MONTREAL, QUEBEC--(Marketwire - Sept. 13, 2012) - Matamec Explorations Inc. ("Matamec" or the "Company")(TSX VENTURE:MAT)(OTCQX:MHREF) and Toyotsu Rare Earth Canada, Inc. ("TRECan") are pleased to announce that the Kipawa heavy rare earth project feasibility study is progressing as scheduled, the results of which are expected by Q2-2013.
PRESS RELEASE HIGHLIGHTS
- The feasibility study mandate was awarded last May 2012 to a consortium of two engineering firms which are Roche and Genivar;
- A 16,158-metre drilling campaign was completed (see September 10, 2012, press release on):
- To define all resources within the pit outline to the measured category (177 holes);
- To establish the quality of the rock around the deposit for use in the design of the future open pit (5 geotechnical holes);
- To furnish material to be used to establish the effects of variability in grade and mineralogical content in the Kipawa deposit (22 holes);
- The hydrometallurgical pilot plant successfully extracted critical HREEs and produced a rare earth concentrate (see press release on September 11, 2012);
- Golder & Ass. have been carrying out the environmental and social impact assessment ("ESIA") since may 2012 (see press release on September 12, 2012).
After reviewing the preliminary economic assessment, it was decided by Matamec and TRECAn to skip the pre-feasibility phase and to proceed directly with the feasibility study. The feasibility study mandate was awarded last May 2012 to a consortium of two engineering firms which are Roche and Genivar. As mentioned in a previous press release, Matamec and TRECan, a Canadian subsidiary of Toyota Tsusho Corp., reached an agreement in July and now have a joint venture agreement for the Kipawa HREE Project.
The completion of a 16,158-metre drilling campaign followed by a mineral resource estimation update, the conclusion of the mineral processing pilot plants and the start-up of the ESIA were the three key items to complete before the feasibility study could be accelerated. Matamec now confirms that the feasibility study is planned to be delivered by Q2-2013, as previously scheduled.
Matamec's experienced project management team is coordinating the different employees and firms involved in the feasibility study in order to keep the project on schedule. At the moment, the main focus is to finalize the setting of design criteria in all aspects of the project. Most of the advanced design criteria and process flowsheets will be completed in September. The rest of the feasibility study will follow as planned. To summarize, the feasibility study is progressing on many fronts simultaneously.
Andre Gauthier, President and CEO of Matamec stated: "due to its good location and its fairly simple metallurgy, the Kipawa project shows a potential mine operation start-up for the last quarter of 2015. However, in light of the Quebec Government's recent legislative examination of the act respecting the development of mineral resources in keeping with the principles of sustainable development (Bill n°14), we will have to remain vigilant and put a lot of effort in foreseeing public hearing requirements."
Bertho Caron, V-P Project Development & Construction (Eng.) is Matamec's Qualified Person for this press release.
Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit with Toyotsu Rare Earth Canada, Inc. ("TRECan"). Following the positive conclusion of the PEA study filed on SEDAR in March 2012 and the hiring of a V-P Project development and Construction, Matamec and TRECan decided to move directly to the feasibility study. The March 2012 press release highlighted that the project has robust economics such as: $606 million before-tax value (NPV8%), a 36.9% before-tax IRR, $2.8 billion revenue, $1.67 billion EBITDA, a before-tax payback period of 2.4 years, etc. (see press release dated January 30, 2012).
In parallel, the Company is exploring more than 35km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property.
The company is also exploring for gold, base metals and platinum group metals. Its gold portfolio includes the Matheson JV property located along strike and in close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario.
In Quebec, the Company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties. As well, it is exploring for gold together with Northern Superior Resources Inc. on the Lesperance/Wachigabau property.
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