MONTREAL, March 20, 2012 – Geomega Resources Inc. (TSX.V: GMA) (“GéoMégA” or the “Company”) announces the completion of Phase 2 drilling and has retained Golder Associates Ltd. (“Golder”) to perform the necessary hydrogeological, geotechnical, geomechanical and geochemical tests required for the Preliminary Economic Assessment (PEA) Technical Report for its Montviel Rare Earths/Niobium project located near Lebel-sur-Quévillon, Québec.
Phase 2 drilling
The Phase 2 drilling program (Phase 2) is wrapping up this week. Phase 2 totalled 24,234 meters of drilling, over 50 holes. A cumulative (Phase 1 and 2) of 35,050 meters have now been completed in the ferro-carbonatite Core Zone at Montviel covering an area of approximately 750 m on strike by 550 m width and to a vertical depth of 775 m. Assay results for the remaining 25 holes are pending.
“Phase 2 objectives: identification of a high grade zone (closer to 2% TREO) and definition drilling to increase the level of assurance of the Core Zone resource, are achieved. The initial NI 43-101 compliant resource calculation (see September 29, 2012 press release) will be updated with Phase 2 results when all assays are received. The final NI 43-101 compliant resource calculation for the Montviel Core Zone is expected by July 2012.” comments Simon Britt, CEO of GéoMégA.
Three mining scenarios are envisioned by G Mining Services Inc. (see January 9, 2012 press release): open pit, underground mining (ramp access) or a combination of both. Golder has been retained to perform geotechnical work to evaluate soil mechanical properties in the potential pit area, geomechanical work to assess conceptual pit design parameters, geochemical tests as part of the required work to characterize ore, concentrate, waste and eventually tailings material and hydrogeological tests to determine hydraulic conductivity in both overburden and rock down to a depth of 200 m. Conclusions are scheduled for Q3 2012.
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% total rare earths oxides (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 magnet sector due to its proximity to infrastructure and available labour.
NI 43‐101 Disclosure
Alain Cayer, Geo., MSc., Chief Geologist, is the Qualified Person who supervised the preparation of the technical information in this news release.
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.