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GEOVIC
PROVIDES UPDATE ON NKAMOUNA COBALT PROJECT
January 23, 2009 ? Denver, CO - Geovic Mining Corp. (?Geovic? or
the?Company?, TSX:GMC, OTC.BB:GVCM), on behalf of its 60%-owned subsidiary
Geovic Cameroon PLC (GeoCam), is pleased to provide an update on progress at
its Nkamouna cobalt-nickel-manganese project (Project) in Cameroon, Africa,
as well as an outline of research programs and testing currently underway to
improve its financial performance.
Significant
progress was achieved during 2008, including an extensive drilling program,
expansion of the site?s infrastructure, and advancement of numerous
engineering and design aspects of the Project, including:
? Application of
process technologies that could enhance Nkamouna?s technical and financial
performance and reduce related risks
? Completion of
54,900 meters of drilling, doubling the data base at Nkamouna and quadrupling
the data base at the adjacent Mada deposit. The objective of the
drilling was to increase and enhance resources and reserves available to the
Nkamouna process plant.
? Expansion of
site infrastructure and advancement of Project engineering and design
? Reductions in
the prices of services, chemicals, freight, equipment, and other bulk
supplies that should reduce capital and operating costs
? Pursuit of
opportunities to increase ore grade during the early production stages
through optimized mine scheduling
Process
Technology
Following
receipt of the Nkamouna Feasibility Optimization Study (?FOS?) in September
2008, several process improvement programs were initiated in an attempt to
further enhance the Project?s economics and reduce technical risks.
Preliminary
test work has validated the application of certain of these
technologies. Subsequent pilot scale tests are scheduled for completion
by mid-2009. A summary of this work is as follows:
- Geovic has undertaken
gravity and magnetic separation tests targeted at improving the quality
of concentrates obtained by well-established size separation
methods. Application of such methods may increase process feed
grades, as well as revenue from a given leach plant?s throughput
rate.
- In October 2008,
GeoCam became aware that its concentrates might be better leached using
iron sulfide and sulfuric acid rather than sulfurous acid as planned in
the FOS. Results of 30 bench tests completed to date have yielded
average cobalt leach extractions of 97% in less than two hours compared
to 94% in four hours of leaching with sulfurous acid. This leach
chemistry was successfully pioneered on similar manganese-bearing ores
several decades ago, and GeoCam?s management believes its application at
Nkamouna could improve financial performance while lowering process
risks.
- Based on extensive
tests completed in 2008, GeoCam may replace the technology proposed in
the FOS with more conventional solvent extraction equipment.
Conventional circuits could potentially have a solution throughput rate
at least 80% less than contemplated in the FOS.
2008
Drilling Program Summary
The
table below depicts the number of drill holes and test shafts completed
during the past 13
months.
Drill
Test
Total Depth
Samples
Holes
Shafts
(Meters) for
Assay
Nkamouna
975
20
26,018
22,874
Mada
*
833
147
22,717
19,839
Rapodjombo **
237
0
6,217
5,382
Total
2,045
167
54,952
48,095
* Immediately north of the
Nkamouna plant site
** Immediately north of Mada
This
extensive exploration and development work has more than doubled the data
base at Nkamouna and quadrupled the data base at Mada, which the Company
believes will lead to the expansion of the respective mineral resources and
reserves at both deposits. It is expected that the preparation of these
samples will be completed by May 2009, with updated 43-101 compliant reserve
and resource estimates anticipated to be published during the third quarter
of 2009.
Other
2008 Nkamouna Accomplishments
Other
activities completed at Nkamouna during 2008 include the following:
1.
Improved 23.6 kilometers of access roads between the city of Lomie and
the Nkamouna Project
2.
Installed a 72-meter tower to provide nearly all long-term
communication and information technology links for the Project, as well as
the general region
3.
Expanded the field compound, building 16 additional living units with
a new common kitchen
4.
Completed the final engineering and design of the dam required for
storing tailings from physically upgrading ore and leaching concentrates
5.
Advanced the engineering, design, and infrastructure of the process
plant
6.
Received a permit from the Cameroon Ministry of Forestry and Wildlife
to collect and use wood resources from the deforestation of a 150 hectare
area in the vicinity of the Nkamouna project
?We
are extremely pleased with the progress made during 2008, a time when many
companies struggled just to maintain the status quo,? said John E. (?Jack?)
Sherborne, CEO of Geovic Mining. There is no doubt that 2009 will be
challenging, but we are confident that the steps taken over the past year
have positioned us to deal with these challenges in a creative and positive
way.?
Geovic
Background
Geovic
is a U.S.-based corporation whose principal asset is a significant
cobalt-nickel-manganese deposit in the Republic of Cameroon.
Additionally, the company controls a diverse portfolio of energy, precious
metals, base metals, and uranium projects in the United States, operated
through its wholly-owned subsidiary Geovic Energy.
Additional
Company and project information may be found on the websites www.sedar.com and www.sec.gov.
For more information, please contact:
Andrew
C. Hoffman, CFA Vanguard Shareholder
Solutions Torrey Hills Capital, Inc.
VP,
Investor
Relations
Direct (604)
608-0824
Direct
(858) 456-7300
Geovic
Mining
Corp.
Toll-Free (866) 801-0779
info@torreyhillscapital.com
Direct
(720) 350-4130
ir@vanguardsolutions.ca
Toll-Free
(888)
350-4130
ahoffman@geovic.net
On
behalf of the Board
John
E. Sherborne, CEO and Director
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
future price of metals; the estimation of mineral reserves and resources; the
timing and amount of estimated future production, costs of production, and
capital expenditures; costs and timing of the development of new deposits;
and success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims and limitations on insurance coverage. 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 current exploration activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices
of metals; possible variations in ore reserves, grades, or recovery rates;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes, other risks of the mining industry, delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities and other factors as described in detail
in the Company?s Annual Information Form and 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.
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