Great Western Minerals Group Ltd (fka GWG)

[Spartacus77]

TCMR: What themes do you expect will dominate the REE space in 2012?

JH: There's an interesting beginning of the year shaping up. Chinese quotas will be announced in the early part of 2012. We don't expect dramatic changes in the supply. If anything, the quotas will likely be ratcheted down, but the driving argument there will be that we have not used all of the 2011 quotas. In fact, there still remains substantial export quota for use in 2011. We might even see the export quotas on lanthanum and cerium rise to some extent to try to bring those prices back into a more reasonable range and encourage their use.

The rare earth industry will build up outside of China in 2012. I expect the re-establishment of mining operations in South Africa at Steenkampskraal and the startup of operations at Molycorp. Hopefully, there will be the eminent approval of the Malaysian facility for Lynas Corp. Ltd (LYC:ASX) early in 2012. I think it's going to be a very interesting year.

TCMR: Fascinating. Thanks, Jon.

[Pro-Life]

Rockin' steady this week +22%... your excerpt was great!

[Spartacus77]

Here we go

We participated in the Great Western deal because Great Western is our top pick in the space, because we do believe there's a great deal of value there and because we would be happy to have our clients own a stock where we are fairly certain that the returns are not going to embarrass us.

TCMR: In a Dec. 1 research report on Great Western, you noted that the company's latest round of financing was not sufficient to complete mine construction and required processing plants. However, you expect additional non-dilutive financing. What form will that financing likely take?

JH: There are two possibilities. GWG's prospective partner, Aichi Steel of the Toyota Group, may provide financing in the form of debt. There's also the prospect for non-dilutive financing in the form of off-take agreements – cash payments up front for guaranteed supplies of material and even perhaps material at a discount later.

TCMR: Who are the likely players to come forward for those agreements?

JH: It could be an entity like Toyota Tsusho that will take the material and sell it within the Toyota group and to outside entities. It could be a group like Albemarle or a BASF, which needs lanthanum and cerium for its catalytic materials, but have been buying those materials from Ganzhou Qiandong Rare Earth Group Co. Ltd. (GQD) (which GWG has partnered with on a solvent extraction joint venture). Knowing that the quality of material out of GWG will be the quality of material that GQD has always produced, there may be a number of offtake partners emerging soon.

[Pro-Life]

Off to a good start for 2012: +7.32%

[Spartacus77]

Avalon Rare Metals and Great Western Minerals on the Downturn as Rare Earth Outlook Weakens
Last Update: 1/4/2012 8:16:42 AM


NEW YORK, NY, Jan 04, 2012 (MARKETWIRE via COMTEX) -- Rare earth demand took a sizeable hit in the late stages of 2011, causing uncertainty heading into the New Year. According to reports from Forbes, low demand during 2011 was caused by "high rare earths prices from both heavy and light rare earths metals, which despite their fluttering prices, remain historically high." The Paragon Report examines investing opportunities in the Rare Earth Industry and provides equity research on Avalon Rare Metals, Inc. (AVL)(AVL) and Great Western Minerals Group Ltd. (GWG) (pinksheets:GWMGF). Access to the full company reports can be found at:

www.paragonreport.com/AVL

www.paragonreport.com/GWG

Last week The Chinese Ministry of Commerce announced its rare earth export quota for the first half of 2012. The ministry says that it will keep 2012 overseas sales quotas practically unchanged after exporters used only half the amount allotted for this year as buyers sought to cut usage and amid complaints over restrictions from trading partners.

Separately, the Ministry announced its decision to classify rare earth minerals into two categories: heavy and light rare earths. The change -- which was anticipated by analysts -- may prove to be a positive step for end users as the two groups have vastly different demand levels, Rare Earth Investing News reports.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the rare earth industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Last week, JPMorgan Chase & Co warned that rare earth prices could possibly remain low this year given China's pronouncement and expected higher production from Molycorp, Inc. and other rare earth producers.

Great Western Minerals Group Ltd. owns, explores, and develops metal properties in the United States, Canada, and South Africa. The company focuses on the exploration of rare earth metals (REE). The company recently announced that its margins on manufacturing / processing operations for the first nine months of 2011 represented an increase of 47% over the same year-to-date period of 2010.

[Spartacus77]

Great Western CEO to appear on BNN's Commodities segment
Thu 11:00 am by Olivia D'Orazio Great Western Mineral Group (CVE:GWG) announced Thursday that president and CEO, Jim Engdahl, is scheduled to appear on the Business News Network (BNN) show, Commodities, on Thursday, December 28, at 11:30 am EDT.

Engdahl will discuss the impact of the rare earth export quotas recently announced by the Government of China, and will offer a corporate update on Great Western.

The Saskatoon, Saskatchewan-based company is continuing the development of its Steenkampskraal mine, a past-producing rare earth mine and processing facility in South Africa. Great Western recently completed 2,307 metres of drilling on the property, intended for geological resource delineation, it said.

An NI 43-101 compliant resource estimate for Steenkampskraal is expected for the first half of 2012, with the processing facility to begin full operations on both the mining and processing side by the first quarter of 2013.

Demand for rare earths is booming, as despite being used in relatively small amounts, the metals are necessary to the growing production of energy-efficient green products, mobile electronics and electric vehicles.

Deposits of the metals are not actually rare, but high capital costs, difficult metallurgy, marginal ‘heavy’ rare earths grades, and a lack of people with significant rare earths processing experience are major hurdles to bringing new mines to production, bringing Great Western's advanced Steenkampskraal mine to investors' attention.

China currently produces around 97 percent of global rare earths, but in July of last year, the country announced significant reductions to rare earths export quotas, claiming protection of a strategic and dwindling resource. Since 2006, rare earths prices have increased between 1,000 percent and 10,000 percent.

[Spartacus77]

Great Western Minerals Group CEO Scheduled to Address Rare Earth Issues on BNN
Last Update: 12/29/2011 9:06:43 AM


SASKATOON, SASKATCHEWAN, Dec 29, 2011 (Marketwire via COMTEX) -- Great Western Minerals Group Ltd. ("GWMG" or the "Company") (GWG) (otcqx:GWMGF) is pleased to announce that GWMG's President and Chief Executive Officer, Jim Engdahl, is scheduled to appear on the Business News Network ("BNN") Commodities Show at 11:30 a.m. EST today, Thursday, December 29, 2011.

The scheduled topics for the BNN interview include the impact of the rare earth export quotas recently announced by the Government of China as well as a corporate update on GWMG.

[Spartacus77]

Yesterday, the Chinese Ministry of Commerce announced the first round of allocations of rare-earth export quotas for 2012, to individual companies operating in China. The total export quotas for this first round come to 24,904 t of rare earths, with an anticipated 31,130 t of quotas to be allocated for the whole of 2012 (a 3% increase over 2011).

The announcement from the Ministry was unusual for three distinct reasons, indicating a significant shift in the way that the Chinese authorities appear to be planning for the future of the rare-earths industry.

To see what those three reasons are, and to get all of the numbers and data you need to make sense of the first round of 2012 rare-earth export-quota allocations, check out the new article at the TMR Web site, via:

http://www.techmetalsresearch.com/?p=4744

As ever, please fell free to post your comments and questions, to the Web page at the hyperlink above.

A Happy New Year to you and yours!

Best wishes,

Gareth

[Spartacus77]

This should help!
China Cuts 2012 Rare Earth Export Quota By 27% In First BatchBEIJING (Dow Jones)--China has set the first batch of its 2012 rare-earth export quota at 10,546 metric tons, down about 27% from a year ago, with the full-year quota likely to stay largely flat on year, the Ministry of Commerce said Tuesday.

China controls about 95% of global rare earth supply and has been gradually reducing its export quota over the years to gain greater control over pricing, but even a reduced quota wasn't fully used up this year amid slowing global demand.

Beijing is also emphasizing environmental considerations in reducing the 2012 export quota, playing up its move to exclude from the quota companies that didn't meet its environmental standards.

Analysts had widely expected Beijing to slightly cut next year's export quotas amid a weaker global economy and unused quota capacity this year.

The world's top producer capped exports at 14,446 tons for the first batch this year, and 15,738 tons for the second.

For the first time, Beijing also split its 2012 quota into light and medium-to-heavy categories.

For 2012, it has approved the export of 9,095 tons of light minerals and 1,451 tons of medium-to-heavy category minerals. It also provided a list of pending approvals totaling 14,358 tons.

The ministry said the first batch, including approved and pending quotas, will account for 80% of the whole year's quota, indicating that the 2012 quota may total 31,130 tons.

The government usually issues rare-earth export quotas twice a year. The second batch is usually issued around July.

In arriving at its decision, the commerce ministry "is likely to have considered the fact that China's rare-earth inventories are relatively [high] and there's left over from the [2011] quota," said Jin Bosong, deputy director of the ministry's International Trade and Economic Cooperation Research Institute.

The government capped the export quota at 30,184 tons this year, but only about half the quota, or 14,750 tons, had been shipped out in the first 11 months amid soft overseas demand, the ministry said.

Rare earth prices have been falling since June, amid softening global demand.

In an effort to play up its environmental credentials, the ministry said only 11 exporters have been granted export rights, adding that "the ministry set up a pending-approval list for applicants that need further environmental review."

[Spartacus77]

The market for hybrid vehicles is currently witnessing rapid growth with analysts expecting their demand to grow several folds during 2011-2015. The extensive adoption of these vehicles can be attributed to a number of factors. These include: a growing awareness among end users, government support, rapid technological advancements and a continuous increase in oil prices. Question marks, however, are currently hanging over the future growth of these vehicles – at least in the short term. A new study from IMARC Group, one of the world’s leading research and advisory firms entitled “The Global Rare Earth Elements Market 2011-2015: Is the Hype Justified?” finds that hybrid vehicles largely depend upon four rare earth elements –Praseodymium, Neodymium, Terbium, and Dysprosium. Out of these four elements, the later three are expected to face a critical supply crunch in the near future.



Findings from the report suggest that NdFeB magnets are the enabling technology for today’s electric vehicles. The commonly used rare earth magnets of today combine 31% Neodymium with 68% Iron and 1% Boron. However, these magnets when used in hybrid vehicles have to be alloyed with up to 4.5% of Dysprosium by weight that dramatically improves its temperature handling capability. Terbium, even though more expensive and a lot rarer than dysprosium, can also accomplish the same thing. Praseodymium may also added to the magnet to enhance its field strength. The report expects that the demand of NdFeB magnets is expected to grow exponentially with an increasing demand of hybrid vehicles. This in turn is expected to drive the consumption of the rare earth elements - Neodymium, Praseodymium, Dysprosium and Terbium in the coming years.



Findings from the report also suggested that NdFeB magnet manufacturers are heavily dependent upon China for their rare earth supplies. In 2010, China accounted for 99% of the global Terbium production, 98% of the global Praseodymium production and 97% of both Neodymium and Dysprosium production. As a result of its increasing domestic demand, the Chinese government in recent years has significantly restricted the export of these elements. For instance, between May 2010 and August 2011, the domestic prices for Neodymium in China increased eightfold, this resulted in the Chinese government decreasing its export quota and ramping up its export taxes on rare earths leading to sky rocketing prices and a shortage of rare earth elements for the rest of the world.



Supply demand projections from the report suggest that with the opening of a number of non-Chinese mines during 2011–2015, the production of these four rare earth elements will significantly increase and diversify. However, excluding Preseodymium which is expected to be oversupplied by 17%, the report expects the demand of Dysprosium, Terbium and Neodymium to outpace their total supply by 71%, 10% and 9% respectively by 2015. The report suggests that the shortage of these three rare earth elements may have a major impact on the growth of the hybrid car market as they have limited substitutes and recycling options.

IMARC’s new report entitled “The Global Rare Earth Elements Market 2011-2015: Is the Hype Justified?” provides an analytical and statistical insight into the global rare earth elements market. The study that has been undertaken using both desk-based as well as qualitative primary research has analyzed five aspects of the rare earth elements market.

Key Aspects Analyzed in this Report:

Understanding the Mining Economics of Rare Earth Elements:
Focus of the Analysis:
• Rare earth mine valuation


• Stages and time taken to develop and start production at a rare earth mine
• The total costs involved in rare earth mining
• Mining and downstream processing of rare earth elements
• Rare earth element pricing

Understanding China’s Role in the Global Rare Earth Elements Market:
Focus of the Analysis:
• China’s role in the global supply and demand of rare earth elements
• Reasons for China’s dominance
• China’s current and future supply strategies

Comprehensive Situation Analysis of the Global Rare Earth Elements Market:
Focus of the analysis:


• Quantifying the historical sales and production of rare earth elements
• Identification and evaluation of current global rare earth mines
• Identification and evaluation of mines expected to begin production in the next five years
• Current and future consumption of rare earth elements
Evaluating the Supply and Demand of Various Rare Earth Elements:
Focus of the analysis:
• Quantifying the production of each element from current and future mines
• Quantifying the current and future demand of each element
• Historical, current and future prices of each element


• Evaluating the supply risks of each element and its importance for clean technology
• Identification of critically undersupplied and oversupplied rare earth elements

[Spartacus77]

About Silver Spruce Resources Inc.
Silver Spruce is a diversified junior exploration company with a portfolio of rare earth (Pope's Hill, Pope's Hill JV (with Great Western Minerals Group), MRT, RWM and the Straits), gold silver (Big Easy), and for the longer term, uranium (CMBJV, Snegamook, Double Mer, Mount Benedict), projects in Newfoundland and Labrador. With interests in more than 4,000 claims totalling more than 1,000 square kilometres in Labrador, Silver Spruce is one of the largest landholders in one of the world's premier emerging rare earth and uranium districts. For more information go to www.silverspruceresources.com

[Spartacus77]

Thanks for your input my feeling also, as you know I like this a little better than AMY buy! buy!
We need news soon on both.

[murrstir]

let's not be living in the past in terms of valuation.

A bucket of potash is only what some farmer will pay you for it today.

Where will a bucket of heavy RE be in two years is my investment.

Everyman seems to give all the credit for the all-important, value-added refining expertise to the ancient cultures, but we are learning too, no?

We have a potential high-tech growth story in our rlshp with the contracted milling co right? or is that a low probability?

More positive news from the CEO in that rlshp would help.

[value1008]

Yes, i think GWG is tremendously undervalued here.

[Spartacus77]

Do you feel same thing here? down 13% today

Yes, short term pain, for longterm gain for those with patience. Meanwhile, these prices are tantalizing. Remember that in most years there is a lot of buying of smallcaps early in the new year. We likely are dealing with tax-loss selling here among the various other factors TraderFan and others have identified. But i don't think these bargain-basement shopping prices will be here for long.

Btw, TF asked what other junior not-yet-producers have done extraordinarily poorly. There are a few others i forgot to mention like AUMN (Golden Minerals --future colossal silver producer), which has dropped further to the mid-$5s after trading at $24 in March. And that's a big-board stock. MNEAF.pk (Minera Andes, another silver producer, with a CEO famous in the mining-world) is way down from earlier 2011 highs in 3.30s to 1.30s. Golden Predator (the leading Yukon gold play) is down from an earlier 2011 high of 1.50 to 0.60. Ouch.

The list goes on.... It's a very painful time for juniors all around. AMY is no exception. Had we received the pre-feas in Nov. or Dec., we'd be much higher.

So right now it's BUYING season....

[Spartacus77]

US Magnetic Materials Association Applauds Inclusion of Rare Earth Inventory Assessment in Fiscal Year 2012 Defense Authorization Bill


The United States Magnetic Materials Association (USMMA), a trade association representing high performance magnet producers and suppliers, today applauded congressional defense authorizers for including a provision in the final version of the Fiscal Year 2012 National Defense Authorization Act (NDAA) to conduct a rare earth inventory assessment at the Department of Defense.

The provision, originally included in the bill as an amendment by Congressman Mike Coffman (R-CO), would require the Defense Logistics Agency to conduct an assessment of rare earth materials, and forms of those materials, required to support the needs of the Department of Defense. It would also consider potential market impacts and steps the department could implement to use the inventory as a catalyst to development of secure sources of rare earth oxides, metals, alloys and magnets. Finally, the assessment will consider the viability of potential producers in the next five years. Findings and recommendations based on the report would be submitted to the House and Senate Armed Services Committees for review.

?This is a huge step toward re-establishing a secure, multi-source rare earth industry here in the United States,? said Ed Richardson, president of the USMMA. ?We applaud the armed services committees for their foresight and thank Congressman Coffman for his tireless work on this important issue.?

The NDAA authorizes funding for the Department of Defense and other defense-related programs. The final legislation, called the Conference Report, was settled on after the House and Senate passed two different versions of the bill.

The NDAA now heads back to the House where lawmakers hope to have a final up-or-down vote by Wednesday. The Senate is expected to vote on the bill later this week. It may still face a challenge from President Obama, who previously threatened to veto the legislation over a number of unrelated policy issues. The NDAA has passed every year for the past 50 years.

USMMA members include:

Electron Energy Corporation (EEC) offers unmatched expertise in rare earth magnets, assemblies and systems. Founded in 1970, EEC is an ITAR and DFARS-compliant, US supplier, that develops and produces custom Samarium Cobalt (SmCo) and Neodymium-Iron-Boron (NdFeB) sintered permanent magnets and assemblies. EEC is dedicated to improving rare earth magnet performance to meet the most technically demanding applications in aerospace, military, medical, electronics, and motion control markets.

Thomas & Skinner is the world leader in high-performance magnets and magnetic materials used in strategic weapons systems. Our cast and sintered alnico magnets, magnetic assemblies, and transformer laminations are considered the best in the industry. Through its wholly owned subsidiary, Ceramic Magnetics, Inc., Thomas & Skinner is also a leading manufacturer of soft ferrite magnets. We are committed to providing our customers with the highest-quality, highest-performing magnetic materials available.

U.S. Rare Earths, Inc., an American natural resources development company based in Salt Lake City and New York City, holds large resources and reserves of high-grade rare earth metals and the largest documented high-grade thorium properties in the world within its properties in Idaho, Montana, and Colorado, including 80% of known and estimated U.S. reserves.

Arnold Magnetic Technologies (Arnold) produces cast and sintered Alnico, RECOMA® brand Samarium Cobalt (SmCo), bonded Ferrite and Neodymium magnets, all varieties of magnetic Assemblies, and ultra-thin precision foil and strip. Arnold's Alnico, SmCo and silicon steels are DFARS compliant and work done at any of our six (6) US-based facilities is also ITAR compliant. We also offer Neodymium-Iron-Boron magnets and have multiple fabrication facilities for magnets and assemblies utilizing all commercially available magnet materials.

Great Western Technologies Inc. is a leading production facility in North America for rare earth materials, powders, and custom vacuum-grade specialty alloys. GWTI provides research and development, process development, consulting, and innovative products and services to clients worldwide. GWTI, in partnership with its parent company, Great Western Minerals Group Ltd., is part of the first vertically integrated structure in North America to produce and process rare earth elements for advanced technology and alternative energy markets.

Lynas Corporation is creating a reliable, fully integrated source of supply from mine through to customers, and aims to become the benchmark for security of supply and environmental standards in the global Rare Earths industry. Lynas has developed a mine at its rich deposit of Rare Earths at Mt Weld in Western Australia, and will produce separated rare earth products from its Advanced Materials Plant which shall commence production in Q3 2011.

Ucore Rare Metals Inc. is a Canadian resource exploration company focused on rare metal ores, among the primary input materials of technology applications in the 21st century. Ucore maintains holdings across North America including Bokan Mountain, estimated to be one of the most significant Dysprosium and other Heavy Rare Earth deposits within the United States.

Texas Rare Earth Resources Corp. is a North American based mining company engaged in the exploration and development of mineral properties. Their flagship property, Round Top Mountain in Hudspeth County, Texas, is held under a 20-year renewable lease from the State of Texas to explore and develop a rare earth-uranium-beryllium prospect which includes niobium, tantalum and gallium.

Stans Energy Corp. is focused on developing the materials necessary to meet the clean energy demands of the future. Their goal is to build and produce our licensed properties containing rare earths, uranium, and associated metals in the near term. Stans company growth will come from acquiring, and participating in the development of, resource properties located in areas of the former Soviet Union.

[Spartacus77]

Jack believe's that the global demand for rare-earth permanent magnets will continue to grow at today’s rate of 10% pa. Therefore four years from now, in 2015, the demand will have grown by nearly 50%.

Perfect for GWG

[Spartacus77]

GREAT WESTERN MINERALS GROUP RELEASES 3rd QUARTER 2011 FINANCIAL RESULTS

"Q3 2011 Revenues Increase by 25%, Q3 2011 Gross Margins Grow by 84%"

November 30, 2011 - Saskatoon, Canada: Great Western Minerals Group Ltd. ("GWMG" or the "Company", TSX:V – GWG) today announced its financial results for the 3rd Quarter of 2011.

GWMG now reports its results under International Financial Reporting Standards. For the three months and the nine months ended September 30, 2011, GWMG's financial summary and highlights are as follows:

Three months ended
September 30/11 Three months ended
September 30/10 Nine months ended
September 30/11 Nine months ended
September 30/10
Revenue $4,215,250 $3,380,863 $13,630,390 $10,613,654
Gross Margins $1,656,283 $878,841 $4,635,237 $3,145,673
Earnings (Loss) ($3,880,481) ($1,089,788) ($10,733,880) ($3,292,473)
Earnings (Loss) per share ($0.010) ($0.004) ($0.029) ($0.014)

Manufacturing / processing revenues from GWMG’s wholly owned subsidiaries Less Common Metals Limited ("LCM") and Great Western Technologies Inc. ("GWTI") for the first nine months of 2011 represent a 28% increase over the first nine months of 2010.
Gross margins on manufacturing / processing operations for the first nine months of 2011 represent an increase of 47% over the same year-to-date period of 2010.
The net consolidated loss for the 3rd Quarter of 2011 of $3.9 million ($.010/share on a fully diluted basis) includes stock based compensation of $2.0 million. This compares to $.004/ share in the 3rd Quarter of 2010.
GWMG completed the 3rd Quarter of 2011 with a consolidated cash balance of $5.3 million compared to $1.9 million as of the 3rd Quarter of 2010.
Of note was the fact that LCM/GWTI processing operations achieved Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $728,629 for Q3 of 2011 compared to negative EBITDA of ($50,852) in Q3 of 2010. EBITDA from processing operations for the first nine months of 2011 was $1,743,758 compared to $277,454 for the first nine months of 2010.

GWMG President and Chief Executive Officer Jim Engdahl said, "Great Western Minerals Group experienced continued growth in revenue and margin performance on both a ‘3rd Quarter’ and ‘year-to-date’ basis. With this type of positive financial performance from our alloy processing plants, combined with a stronger cash position than was the case at the same point last year, GWMG is well positioned to move ahead in its development of the Company’s number one priority - the Steenkampskraal project. This type of revenue and margin performance is indicative of the capability of our team to execute our Company’s business plan very effectively."

[gharma]

Seems clear to me that they just need to get a sample of sufficient size that is a valid representative of the main ore body in order to do test work on the flow sheets, processing, etc. to get estimates on recovery

[murrstir]

Thank you. I wondered what that meant!

[Pro-Life]

Nuclear License allows thorium storage.

This line was taken from the newest version of the company presntation:

http://www.gwmg.ca/images/file/Presentations/gwmgnovember42011.pdf

[Pro-Life]

"... clusters of drillholes with a variety of bearings and inclinations were situated around a central resource definition corehole on selected locations to collect representative samples of monazite mineralization. Intersections of mineralization in metallurgical holes ranged from a few centimeters to 3.55 meters along core length... "


This must mean they have something worthy of all the extra time & effort as well as the money spent... very positive in my view.

[Spartacus77]

November 29, 2011 - Saskatoon, Canada: Great Western Minerals Group Ltd. ("GWMG" or the "Company") is pleased to provide a progress report on the Company's drill program at its Steenkampskraal rare earth mine site in South Africa.

26 coreholes totaling 2,307 meters have been completed, including 19 holes dedicated to metallurgical mini-bulk sampling and 7 for geological resource delineation.

Jim Engdahl, President and Chief Executive Officer of GWMG stated, "Our drilling and sampling program will continue to mid-December, 2011. This moves us toward completion of two goals at Steenkampskraal — first, to provide information in support of a fully compliant National Instrument 43-101 resource estimate report and second, to expand the resources at Steenkampskraal through testing the down-dip extension of the main structure as well as investigation of the encasing host rock mineralization."

For metallurgical testing, clusters of drillholes with a variety of bearings and inclinations were situated around a central resource definition corehole on selected locations to collect representative samples of monazite mineralization. Intersections of mineralization in metallurgical holes ranged from a few centimeters to 3.55 meters along core length. These holes will be logged in detail, measured for bulk density, and sampled for assay. In addition, a representative selection of the resource definition core has been identified and sampled for ongoing mineralogical and textural studies. Resource definition holes encountered a comparable range of true vein thicknesses,

The second major objective of the drill program is the step-out designed to test the on-strike and down-dip extension of rare earth mineralization of the Steenkampskraal deposit. Thus far, approximately 185 kilograms, out of a proposed 600 kilograms, of underground monazite sample has been collected by underground channel sampling. Upon completion, this material will be submitted for characterization studies.

Mintek of Johannesburg, South Africa has been selected to conduct the metallurgical characterization necessary for development of design criteria for ore beneficiation and rare earth extraction at Steenkampskraal. Approximately 630 kilograms of mini-bulk metallurgical sample from the surface tailings dam and 730 kilograms from the rock dump were submitted to Mintek earlier this month.

As well, a total of 276 samples were collected by shallow tube sampling on a 10 meter grid pattern covering the historic tailings dam onsite. Assay samples from the resource definition coreholes will continue to be collected through to mid-December. All assay results will be reported as they are received from the laboratory with the priority use of the data being for incorporation into the metallurgical characterization of the potential ore, as well as resource modeling report, which is contracted to SRK Consulting South Africa.

John Pearson, MSc, P.Geo, Vice-President Exploration for GWMG, is the Qualified Person responsible for reviewing the contents of this news release.

[Spartacus77]

I would have to agree short term thinking, no one can touch them.
It's just a great time to buy

I predict again that GWMG will be the first ever junior rare-earth miner outside of China to become a profitable producer of commercial quantities of heavy rare earth forms, beyond separated purified HREOs.

I note that GWMG’s new partner is an experienced processor, which has been providing GWMG’s Less Common Metals (LCM) subsidiary with pure rare-earth metals for manufacturing into rare-earth permanent magnet alloys, and other compounds, for LCM’s customers. I further note that among those customers is now to be Japan’s Aichi Steel, a manufacturer of rare-earth permanent magnets so large, as to be able to take all of GWMG’s projected production of relevant rare earths from Steenkampskraal.

Therefore I predict that GWMG will be the target for discussion of a joint venture or even an acquisition, by many good juniors with HREOs in their ore bodies. They will all basically propose that the GWMG rare-earth separation plant be expanded, to accommodate their ores on a partnership basis. This is because the most added values available to rare earths that can be added by a mining company are done by moving downstream towards the production of pure metals. Up to that point in the value chain, we are speaking of mining engineering and chemical metallurgical engineering. When one reaches the next stage, that of producing magnet alloys and magnets, one has reached the provenance of skilled specialists in materials and physics. Such skill sets are not bought; they are earned with Darwinian ruthlessness, in the real world of high-tech product development and manufacturing.

[murrstir]

imho short term thinking

what about three years from now?

[Pro-Life]

Hard to believe or explain is the new 52 week low... on close watch!

[Spartacus77]

Nice mention at the end of Mike Berry's Morning Notes.

http://www.discoveryinvesting.com/uploads/Montreal__Presentation.pdf

GWG for thorium this would be a big bonus for us

[Spartacus77]

This also is key also

GQD / GWMG Joint Venture Agreement:
After negotiating a Heads of Terms with Ganzhou Qiandong Rare Earth Group Ltd. ("GQD") of China to build a rare earth separation plant in South Africa, located in proximity to GWMG’s Steenkampskraal operation, GWMG continues to discuss and negotiate the terms of the shareholders agreement and an operating agreement. GWMG and GQD have generally settled issues that include the joint venture's corporate structure, ownership and compensation issues and are working on detailed plant design that ensures LCM customer requirements will be met. Representatives from GQD have been to South Africa to inspect the proposed site of the separation plant, and technical personnel from GWMG have visited GQD operations in Ganzhou, China. Both management teams are working to finalize details as rapidly as possible.

[Pro-Life]

Less Common Metals Expansion:

LCM, located in Birkenhead U.K., is undertaking a significant expansion of its alloy processing capacity. In December, 2011 LCM staff will begin the commissioning of a new furnace that will produce "flakes", a format preferred by customers, rather than the tradition ingots. The new furnace is expected to increase production by approximately 50% once it is in production very early in 2012...


This is really big news in my view...

[Pro-Life]

11/22/2011 Corporate update:

http://www.otcmarkets.com/stock/GWMGF/news/GREAT-WESTERN-MINERALS-GROUP-CORPORATE-UPDATE?id=38330&b=y

[Spartacus77]

Corporate Update
As at November 22, 2011

Great Western Minerals Group Ltd. ("GWMG" or the “Company”) Corporate Holdings:

1 Rare Earth former producer: Steenkampskraal mine in South Africa. GWMG holds controlling interest in the mine through its 100% shareholding of Rare Earth Extraction Co. Limited ("Rareco").
2 Rare Earth processing plants: Less Common Metals Limited ("LCM") in Birkenhead, U.K. and Great Western Technologies Inc. ("GWTI") in Troy, Michigan.
5 active Rare Earth exploration projects: 1 at the Steenkampskraal site, 4 in North America.
GWMG Corporate Focus:
GWMG continues to execute its strategic plan to become a "first mover", as a fully integrated rare earth producer supplying its own rare earth inputs into its production cycle. Management discusses the strategy on the Company’s website at http://www.gwmg.ca/html/news/corporate_videos/index.cfm.

GWMG Corporate Coverage:
Three analysts cover GWMG:

Byron Capital Markets: Analyst – Jon Hykawy, Contact points: [e-mail], 647-426-1656

Euro Pacific Canada: Analyst – Tony Hayes, Contact points: [e-mail], 416-933-3357

Cormark Securities Inc.: Analyst – Edward Otto, Contact points: [e-mail], 416-943-6748

Note: GWMG does not recommend nor endorse any research reports.

GQD / GWMG Joint Venture Agreement:
After negotiating a Heads of Terms with Ganzhou Qiandong Rare Earth Group Ltd. ("GQD") of China to build a rare earth separation plant in South Africa, located in proximity to GWMG’s Steenkampskraal operation, GWMG continues to discuss and negotiate the terms of the shareholders agreement and an operating agreement. GWMG and GQD have generally settled issues that include the joint venture's corporate structure, ownership and compensation issues and are working on detailed plant design that ensures LCM customer requirements will be met. Representatives from GQD have been to South Africa to inspect the proposed site of the separation plant, and technical personnel from GWMG have visited GQD operations in Ganzhou, China. Both management teams are working to finalize details as rapidly as possible.

Steenkampskraal Mine Site Refurbishment Project:
GWMG's refurbishment of the Steenkampskraal mine shaft and ancillary facilities continues to move ahead on schedule with an expected completion date of December 2011. East Rand Engineering Services has been contracted for the refurbishment of the mine access decline, construction of a head gear and winding house, and the installation of underground infrastructure services such as ventilation fans and underground stores. The significant progress of the refurbishment project can be seen on GWMG’s website at http://www.gwmg.ca/html/projects/mining/steenkampsraal_update/index.cfm where photographs of the project for August, September and October, 2011 are available.


GWMG Financing:
GWMG closed an equity financing on November 10, 2011 as part of the Company's overall funding requirements for the Steenkampskraal project. The Company continues to pursue its top two financing priorities — off-take agreements and a debt instrument. GWMG is discussing off-take opportunities with customers with the intent of having them provide some of the funding required for the Steenkampskraal project. The Company also plans to submit applications to government and private financial institutions for debt facilities that will have the potential to provide the remainder of the financing for the Steenkampskraal project.

Less Common Metals Expansion:
LCM, located in Birkenhead U.K., is undertaking a significant expansion of its alloy processing capacity. In December, 2011 LCM staff will begin the commissioning of a new furnace that will produce "flakes", a format preferred by customers, rather than the tradition ingots. The new furnace is expected to increase production by approximately 50% once it is in production very early in 2012.

[Spartacus77]

GW’s primary skill set within its core competency, has now been stated or shown to encompass:

Mining;
Ore concentration (mechanically);
Extraction of metal values;
Separation of the rare earths from each other and from the radioactive constituents of the ore body;
The legal and safe disposition of the radioactive residues;
The production of pure rare-earth metals from the purified chemical forms; and
The production of specialty alloys of neodymium (Nd), samarium (Sm) and dysprosium (Dy) for use in the production of high quality rare-earth permanent magnets.

[Spartacus77]

FYI....

Steenkampskraal
Exploration at Steenkampskraal will encompass three distinct components:
Confirmation drilling that is intended to become part of a
National Instrument 43-101 resource estimate.
Exploratory drilling at the Steenkampskraal minesite.
Exploratory drilling in the Steenkampskraal region.


The confirmation drilling program began in September 2011 and will run through year-end. The focus of the drill program is to confirm the data available from the historical records obtained from Anglo American and other operators, both during the time Anglo operated Steenkampskraal as a monazite mine, and subsequent to the mine closure. This data destimates an in situ grade in the range of 17% REO. Assuming the current drilling confirms the historic assay results, Steenkampskraal will be one of the highest-grade rare earth projects in the world.

Exploratory drilling is also planned during the same time frame. It is to take place within the 474 hectares that comprise the Steenkampskraal mine site area. It is anticipated that the exploratory program will serve to expand on the approximately 27,000 tonne (30,000 ton) contained REO size of the deposit based on historical data.

Regional drilling is also planned surrounding the Steenkampskraal site. As at today, the South African government did not approve the original permit application. That decision is being appealed and exploration will be launched upon receipt of the approval.

In addition, GWMG is evaluating the potential for additional monazite from a number of sources. This includes primary monazite sources as well as monazite contained in the tailings of other mining operations. Should GWMG be able to economically obtain the monazite from operations like these, it could provide significant additional feed for the processing plant at Steenkampskraal

[Spartacus77]

check out GWG web page updated and new format

[Spartacus77]

November 16, 2011 - Saskatoon, Canada: Great Western Minerals Group Ltd. ("GWMG" or the "Company") is pleased to announce the appointment of Kwaw Kabaah as Mine Manager at the Company's Steenkampskraal mine operation in South Africa.

Mr. Kabaah, who reports to David Kennedy, Chief Executive Officer of Rareco, GWMG's wholly-owned subsidiary, is responsible for the management, control and day-to-day operations at the Steenkampskraal mine.

Mr. Kabaah has extensive and diverse hands-on experience in the mining industry, including ore extraction and mining production operations, mine health and safety, and mining project work. He has worked with Johannesburg Consolidated Investment Group Mines, the DeBeers Group and African Rainbow Minerals' Black Rock Mine Operations. Additionally, he has worked with the South Africa Department of Mineral Resources, the government agency that regulates and enforces health and safety issues in South African mines.

With a post-graduate degree in Mining Engineering earned at the University of Witwatersrand in South Africa, Mr. Kabaah also holds a Mine Overseer’s Certificate of Competency. His professional affiliations include the Engineering Council of South Africa and the South Africa Institute of Mining and Metallurgy.

Rareco Chief Executive Officer David Kennedy said, "The appointment of Kwaw Kabaah as Mine Manager for Steenkampskraal is yet another indication of the ability of our Company to attract highly qualified and very experienced professionals to our team. In working with our Steenkampskraal group, Mr. Kabaah will undoubtedly make a very strong contribution to the success of the Steenkampskraal mine project."

[Yawn]

Finall they are getting to their senses:


The Company would also like to announce the cessation of the option agreement with Great Western Minerals regarding the True Blue Rare Earth Element property. After completing $900,000 of exploration expenditures GWG has notified the Company that they no longer wish to continue with the Option; consequently the project was returned to the Company portfolio in August 2011. During the term of the Option, GWG implemented a three-fold size increase to the property, completed airborne geophysics,and completed an extensive ground geochemical sampling program. True North will review the newly acquired data and assess the need for future exploration on this property.

[Spartacus77]

They will not have a problem soon to raise the cash they need.
In the next couple of months big news should be out.

(1) The Steenkampskraal NI 43-101 is due sometime in November, and it is expected to change the grade and tonnage figures. It is generally expected to improve both depending on cutoff levels etc based on the fact that the current historical records are mostly based on the search for Thorium ore, not REE deposits. RARECO attempted to re-open the mine over ten years ago with the intention of seeking REE’s, and though that did not happen due to China’s monopoly position at that time of cheap supplier of REE’s to the world, I am sure they at that time and more recently during the sale of the company and site to GWMG, informal exploration and analysis was performed, with no attempt to gain NI 43-101 compliance and certification at that time. Now that GWMG has obtained 100% ownership of RARECO, such certification is very desireable and was contracted for as soon as legally possible and practical.

The point of this of course is that GWMG already knows within reasonable parameters what the results will be, believes they will be positive for the company, and will provide acceptable 3rd party expert figures for Mr. Fulp and others such as larger institutional investors to consider


(2) News on the GQD JV - SOON

Clearly, the process has not moved ahead nearly as quickly as they had anticipated. That doesn't mean, however, that they are not making good process. Rather, it is a function of achieving a complex arrangement because it involves more than simply agreeing on the construction of a plant. Inherent in the arrangement is an element of joint operations and so they are continuously trying to assess how this will work, not just a few months out, but several years out. Combine that with the necessity of translating all documentation into both Chinese and English and it does cause the process to move more slowly than they anticipated.But it is getting close.

[Yawn]

GWG has one big disadvantage and it is shortage of cash.

[Spartacus77]

This guy also knows his stuff.
Molycorp has been not mined anything and does not have all the permits in place to mine anything, the exception being the pockets of all the retail investors who have been royally screwed by all the hype and manipulation on the part of the big players in finance and management, IMHO. They, for all intents and purposes, have no heavies. Both Lynas and Moly are presently dead in the water until they work out their permitting issues. The surprise little elephant in the room that everyone here seems to miss? GREAT WESTERN MINERALS. They are permitted for their S.A. mine and will presumably beat Moly and Lynas to market, heavy and lights. AND they are a TRULY vertically integrated company, which is what Moly pretends they will be. IMO, it is Scam City at Mountain Pass… Others that are promising, IMO, are Ucore, Tasman and, yes, Stans. At least that’s the way I see it.

[Spartacus77]

There has been talks on this, the company is NEM Toronto based.
I have stocks in this it is a very well run company and is a strong buy.

[Yawn]

Neither have I.
Weird, ain't it?

[gharma]

I had not heard that MCP and NEO had abandoned their LOI ? even since the Silmet acquistion.
http://neomaterials.com/assets/content/ir/ir_press/a438/a475/Neo_Press_Rel_08June10.pdf

[Yawn]

maybe NEO could partner with GWG:


http://www.theglobeandmail.com/globe-investor/news-sources/?date=20111110&archive=cnw&slug=C4403

[Yawn]

Sorry, here is the link:

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_M/threadview?m=tm&bn=57599&tid=40808&mid=59129&tof=8&frt=2

[Yawn]

This guy knows his stuff. Worth reading on MCP board.



Update:

DOE Loan (MCP dropped out, but per as per above, no longer needed due to convertible notes).

Sumitomo deal: Nope.

Hitachi Magnets Deal: Nope. When Smith announced the cessation of talks on a JV with Hitachi back in August, he said that they were far along in talks with potential magnet partners.

As of Q3 earnings slide p. 34 , you know what now passes for one of the "2011 Operational Milestones", not actually getting a magnets JV agreement, merely "Continue exploration of downstream JV or acquisition opportunities". So they can consider it a success if they merely explore opportunities, not actually get an agreement.

[balihi]

No your not,but your agenda may be of "special interest".

[Yawn]

Oh thank you on behalf of everybody. You uncovered me!
I am a "special interest guy".

I also own AAA and AMY and I post there once in a while (and godness gratious, even negative stuff!!!)

[balihi]

Who owns Great Western,shouldnt that be a concern,too?????No,it shouldnt,just as with any legitimate company.I have followed GW,for over a year now,and am very familiar with its past,and the person who helps promote it...Jack Lufton.

[Yawn]

Agree with you:

http://www.gwmg.ca/html/media/news/index.cfm?ReportID=203417

[Spartacus77]

It is another way of looking at it, but I really don't think it's going to happen.
GWG can negotiate the supply of the Dy and Neo at the time of SKK sale.

Get the money back and the guaranteed supply.



November 10, 2011 - Saskatoon, Canada: Great Western Minerals Group Ltd. ("GWMG" or the "Company") is pleased to announce that the Company and a syndicate of agents co-led by Byron Capital Markets Ltd. ("Byron") and Cormark Securities Inc. ("Cormark") and including GMP Securities LP ("GMP") (collectively, the "Agents") have closed the previously announced private placement ("the Offering").

The Agents sold an aggregate of 27,240,050 common shares (the "Offered Shares") of the Company at a price of $0.63 per share (the "Offering Price") for gross proceeds of $17,161,232. Such amount represents the full $15 million Offering plus $2.16 million under the over-allotment option granted to the Agents.

The Agents were paid a cash commission of $858,062 in connection with the Offering.

The Offered Shares will be subject to a four month hold period under applicable Canadian securities legislation. The Company plans to use the proceeds for the continued development of its Steenkampskraal project in South Africa as well as for general corporate purposes.

GWMG President and Chief Executive Officer Jim Engdahl said, "Successfully closing this financing moves our Company one more step forward in its goal of being a fully integrated rare earth producer. As we have noted, having adequate capital on hand puts GWMG in a much stronger position as we continue to evaluate non-dilutive financing mechanisms such as joint ventures/off-take agreements and debt instruments for our Company’s continued development."