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 targets 2013 production at Steenkampskraal, doubles planned capacity
Rare earths processor Great Western Minerals Group (CVE:GWG) said Thursday it is fast-tracking its development plans for the Steenkampskraal rare earth property in South Africa, now targeting the start of underground mining operations in the first quarter of 2012.
The company has also nearly doubled the planned level of production at the site to approximately 5,000 tonnes of rare earth oxides (REO) per year, up from the 2,700 tonnes originally anticipated.
"Today's announcement is a watershed moment in the history of Great Western Minerals Group," said president and CEO Jim Engdahl.
"We intend to deliver on our ambition to be a fully integrated Rare Earths supplier by, or before, the beginning of 2013."
The company plans on executing this plan by completing the required steps in the development process on a concurrent basis where possible, it said.
Great Western intends to immediately begin the refurbishment of the previously-producing mine shaft at the Steenkampskraal site, to re-establish the containment ponds and address all waste disposal requirements.
The tender process for this work will start just after the company receives approval of the proposed work program from the National Nuclear Regulator of South Africa, under the site's existing nuclear license.
The approval will also allow Great Western to begin with surface and underground sampling work at the project, designed to bring the historic resource estimate to NI 43-101 compliant standards.
Currently, the company said it is in advanced discussions with potential partners for the building of a rare earth separation plant, which will produce the rare earth oxides from the mine. The company is considering joint venture options, offtake agreements or the use of debt to finance the facility.
The design of the project mine is such that it will now have the capacity to produce roughly 12,000 tonnes of rare earth chloride solutions per year, which will then be sent to the separation facility to produce the targeted 5,000 tonnes of REO annually.
Great Western's specialty alloys are used in the battery, magnet and aerospace industries. In addition to Steenkampskraal, the company also holds interests in seven rare earth exploration and development properties in North America.
