Great Western Minerals to Acquire Heavy Rare Earth Element Enriched Property in New Brunswickadmin
Great Western Minerals Group Ltd. announce that it has entered into an option agreement with a third party to acquire a 100% working interest in a Rare Earth Elements property in the Province of New Brunswick, approximately 53 km east-northeast of the city of Bathurst. The agreement is subject to regulatory approval.
This property is located in a mining-friendly jurisdiction, with excellent infrastructure nearby. The major highway is approximately 5 km away with a railroad within 10 km, ports within 50 km, and power lines to the local smelters are also within 50 km.
The Benjamin River Property covers 55 claims totaling 880 hectares (ha) and hosts an apatite-diopside-magnetite vein that has been traced on surface for 800 metres along strike, with an apparent width of up to 50 metres. As part of the agreement, GWMG has staked an additional 436 claims (approximately 9500 ha).
Grab samples of the vein material taken by GWMG range in assay from 0.6% Total Rare Earth Oxide (“TREO”) to 1.0% TREO with very low values for potentially deleterious uranium and thorium. While the overall TREO grade appears low compared to some other deposits, the proportion of heavy rare earth oxides (europium through lutetium) is high at over 11%, including a dysprosium content of over 3% of the total rare earth oxide content. Dysprosium is a critical element in the high-temperature magnets used in hybrid vehicle electric motors. In a typical “light” rare earth deposit dysprosium is usually present by proportion at 0.3% or less.
Adding to the potential economics of the Benjamin River Property is a phosphate content of up to 18% and an iron oxide (Fe2O3) content as high as 39%. The fact that the property is located near water, roads, rail and power make large tonnage by-product production plausible.
Under the terms of the agreement, GWMG will pay to the vendor an amount of $5,000 plus 100,000 shares of GWMG on signing; $10,000 plus 50,000 shares on the first anniversary, $30,000 on the second anniversary; $50,000 on the third anniversary; $100,000 on the fourth anniversary, with a final payment of $300,000 on the fifth anniversary date. Upon completion of the prescribed payments, GWMG will own 100% of the property, subject to a 2% NSR payable to the vendor.
Over the course of the next year GWMG plans to carry out airborne and ground geophysics, ground geochemistry, surface mapping and sampling, and diamond drilling to evaluate the property.
Jim Engdahl, President and CEO of Great Western Minerals Group said “Because of what we see as a potential shortfall in critical rare earth elements for permanent magnets, GWMG is expanding its project portfolio to include new projects enriched in those elements. Benjamin River is a great acquisition prospect for us. The initial assessment indicates a high proportion of heavy rare earths, along with relatively high phosphate content. With infrastructure and services nearby, we see great potential for further development”.