GeoMegA Resources Inc./Montviel: Metallurgy and Phase 2 Drilling Update
For immediate distribution
MONTREAL, November 08, 2011 – Geomega Resources Inc. (TSX.V: GMA) (“GéoMégA” or the “Company”) is pleased to provide an update on its Montviel fast-tracked rare earth project, located 97 km north of Lebel-sur-Quévillon, Québec. Phase 2 drilling started as scheduled on September 12, 2011 with the second drill rig arriving on site on October 15, 2011. As of October 30, 2011, ten (10) diamond drill holes (DDH) totaling 5,140 metres (m) were drilled in the southwest part of the Montviel Core Zone. In addition, metallurgical work on 600 kg of re-splitted core is underway at SGS Canada, Lakefield, Ontario.
Phase 2 drilling – Definition
Eight DDH, for 4,097 m, were done to complete a 90 m drilling pattern on section 4+00W, 5+90W and 7+00W. The core shows similar geology to surrounding DDH of Phase 1 drill program which were the best in continuity and grade. Completion of a 90 m drilling pattern throughout the Core Zone is expected within five (5) weeks.
Phase 2 drilling – Exploration
Two DDH, for 1,043 m, set-up on or nearby section 7+00W, were drilled with the objective of delimiting the western and southern limits of the mineralized ferro-carbonatite. DDH MVL-11-21 (Az 240) extended the mineralized zone for at least 300 m horizontally to the west. At mid-distance, it intersected deca-metric sections of silico-carbonatites, suggesting it was passing close to the northern contact, but ended in ferro-carbonatite. DDH MVL-11-30 (Az 180), extended the mineralized zone for about 100 m horizontally to the south. The core shows similar geology to adjacent holes to the north.
Assay results for the 5,140 m are pending and will be disclosed when readily available.
Metallurgy – Concentration
Preliminary metallurgical testing of ferro-carbonatite and phosphate-rich phase composite samples is in progress. Heavy liquid separation (HLS) tests have been completed and samples submitted for assay. Stage grinding of the two composites to -65 mesh and -150 mesh (guided by a high definition mineralogical study, see August 24, 2011 press release) are in progress for ongoing high intensity magnetic separation tests, Wilfley table separation trials, and flotation tests. This battery of tests will provide data for choosing the most effective physical processing techniques for these mineralized rock types to produce rare earth, niobium and phosphate concentrates. The concentrates will then be passed on to hydrometallurgical testing to investigate processes for extracting rare earth compounds. This scoping level work program is on schedule and expected to be completed in Q1 2012. Preliminary results on the concentration of minerals are expected in December 2011.
NI 43‐101 Disclosure
Jacquelin Gauthier, Geo., P. Eng., VP Exploration, and Gary H. K. Pearse, M.Sc., P. Eng., an independent consultant, are the qualified persons who supervised the preparation of the technical information in this news release.
Major discovery for Québec – 3rd largest TREO deposit outside China (NI 43-101 or equivalent)
The initial NI 43-101 compliant resource calculation, released on September 29, 2011, totalled 183.9 million tons Indicated averaging 1.45% total rare earth oxides (TREO) in addition to 66.7 million tons Inferred averaging 1.46% TREO. Montviel has the potential to play a significant near term role in the clean technologies of the 21st century due to its proximity to infrastructure and available labour.
Rare earth elements are key components of the clean energy technologies and other high-technology applications. Major applications include hybrid/electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent lights and numerous metal alloys.
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.