GéoMégA completes successful Phase 2 drilling campaign at Montviel
For immediate distribution
Montreal, July 25, 2012 – Geomega Resources Inc. (GéoMégA) (TSX.V: GMA) announces final assay results from Phase 2 drilling on its Montviel Rare Earths/Niobium project located near Lebel-sur-Quévillon, Québec. Highlights of diamond drill (DD) holes MVL-12-52C to MVL-12-70 include:
MVL-12-55: 2.20% total rare earth oxides (TREO) + 0.33% Niobium oxide (Nb2O5)over 367.6 m from 32.9 m;
Including: 3.20% TREO + 1.12% Nb2O5over 15 m from 100.5 m.
MVL-12-57: 1.62% TREO + 0.26% Nb2O5 over 243 m from 157.5 m;
Including: 2.04% TREO + 1.05% Nb2O5over 22.5 m from 261.5 m.
MVL-11-61: 1.90% TREO + 0.24% Nb2O5over 456 m from 58.5 m;
MVL-11-70: 1.64% TREO + 0.22% Nb2O5 over 433 m from 32 m;
Including: 2.22% TREO + 0.28% Nb2O5over 144 m from 276 m.
« Phase 2 drilling objectives were all achieved successfully. Montviel’s Core Zone has a Rare Earths/Niobium enriched nucleus in the shape of a croissant, the resource envelope has been extended both at surface and depth (mineralization still present at 780 m vertical depth) and infill drilling is completed. The updated NI 43-101 resource estimate is scheduled for late August 2012. » comments Simon Britt, CEO of GéoMégA.
An updated version of the Montviel surface plan can be viewed on the company’s website at: //ressourcesgeomega.ca/wp-content/uploads/montvielgeology/MVL_Geol_50m_En.pdf
MONTVIEL CORE ZONE
Significant Assay Results – Phase 2 drill program (DD holes MVL-12 52C to MVL-12-70)
The Phase 2 drill program consisted of 50 holes (46 in the Core Zone) totaling 24,000 meters. The Phase 1 drill program consisted of 20 holes (18 in the Core Zone) totaling 10,065 meters. A NI 43-101 compliant resource estimate update, based on the 64 holes in the Core Zone, has been initiated by Elzear Belzile, P.Eng., of Belzile Solutions Inc. in Rouyn-Noranda, Quebec.
Grant of options
Following his appointment as Vice-President, Exploration, Mr. Cayer has been granted 100,000 options on July 20, 2012 pursuant to GéoMégA’s option plan. Each option gives the bearer the right to acquire one (1) common share at $0.45 per share over a five (5)-year period following the date of grant.
About the Montviel Rare Earths/Niobium Project
The Montviel Rare Earths/Niobium 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 and approved 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.
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 (REE/W/Nb/C) 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 policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
/s/ « Simon Britt »
Chief Executive Officer
Chief Financial 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.