Geomega Resources Releases Updated Resource for Montviel

Geomega Resources (TSXV:GMA) reported an updated mineral resource estimate for its Montviel rare earth and niobium project in Quebec. The current resource now stands at 82.4 million tonnes grading 1.51 percent total rare earth oxides (TREO) and 0.17 percent niobium oxide in the indicated category, and 184.2 million tonnes grading 1.43 percent TREO and 0.13 percent niobium oxide in the inferred category.

As quoted in the press release, details on the parameters of the resource estimate included:

• The mineral resource model prepared by Belzile Solutions Inc. considers 89 core boreholes (NQ size) drilled by GéoMégA during the period of 2010 to 2013. The drilling comprises approximately 21,746 assayed intervals with an average length of 1.45 meter.
• Generally, drilling density is varying from 50m x 50m to 100m x 100m depending of the location within the deposit and the depth.
• Indicated resources correspond approximately to a 50m x 50m drilling pattern.
• Inferred resources correspond approximately to a 100m x 100m drilling pattern.
• The mineral resource estimate has been completed using three-dimensional wireframe modelling. Geological interpretation identified 6 different domains in the area covered by drilling.
• No high grade capping was applied since maximum value was 7 times higher than average TREO grade (coefficient of variation around 0.50).
• Mineral resources results are presented undiluted and in situ.
• The extents of the mineralization higher than 1.0% TREO encountered in drilling to date can be traced for a maximum of 700m in the NE-SW direction, 400m in the NW-SE direction and a maximum depth of 760m.
• The bulk density is based on 308 specific gravity measurements taken from wrapped core samples. The average value for the samples was 2.92 t/m³.
• The estimates were done using Ordinary Kriging (OK) as the geostatistical interpolation method based on 5.0 meter analytical composites. Resources were also estimated using Inverse Distance Squared (ID2) interpolation for testing and comparative purposes, which produced similar results, i.e. less than 1% difference in TREO and Nb2O5
• All estimates were based on a block dimension of 10 meters long, 5 meters wide and 10 meters height with estimation parameters determined by variography.
• Estimation was done using Geovia Gems software (V 6.7).
• A 50m crown pillar located below the overburden-rock interface has been removed from the resources compilation.
• The Company signed a buy-back option agreement on May 27, 2015 for the 2% royalty currently applicable to Montviel. This resource estimate does not include the 2% royalty.
• Mineral resources are evaluated in Canadian currency using an exchange rate of 1.15 CA$/US$.
• Mineral resources are estimated at a NSR -cut-off value of CA$180 per tonne corresponding to the total mining costs, processing costs, general and administrative costs, marketing costs and contingency based on the assumption of a 2,500 tonnes per day underground mining operation.
• Metal recovery assumptions are based on tests results disclosed on May 20, 2015 and were adjusted to account for a final purification step following hydrometallurgy.
• Total Rare Earth Oxides (“TREO”) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3.

Geomega’s VP of exploration, Alain Cayer, said:

Following the conversion from open pit to underground mining, resources have been classified using new criteria compared to the initial resource estimate of September 2011. Phase 2 drilling focused on the enrichment zone within the Core Zone and results are included in Total indicated resources. Phase 3 drilling focused on the dysprosium enrichment along the southern margin of the Core Zone and is represented by the Dysprosium Zone resource. After 36,346 meters of diamond drilling, Montviel has size, grade and distribution. Combined with our 100% hydroelectric process flow sheet design, Montviel has multigenerational potential. Congratulations to the team.

Click here to read the Geomega Resources (TSXV:GMA) press release