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Matamec Explorations Inc.
("Matamec" or the "Company")(TSX VENTURE:MAT - News) announces that it has received
an updated NI 43-101 resource calculation from SGS Canada Inc. - Geostat
geological group ("SGS Geostat") for the Kipawa deposit located on
its Zeus property. For reference, the original resource estimate, dated May
20th 2010, has been made available on SEDAR since Septembre 17th 2010.
Press Release Highlights
-- SGS Geostat considers that the deposit is located between surface and a
depth of 90m and is continuous over a distance of 1.45 kilometers, a
width of 200 metres and a thickness of 50 meters; Matamec believes that
the location of the deposit, outcropping at the top of a small hill,
will allow a reduced environmental footprint as well as lower operating
costs;
-- In this latest estimate, the resource has been considered under two
scenarios: 1) a resource with a 0.50% ZrO2 cut-off, or 2) a resource
with a 0.016% Dy2O3 cut-off. Under Scenario 1, indicated resources are
estimated at 67,200 t of TREO while inferred resources are estimated at
53,300 t TREO. This represents a 42% increase in indicated resources
compared to the May 20th 2010 estimate;
-- Still under Scenario 1, indicated resources of Dy2O3 are estimated at
2,400,000 kg, Tb2O3 resources at 400,000 kg and Y2O3 resources at
14,700,000 kg, while inferred Dy2O3 resource are estimated at 1,900,000
kg, Tb2O3 resources at 300 000 kg and Y2O3 resources at 12,100,000 kg;
-- A definition drilling campaign is presently underway. This campaign main
objective is the improvement of resource quality, converting the
majority of inferred resources into indicated (see our December 2nd 2010
press release);
-- Matamec recently announced a 89.2% recuperation of rare Earths from
whole rock from Kipawa's Eudialyte Zone (see our world premiere
announcement in the October 18th 2010 press release), and metallurgical
test are presently underway at SGS Lakefield on concentrates from the
Eudialyte zone. The physical characteristics of the Kipawa ore allow for
low-cost chemical extraction, which gives it a competitive edge against
current rare earth producers.
-- A scoping study is being prepared by the Roche engineering firm (see our
Septembre 9th press release).
-- Given the deposit's significant yttrium and heavy rare earth enrichment,
Matamec intends to target the expending permanent magnet and phosphor
world markets. Indeed, prices for 99% pure Tb2O3 have recently risen to
520$/kg, 300$/kg for Dy2O3 and 70$/kg for Y2O3 (see our June 17th press
release).
Andre Gauthier, president of the
company, comments that: "With the beginning of the 3rd drilling campaign
announced on december 2nd 2010 and the 23 DDH completed to date in that
campaign, we are confident that we will soon see the majority of resources
announced today converted to indicated. Considering the encouraging results
we've had in our metallurgical tests, we feel that our current resources, and our heavy rare earth and yttrium resources
in particular, clearly show the defining importance of the Kipawa deposit in
the rare-earth market."
The Zeus heavy rare
earths-yttrium-zirconium Property - Kipawa deposit
The Zeus heavy rare
earths-yttrium-zirconium property is located close to infrastructures and is
easily accessible via a network of forestry roads. It is located 160
kilometres south-west of Rouyn-Noranda and 65 kilometres east of the town of
Temiscaming. The property is 100% owned by Matamec and is composed of 300
designated claims covering more than 17,600 hectares in the Kipawa Alkalic
Complex. It includes at its heart the Kipawa deposit, also known as the
Sheffield Zone. This deposit had historical yttrium and zirconium resources
circa 1990, with its first NI 43-101 resource calculation in May 2010
(available on SEDAR).
Updated NI 43-101 resources
Detailed results of the updated resource
calculation can be found in the following two tables. Resources are presented
under two scenarios (greater than 0.5% ZrO2 and greater than 0.016% Dy2O3)
with two categories each (indicated and inferred). Heavy rare earth oxides
(HREO), total rare earths oxides plus yttrium (TREO), yttrium, zirconium and
tonnages are also provided.
The mineralization is located inside a
syenite unit. The syenite dips 20 degrees to the south-west and varies in
true thickness from 40 to 65 meters. Three TREO enriched layers are found
within it and vary in true thickness from 2 to 28 meters. These 3 layers form
the TREO enriched geological zone. The non TREO enriched portions of the syenite
are referred to as ZrO2 geological zone.
Scenario 1 : TREO resources with a 0.5% ZrO2 cut-off. November 29th 2010
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Category Geological Zone Metric tonnes ZrO2 %
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Indicated TREO enriched 10,340,000 0.929
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ZrO2 Zone 19,770,000 1.015
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Total 30,110,000 0.986
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Inferred TREO enriched 8,740,000 0.997
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ZrO2 Zone 12,130,000 1.007
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Total 20,860,000 1.003
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Category TREO(i) % HREO(ii) % Y2O3 % (H+Y)/TREO(iii) %
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Indicated 0.447 0.048 0.100 33
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0.106 0.012 0.022 32
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0.223 0.024 0.049 33
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Inferred 0.467 0.051 0.108 34
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0.103 0.011 0.022 32
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0.255 0.028 0.058 34
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(i) : TREO sum of all rare earths in oxides plus yttrium in oxide.
(ii) : HREO sum of all heavy rare earths in oxides (Terbium to Lutetium).
(iii) : H+Y : HREO plus Y2O3.
Corresponding tonnages
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Category Geological Zone ZrO2 t Diff. (iv) TREO(i) t Diff. (iv)
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Indicated Total 296,700 +43% 67,200 +42%
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Inferred Total 209,200 +15% 53,300 -14%
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Category Geological Zone HREO(ii) t Diff. (iv) Y2O3 t Diff. (iv)
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Indicated Total 7,300 +43% 14,700 +44%
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Inferred Total 5,800 -13% 12,100 -14%
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(iv) : Increase compared to resources calculated on May 20th 2010
(negative for a reduction)
Scenario 2 : TREO resources with a 0.016% Dy2O3 cut-off. November 29th
2010
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Geological Metric ZrO2 TREO HREO Y2O3 (H+Y)/TREO
Category Zone tonnes % (i) % (ii) % % (iii) %
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TREO
Indicated enriched 4,920,000 0.883 0.607 0.064 0.136 33
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TREO
Inferred enriched 4,260,000 1.008 0.628 0.070 0.149 35
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(i) : TREO sum of all rare earths in oxides plus yttrium in oxide.
(ii) : HREO sum of all heavy rare earths in oxides (Terbium to Lutetium).
(iii) : H+Y : HREO plus Y2O3.
Corresponding tonnages
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Geological
Category Zone ZrO2 t TREO(i) tHREO(ii) t Y2O3 t Diff (iv)
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Indicated TREO enriched 43,400 29,800 3,100 6,700
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Inferred TREO enriched 43,000 26,700 3,000 6,400
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(iv) : May 20th 2010 resources are not available at this cut-off
Scenarios 1 and 2 are to be considered
separately since resources listed in Scenario 2 are already included in
Scenario 1.
Modelling of the NI 43-101 Resources by
SGS Geostat
SGS Geostat received a final version of
the data on November 15th 2010. The methods used for this estimate are the
same as those used for the previous estimate, namely inverse distance squared
with indicated resources requiring a drill grid of 50m. Resources
extrapolated beyond 30m, as well as calculated rare earth values on historic
drill holes, are considered inferred. The database used consists of 12
discontinuous trenches (in 55 continuous parts) and 81 DDH (30 drilled in
1988-1990 by Unocal Canada Ltd., 31 drilled in 2009 by Matamec and 20 drilled
in 2010, also by Matamec) totalling 6,317.19 meters drilled and 630.64 meter
of channel samples. Note that 4 historical DDH are not being included in this
dataset as the information from their 2009 twins is considered more accurate.
A total of 4327 analyzed intervals were used for the calculation.
Yann Camus (Eng.) engineer for the
independent firm SGS Canada Inc. - geological group Geostat ("SGS
Geostat ") is the qualified person under NI 43-101 standards, which
supervised the preparation of the resource estimate. Aline Leclerc (geo) and
Vice-President Exploration of Matamec, qualified person under NI 43-101
standards for the project Zeus, oversaw the preparation of the scientific and
technical information. Together, they have verified the information in this
press release.
Winter 2010-2011 Drilling Program
Matamec announced on December 2nd 2010,
that a 2,700-metre NQ calibre drilling campaign was underway on the heavy
rare earths-yttrium-zirconium Kipawa deposit, located on the Zeus property.
As of January 19th 2011, 23 drill holes were drilled. Additional information
will be published soon regarding the progress of the winter 2011 drilling
program.
The main goal of the present drilling
program is to increase the quality of resources so that the majority can be
categorized as indicated. The new drill holes, combined with those from the
previous two drill campaigns, will also supply sufficient material (several
hundred kilograms for each zone) to complete more involved metallurgical
tests.
Metallurgical Work
On October 18th 2010, Matamec reported
improved rare earth leach recoveries from ore samples collected at its REE-Y
Kipawa deposit. Under the supervision of Les Heymann (P.Eng.), whole rock
material from the Eudialyte zone was processed at SGS Lakefield Research,
yielding rare earth leach recoveries of 89.2%. The heavy rare earth yield was
85.6%.
The sample consisted of a composite of
all 30 drill holes from the fall 2009 drilling campaign in the Eudialyte
Zone. These values were achieved by a proprietary process developed by the
company which greatly reduces the formation of silica gel. Only 0.9% of the
silica present went into solution during the tests, resulting in an easily
filtered material. The company is confident that a low cost processing
solution has been found.
Other tests have followed this first
series and Matamec is expecting new results on tests made with concentrates
from the Eudialyte zone.
PEA Study - Engineering firm Roche
A PEA Study is being prepared by the
"Mine and Mineral Processing" team of the engineering firm Roche to
assist Matamec in the development of its rare earths-yttrium-zirconium Zeus
project. The team will consist of professionals experts known in the mining
industry (see September 9, 2010, press release). As soon as the resource
calculation is updated and more advanced results of the metallurgical tests
are received, the preliminary economic assessment study can be completed.
Magnets and phosphors - Our Niche
Although the Kipawa deposit contains all
rare earth elements, it consists of about 33% of heavy rare earths and
yttrium. Since the global reserves of heavy rare earths are presently very
limited, Matamec has identified the magnet and phosphor markets as potential
niches for its prospective product, both heavy consumers of those elements.
At present, the price for 99% pure heavy rare earth oxides is 520$/kg for
Tb2O3, 300$/kg for Dy2O3 and 70$/kg for Y2O3 (see Matamec's June 17th press
release).
According to Roskill and IMCOA (November
2010), the demand for magnets should have a growth rate of 10% to 15% between
2010 and 2015. Therefore, the demand for rare earth elements used in the
production of these magnets is predicted to grow from 26,000 tonnes in 2010
to 48,000 tonnes in 2015. As regards to the phosphors, the predicted growth
rate is from 6% to 10%, thus increasing the demand from 8,500 tonnes in 2010
to 13,000 tonnes in 2015.
Concurrently with the increase in
demand, China's commerce ministry has consistently announced since August
2009 reductions in export quotas for rare earth metals. According to a New
York Times article, "China's commerce ministry announced on (December
28th) in Beijing a steep reduction in export quotas for rare earth metals in
the first months of (2011)." Since China currently produces 97-99% of
rare earths available on the market, the prices for these elements have
significantly increased. The table below illustrates the evolution of prices for
selected rare earth oxides and yttrium since October 2009:
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Oxide Prices (99%) of TREO in US$/kg
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Types of
REO LREO MREO HREO
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Date Nd2O3 Eu2O3 Tb2O3 Dy2O3 Y2O3
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Oct. 2009 14.40 460.00 350.00 100.00 14.00
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190.00- 22.00-
June 2010 32.50-33.00 505.00-525.00 490.00-520.00 200.00 55.00
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278.00- 33.00-
Sept. 2010 59.50-60.00 585.00-605.00 585.00-605.00 298.00 36.00
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Jan. 2011 89.50 620.00 595.00 325.00 72.00
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Source: Metal-Pages.com January 18th, 2011.
For more information, come visit booth
#441 at the Cambridge Resource Investment Conference January 23rd and 24th
Matamec is pleased to announce that its
president, Andre Gauthier, will be presenting at the Critical Metals
Investment Conference on January 22nd at 11:00am. Mr. Gauthier will also be
presenting at the Cambridge Resource Investment Conference on January 23rd at
3:30pm in Workshop 1. Matamec will also attend the Vancouver AME BC Roundup
2011 which is being held on January 24th to 27th.
For more information or to register to
the "Symposium", click here.(http://cambridgehouse.com/)
For more information or to register to
the "Cambridge", click here (http://cambridgehouse.com/)
For more information or to register to the
"Roundup", click here.(http://www.amebc.ca/roundup/overview-2011.aspx)
Matamec will also attend the 3rd Lithium
Supply & Markets Conference in Toronto from January 19th to 21st.
For more information or to register to
the "3rd Lithium Supply & Markets Conference", click here.(http://www.metalbulletin.com/events/3691/Americas/Iron-and-Steel/Intro/Lithium-Supply-and-Markets-LSM11.html)
Finally, Since Matamec has recently
become a member of the Rare Earth Industry and Technology Association,
Mr. Gauthier will be present at the annual meeting of the association on
January 27th in Denver.
For more information about REITA, click
here.(http://www.reitausa.org/)
About Matamec
Other than its focus on the development
of the Kipawa deposit and exploration for other showings of rare
earths-yttrium-zirconium-niobium-tantalum on its Zeus property, Matamec's
exploration strategy is to discover gold deposits, base metals and platinum
group, as well as rare metals.
For gold, the company explores in the
prolific mining camp of Timmins, Ontario, of which the main target is the
Matheson JV with Goldcorp Canada Ltd. and Goldcorp Inc.
In Quebec, the Company is exploring for
lithium and tantalum on its Tansim property and for precious and base metals
on its Sakami, Valmont and Vulcain properties. As well, it is exploring for
gold together with Northern Superior Resources Inc. on the
Lesperance/Wachigabau property.
"Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release."
Contact:
Andre Gauthier
Matamec Explorations inc.
President
514-844-5252
info@matamec.com
www.matamec.com |