD). There are three producers worldwide, which include CBMM (Brazil), Anglo American (Brazil) and IAMGOLD (Canada).
CANMET Laboratory (Ottawa)
CANMET Mining and Mineral Sciences Laboratories (CANMET-MMSL) was engaged in May 2012 to undertake parallel testing on the recovery of neodymium, dysprosium, praseodymium and Niobium. Program preparation has begun, tests will start once the ferromagnetic separation (step 2 in the flow sheet) is optimized. CANMETT-MMSL recently launched an internal project which aims at advancing the science and technology of rare earth mineral processing, including ore characterization, physical separation and hydrometallurgical extractions. The main drive is rendering the processes greener through frugal use of water and energy and reduced impact of processing effluents on the environment.
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-Quévillon 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. The PEA study, ongoing with G Mining Services Inc., will first focus on the Rare Earths/Niobium enrichment zone of the deposit.
NI 43‐101 Disclosure
Alain Cayer, Geologist, MSc., VP-Exploration, is the Qualified Person and Claude Britt, GéoMégA’s geological advisor, supervised the preparation of the technical information in this news release.
ALS Global conducted all analyses in their Vancouver laboratory. The analyses were done on every sample using lithium metaborate fusion, followed by ICP analysis and completed by mass spectrometry. Specific XRF assays were conducted on niobium. Quality control and assurance were done by systematically using REE standards, blanks and duplicates.
Total Rare Earth Oxides (“TREO”) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3.
Middle and Heavy Rare Earth Oxides (“MHREO”) is the sum of the middle rare earth oxides (Sm2O3, Eu2O3, Gd2O3) and the heavy rare earth oxides (Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3) plus Y2O3 expressed as a percent out of the TREO content.
About GéoMégA (ressourcesgeomega.ca)
GéoMégA, which owns 100% of the Montviel Rare Earths/Niobium project, is a Québec mineral exploration company focused on finding economically viable deposits of Minor Metals in Québec. GéoMégA 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.
29,274,113 common shares of GéoMégA are currently issued and outstanding.
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.
/s/ “Simon Britt”
Chief Executive Officer
For more information contact:
President and CEO
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.