Owner
Post by Franko10 ™ on Sept 20, 2004 14:58:55 GMT -5
Great Western Gold Corp.
Suite 303, 416 21st Street East
Saskatoon, SK S7K 0C2
CDNX: GWG
CUSIP: 39144H107
August 14, 2001
Final Option Payment Made on Rare Earth Project
Neil P. Yingling, President, is pleased to report that Great Western Gold Corp. has made the last in a series of option payments to Daren Industries Ltd., of Vancouver, on the Hoidas Lake rare earth project in northern Saskatchewan. The Company can earn a 70% interest in the property by issuing shares and making cash payments to Daren, and by carrying out exploration work. In satisfying the share and cash requirements of the Option Agreement, Great Western Gold has issued 100,000 common shares and has paid $65,000 in cash option payments to Daren. To complete the 70% earn-in, the Company must incur $1.5 million in exploration expenditures on the Hoidas Lake project by September 1, 2004, of which approximately $600,000 has been incurred to date. At the point where total exploration expenditures reach $1.5 million, Daren must elect to either retain a 30% working interest in the property or revert to a 1.5% net smelter return, giving Great Western Gold a 100% working interest.
The Company has now identified 24 separate rare earth occurrences on the 16,000-acre Hoidas Lake property. The showings are situated along, and contained within, a mineralized fault system running more than 10 km in a NE-SW direction. The mineralized system exceeds 2 km in width over portions of the strike-length. Only one rare earth occurrence, the JAK Zone, has received recent exploration work and has been drilled. Sixteen drill holes, spaced along strike over 475 m of the JAK Zone and to a depth of 65 m, intersected multiple parallel and sub-parallel veins containing significant rare earth mineralization. Individual veins can be traced continuously along strike with the highest average grade running 4.62% total rare earth oxides (“TREO”) over a width of 5.2 m and the best width of 6.9 m grading 4.41% TREO.
Metallurgical work is in progress at Lakefield Research in Ontario under the supervision of Melis Engineering of Saskatoon, Saskatchewan. Tests carried out on a composite sample from the drill core (averaging approximately 4.4% TREO), have shown that a significant portion of the rare earth mineralization is derived from phosphate minerals (apatite and monazite) in addition to the silicate mineral allanite. Testing also shows that the rare earth elements contained in the minerals are amenable to upgrading by flotation and recovery by acid leaching. A preliminary flowsheet outlining the proposed milling process for Hoidas will be available shortly. Based on this flowsheet, further testing will be carried out to optimize the process. Preliminary recovery percentages and recovery costs will then be calculated.
Negotiations for financing the next phase of work at Hoidas are in progress. The Company expects to conclude negotiations with one or more groups of investors in the very near future.
Great Western Gold Corp., based in Saskatoon, explores for diamonds and rare earth elements in Saskatchewan.
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Great Western Gold Corp. is a diversified, Saskatchewan-based, Canadian mining exploration and development company exploring for diamonds, uranium, and rare earths in the Province of Saskatchewan.
For further information, call Neil Yingling at 1 702 896 6724 or Gary Billingsley at 1 306 664 0028.
GREAT WESTERN GOLD CORP.
Neil Yingling
President
The Canadian Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the forgoing.
© 2004 Great Western Minerals Group Ltd.
Suite 303, 416 21st Street East
Saskatoon, SK S7K 0C2
CDNX: GWG
CUSIP: 39144H107
August 14, 2001
Final Option Payment Made on Rare Earth Project
Neil P. Yingling, President, is pleased to report that Great Western Gold Corp. has made the last in a series of option payments to Daren Industries Ltd., of Vancouver, on the Hoidas Lake rare earth project in northern Saskatchewan. The Company can earn a 70% interest in the property by issuing shares and making cash payments to Daren, and by carrying out exploration work. In satisfying the share and cash requirements of the Option Agreement, Great Western Gold has issued 100,000 common shares and has paid $65,000 in cash option payments to Daren. To complete the 70% earn-in, the Company must incur $1.5 million in exploration expenditures on the Hoidas Lake project by September 1, 2004, of which approximately $600,000 has been incurred to date. At the point where total exploration expenditures reach $1.5 million, Daren must elect to either retain a 30% working interest in the property or revert to a 1.5% net smelter return, giving Great Western Gold a 100% working interest.
The Company has now identified 24 separate rare earth occurrences on the 16,000-acre Hoidas Lake property. The showings are situated along, and contained within, a mineralized fault system running more than 10 km in a NE-SW direction. The mineralized system exceeds 2 km in width over portions of the strike-length. Only one rare earth occurrence, the JAK Zone, has received recent exploration work and has been drilled. Sixteen drill holes, spaced along strike over 475 m of the JAK Zone and to a depth of 65 m, intersected multiple parallel and sub-parallel veins containing significant rare earth mineralization. Individual veins can be traced continuously along strike with the highest average grade running 4.62% total rare earth oxides (“TREO”) over a width of 5.2 m and the best width of 6.9 m grading 4.41% TREO.
Metallurgical work is in progress at Lakefield Research in Ontario under the supervision of Melis Engineering of Saskatoon, Saskatchewan. Tests carried out on a composite sample from the drill core (averaging approximately 4.4% TREO), have shown that a significant portion of the rare earth mineralization is derived from phosphate minerals (apatite and monazite) in addition to the silicate mineral allanite. Testing also shows that the rare earth elements contained in the minerals are amenable to upgrading by flotation and recovery by acid leaching. A preliminary flowsheet outlining the proposed milling process for Hoidas will be available shortly. Based on this flowsheet, further testing will be carried out to optimize the process. Preliminary recovery percentages and recovery costs will then be calculated.
Negotiations for financing the next phase of work at Hoidas are in progress. The Company expects to conclude negotiations with one or more groups of investors in the very near future.
Great Western Gold Corp., based in Saskatoon, explores for diamonds and rare earth elements in Saskatchewan.
--------------------------------------------------------------------------------
Great Western Gold Corp. is a diversified, Saskatchewan-based, Canadian mining exploration and development company exploring for diamonds, uranium, and rare earths in the Province of Saskatchewan.
For further information, call Neil Yingling at 1 702 896 6724 or Gary Billingsley at 1 306 664 0028.
GREAT WESTERN GOLD CORP.
Neil Yingling
President
The Canadian Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the forgoing.
© 2004 Great Western Minerals Group Ltd.
