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Geovic
Mining Corp. (TSX:GMC - News; OTCBB:GVCM) ("Geovic"
or "the Company") is pleased to announce that its Geovic New Caledonia SAS subsidiary (GNC) has been
granted exclusive exploration licenses in New Caledonia, a French overseas
island territory in the South Pacific. These licenses will enable the Company
to evaluate the quality and extent of promising chromite-rich
heavy mineral beach sand deposits in a program expected to commence later
this year.
Project
Background
Several
members of Geovic's senior management team
prospected for chromite deposits in the
mineral-rich sands along the coast of New Caledonia during the 1980s. Based
on this work, together with subsequent advances in mineral separation
technology, the Company determined that an opportunity existed to define and
ultimately develop a potentially economic major chromite
resource.
Consequently,
the Company established GNC to carry out its exploration and evaluation
efforts and in 2009 carried out reconnaissance sampling programs and
conducted airborne magnetometer surveys, resulting in the issuance by the
government of prospect licenses (PMAs) for up to 120 square kilometers.
In
the past year, more than 400 samples were collected from areas covered by the
PMAs, and the prospects were ranked according to development potential. Based
on these results, GNC submitted exploration license applications for areas
deemed to be the most prospective, and was recently awarded a total of 31
licenses: 12 exploration licenses comprising 40 square kilometers in North
Province and 19 Licenses comprising 60 square kilometers in South Province.
Favorable
Results from Preliminary Prospecting and Process Tests
The
onshore prospecting program carried out thus far has resulted in the
discovery of several potentially large-tonnage high-grade chromite
accumulations. In some of these areas, chromite
concentrations exceed 50% of the total sand grains present.
In
preliminary metallurgical test work, the chromite
was found to be easily concentrated by conventional gravity, magnetic and
electrostatic separation, and many concentrate assays exceeded 54% Cr2O3,
well above global averages. Additionally, bulk sample test work indicates
that premium grade chromite can be produced from
multiple sites tested thus far. Additional information about this project can
be found on the Company's web-site (www.geovic.net).
Chromite
market
The
principal source of chromium metal is chromite. The
world chromite market consumes over 22 million tonnes of chromite per year
(2008), greater than 90% of which is consumed as ferrochrome, mostly
dedicated to stainless steel production. Chrome content in stainless steel
ranges from about 13-20%. Demand for stainless steel is expected to increase
significantly. Premium quality foundry grade chromite
sand is the preferred casting media for production of metal castings.
2011
Exploration Program
Environmental
baseline studies are being initiated to establish site specific impacts and mitigation
requirements prior to drilling. Subsequently, following regulatory approval
to commence exploration, onshore and offshore drill campaigns are planned to
assess the quality and extent of chromite deposits
on the exploration licenses. The initial drilling program is targeted to
commence in the second half of 2011 and continue into 2012, at which point we
anticipate that resources will be estimated.
Custom
onshore and offshore drill rigs are being fabricated to utilize a proprietary
process that will ensure sample integrity while minimizing impacts during the
drilling program. Bulk samples will also be collected to confirm the mineral
separation process, forming the basis for advanced engineering and design
studies and estimated capital and operating cost requirements.
John
Sherborne, President of Geovic
New Ventures, comments: "The award of exploration licenses culminates
several years of prospecting work in New Caledonia. We believe the potential
exists for an economically viable, world-class chromite
deposit, and the upcoming work program will be an important first step in
establishing the parameters for such a project."
Mr.
Gary R. Morris, President of Geovic Mineral Sands
and a registered professional geologist is the Qualified Person, as defined by
Canadian National Instrument 43-101, responsible for the technical
information contained in this press release.
Geovic
Mining Background
Geovic
is a U.S.-based corporation whose principal asset is 60.5% ownership of a
significant cobalt-nickel-manganese deposit in the Republic of Cameroon,
Africa. Additional Company information may be found on the websites
www.geovic.net, www.sedar.com, and www.sec.gov.
On
behalf of the Board
John
E. Sherborne, Director, President, Geovic New Ventures
Cautionary
Note Regarding Forward-Looking Statements
Statements
contained in this press release that are not historical facts are
forward-looking statements (within the meaning of Canadian securities
legislation) that involve risks and uncertainties. Forward-looking statements
include, but are not limited to, statements with respect to the timing and
completion of necessary exploration activities, timely receipt of required
regulatory approvals, demand for chromite, chromite concentrates; future prices of metals; the
estimation of mineral resources; the timing and amount of estimated future
capital expenditures; costs and timing of development of new deposits; and
success of exploration activities and permitting time lines. In certain
cases, forward-looking statements can be identified by the use of words such
as "proposes", "expects", "is expected",
"scheduled", "estimated", "intends", or
variations of such words and phrases or state that certain actions, events or
results "will" occur. Forward-looking statements involve known and
unknown risks, uncertainties, and other factors which may cause the actual
results, performance, or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such risks and other factors
include, among others, risks related to operations; actual results of planned
exploration activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of metals;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes, other risks of the
mining industry, delays in obtaining governmental approvals and other factors
as described in detail in the Company's Annual Report on Form 10-K, quarterly
reports on Form 10-Q, and other filings with the U.S. Securities and Exchange
Commission and Canadian securities regulatory authorities. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The forward-looking statements in
this press release speak only as of the date hereof. The Company does not
undertake any obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof to reflect the occurrence of unanticipated events.
Contact:
(858) 456-7300
San Diego Torrey Hills Capital
info@torreyhillscapital.com
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