www.gwmg.ca
Great Western Minerals Group Ltd. is a Canadian-based company with six rare earth exploration and development properties in North America with an option on a sizable additional property in South Africa. In addition, as part of the Company’s strategy to pursue a vertically-integrated business model, the Company's wholly-owned subsidiaries of Less Common Metals Limited located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, produce a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.
Great Western Minerals begins Phase 1 of Bankable Feasibility Study at Steenkampskraal
Great Western Minerals Group Ltd (TSX-V:GWG, OTC:GWMGF) (GWMG) has begun Phase 1 of its Bankable Feasibility Study process for the Steenkampskraal mine in South Africa. The company plans to bring the Steenkampskraal mine back into production as one of the first new Rare Earth mines outside of China.
GWMG has now hired Johannesburg-based SRK Consulting to undertake Phase 1 - which includes a review of historical technical reports, site visits and identification of any additional requirements in terms of licenses permitting and approvals. SKR will also establish timeline and cost estimates for any additional project phases.
The Steenkampskraal mine, located in the Western Cape Province, is a high grade former producer with a known process for recovering Rare Earths. Last week, GWMG and its joint venture partner Rare Earth Extraction Co Ltd (Rareco), were granted a New Order Mining Right by South Africa’s Department of Mineral Resources for Steenkampskraal.
"It was very important that GWMG move as quickly as possible to launch the feasibility process once the Steenkampskraal permit was approved," GWMG president and CEO Jim Engdahl commented. "Based on our extensive review of potential project consultants, we are very pleased to have signed this agreement with a consulting group that has the depth of experience of SRK."
In March, GWMG entered into an exclusivity agreement with Rareco to jointly bring the Steenkampskraal mine back into production. A portion of the rare earth production from the mine would supply both of GWMG's manufacturing facilities at Less Common Metals Limited and Great Western Technologies with their entire earth requirements.
“We project Steenkampskraal to be one of the highest grade Rare Earth mines in the world and therefore one of the world's lowest cost producers," the company said.
“For South Africa [the mining right] signals the establishment of Rare Earth mining activity and the development of related industries ... These will ultimately enhance South Africa's competitiveness in the Rare Earth industries global supply chain”, stated Mohamed Madhi, GWMG advisory board member and Areva South Africa chairman.
With the issuance of the New Order Mining Right, the partners are now moving forward to finalize the Supply Agreement in accordance with the terms of an Option Agreement signed between the companies, back in December 2008.
Once finalized, the deal will give GWMG the right to purchase 100% of the Rare Earth products recovered from the mining and processing of the Steenkampskraal ore. "Strategically, this is of great importance to our company ... we would be able to use this supply source to serve current and future Rare Earths customers", Engdahl added.
