Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I have read the annual report and the upcoming annual meeting of shareholders.
Outside of the usual talking points in annual reports the most significant aspect how the company is addressing the so called " Save Kipawa Lake issue" or the environmental concerns.
I don't think that this project will be stopped. Toyota has spent over $16m and Quebec has granted $4m towards this project. This has been going on for 3 years and if there ever was going to be an impediment towards moving forward, this project would've been shelved.
The overall potential for Canada becoming a major player in the HREE sector is and will probably outweigh the dissent. Now, this doesn't minimize the possible eco damage, but it will just make the project to become very conscious in setting strict environmental guidelines in place.
I do have to say that the company has gone through extensive length in conducting their responsibilities within the social acceptability aspect.
The company has held in 2013 a total of 182 meetings and expect to continue through 2014.
Many of these meetings were held with the Chiefs and council of the communities. At that time, the company's Confidential Agreement was signed and they are now discussing the exploration protocol, with an anticipated signature in 2014.
Matamec has everything in hands to build an appropriate Environmental and Social Impact Assessment. This baseline report includes all the usual parts of the physical environment, the biological environment and the human environment.
It appears from this report, the company has been very out front in providing the various environmental impact studies and as of this writing and as the annual report states, appears the company is well positioned to satisfy all concerns and I believe things will move ahead.
I think we have a solid and open minded company that is out-front in explaining any dissent with respect to the environmental concerns and feel that exciting times is about to happen for this junior mining company that will be the standard in the HREE space for years to come.
The company has an impressive portfolio that can only enhance shareholder value and I consider this company way undervalued, but understand the reason why and is mostly due to these environmental concerns, but once these concerns are met and I believe they will be, we will see a major shift in the share price.
Of course, things can change, but so far the company is meeting it's obligations and that itself deems very important.
Have a good day
Varok
A month and a half has gone by without any news on the newly appointed for corporate development of Mr. Mr. Romary.
The reason why I bring this up now is significant.
Mr. Romary has a impressive résumé.
" Mr. Romary has more than 17 years of experience in investment banking, working with companies like Orion Securities Inc. (now Macquarie Securities Group), Desjardins Securities, Northern Securities Inc. and Versant Partners (now Cantor Fitzgerald). Working as a Director or Managing Director to raise funds and advise for M&A his portfolio of clients, he also took on the role of Head of Investment Banking and Head of Mining Investment Banking for some of these firms. Mr. Romary also has 5 years Commercial Banking experience with National Bank of Canada."
When you read his résumé above, you will note that much of his tenure is within the investment side and raising capital.
An appointment like Mr Romary, has huge implications for expected results and now going for at least a month and a half without a follow-up makes this for a very exciting next news event. What I mean to say is, shortly we should get some notice with respect to a deal of importance that hopefully will enhance the share price to a much more favorable fair value.
Of course this is just my opinion, but going this long without his leadership on expected results on investment matters is about due. I expect June will be a turning point for MHREF and ultimately will give us a wider view on the radar among the investment class.
Have a good day
Varok
Don't be dismayed about the daily non-eventful movement of MHREF.
For those that wait, this issue will have it's day, it just isn't time right yet. This process is slow and time is on our side.
Systematic accumulation is the approach and the summer doldrums is a perfect time for increasing your shares of MHREF.
I have seen this many times in my 40+ years of trading and investing. I come from the side as a former merger and acquisition and consulting. MHREF has the claims and is moving forward in a very methodical and deliberate process. Remember the big picture, the HREE Kipawa deposit is the first of a long held impressive portfolio of claims to go online in the next 12 months.
Canada holds the largest HREE deposits in the world, but China has been in actual production within this venue for the last decade or two and that is about to end, and Canada is finally getting it's impressive vast deposits through dozens of companies and this includes MHREF to become a significant supplier and producer to counter Chinese dominance.
Now, when I say that this issue is a slow mover, I come from the side of the USA Pinksheet exchange and not your (Canadian) exchange, which does have volume, albeit slow and can't seem to get past the .09 mark. Never the less, this in my opinion is about to change as the company begins it's internal effort to increase the exposure and more eyes are focused on the actual true value of it's claims.
The first thing that must be obtained is financing, and this is the most important aspect of a potential thrust in the shareprice. Once this part has been announced we will be on our way as more money managers can asses the real value and pass this information through the labyrinth of investment gurus to form a basis for bringing on new and fresh investors. This will happen!
So for now, let's concentrate on continued accumulation and remember, never invest more than you can afford to lose.
Oh! I am a former resident of Canada and have always fond memories of my years in Almonte and Frankford..
Have a good day.
Varok
RE: Save Lake Kipawa ... I found this:
http://dominion.mediacoop.ca/story/toyota-prius-not-so-green-after-all/20373
Posted by nat marshik on January 21, 2014
Reviewed by editors. copyeditedfact checked editors' pick [?]
Paid for by members. Join them today and support cooperative journalism.
Toyota Prius Not So Green After All
Algonquin fight threats to land and water from open-pit mining project for hybrid car batteries
by CLAIRE STEWART-KANIGAN
Waste cylinders of test rock lie scattered in an abandoned exploration camp beside Lake Kipawa. Photo by Claire Stewart-Kanigan
Waste cylinders of test rock lie scattered in an abandoned exploration camp beside Lake Kipawa. Photo by Claire Stewart-Kanigan
Algonquin organizers pose with The Dominion and Montreal activists in front of an abandoned test site in the proposed centre of the open-pit mine. Photo by Claire Stewart-Kanigan
Algonquin organizers pose with The Dominion and Montreal activists in front of an abandoned test site in the proposed centre of the open-pit mine. Photo by Claire Stewart-Kanigan
A resident holds a rock sample unearthed by exploration for Heavy Rare Earth Elements. Photo by Claire Stewart-Kanigan
A resident holds a rock sample unearthed by exploration for Heavy Rare Earth Elements. Photo by Claire Stewart-Kanigan
MONTREAL—“Eco-consciousness” and “green living” are centrepieces of product branding for the Toyota Prius. But that feel-good packaging has rapidly worn thin for members of the Algonquin Nation and residents of Kipawa, Quebec, who are now fighting to protect traditional Algonquin territory from devastation in the name of hybrid car battery production.
In 2011, after nearly two years of negotiations, Matamec Explorations, a Quebec-based junior mining exploration company, signed a Memorandum of Understanding with Toyotsu Rare Earth Canada (TRECan), a Canadian subsidiary of Japan-based Toyota Tsusho Corporation. The memorandum confirmed Matamec’s intention to become “one of the first heavy rare earths producers outside of China.” In pursuit of this role, the company plans to build an open-pit Heavy Rare Earth Elements (HREE) mine directly next to Kipawa Lake, the geographical, ecological, and cultural centre of Kipawa.
Rare earths are a group of 17 elements found in the earth’s crust. They are used to produce electronics for cell phones, wind turbines, and car batteries. Rare earths are notorious for their environmentally costly extraction process, with over 90 per cent of the mined raw materials classified as waste.
Toyota has guaranteed purchase of 100 per cent of rare earths extracted from the proposed Kipawa mine, for use in their hybrid car batteries, replacing a portion of Toyota’s supply currently sourced out of China.
Over the last seven years, China has reduced the scale of its rare earths exports via a series of annual tonnage export caps and taxes, allegedly out of concern for high cancer rates, contaminated water supply, and significant environmental degradation. Despite China’s stated intention to encourage manufacturers to reduce their rare earths consumption, the US, the EU and Japan have challenged China’s export caps through the World Trade Organization (WTO) and are seeking new deposits elsewhere for exploitation. Toyota and Matamec are seeking to make Kipawa part of this shift.
Kipawa is a municipality located on traditional Algonquin territory approximately 80 kilometres northeast of North Bay, Ontario, in what is now known as western Quebec. The primarily Indigenous municipality is home to approximately 500 people, including members of Eagle Village First Nation and Wolf Lake First Nation, of the Anishinaabeg Algonquin Nation. The town of Kipawa lies within the large Ottawa River Watershed, a wide-branching network of lakes, rivers and wetlands. Lake Kipawa is at the heart of the Kipawa region.
Lifelong Kipawa resident and Eagle Village First Nation member Jamie Lee McKenzie told The Dominion that the lake is of “huge” importance to the people of Kipawa. “We drink it, for one....Everyone has camps on the lake [and] we use it on basically a daily basis.” This water network nourishes the richly forested surroundings that make up the traditional hunting and trapping grounds of the local Algonquin peoples.
“Where the proposed mine site is, it’s my husband’s [ancestral] trapping grounds,” said Eagle Village organizer Mary McKenzie, in a phone interview with The Dominion. “This is where we hunt, we fish, I pick berries....We just want to keep our water.” Jamie Lee and Mary McKenzie also emphasized the role of lake-based tourism in Kipawa’s economy.
The Kipawa HREE project would blast out an open-pit mine 1.5 kilometres wide and 110 meters deep, from the summit of a large lakeside hill. It would also establish a nearby waste dump with a 13.3 megatonne capacity. Rock containing the heavy rare earth elements dysprosium and terbium would be extracted from the pit via drilling and explosives, processed at an on-site grinding and magnetic separation plant, and then transported by truck to a hydrometallurgical facility 50 kilometers away for refining.
Matamec confirmed in its Preliminary Economic Assessment Study that some effluence caused by evaporation and precipitation is inevitable, especially during the snowmelt period. A community-led presentation argued that this could create acid mine drainage, acidifying the lake and poisoning the fish.
“There’s going to be five [truckloads of sulfuric acid transported from pit to refinery] a day....[I]n a 15-year span, that’s 27,300 truckloads of sulfuric acid,” said Mary McKenzie. “We’re worried about spills and the environment....They’re talking about neutralizing [the acid], when a spill does occur, with lime. I have [sources that say] lime is also a danger to the environment.”
In a 2013 presentation in Kipawa, Matamec stated that while “some radioactivity [due to the presence of uranium and thorium in waste rock] will be present in the rare earth processing chain,” its effects will be negligible. Yet these reassurances ring hollow for some, who point to cancer spikes observed in communities near rare earths projects in China. In the project’s economic assessment, Matamec itself indicated that waste rock is too dangerous for use in concrete and dikes.
“Whatever goes up in the air [from blasting and evaporation] comes down....A lot of those particles are radioactive,” said Mary McKenzie. “Our animals eat this [plant matter potentially affected by the mine]....We depend on our moose, we depend on our fish, so that’s a scary situation.” The refining process also uses strong acids and bases.
While Matamec stated in the Assessment that “most” of the water used in processing will be recycled, a portion of the post-processing solution will be directed into the lake or tailings ponds. The mine is intended to be operational for 13 years, but tailings ponds would require maintenance for generations, and leaching is always possible. Adding to this risk, Matamec has “assumed that [certain] tailings will not be acid generating or leachable” and will therefore only use watertight geomembrane for a portion of the tailings ponds.
With the approval process being accelerated by both public and private factors, production could begin as early as 2015. Quebec’s regulations call for provincial environmental impact assessments only when projects have a daily metal ore production capacity that is considerably higher than the national standard—7,000 metric tons per day versus 3,000 in the Canadian Environmental Assessment Act. What’s more, by categorizing HREE in the same regulatory group as other metals, these tonnage minimums fail to reflect the higher toxicity and environmental costs of heavy rare earths extraction.
Because of this, the Kipawa project does not trigger a provincial-level assessment. It only requires clearance from the Canadian Environmental Assessment Agency and a certificate of authorization granted by the provincial Minister of Sustainable Development, Environment and Parks.
On the private side, the assessment process has been fast-tracked by a series of multimillion-dollar payments from TRECan to Matamec ($16M as of April 2013). According to Matamec president André Gauthier in a July 2012 press release, this makes Matamec “the only rare earth exploration company to have received funds to accelerate and complete a feasibility study and an environmental and social impact assessment study of a HREE deposit.”
The chiefs of Eagle Village and Wolf Lake First Nations have been demanding a consent-based consultation and review process since the project was quietly made public in 2011—one that exceeds “stakeholder” consultation standards and acknowledges the traditional relationship of the Algonquin people to the land. Residents only became widely aware of Matamec’s plans following the company’s community consultation session in April 2013.
Jamie Lee McKenzie has not been impressed by Matamec’s consultations. “They come in and they have a meeting...and they tell us all the good things about the mine,” McKenzie told The Dominion. “[They say,] ‘It will give you jobs. We need this to make batteries for green living,’ but that’s it.”
Local organizers told The Dominion that a Matamec-chaired community focus group had been cancelled during the early summer after one local participant asked that her critical questions be included in the group’s minutes. Following what many residents see as the failure of Matamec and provincial assessment agencies to meaningfully engage with Kipawa residents, the community has taken matters into their own hands.
In the summer of 2013, Kipawa residents began to organize, with the leadership of Eagle Village and Wolf Lake members. Petitions containing over 2,500 signatures were sent to provincial ministers, demanding a provincial environmental assessment as well as “public hearings to review the Mining Act...to strengthen rare earth environmental monitoring.” As of late November, there had been no official responses to the petitions, and no positive response to letter-writing campaigns directed at the office of the federal Minister of Environment. (Quebec adopted a new Mining Act in early December, as this article went to print.)
But demands have grown beyond calls for review. “We’re not okay with the BAPE [provincial assessment]; we’re not okay with the mine,” said Mary McKenzie. “We’re against the [project] 100 per cent.” In September, McKenzie helped organize a 100-person anti-mine protest on the shores of Kipawa Lake. In November, the resistance network formalized their association as the Lake Kipawa Protection Society, committed to stopping the mine through regional education, local solidarity, and creative resistance strategies like a “Tarnish Toyota” day of action.
The Kipawa HREE project, if approved, would open doors for the numerous other companies exploring the watershed—such as Globex, Fieldex, Aurizon, and Hinterland Metals—as well as for heavy rare earths mining in the rest of Canada.
“We have mining companies all over in our area here,” said Mary McKenzie. “Matamec is the most advanced, but it’s not just Matamec: we want all the mining out of our region.”
The mine is not the only project on the fast-track: Algonquin and local resistance efforts are picking up momentum, and backing down on protecting the water and land is not on the agenda.
“This is ancestral ground,” McKenzie stressed. “We can fight this.”
Claire Stewart-Kanigan is a student, Settler, and visitor on Haudenosaunee territory.
Anybody know the current status of the Save Kipawa Lake movement? Is this contributing to the current low PPS?
Bloomberg Article: China’s Rare Earth Toxic Time Bomb to Spur Mining Boom
http://www.bloomberg.com/news/2014-06-03/china-s-rare-earth-toxic-time-bomb-to-spur-12-billion-of-mines.html
http://www.stockwatch.com/News/Item.aspx?bid=Z-C:CJC-2180945&symbol=CJC®ion=C
Canada Strategic, Matamec drill 26 m of 2.3 g/t Au
2014-05-28 09:16 ET - News Release
Also News Release (C-MAT) Matamec Explorations Inc
Mr. Jean-Sebastien Lavallee of Canada Strategic Metals reports
CANADA STRATEGIC METALS REPORTS NEW WIDE GOLD-BEARING INTERSECTIONS, WITH RESULTS OF UP TO 2.30 G/T AU OVER 26.35 METRES, INCLUDING 5.18 G/T AU OVER 4.80 METRES...
Canada Strategic Metals Inc. and Matamec Explorations Inc. are releasing the first results from the recent drilling program on the Sakami gold project. These new results confirm the extension to the west, northwest and at depth of the zone 25 envelope of gold mineralization. The program consisted of 11 holes for a total of 2,913 metres of drilling.
The program is aimed at increasing the size of the main gold zone (zone 25) to the west-northwest, as well as its extension at depth. Zone 25 is in the La Pointe sector of the Sakami property. Once this program is complete, zone 25 will have been tested over a strike length of more than 200 metres and to a depth of over 425 metres along its plunge. The holes are spaced at 50 metres. A surface map showing drill hole locations and sections can be found on the company's website.
To date, the company has received the assay results for the three first holes, PT-13-73 to PT-13-75, drilled during the December program. These holes were planned to test the extension of the mineralized zone to the west and northwest, as well as down dip. All three holes returned wide gold-bearing intersections, including 1.46 grams per tonne gold over 21.85 metres from hole PT-13-73; 2.16 grams per tonne gold over 12.00 metres, 2.30 grams per tonne gold over 26.35 metres, 3.80 grams per tonne gold over 8.80 metres and 5.18 grams per tonne gold over 4.80 metres from hole PT-13-74; and 2.40 grams per tonne gold over 7.15 metres from hole PT-13-75. All mineralized intersections and gold assay results from the recent program received to date are shown.
"We are very pleased to once again report positive results from recent drilling on the Sakami project during the latest exploration program," said Jean-Sebastien Lavallee, president and chief executive officer of Canada Strategic Metals. "We are looking forward to receiving the results for the eight other holes drilled during the program."
The company will release the results for the remaining holes as soon as they have been received and compiled.
To Length (i) Au
Hole No. From (m) (m) (m) (g/t)
PT-14-73 150.65 172.50 21.85 1.46
PT-14-73 including 160.50 172.50 12.00 2.16
PT-14-74 237.65 264.00 26.35 2.30
PT-14-74 including 243.70 252.50 8.80 3.80
PT-14-74 including 247.70 252.50 4.80 5.18
PT-14-75 274.05 281.20 7.15 2.40
(i) Core length; the company estimates the true width of the
mineralized zone at 80 per cent to 95 per cent of the core length.
The 2014 drilling program was managed by Consul-Teck Exploration of Val d'Or, Que., which designed the drilling campaign, supervised the program and logged and sampled the core.
Consul-Teck Exploration implemented quality assurance/quality control procedures to ensure best practices in core sampling and analysis. The drill core was logged and then split, with one-half sent for assay and the other retained in the core box as a witness sample. Duplicates, standards and blanks were inserted regularly into the sample stream.
The samples in secure tagged bags were delivered directly to the analytical facility for analysis. In this case, the analytical facility was the Bourlamaque Ltee. laboratory in Val d'Or, Que. The samples are weighed and identified prior to sample preparation. All samples are analyzed by fire assay with AA finish on a 30-gram sample (0.01 part per million to 10 parts per million Au), with a gravimetric finish for assays over 10 parts per million Au.
Jean-Sebastien Lavallee (OGQ No. 773), geologist, shareholder, and president and chief executive officer of the company, a qualified person under National Instrument 43-101, has reviewed and approved the technical content of this release.
Latest Presentation-
http://www.matamec.com/vns-site/uploads/documents/matamec-28032014.pdf
seems to be major upside from here-
futr
Thanks for the update. I've always liked this one... hoping miners start getting some attention again soon.
I can address your question.
First of all about the FS. This is simply for the company to try to enhance it's liquidity, but one problem and it really isn't such a problem, but more so with the stage the company is in. See, the company is still in exploratory stage and actually worth is still on paper and not in proven reserves. Mining companies are difficult until they actually start their operations. The drop in share price only reflects the math verses MC with respect to the additional number of OS shares.
The current MC is based on their claims on file without regard to proven reserves that now in mid 2014 has been well documented. With that said, the notice for this company in the investment community has been nil to say the least and much of this is the exploratory stage and the length of time to move into operational and when the true numbers become known, the share price will move accordingly.
It always takes a great deal of time to assay the claims and move into the financial feasibility stage and cost structure. This is now on the table with respect to the Kipawa project and is expected to go online in 2016. The capital that it takes to move it forward is still to be worked out, but according to the feasibility study, the financial amount is in the neighborhood of $250$m.
With the recent hire for the Business Development Director who has extensive work history with the financial and investment community should change the lack of eyes on this company and bring as well, new investors that will ultimately raise the share prices as well as bringing on new volume.
What you want to look for in the interim is the number of Market Makers. Currently, and for sometime now, there are only 4 Market Makers on this issue. The volume of course has been nonexistent and that too is an indicator as it increases.
The positive so far for this company is that management is not diluting and the financial capital structure will determine any increase in share structure and we can only hope the much needed capital isn't tied to an equity financial package, but a bridge loan tied to performance.
I expect this all to change very shortly with the new BDC in charge of investment development, but now, I am perfectly satisfied that this company isn't on the radar yet and that bodes well for continued accumulation at these prices.
Have a good day
varok
Good Afternoon,
I can understand the sentiment on MHREF and lack of trading, but these issues are not the problem, but rather a godsend to allow one to acquire thousand of shares at these low prices.
See, with mining companies, it isn't just about the claims and MHREF has a slew of them, with most still on paper that need to be a analyzed, but the much needed capital to bring these claims into full production.
Now, this was then and now we have their Kipawa claim that has proven reserves and just recently announced that the Quebec government has granted through a grant for $4 million. This grant is the start for infrastructure and a bridge that is needed to bring this mining site into full production. All this was the burden of time that moves mining companies at such a slow pace and in effect results in very low volume or lack there of and for that, I'm pleased to say that my accumulation has been very successful.
The full production of the Kipawa mine isn't expected to be until 2016, but the end for these prices will become history very soon. This issue is not like any other pinksheet company. This company has been methodically moving forward on it's results from two more drill holes from the recent drilling campaign on the Sakami gold project with their partner Canada Strategic Metals. This mine has the goods and albeit only a 50% partnership and will probably be reduced to 25% is still a nice bonus for the portfolio, but is being compensated in millions for the collaboration.
The Kipawa project is in partnership with Toyota Tusho and will result in great revenue. The assessment on this project when fully operation is below.
KIPAWA HREE PROJECT – FS FINANCIAL MODEL HIGHLIGHTS
Net Present Value (NPV10%) (Pre-Tax) $260 million
Internal Rate of Return (IRR) (Pre-Tax) 21.6%
Revenue $2.55 billion
EBITDA $1.37 billion
CAPEX (initial) $374 million
OPEX (annual) $78.5 million
Payback Period (Pre-Tax) 3.9 years
Life of Mine (LOM) 15.2 years
Concentrate Production (annual avg.) 3,653 tonnes
So if we are to assess this one project only, one can see a MC of at least 50$million that is a far cry from where we are today at .08 with a MC of 10$m.But today's price is reflective of a company that is still in exploratory stage and this will change very soon.
As I have mentioned above, this company is not run a like a pinksheet, but quite the contrary and I believe in a very short time we will reflect the true share price reflective of a MC of around 50$m.
As the above revenue for the Kipawa mine to be 2.55$b for the life of the mine of 15.2 years, certainly a yearly revenue of $50m would give us a trading range of .50 to .75 per share and that is on the conservative side. Let's not forget the paper claims it has in it's arsenal.
Also, the company announced a Business Development Director on April 17th. This is not by chance, but by the timing of the conclusion on the Kipawa project that will shortly become a full operating mine, but will over this summer (2014) build it's infrastructure. It will be at this point that the share price will become known and the price under .10 will be nolonger available as more and more eyes will be upon this issue.
MHREF has been quietly getting it's house in order and if you follow it's timeline, you will see bigger things are about to finally fall in place, as well as increased volume and share price.
I recommend this strong buy.
Have a good day
Varok
Matamec Exploration Inc.
The AuReport
Expert Comments:
Luisa Moreno, Euro Pacific Capital (9/5/13) "Matamec Explorations Inc. has potentially the first heavy rare earth (HREE) mine in Canada; the company announced the results of its feasibility study for the Kipawa, a joint-venture project with Toyota Tusho Corp. . .despite the lower net present value and internal rate of return in the feasibility study compared to the preliminary economic assessment, we are comfortable raising our target, as we believe the economic study is now more accurate and the project has been further derisked. We believe that Matamec's Kipawa project is the most advanced HREE project outside of China."
The Metals Report Interview with Anthony Mariano and Tony Mariano Jr. (8/27/13) Anthony Mariano: HREEs and yittrium can be obtained from other REE deposits in North America, such as Kipawa, Quebec. . . Matamec Explorations Inc. has conducted a considerable amount of exploration work at Kipawa. . .the best source for a sustained quantity of HREEs is Matamec Exploration Inc.'s HREE mineral-bearing deposit in Kipawa, Quebec. I can speak for the REE industry when I say that we are anxiously awaiting the results of the Kipawa feasibility study in September.
Tony Mariano Jr.: Geologically, the Kipawa deposit is very impressive. The textural properties of the Kipawa rocks and the abundance of several HREE minerals make Kipawa uniquely attractive. More >
The Metals Report Interview with Patrick Wong (8/13/13) "On the HREE side, Matamec Explorations Inc. [has low capex]. . .it's one of the more advanced projects. We're looking forward to reading the feasibility study." More >
The Metals Report Interview with Byron King (12/18/12) "Matamec Explorations Inc. is working with the Japanese and has support from Toyota. Overall, the demand is out there from the electronics, automobile and heavy industrial-type sectors. With the HREE players, there's much less risk of the kind of price crash issues we fear with the light rare earths lanthanum and cerium. . .the idea that a big company like Toyota is interested in Matamec is a selling point." More >
http://www.theaureport.com/pub/co/1431
Electric Transportation Could Jump-Start Rare Earth Markets: Patrick Wong
Source: JT Long of The Metals Report
8/13/13
Section from the article:
TMR: What are your projections for REE prices?
"REE prices are bottoming out, and customer inventories are running low."
PW: Prices are bottoming out. We keep track of customer inventories, and they are running low. The demand for magnet-based REEs remains strong and is growing, but dysprosium and the terbium, europium and yttrium for phosphors might stay flat until we see a larger adoption of energy-efficient lighting. A lot depends on whether or not the United States weans itself off incandescent lighting.
TMR: Funding is a challenge for all juniors in this market. How are rare earth companies, which sell on a less transparent market, finding the money to move their projects forward?
PW: Traditional bank financing won't be there because there is no way for banks to hedge out financial risk. The banks will lend off these forward contracts, but a substantial amount will need to come from traditional equity financing.
TMR: Gareth Hatch, who works with you, said in an interview last November that the vast majority of companies in the space would not go into production soon. How many are still out there, and how many can be successful?
PW: Just a handful will make it in the short term. In the long term, if the demand is there, prices will go to a point where marginal supply will meet marginal demand, and those projects will become economic. Anything could still pull a rabbit out of the hat, but investors shouldn't depend on being lucky.
TMR: When you say a handful, how many are we talking about?
PW: Five or six.
TMR: Are there still opportunities for juniors in the light rare earth elements (LREEs), or do Molycorp Inc. (MCP:NYSE) and Lynas Corp. (LYC:ASX) have that market cornered?
PW: Just because a few large companies dominate by volume doesn't mean a smaller player can't compete. There are always opportunities. In the end, it will come down to cost and capital expenditures (capex). With the high cost of capital these days, companies with a low capex have an advantage over large projects and can afford to sell cheaper. More volume will encourage more transparency. Eventually, an efficient market will form and the company with the lowest cost base will set the stage, regardless of its size.
TMR: What are some examples of companies with low capex that could be successful?
PW: On the heavy rare earth element (HREE) side, Matamec Explorations Inc. (MAT:TSX.V; MRHEF:OTCQX) and Tasman Metals Ltd. (TSM:TSX.V; TAS:NYSE.MKT; TASXF:OTCPK; T61:FSE). A bit further down the road is Namibia Rare Earths Inc. (NRE:TSX, NMREF:OTCQX). Having access to a refinery is key, especially for HREE projects.
TMR: Matamec has an agreement with Toyota Tsusho Corp. (TYHOF:OTC; 8015:JP) and a feasibility study coming out. Do those give it an edge?
PW: It's one of the more advanced projects. We're looking forward to reading the feasibility study. What makes me a little bit nervous is that, as far as I know, a third party will be pricing out the concentrate prices that Matamec will receive. Toyota doesn't have an HREE separation plant, so I don't know where it is going to ship this material.
TMR: Does being the first to market give Matamec an advantage?
PW: The whole first-to-market issue has been overglorified. It's nice to be first, but ultimately, the end users will buy from anybody with the lowest price as long as their specs and quality control are consistent. So whether you're first, second or third, there is still a large end-user market that needs the product. When you're first, you might get access to better pricing. That is a bit of an advantage.
Continued below;
http://www.theaureport.com/pub/na/electric-transportation-could-jump-start-rare-earth-markets-patrick-wong
I came across to the interview of the CEO which led me here.
It's sad. the stock plummeted to 3 year low right after FS news last week.
There gotta be more than bubble to explain 50% drop after the news. Speculations any one?
Feasibility study by end of July, should be a huge catalyst!
Toyotsu Pays $1.04 Million to Matamec for Continued Execution of Kipawa Feasibility Study
Goal of Kipawa mine project is to supply heavy rare earths for the production and marketing of hybrid and electric vehicles
MONTREAL, QUEBEC--(Marketwire - Feb. 19, 2013) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(MHREF) is pleased to announce that the Company has received $1.04 million CDN from its Japanese partner Toyotsu Rare Earth Canada Inc. ("Toyota" or "TRECan"), a subsidiary of Toyota Tsusho Corp. ("TTC"). The goal of the Kipawa mine project is to supply Toyota with heavy rare earths ("HREE") for the production and marketing of hybrid and electric vehicles.
To date Matamec has received $13,195,629 CDN of the maximum $16M CDN for the completion of a definitive feasibility study on the Kipawa HREE deposit, which is expected in the second quarter of 2013. The Company will be issuing an update on the feasibility study by the latest for the upcoming PDAC conference which takes place March 3-6, 2013 in Toronto, Canada.
"I am very pleased by the advancement of our efforts being made by the Matamec team on the Kipawa feasibility study," said Andre Gauthier, President and CEO of Matamec Explorations. "The continued financial commitment by Toyotsu positions Matamec strategically to be one of the first companies to supply heavy rare earths for hybrid and electric vehicles in North America."
Under the terms of the Joint Venture Agreement ("JVA") by which TRECan can acquire 49% undivided interest in the Kipawa HREE Deposit, Matamec received $8.5M CDN for the first 25% undivided interest on July 18, 2012. To acquire the second 24% undivided interest, TRECan has to pay to Matamec a maximum amount of $7.5M CDN. The $1.04M CDN is the fourth of a number of successive payments in the completion of the $7.5M CDN, but the fifth overall payment received from TRECan. Matamec will transfer the 24% undivided interest to TRECan when it will receive a cumulative maximum amount of $7.5M CDN.
About Toyotsu and TRECan
Established for more than 60 years and subsidiary of Toyota Motor Group, TTC is a general trading company that develops business together with over 400 consolidated group companies in Japan and overseas, with customers around the world, via a global network covering Japan and more than 60 other countries worldwide. TRECan is a subsidiary of TTC especially created for the Kipawa HREE deposit JVA. TTC has four rare earth projects globally including in India, Vietnam, Indonesia (HREE) and Canada (HREE Kipawa JV). For further information, please view the TTC 2012 Annual Report online.
About Matamec
Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit with TRECan. Following the positive conclusion of the PEA study filed on SEDAR in March 2012 and the hiring of a VP 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.
Contact:
Andre Gauthier, President
(514) 844-5252
info@matamec.com
Edward Miller, Director IR
(514) 844-5252 ext. 205
edward.miller@matamec.com
www.matamec.com
http://finance.yahoo.com/news/toyotsu-pays-1-04-million-123000111.html
Wonder if Ford's Lithium Hybrid Technology which uses far less Rare Earths/vehicle is impacting the market?
http://www.energyandcapital.com/articles/ford-nyse-f-reducing-rare-earths-in-evs/2577
futr
Toyota Tsusho Corporation
http://www.toyota-tsusho.com/english/csr/business/case01.html
Working on Rare Earths Business
Matamec on Rare Earth End User Agreements with Japan
http://www.raremetalblog.com/2012/03/matamec-on-rare-earth-end-user-agreements-with-japan.html
March 26, 2012
March 26, 2012 -- Tracy Weslosky, CEO for Pro-Edge Consultants Inc. interviews Caroline Wilson, Director of Investor Relations for Matamec Explorations Inc.(TSXV: MAT) about their heavy rare earth deposit in western Quebec. Ms. Wilson highlights Matamec's relationship and memorandum of understanding with Japanese end-users of rare earths such as Toyota Tsusho Corp. the trading company of the Toyota Motor Group. Through this agreement Matamec will have all the financing in place to build its mine in order to secure a heavy rare earth supply for the production and marketing of Toyota's hybrid and electric vehicles. Matamec is an enviable position within the competitive rare earth industry. For more information, go to www.RareMetalBlog.com.
(interview)
Matamec and Toyotsu Rare Earth Canada signed two agreements in connection with the Kipawa HREE Deposit
http://finance.yahoo.com/news/matamec-toyotsu-rare-earth-canada-134413647.html
Press Release: Matamec Explorations inc. – Thu, Jul 12, 2012 9:44 AM EDT
MONTREAL, QUEBEC--(Marketwire -07/12/12)- Matamec Explorations Inc. (MAT.V)(MHREF)("Matamec" or the "Corporation") is pleased to announce that Toyotsu Rare Earth Canada, Inc. ("TRECan") and the Corporation signed a sale and purchase agreement ("SPA") and a joint venture agreement ("JVA") in connection with the Kipawa HREE Deposit. Through this transaction, the two corporations intend to continue their fruitful collaboration and complete a feasibility study on the Kipawa HREE Deposit, the results of which are expected in the second quarter of 2013.
Under the SPA, TRECan acquired from Matamec an undivided interest of 49% in the Kipawa HREE Deposit for a total consideration not exceeding $16,000,816 CAD which will be used to fund the expenses related to the feasibility study and which will be payable as follows:
-- An amount of $8,500,000 CAD paid at closing; and
-- An amount not exceeding $7,500,816 CAD (the "Second Sale Purchase
Price") to be paid by TRECan upon receipt of cash calls in accordance
with the joint venture agreement (after the initial $8,500,000 CAD has
been spent).
An initial undivided interest of 25% in the Kipawa HREE Deposit has been transferred by Matamec to TRECan on the date hereof and the remaining undivided interest of 24%, currently held in trust by Matamec, will be transferred by the latter to TRECan upon the earlier of (i) the delivery of the feasibility report, or (ii) the full contribution of the Second Sale Purchase Price.
The JVA and the underlying joint venture between the parties will become effective concurrently with the transfer to TRECan and the payment to Matamec of the first 25% undivided interest in the Kipawa HREE Deposit.
The JVA will be governing the joint venture created between the parties to explore the Kipawa HREE Deposit and to prepare the feasibility study. The feasibility study will be prepared in conformity with norm NI 43-101.
Under the terms of the joint venture agreement, a management committee is created and is composed of a representative of both parties. The decisions will be taken by simple majority and the party who holds an interest of more than 50% has a casting vote. Any decision to add new expenditures to the program and the initial budgets of $16,000,816, amongst others, has to be taken unanimously. Matamec will be acting as operator of the joint venture so long as it holds more than 50% of the interest.
Upon the execution of the JVA, the parties agree to begin the search for financing opportunities, and determine a method to calculate the fair market price of the product which will be bought by TRECan and other by-products contained in the Kipawa HREE Deposit on a best efforts basis before the end of 2012.
In the event of a change in the control of a party or its affiliate without the consent of the other participant, the party having a change of control is reputed having offered to sell its interest in the Kipawa HREE Deposit to the other participant in conformity with the method of the fair market value determined in the agreement; the other participant will have sixty days to accept the offer. This mechanism foresees that the fair market value will be determined by three qualified and independent evaluators. Matamec and TRECan will choose one independent evaluator each and the third independent evaluator will be chosen by the two parties, or should they fail to agree, he will be chosen by one of the major Japanese or Canadian firm of auditors who will have been agreed to by the parties.
Change of control is defined in the JVA as the date when one of the participating corporations would be controlled by one person or a different group of persons other than another participant or, when the board of directors of the corporation has determined that there has been a change of control. As to the control of a corporation, it is defined as a person or group of persons holding more than 50% of the voting rights at an annual meeting of the shareholders and/or have the power to control directly or indirectly the board of directors or to be able to vote more than 50% of the voting rights at an annual meeting of the shareholders.
If the Kipawa HREE Deposit is put into production, a mixed rare earths concentrate will be produced. The parties will negotiate an off-take agreement and TRECan will buy this mixed concentrate for a fair market price. Moreover, the parties agree that they will negotiate another agreement for TRECan to market other by-products contained in the Kipawa HREE Deposit at the fair market price.
With respect to the Zeus rare earths property, the parties have agreed to use their best efforts to negotiate in good faith the participation of TRECan in the exploration of various discoveries made outside the Kipawa Deposit.
The SPA and the JVA shall be filed on SEDAR in accordance with the securities regulations. The agreements have obtained the conditional approval of the TSX-Venture Exchange on July 4, 2012.
Andre Gauthier, President of Matamec, says that "the present agreement marks a major milestone for Matamec. It allows an independent feasibility study to be completed leading to a production decision by Q2 2013. TRECan is a reputable partner giving Matamec both the financial and technical support to allow it to catapult to the forefront in the race to production of HREEs outside of China."
As a condition precedent to the execution of SPA and JVA and subject to their execution, Matamec has purchased from Ressources Minerales Mistassini Inc. ("Mistassini") two NSR royalties totaling 1.25% encumbering the Kipawa HREE Deposit for a sum of $310,000. Three of directors of Matamec are also directors of Mistassini.
About Matamec
Matamec Explorations Inc is a junior mining exploration company whose main focus is in developing the Kipawa Deposit and 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.
SmallCapPower.com: And your third pick?
Jon Hykawy: The third name we like is Matamec Explorations Inc. (TSX.V:MAT). It has been criticized lately for the deal that it did with Toyota Tsusho. But it is a very interesting name to us because of the very simple metallurgy that’s associated with their deposits. The deposits that comprise Matamec’s Kipawa project are relatively low-grade but have a high percentage of heavy rare earths. Once Matamec is in production, it will produce a larger volume of heavy rare earths than either Great Western Minerals Group or Molycorp. But Matamec likely won’t be in full production of finished concentrates until sometime in 2015.
But this pick is really about the metallurgy, which is very straightforward. All Matamec is doing is using a magnetic separation technique to upgrade their milled ore. They then take the rare earth concentrate and put it in sulphuric acid at room temperature for a couple of hours. The acid consumption is very low, and there’s no heat involved. That means the cost of their hydrometallurgy is very low. And so Matamec should eventually reap the advantages of selling valuable heavy rare earths with very low processing costs.
SmallCapPower.com: Do you believe that Matamec President Andre Gauthier secured enough in return for what he gave up to Toyota Tsusho?
Jon Hykawy: I’ve had discussions with him about that. I think it’s fair to say we believe that they could have received more. On the other hand, the argument that we’ve been given and one that we have to agree with is that the rare earths space includes about 400 names that are all trying to come to market and the rare earths industry can’t support 400 new projects. To reach production, a rare earths mine has to have four things: a tractable deposit; an economic deposit; a customer for its end-product, and the financing to build it. Without all of those, you don’t have a mine. What Matamec gained in signing its agreement with Toyota Tsusho – and doing the best deal that they believed they could do at the time – is access to financing and access to the customer. And that means that Kipawa is fully on track to become a mine. Not too many other companies in this space can say that. And you can’t quibble with the fact that you’ve still got a good investment return for shareholders. Our target on the company is $0.95 and carry a “buy” recommendation on it because, frankly, that’s what their portion of this project is worth.
http://www.smallcappower.com/articles/interview-with-jon-hykawy-20012012.html
Scoreboard for the week: -4.94%
Jon Hykawy: New Rare Earth Metal Deposits in 2012
Brian Sylvester
Published 1/4/2012
http://www.resourceinvestor.com/News/2012/1/Pages/Jon-Hykawy-New-Rare-Earth-Metal-Deposits-in-2012-.aspx
China's tight grip on rare earth elements supply may loosen as other deposits around the world come to fruition in 2012. In this interview with The Critical Metals Report, Jon Hykawy, head of global research with investment bank Byron Capital Markets, discusses the supply and demand fundamentals that are driving his predictions for the New Year.
The Critical Metals Report: Many analysts, including you, expected a shortage of heavy rare earths (HREEs), especially dysprosium, in the medium term. You no longer believe that's true. What changed your outlook?
Jon Hykawy: Dysprosium is used to increase the temperature range in which rare earth magnets can remain active. In high-power applications, dysprosium is used to make a motor that will be useful across a much broader range of climatic conditions and power outputs. Demand is going to be reduced to some extent by new engineering developments in the automotive and wind industries.
On the flipside, we were surprised by the announcements from Matamec Explorations Inc. (MAT:TSX.V; MRHEF:OTCQX) regarding the simplicity of the metallurgy and the low-cost nature of its deposit.
(click the link above for the complete article...)
Toyota Tsusho Corp. and Matamec Explorations Inc. Sign a MoU Concerning the Kipawa Heavy Rare Earths Deposit
http://www.marketwatch.com/story/toyota-tsusho-corp-and-matamec-explorations-inc-sign-a-mou-concerning-the-kipawa-heavy-rare-earths-deposit-2011-12-12-82340
MONTREAL, QUEBEC, Dec 12, 2011 (MARKETWIRE via COMTEX) -- Matamec Explorations Inc. ("Matamec" or the "Company") (tsx venture:MAT) is pleased to announce that it has signed a non-binding Memorandum of Understanding ("MoU") with Toyota Tsusho Corp. ("TTC"), the trading company of the Toyota Motor Group. TTC is interested in the Kipawa Heavy Rare Earths Deposit in order to secure a Heavy REE supply for the production and marketing of hybrid and electric vehicles.
The main intent of the MoU is to accelerate the production from the Kipawa Heavy Rare Earths Deposit. To achieve this goal, TTC and Matamec intend, based on the conditions provided herein, to fast track the development of the Kipawa Deposit in mutual collaboration. Technical assistance may be provided in association with TTC's chain of suppliers.
The final consideration of the MoU is to establish a joint venture ("JV"), only for the Kipawa Deposit, between TTC and Matamec (ttc:49%-Mat), and to finalize an independent and definitive feasibility study ("FS") and, upon satisfactory results, TTC shall arrange the financing through to production of the Deposit of a mixed rare earths oxide concentrate at a proportion of the fair market price of the individual elements. For the costs of the FS, TTC shall contribute an amount based on up to 49% of MAT's average market capitalization during the 90 day period ending November 30, 2011.
(click the link above for the rest of the story... )
Yep... I chased it. I hope there is still more upside
+22.58%... the market embraced the news:
Nice news and move...
So far, so good...
Yes, but a very nice October recovery...
Basically no gains this year so far.
Not much direction lately...
Better, MUCH better!!!
Link to Sedar Profile & Filings:
http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00010148
Down greater than -8% today...
4/13 News: Matamec Intersects 1.04% ZrO2 Over 73.3 Metres on its Kipawa HREO-Y-Zr Deposit
http://www.matamec.com/2011/04/matamec-intersects-1-04-zro2-over-73-3-metres-on-its-kipawa-hreo-y-zr-deposit/
Jack Lifton on Matamec... his comments seen here:
http://watch.bnn.ca/tuesday#clip448938
Matamec Announces a 42% Increase in TREO Indicated Resources at its Zeus Property
Matamec Explorations inc. On Thursday January 20, 2011, 1:42 pm
MONTREAL, QUEBEC--(Marketwire - Jan. 20, 2011) - Matamec Explorations Inc. ("Matamec" or the "Company")(TSX VENTURE:MAT - News) announces that it has received an updated NI 43-101 resource calculation from SGS Canada Inc. - Geostat geological group ("SGS Geostat") for the Kipawa deposit located on its Zeus property. For reference, the original resource estimate, dated May 20th 2010, has been made available on SEDAR since Septembre 17th 2010.
Press Release Highlights
-- SGS Geostat considers that the deposit is located between surface and a depth of 90m and is continuous over a distance of 1.45 kilometers, a width of 200 metres and a thickness of 50 meters; Matamec believes that the location of the deposit, outcropping at the top of a small hill, will allow a reduced environmental footprint as well as lower operating costs; -- In this latest estimate, the resource has been considered under two scenarios: 1) a resource with a 0.50% ZrO2 cut-off, or 2) a resource with a 0.016% Dy2O3 cut-off. Under Scenario 1, indicated resources are estimated at 67,200 t of TREO while inferred resources are estimated at 53,300 t TREO. This represents a 42% increase in indicated resources compared to the May 20th 2010 estimate; -- Still under Scenario 1, indicated resources of Dy2O3 are estimated at 2,400,000 kg, Tb2O3 resources at 400,000 kg and Y2O3 resources at 14,700,000 kg, while inferred Dy2O3 resource are estimated at 1,900,000 kg, Tb2O3 resources at 300 000 kg and Y2O3 resources at 12,100,000 kg; -- A definition drilling campaign is presently underway. This campaign main objective is the improvement of resource quality, converting the majority of inferred resources into indicated (see our December 2nd 2010 press release); -- Matamec recently announced a 89.2% recuperation of rare Earths from whole rock from Kipawa's Eudialyte Zone (see our world premiere announcement in the October 18th 2010 press release), and metallurgical test are presently underway at SGS Lakefield on concentrates from the Eudialyte zone. The physical characteristics of the Kipawa ore allow for low-cost chemical extraction, which gives it a competitive edge against current rare earth producers. -- A scoping study is being prepared by the Roche engineering firm (see our Septembre 9th press release). -- Given the deposit's significant yttrium and heavy rare earth enrichment, Matamec intends to target the expending permanent magnet and phosphor world markets. Indeed, prices for 99% pure Tb2O3 have recently risen to 520$/kg, 300$/kg for Dy2O3 and 70$/kg for Y2O3 (see our June 17th press release).
Andre Gauthier, president of the company, comments that: "With the beginning of the 3rd drilling campaign announced on december 2nd 2010 and the 23 DDH completed to date in that campaign, we are confident that we will soon see the majority of resources announced today converted to indicated. Considering the encouraging results we've had in our metallurgical tests, we feel that our current resources, and our heavy rare earth and yttrium resources in particular, clearly show the defining importance of the Kipawa deposit in the rare-earth market."
The Zeus heavy rare earths-yttrium-zirconium Property - Kipawa deposit
The Zeus heavy rare earths-yttrium-zirconium property is located close to infrastructures and is easily accessible via a network of forestry roads. It is located 160 kilometres south-west of Rouyn-Noranda and 65 kilometres east of the town of Temiscaming. The property is 100% owned by Matamec and is composed of 300 designated claims covering more than 17,600 hectares in the Kipawa Alkalic Complex. It includes at its heart the Kipawa deposit, also known as the Sheffield Zone. This deposit had historical yttrium and zirconium resources circa 1990, with its first NI 43-101 resource calculation in May 2010 (available on SEDAR).
Updated NI 43-101 resources
Detailed results of the updated resource calculation can be found in the following two tables. Resources are presented under two scenarios (greater than 0.5% ZrO2 and greater than 0.016% Dy2O3) with two categories each (indicated and inferred). Heavy rare earth oxides (HREO), total rare earths oxides plus yttrium (TREO), yttrium, zirconium and tonnages are also provided.
The mineralization is located inside a syenite unit. The syenite dips 20 degrees to the south-west and varies in true thickness from 40 to 65 meters. Three TREO enriched layers are found within it and vary in true thickness from 2 to 28 meters. These 3 layers form the TREO enriched geological zone. The non TREO enriched portions of the syenite are referred to as ZrO2 geological zone.
Nice move today!
MAT.v News Out Matamec Confirms 33 Metres at 1.491% TREO
TSX VENTURE: MAT
Matamec Explorations inc.
Dec 21, 2009 12:23 ET
Matamec Confirms 33 Metres at 1.491% TREO
MONTREAL, QUEBEC--(Marketwire - Dec.21, 2009) - Matamec Explorations Inc. ("Matamec") (TSX VENTURE:MAT) ispleased to announce that it confirms that they obtained 1.491% TREO(total of the rare earth oxides and yttrium) up to 33 metres byre-calculating the chemical oxide elements during the re-sampling ofthe T-1 historic trench, 68 metres long, in the West Zone of the Kipawadeposit. The Company had presented the results of this trench as wellas three other historic trenches, T-3, T-11 and T-8, as chemicalelement results (see press releases dated June 30th and July 16th,2009) within the framework of a new NI 43-101 resource calculation.
The resource calculation was initiated in November 2008 whenMatamec re-sampled, under the supervision of SGS-Geostat four (4) ofthirteen (13) previously excavated trenches of which twelve (12) weresampled (excluding T-5 trench) by Unocal Canada Ltd ("Unocal") in 1990on the Kipawa deposit. In June 2009, SGS-Geostat produced a firstindependent report regarding the re-sampling of the four (4) trenchesand it was appended to the NI 43-101 report of the Zeus property thatMatamec filed on SEDAR July 20th, 2009. The re-sampling permitted therealisation of a first check of the historical results and knowledge ofthe distribution of the rare earths, previously known prior to 2009from bulk samples from 1988. SGS-Geostat concluded that the 108 samplescollected confirmed the high grade rare earths mineralization of theKipawa deposit, particularly for cerium, dysprosium, erbium,gadolinium, lanthanum, neodymium, praseodymium, samarium and yttrium(for sampling Quality Control and selection of the most appropriateanalytical method, see SGS report, appendix III of the NI 43-101technical report).
In the re-sampling program (Figure 1: Trenches and bulk sampling -Kipawa Deposit), two of these trenches tested the full width of theWest Zone (Trenches T-1 and T-3), one trench tested the East Zone(Trench T-8) and the last trench (Trench T-11) tested the Central Zonebetween the two. This central Zone was not originally part of the 1990historical resource calculation. It is important to note that the T-8and T-11 trenches contain historical bulk sampling sites (samplesKBS-2, KBS-3 and KBS-5), solely assayed for cerium, yttrium andzirconium. These sites could not be re-sampled in 2008, due to anirregular sampling surface (5 metres un-sampled on T-8 and 20 metresun-sampled on T-11).
The results of the new oxide calculations for the November 2008re-sampling program of trenches T-1 and T-3 in the West Zone arepresented in the following Table 1:
Table 1: Summary Results (% oxides), average for trenches T-1 & T-3.
------------------------------------------------------------------
Kipawa Deposit West Zone
------------------------------------------------------------------
Trench # T-1 T-3
Best Best
T-1 interval T-3 interval
------------------------------------------------------------------
Number of samples 36 17 27 12
------------------------------------------------------------------
Sample # 501-536 503-519 537-563 537-548
------------------------------------------------------------------
Sample Width (metres) 68.0 33.0 53.4 24.2
------------------------------------------------------------------
Chemical element % oxides % oxides % oxides % oxides
------------------------------------------------------------------
La2O3 0.131 0.228 0.058 0.067
CeO2 0.294 0.504 0.156 0.192
Pr2O3 0.029 0.048 0.019 0.026
Nd2O3 0.128 0.219 0.075 0.103
Sm2O3 0.027 0.044 0.016 0.024
Eu2O3 0.003 0.006 0.002 0.003
Gd2O3 0.028 0.046 0.017 0.027
LREO(i) 0.640 1.095 0.343 0.442
Tb2O3 0.005 0.008 0.003 0.005
Dy2O3 0.032 0.050 0.021 0.032
HO2O3 0.007 0.010 0.005 0.007
Er2O3 0.019 0.031 0.014 0.022
Tm2O3 0.002 0.005 0.002 0.003
Yb2O3 0.016 0.023 0.014 0.020
Lu2O3 0.002 0.002 0.002 0.002
HREO(i) 0.084 0.129 0.061 0.092
Y2O3 0.165 0.267 0.114 0.190
TREO 0.889 1.491 0.517 0.723
Total HREO + Y2O3 0.24 0.39 0.17 0.28
ZrO2 0.824 0.716 1.175 1.040
------------------------------------------------------------------
(i) = Light rare earths (LREE) = La2O3 to Gd2O3, Heavy rare earths
(HREE) = Tb2O3 to Lu2O3.
------------------------------------------------------------------
The new oxide calculation results from the November 2008re-sampling program of trench T-11 located in the Central Zone, andincluding the bulk sample results from 90 KBS-3 and 90 KBS-5 of 350kilograms each by Unocal-Molycorp Inc. ("Molycorp ") in 1990 arepresented in Table 2 (it is important to note that Trench T-11 thatincludes the collection sites of two historical bulk samples could notbe re-sampled in 2008, because of an irregular sampling surface over 20metres):
Table 2: Summary Results (% oxides), average for the re-sampling
and the bulk samples # 90 KBS-3 and # 90 KBS-5 of trench T-11
------------------------------------------------------------------
Kipawa Deposit Central Zone
------------------------------------------------------------------
Trench # T-11 T-11 Bulk samples
Best over 20 metres
interval not re-sampled
in 2008 and in 2009
on trench T-11 (solely
assayed for cerium, yttrium
and zirconium)
------------------------------------------------------------------
Number of
samples 29 4
Sample # 564-592 568-571
------------------------------------------------------------------
Bulk sample Bulk sample
Sample Width # 90KBS-3 # 90KBS-5
(metres) 56.2 8 (350 kilo grams) (350 kilo grams)
------------------------------------------------------------------
Chemical element % oxides % oxides % oxides % oxides
------------------------------------------------------------------
La2O3 0.055 0.096 - -
CeO2 0.135 0.221 1.24 1.24
Pr2O3 0.014 0.022 - -
Nd2O3 0.052 0.076 - -
Sm2O3 0.010 0.014 - -
Eu2O3 0.001 0.001 - -
Gd2O3 0.009 0.015 - -
LREO(i) 0.278 0.445 - -
Tb2O3 0.002 0.002 - -
Dy2O3 0.011 0.016 - -
HO2O3 0.002 0.003 - -
Er2O3 0.008 0.011 - -
Tm2O3 0.001 0.002 - -
Yb2O3 0.009 0.010 - -
Lu2O3 0.001 0.001 - -
HREO(i) 0.035 0.047 - -
Y2O3 0.076 0.216 0.32 0.52
TREO 0.389 0.718 - -
Total HREO + Y2O3 0.11 0.26 - -
ZrO2 1.351 0.419 0.43 1.28
------------------------------------------------------------------
(i) = Light rare earths (LREE) = La2O3 to Gd2O3, Heavy rare earths
(HREE) = Tb2O3 to Lu2O3.
------------------------------------------------------------------
The new oxide calculation results from the November 2008re-sampling program of trench T-8 located in the East Zone, andincluding the bulk sample results from 90 KBS-2 of 350 kilograms byUnocal-Molycorp in 1990 are presented in Table 3 (it is important tonote that trench T-8 that includes the collection site of a historicalbulk sample could not be re-sampled in 2008 because of an irregularsampling surface over 5 metres):
Table 3: Summary Results (% oxides), average for the re-sampling
and bulk sample # 90 KBS-2 of trench T-8
------------------------------------------------------------------
Kipawa Deposit East Zone
------------------------------------------------------------------
Trench # T-8 T-8 Bulk sample over 5 metres
Best not re-sampled in 2008 and
interval in 2009 on trench T-8
(solely assayed for cerium,
yttrium and zirconium)
------------------------------------------------------------------
Number of
samples 16 10
Sample # 593-608 599-608
------------------------------------------------------------------
Bulk sample
Sample Width # 90KBS-2
(metres) 30.8 18 (350 kilo grams)
------------------------------------------------------------------
Chemical element % oxide % oxide % oxide
------------------------------------------------------------------
La2O3 0.133 0.173 -
CeO2 0.308 0.415 0.76
Pr2O3 0.036 0.049 -
Nd2O3 0.139 0.188 -
Sm2O3 0.031 0.043 -
Eu2O3 0.003 0.006 -
Gd2O3 0.033 0.047 -
LREO(i) 0.684 0.921 -
Tb2O3 0.006 0.008 -
Dy2O3 0.037 0.050 -
HO2O3 0.009 0.013 -
Er2O3 0.026 0.038 -
Tm2O3 0.005 0.006 -
Yb2O3 0.025 0.034 -
Lu2O3 0.003 0.005 -
HREO(i) 0.111 0.153 -
Y2O3 0.216 0.305 0.31
TREO 1.011 1.379 -
Total HREE + Y2O3 0.32 0.45 -
ZrO2 0.878 1.000 0.57
------------------------------------------------------------------
(i) = Light rare earths (LREE) = La2O3 to Gd2O3, Heavy rare earths
(HREE) = Tb2O3 to Lu2O3.
------------------------------------------------------------------
Sampling from 12 of 13 trenches and 7 bulk samples collected by Unocal and Molycorp in 1988 and 1990 on the Kipawa deposit
As well as the thirty-four (34) historical drill holes that weredone by Unocal in 1988 and 1990 on the Kipawa deposit, thirteen (13)trenches of 100 metres were excavated in the overburden and 12 werechannel sampled in 1990 for a total of 666.5 metres sampled. Also, atotal of four (4) bulk samples of approximately 350 kilo grams each andthree (3) samples of approximately 20 kilo grams were blasted fromthese trenches. Of these seven (7) bulk samples, four (4) were sent in1990 by Molycorp to Mountain States R&D International forseparation and lixiviation tests.
Historically, the rare earths were not systematically analyzedduring the drilling by Unocal in the 1988 and 1990 explorationcampaigns since the main element of interest at the time was yttrium.The rare earth mineralization of the Kipawa deposit is known primarilybecause of the bulk sampling. Four of these samples were analyzed in1988 for yttrium, zirconium and cerium, while the other three wereanalyzed in 1990 for yttrium, zirconium, and the suite of rare earthsas indicated in tables 4 and 5 below:
Table 4: Summary of the bulk samples by Unocal (% oxides)
------------------------------------------------------------------
Rare
Weight Earths
Location Sample Trench in kg Y2O3% CeO2% % ZrO2%
-------------------------------------------------------------------
West Zone 88-K-1 T-1 20 0.67 - 1.00 -
90KBS-1 T-2 350 0.67 0.41 - 1.62
88-K-3 T-2c 20 0.65 - 1.67 -
Central Zone 90KBS-3 T-11 350 0.32 1.24 - 0.43
90KBS-5 T-11 350 0.52 1.24 - 1.28
East Zone 90KBS-2 T-8 350 0.31 0.76 - 0.57
88-K-4 T-10 20 0.29 - 2.05 -
-------------------------------------------------------------------
Table 5: The REE Distribution for three bulk samples by Unocal (%)
--------------------------------------------------------------
Rare Earth 88-K-1 88-K-3 88-K-4
elements (%) (%) (%)
--------------------------------------------------------------
Trench # 1 2c 10
Mosandrite/
Mineralized Zone Eudialyte Yttro-titanite Britholite
La: Lanthanum 0.139 0.231 0.500
Ce: Cerium 0.280 0.570 0.961
Pr: Praeseodymium 0.039 0.077 0.097
Nd: Neodymium 0.140 0.290 0.290
Sm: Samarium 0.039 0.080 0.050
Eu: Europium 0.006 0.010 0.005
Gd: Gadolinium 0.050 0.080 0.030
LREE(i) 0.692 1.338 1.933
Tb: Terbium 0.010 0.020 0.008
Dy: Dysprosium 0.100 0.121 0.040
Ho: Holmium 0.019 0.030 0.010
Er: Erbium 0.080 0.080 0.030
Tm: Thulium 0.010 0.010 0.004
Yb: Ytterbium 0.080 0.050 0.020
Lu: Lutetium 0.010 0.006 0.003
HREE(i) 0.309 0.317 0.115
Y: Yttrium 0.673 0.650 0.290
TREE 1.675 2.305 2.338
Total HREE + Y 0.982 0.967 0.405
--------------------------------------------------------------
(i) = Light rare earths (LREE) = La to Gd, Heavy rare earths
(HREE) = Tb to Lu.
------------------------------------------------------------------
Additional information will be communicated in the near future as the fall 2009 exploration program advances.
The geological data in this press release was prepared by AlineLeclerc, geologist and Matamec's Vice-President Exploration, aQualified Person as defined by NI 43-101.
About Matamec
Matamec is exploring for rare earth elements on the Heavy RareEarth's Kipawa deposit (Zeus property), located in the Kipawa AlkalineComplex in Temiscamingue, Quebec, and for significant gold deposits inthe Timmins mining camp in Ontario, of which the two main targets arethe Matheson JV property, with Goldcorp Canada Ltd and Goldcorp Inc,and the Montclerg property.
A map is available at the following address: http://file.marketwire.com/release/Mat_eng.pdf
"NeitherTSX Venture Exchange nor its Regulation Services Provider (as that termis defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release."
that is terrific news
Matamec's Rare Earths-Yttrium-Zirconium Kipawa Deposit is in Industrial Minerals Magazine September Issue!
MONTREAL, QUEBEC, Aug 31, 2009 (MARKETWIRE via COMTEX News Network) --
Matamec Explorations Inc. ("Matamec") (TSX VENTURE: MAT) is pleased to announce that Matamec's Rare Earth Elements (REE)-Yttrium-Zirconium Kipawa Deposit is the subject of a one page article in the Exposure section of the Industrial Minerals magazine September issue. The article "Kipawa heavy rare earths" is presently available on Industrial Minerals website at: indmin.com/Channel/19571/Exposure.html.
As previously outlined, the Kipawa REE-Yttrium-Zirconium Deposit has a favourable REE distribution emphasizing Heavy Rare Earth Elements (HREE), particularly Dysprosium, Yttrium, and Terbium. People should remember that on August 19, 2009 the Chinese Government announced that it was prohibiting exports of HREEs such as Dysprosium, Terbium, Thulium, Lutetium and Yttrium.
Matamec's President, Andre Gauthier, believes that the REE market has an excellent potential. According to a REE market expert, the average price for REE-oxide concentrates is $9-11 kg. As well, new technologies require more HREE which have higher prices compared to a few years ago. The price of Terbium has increased from $170/kg in 2003 to $340-360/kg in 2009 and from $20/kg in 2002 to $107-112/kg in 2009 for dysprosium. Prior to the Chinese Governments' announcement, he said: "regarding the evolution of the REE market since 2000, we believe it will continue to grow depending on the volume of products and new technologies that use HREE".
Considering a possible short fall on the world supply of HREEs such as Terbium, Dysprosium and Yttrium, had been forecast for 2014 by end-users prior to the Chinese decision, this new situation pushes the need for additional suppliers, thus increasing the value of HREE deposits, as is the case with the Kipawa Deposit. Matamec is currently looking for end-users to work with in order to quickly meet the needs of the market for HREEs based on the excellent potential of the Kipawa Deposit, as reported in Matamec press releases dated June 30, July 16 and August 24.
About Matamec
Matamec is exploring for significant gold deposits in the Timmins mining camp in Ontario, of which the three main targets are the following: Matheson JV with Goldcorp Canada Ltd and Goldcorp Inc., Montclerg and 2W properties. In Quebec, the Company is exploring mainly for precious and base metals on Lesperance/Wachigabau with Northern Superior Resources Inc., Sakami, Tansim, Valmont and Vulcain properties, rare metals and uranium on Tansim, and REE on Zeus property.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts: Matamec Explorations Inc. Andre Gauthier President 514-844-5252 info@matamec.com www.matamec.com
Why the Recent Chinese Government Decision on Heavy Rare Earths Has an Impact on Matamec's Kipawa Rare Earths-Yttrium-Zirconium Deposit!
MONTREAL, QUEBEC, Aug 24, 2009 (MARKETWIRE via COMTEX News Network) --
Matamec Explorations Inc. ("Matamec")(TSX VENTURE: MAT) is pleased to announce that Metal-Pages reported on August 19, 2009, (www.metal-pages.com/news/story/42539/Chinese restrictions on rare earths may speed up development of North American exploration projects) that the Chinese Government restricted the annual export of Rare Earths to 35,000 tpy and prohibited exports of Heavy Rare Earths such as Dysprosium (Dy), Terbium (Te), Thulium (Tm), Lutetium (Lu) and Yttrium (Y).
According to Metal Pages, impact of the Chinese Government decision on the Rare Earth market is as follows:
- while many observers expected China to look at restricting exports, the timeframe has taken the market by surprise and pushed the need for additional supplies of many Rare Earths as demand firms;
- expected to cause a tightening in supply and lead to higher prices for consumers outside the country as China supplies about 95% of the global Rare Earths market;
- China is currently the world's largest consumer of rare earths and accounts for about 60% of demand;
- trade sources believes that the Chinese Government decision was intended to help the country build its inventory of rare earths as it develops its industry and also meet growing demand from end-user markets domestically and overseas;
- despite the worldwide economic downturn, the underlying outlook for Rare Earths remains positive and prices are forecasted to firm as growing demand from key end-user sectors gathers pace.
Impact on North America Rare Earths exploration and development projects:
- with some consumers expected to struggle to secure supplies, the development schedules for several Rare Earths project in North America could be brought forward to fill the void.
As reported in Matamec press releases dated June 30 and July 16, the Kipawa Rare Earths-Yttrium-Zirconium Deposit has a favourable Rare Earths distribution emphasizing Heavy Rare Earths, particularly Dysprosium, Yttrium, and Terbium. The following Table 1 shows Rare Earths-Yttrium-Zirconium distribution from assay results of Unocal bulk samples from 3 trenches and current market prices for some Rare Earths oxides.
---------------------------------------------------------------------------Rare Earths Oxides Rare Earths-Yttrium Rare Earths Oxides 99%- Distribution from assay 99.999% min results (average % O) of FOB China prices bulk sample from 3 (Metal-Pages, trenches August 20, 2009)---------------------------------------------------------------------------Lanthanum: La2O3 0.312% US$5.40-5.90/kg---------------------------------------------------------------------------Cerium: CeO2 0.609% US$3.30-3.80/kg---------------------------------------------------------------------------Praseodymium: Pr6O11 0.072% US$13-13.50/kg---------------------------------------------------------------------------Neodymium: Nd2O3 0.24% US$14-14.50/kg---------------------------------------------------------------------------Samarium: Sm2O3 0.058% US$4.25-4.75/kg---------------------------------------------------------------------------Europium: Eu2O3 0.007% US$475-495/kg---------------------------------------------------------------------------Gadolinium: Gd2O3 0.054% US$6-6.5/kg---------------------------------------------------------------------------Terbium: Tb4O7 0.012% US$340-360/kg---------------------------------------------------------------------------Dysprosium: Dy2O3 0.086% US$107-112/kg---------------------------------------------------------------------------Holmium: Ho2O3 0.019% Not available---------------------------------------------------------------------------Erbium: Er2O3 0.061% Not available---------------------------------------------------------------------------Thulium: Tm2O3 0.009% Not available---------------------------------------------------------------------------Ytterbium: Yb2O3 0.053% Not available---------------------------------------------------------------------------Lutetium: Lu2O3 0.006% Not available---------------------------------------------------------------------------Yttrium: Y2O3 0.533% US$13-13.50/kg---------------------------------------------------------------------------Total 2,135%---------------------------------------------------------------------------Zirconium contents in historical resources calculation of2.27 MT @ 1.05% ZrO2: 23,901 metric tons ZrO2---------------------------------------------------------------------------Table 1: Rare Earths-Yttrium distribution for three Unocal bulk samples
Zeus property - Kipawa Deposit - Important facts:
1- The 100% owned Zeus property is located in the Temiscamingue region of Quebec and totals 15,244 ha in area;
2- The Zeus property covers a large part of the Kipawa Alkaline Syenite Complex (KAC) and seven REE-Y-Zr mineralized zones are known on the property, including the Kipawa Deposit;
3- The Kipawa deposit is defined over a length of 1,300 metres with a width ranging from 10 to 80 metres;
4- The partially drilled Kipawa Deposit is the site of an historic Y and Zr resource calculation by Unocal Canada Ltd. in 1990.
5- The Kipawa Deposit is composed of the West Main Zone: 1.26Mt @ 0.15% Y2O3 and 0.96% ZrO2, the Central Zone containing no established resources and finally, the East Main Zone: 1.009 MT @ 0.14% Y2O3 and 1.17% ZrO2 (Please note that as a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, the issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon);
6- The Central Zone of the deposit, 620 metres long, has no established resources; however, 3 trenches and 3 drill holes have been done only at very wide spacing and every trench and drill hole in this part contains mineralization;
7- Due to its favourable location, an open pit method for the mining of mineralization was contemplated in 1990, resource blocks having been calculated down to an average depth of 35 metres;
8- The main characteristic of the deposit is its three types of mineralization. From the upper syenite portion to the lower calc-silicate dominant part of the calc-silicate/syenite complex, we find an eudialyte dominated zone ((REO Wt (Rare Earth Oxide Weight): up to 10%)), then a mosandrite/yttro-titanite dominated zone (REO Wt: up to 65%) and finally a britholite dominated zone associated with the lower calc-silicate rocks (REO Wt: up to 62%). Zirconium is generally more uniformly distributed than Yttrium in the deposit and occurs in some horizon independent of Yttrium and Rare Earths.
9- In addition, Yttrium values contained in the lower britholite and mosandrite/ytrro-titanite zones were considered to be too erratic to be included in a resource calculation. Drill holes were therefore designed to be short and only a few penetrated into the lower calc-silicate dominant part of the unit (12 DDH on a total of 34) and none tested the down-dip extension of the deposit at depth (i.e. towards the south-west).
10- The deposit is presently considered open both laterally and at depth.
11- Rare Earths mineralization features enrichment both in Light Rare Earths and in Heavy Rare Earths;
12- Rare Earths mineralization shows well-crystallized medium grains which are amiable to physical separation and easy chemical dissolution.
13- It should be noted that Unocal and its subsidiary Molycorp, owner of the Mountain Pass Rare Earths deposit in California (USA), worked on the Kipawa Deposit between 1985 and 1991 because they believed that easily-dissolved Ytrrium and Rare Earths in the yttrium-bearing eudialyte would be a source that could compete economically with the South China clays. At that time, the discovery of ion-adsorbed Yttrium and Rare Earths in the South China clays had a profound effect on the sources and world market price of these elements.
14- Furthermore, it should be noted that Rare Earths content was not systematically measured in drill holes at the time since the main element considered was yttrium. Rare Earths mineralization is therefore known through the analysis of bulk samples. Four of these were analyzed for Y and Zr and three were analysed for Y, Zr and Rare Earths as shown in the following table 2:
-------------------------------------------------------------------------- SampleLocation number Weight in kg Y% Ce% REE% Zr%--------------------------------------------------------------------------West Zone 88-K-1 20 0.53 - 0.86 - ----------------------------------------------------------- 90KBS-1 350 0.53 0.33 - 1.2 ----------------------------------------------------------- 88-K-3 20 0.51 - 1.41 ---------------------------------------------------------------------------Central Zone 90KBS-3 350 0.25 1.01 - 0.32 ----------------------------------------------------------- 90KBS-5 350 0.41 1.01 - 0.95--------------------------------------------------------------------------East Zone 88-K-4 20 0.23 - 1.75 - ----------------------------------------------------------- 90KBS-2 350 0.24 0.62 - 0.42--------------------------------------------------------------------------Table 2: Summary of Unocal bulk samples (%)
15- In addition, on June 16th, 2009, Matamec received SGS Geostat independent report on the re-sampling of four of Unocal's thirteen historic trenches (see Matamec's press release on June 30, 2009). These four channels were reproduced by Matamec in order (1) to verify previous historic results and (2) to test Rare Earths distribution over their entire length. Two trenches tested the width of the West Main Zone (trenches T-1 and T-3), one tested the East Main Zone (trench T-8) and the last tested the Central Zone between the two which has no calculated historic resources (trench T-11). It should be noted that on trenches T-8 and T-11, sites of 3 historic blast sites (KBS-2, KBS-3 and KBS-5), could not be re-sampled due to highly-irregular trench floors (total length not sampled of 5 metres in T-8 and 20 metres in T-11).
16- Future work programs will likely have an impact on historic resources (see next section);
17- Outside of the Kipawa Deposit, best values obtained from December 2008 grab samples come from the Couleuvre and TH zones, respectively with value greater than 11.34% and 7.2% total REE, combined with 0.93% and 2.16% Yttrium.
What's next on the Kipawa Deposit?
By completing a new financing, the next step towards the planned NI 43-101 compliant resource report on the Kipawa Deposit will be a 2,000 metres HQ drilling program in Fall 2009/Winter 2010, which will establish new Rare Earths, Yttrium and Zirconium resources. Following this program and the continuation of previous metallurgical studies on a new 100 tons bulk sample, Matamec will then be able to begin a scoping study in 2010.
Considering a possible short on the world supply of Heavy Rare Earths such as Terbium, Dysprosium and associated Yttrium forecasted for 2014 or before, the favourable Rare Earths distribution emphasizing Heavy Rare Earths of the Kipawa Deposit, the work done on the deposit to date and the time needed for the completion of the future steps partly described above, we believe more on the potential of the Kipawa Deposit.
The geological data in this press release was prepared by Aline Leclerc, geologist and Matamec's Vice-President Exploration, a Qualified Person as defined by NI 43-101.
About Matamec
Matamec is exploring for significant gold deposits in the Timmins mining camp in Ontario, of which the three main targets are the following: Matheson JV with Goldcorp Canada Ltd and Goldcorp Inc., Montclerg and 2W properties. In Quebec, the Company is exploring mainly for precious and base metals on Lesperance/Wachigabau with Northern Superior Resources Inc., Sakami, Tansim, Valmont and Vulcain properties, rare metals and uranium on Tansim, and REE on Zeus property.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Matamec Explorations Inc. Andre Gauthier President 514-844-5252 info@matamec.com www.matamec.com
SOURCE: Matamec Explorations Inc.
mailto:info@matamec.com http://www.matamec.com
Copyright 2009 Marketwire, Inc., All rights reserved.
<< Previous | Index | Next >>
Matamec Announces the Discovery of New Rare Earth-Yttrium Showings in the Kipawa Alkaline Complex
Date : 12/24/2008 @ 9:00AM
Source : MarketWire
Stock : Matamec Explorations Inc. (MAT)
Quote : 0.075 0.0 (0.00%) @ 7:55PM
Matamec Announces the Discovery of New Rare Earth-Yttrium Showings in the Kipawa Alkaline Complex
MONTREAL, QUEBEC -- (Marketwire) -- 12/24/08 -- Matamec Explorations Inc. ("Matamec") (TSX VENTURE: MAT) is pleased to announce the discovery of new rare earth ("REE") showings on its 100% Zeus property in Temiscamingue. The property covers 14 371 hectares and is located in the Kipawa alkaline complex.
Mining Engineering magazine mentions in its "Industrial Minerals Review" June 2008 edition that consumption of REE, especially in automotive catalysts, fluid cracking catalysts, permanent magnets, trichomatic fluorescent lightning and magnetostrictive alloys, is expected to continue to have strong growth. Increased consumption of REE bearing nickel-metal hybride (NiMH) rechargeable batteries has continued as gasoline prices climbed. Novel applications incorporating REE, such as magnetic refrigeration, fuel cells and specialty high-strength low-weight alloys are expected to continue to be discovered and developed.
Since June 2007, Matamec has conducted six short exploration campaigns on this property, four of them from May to November 2008. These campaigns had two important objectives : 1) complete preparatory work on the Sheffield zone in expectation of a 43-101 REE-yttrium-zirconium resource calculation, and 2) bring property-wide exploration to the fore and seek out REE-yttrium, uranium and gold mineralization similar to those found by Globex Mining (please see their press release and MD&A dated June 19 and November 5, 2008) and Aurizon Mines (as outlined in their press releases and MD&A dated June 12-13 and November 6 2008).
On the Zeus property, known REE, yttrium and zirconium mineralization is hosted by eudialyte, mosandrite and britholithe encased in the black and white syenites of the Kipawa complex. Mineralization concentrates at the 1.3 km long Sheffield zone, which has extensions and segments that have remained slightly drilled or completely un-drilled. 1991 historical resources for the zone outline 1.26 Mt at 0.15% yttrium, 0.96% zirconium for the West zone, and 1.01 Mt at 0.14% yttrium, 1.17% zirconium for the East zone (a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon). It should be noted that REE content was not systematically measured in drill holes at the time since the main element considered was yttrium. REE applications have drastically increased since then as well, particularly in relation to heavy REE (Tb to Lu).
In June 2008, Matamec acquired several confidential documents, including a heliborne Radiometric-Mag-VLF geophysical survey that covered the entire property. This survey influenced the targeted exploration campaigns for 2008, which led to the discovery of four REE-yttrium showings on the Zeus property, namely the TH, Couleuvre, Falaises and Surprise showings. The best values were obtained from grab samples coming from the Couleuvre and TH showings, respectively with greater than 11.34% and 7.2% total REE, combined with 0.93% and 2.16% yttrium (see table available at the following address: http://media3.marketwire.com/docs/Matamec_ENG_1224.pdf for all values presently available for these showings).
The TH showing is located in the north section of the property, in the same area as the Eagle showing of Aurizon Mines. The TH showing lies at the centre of a 200m east-west by 700m north-south soil anomaly which is presently open both to the north and to the south. The Surprise showing is located in the east section of the property and is hosted in biotite and amphibole-rich rocks with large quantities of associated garnet. Of lesser importance but potentially leading to mineralization of greater volume, the Couleuvre and Falaises showings are located in the heart of the property and are associated respectively with an intermediate sill and with marbles. Matamec will also start a mineralogical study aimed at identifying the ore-minerals present in each of these new showings.
In other areas, a property-wide 43-101 technical report is nearing completion. In addition, a 43-101 compliant resource calculation began on November 11th 2008 with the channel sampling of four trenches (208 m gathered) in the Sheffield zone under the supervision of SGS-Geostat. Both of these activities are ongoing and will be completed over the course of 2009.
The geological data in this press release was prepared by Aline Leclerc, geologist and Matamec's Vice-President Exploration, a Qualified Person as defined by NI 43-101.
About Matamec
Matamec is exploring for significant gold deposits in the Timmins mining camp in Ontario focusing on its two main targets, namely the Matheson JV with Goldcorp and the Montclerg properties. In Quebec, the Company is exploring for precious and base metals, REE and uranium deposits on Lesperance, Sakami, Valmont, Vulcain and Zeus.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
Contacts:
Matamec Explorations Inc.
Andre Gauthier
President
514-844-5252
Matamec Explorations Inc.
Michael D'Amico
Investor Relations
647-500-6023
info@matamec.com
www.matamec.com
Matamec Announced Results on Channel Sampling on the Kipawa Rare Earth Elements-Yttrium-Zirconium Deposit on its Zeus property
Date : 06/30/2009 @ 9:00AM
Source : MarketWire
Stock : Matamec Explorations inc. (MAT)
Quote : 0.075 0.0 (0.00%) @ 7:53PM
Matamec Announced Results on Channel Sampling on the Kipawa Rare Earth Elements-Yttrium-Zirconium Deposit on its Zeus property
MONTREAL, QUEBEC -- (Marketwire) -- 06/30/09 -- Matamec Explorations Inc. ("Matamec")(TSX VENTURE: MAT) is pleased to announce that it has received the report titled "Independent Channel Sampling on the Zeus Property in Temiscamingue for Matamec Explorations Inc." from SGS Geostat Ltd ("SGS"), filed on Matamec's website (www.matamec.com/Properties/Zeus). Begun in November 2008, this independent re-sampling of four of Unocal Canada Ltd. ("Unocal")'s thirteen historic trenches is the first step in Matamec's plan to complete a NI 43-101 compliant resource report in the near future.
The Zeus property is situated 160 km south-east of Rouyn-Noranda and 65 km east of Temiscaming (Figure 1, available at the following address: http://media3.marketwire.com/docs/Zeus1.pdf). The property is 100% owned by Matamec and is composed of 260 designated claim cells comprising more than 15,303 hectares. It includes the Kipawa Deposit (also known as the Sheffield Zone), with historical resources in yttrium and zirconium, as well as six (6) rare earth elements ("REE"), yttrium and zirconium showings: PB, PS, Couleuvre, Falaise, TH and Surprise (Figure 2, available at the followingt : http://media3.marketwire.com/docs/zeus2.pdf).
The Kipawa Deposit is composed of the West Main Zone (1.26 Mt @ 0.15% Y2O3 and 0.96% ZrO2), the Central Zone containing no established resources and, finally, the East Main Zone (1.009 Mt @ 0.14% Y2O3 and 1.17% ZrO2). Due to its favourable location, an open pit method of mining was contemplated for this deposit in 1990. Please note that as a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, the issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon. The Kipawa deposit is presently considered open both laterally and at depth.
In 1990, best and most continuous yttrium values were thought to occur in the upper part of the syenite gneiss unit (itself situated at the base of the Kipawa Alkaline Complex), in areas containing eudialyte, mosandrite/yttro-titanite and minor britholite minerals. It should be noted that REE content was not systematically measured in drill holes at the time since the main element considered was yttrium. REE applications have drastically increased since then though, particularly in relation to heavy REE (Tb to Lu), and a possible short on the world supply of Lanthanum (La), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y) has been forecast for 2014 by end users as well as by Dudley J Kingsnorth ("The Rare Earths Market: Can Supply Meet Demand in 2014?", PDAC, March 2009).
In addition to historic diamond drill holes, thirteen 100-meter overburden trenches were dug and channel-sampled on the Kipawa deposit in 1990 for a total of 666.5 meters sampled. Channel samples were then tested for Yttrium (Y) and Zirconium (Zr) only. A total of six 300 to 800 lbs bulk samples and four 50 lbs bulk samples were also blasted from the trenches at that time. Four (4) of these were analyzed for Y and Zr, three were analysed for Y, Zr and the lanthanide series of rare earths and four were sent to Mountain States R&D International for separation and leaching tests.
In the sampling described here, four trenches with four channels were reproduced by Matamec in order to verify previous historic results and to test rare earth element distribution over their entire length. Two trenches tested the width of the Western Sheffield Zone (trenches T-1 and T-3), one tested the Eastern Sheffield Zone (trench T-8) and the last tested the zone between the two which has no calculated historic resources (trench T-11). Results are presented in Table 1 (for sampling Quality Control and selection of the most appropriate analysis method, see SGS report pages 3 and 4).
Table 1: Summary of results (%), averaged by trench
---------------------------------------------------------------------------
Kipawa
Deposit - West Central East
Zones
---------------------------------------------------------------------------
Trench# T-1 T-1- T-3 T-3- T-11 T-11- T-8 T-8-
Best Best Best Best
intervals intervals intervals intervals
---------------------------------------------------------------------------
Number of
samples 36 17 27 12 29 4 16 10
---------------------------------------------------------------------------
Samples# 501 503 537 537 564 568 593 599
-536 -519 -563 -548 -592 -571 -608 -608
---------------------------------------------------------------------------
Sample
length
metres) 68.0 33.0 53.4 24.2 56.2 8 30.8 18
---------------------------------------------------------------------------
La 0.121 0.210 0.053 0.062 0.051 0.088 0.122 0.159
---------------------------------------------------------------------------
Ce 0.239 0.410 0.127 0.156 0.110 0.180 0.251 0.338
---------------------------------------------------------------------------
Pr 0.025 0.041 0.016 0.022 0.012 0.019 0.031 0.042
---------------------------------------------------------------------------
Nd 0.110 0.188 0.064 0.088 0.045 0.065 0.119 0.161
---------------------------------------------------------------------------
Sm 0.023 0.038 0.014 0.021 0.009 0.012 0.027 0.037
---------------------------------------------------------------------------
Eu 0.003 0.005 0.002 0.003 0.001 0.001 0.003 0.005
---------------------------------------------------------------------------
Gd 0.024 0.040 0.015 0.023 0.008 0.013 0.029 0.041
---------------------------------------------------------------------------
LREE(i) 0.50 0.85 0.29 0.37 0.24 0.75 0.58 0.78
---------------------------------------------------------------------------
Tb 0.004 0.007 0.003 0.004 0.002 0.002 0.005 0.007
---------------------------------------------------------------------------
Dy 0.028 0.044 0.018 0.028 0.010 0.014 0.032 0.044
---------------------------------------------------------------------------
Ho 0.006 0.009 0.004 0.006 0.002 0.003 0.008 0.011
---------------------------------------------------------------------------
Er 0.017 0.027 0.012 0.019 0.007 0.010 0.023 0.033
---------------------------------------------------------------------------
Tm 0.002 0.004 0.002 0.003 0.001 0.002 0.004 0.005
---------------------------------------------------------------------------
Yb 0.014 0.020 0.012 0.018 0.008 0.009 0.022 0.030
---------------------------------------------------------------------------
Lu 0.002 0.002 0.002 0.002 0.001 0.001 0.003 0.004
---------------------------------------------------------------------------
HREE(i) 0.07 0.11 0.05 0.08 0.03 0.08 0.09 0.12
---------------------------------------------------------------------------
Total REE 0.57 0.96 0.34 0.45 0.27 0.83 0.67 1.00
---------------------------------------------------------------------------
Y 0.13 0.21 0.09 0.15 0.06 0.17 0.17 0.24
---------------------------------------------------------------------------
Zr 0.61 0.53 0.87 0.77 1.00 0.31 0.65 0.74
---------------------------------------------------------------------------
U 0.004 0.013 0.004 0.011 0.003 0.002 0.007 0.009
---------------------------------------------------------------------------
Th 0.04 0.07 0.03 0.04 0.03 0.04 0.06 0.08
---------------------------------------------------------------------------
(i)equals Light rare earths(LREE) equals La to Gd, Heavy rare earths(HREE)
equals Tb to Lu.
N.B. Analysis results converted from oxides.
For yttrium (Y), SGS finds an acceptable correlation coefficient (0.917) between 1990 data by Unocal and 2008 data by SGS with a good coefficient of determination (R2) of 0.841. Also, out of 101 samples compared between 1990 and 2008, we find 41 samples superior in 2008, 59 samples lower in 2008 and 1 sample exactly equal. A sign test reveals that SGS cannot affirm that 1990 Yttrium results are different from 2008 results and we have to accept that results are confirmed. Modern zirconium results, on the other hand, are inferior by a factor of 15% to 1990 historical results. Most likely causes for this discrepancy are (1) differing lab preparation and/or differences in analytical methods or (2) geological variations at minimal distances (nugget effects). Note that zirconium mineralization is only partially associated with rare-earth and yttrium mineralization at Kipawa and that the two types of mineralization are to be considered separately.
SGS concludes that the 108 samples confirmed the Sheffield Zone's high mineralization in rare earth, especially for Ce (cerium), Dy (dysprosium), Er (erbium), Gd (gadolinium), La (lanthanum), Nd (neodymium), Pr (praseodymium), Sm (samarium) and Y (yttrium). In addition, the average concentration of radioactive contaminants is low, namely 0.005 % U3O8 and 0.045 % ThO2.
In other areas, a property-wide NI 43-101 technical report is nearing completion. As for the four new Y-REE-Zr showings discovered in 2008, samples were sent to Universite Laval in Quebec City in order to identify Y-REE-Zr bearing minerals. The result of this work will be known later this summer.
The geological data in this press release was prepared by Aline Leclerc, geologist and Matamec's Vice-President Exploration, a Qualified Person as defined by NI 43-101.
About Matamec
Matamec is exploring for significant gold deposits in the Timmins mining camp in Ontario, of which the three main targets are the following: Matheson JV with Goldcorp Canada Ltd and Goldcorp Inc., Montclerg and 2W properties. In Quebec, the Company is exploring mainly for precious and base metals on Lesperance/Wachigabau with Northern Superior Resources Inc., Sakami, Tansim, Valmont and Vulcain properties, rare metals and uranium on Tansim, and REE on Zeus property.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts:
Matamec Exploration inc.
Andre Gauthier
President
514-844-5252
info@matamec.com
Website: www.matamec.com
All Items Approved at Matamec Annual Meeting and Stock Options Granted to a New Director
Date : 07/06/2009 @ 12:10PM
Source : MarketWire
Stock : Matamec Explorations inc. (MAT)
Quote : 0.075 0.0 (0.00%) @ 7:53PM
All Items Approved at Matamec Annual Meeting and Stock Options Granted to a New Director
MONTREAL, QUEBEC -- (Marketwire) -- 07/06/09 -- Matamec Explorations Inc. ("Matamec")(TSX VENTURE: MAT) is pleased to announce that it has held their shareholders annual meeting on June 30, 2009, in Montreal. The results are as follows:
- Andre Gauthier, Aline Leclerc, Laval St-Gelais and James D.A. White were re-elected, while Normand Tamaro was elected, as directors of the corporation;
- The firm of Petrie Raymond - Chartered accountants - L.L.P. was appointed for another year as auditors of the corporation;
As to Mr. Tamaro, he will join the Company as an independent director. Called to the Quebec Bar in 1982 and LL.D since 1995, Mr. Tamaro is in private practice with the legal firm Mannella, Gauthier, Tamaro, and he is specialized in intellectual property law. Furthermore, he is the author of many articles published in specialized reviews and several books, in French and in English regarding copyright.
The Board of Directors at its last meeting approved the granting of 400,000 stock options at a price of $0.10 per share for a period of five years to Mr. Tamaro. These options, as well as the terms and conditions of their exercise, are governed by the Company's Stock Option Plan.
In addition, Mr. Richard H. Sutcliffe did not seek another term as a director. The Board of Directors and management of Matamec wish to acknowledge Mr. Sutcliffe's valuable contribution since the summer of 2008.
About Matamec
Matamec is exploring for significant gold deposits in the Timmins mining camp in Ontario, of which the three main targets are the following: Matheson JV with Goldcorp Canada Ltd and Goldcorp Inc., Montclerg and 2W properties. In Quebec, the Company is exploring mainly for precious and base metals on Lesperance/Wachigabau with Northern Superior Resources Inc., Sakami, Tansim, Valmont and Vulcain properties, rare metals and uranium on Tansim, and REE on Zeus property.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts:
Matamec Explorations inc.
Andre Gauthier
President
514-844-5252
info@matamec.com
www.matamec.com
Matamec Releases NI 43-101 Technical Report on its Zeus Rare Earth Elements-Yttrium-Zirconium Property Containing the Kipawa Dep
MONTREAL, QUEBEC -- (Marketwire) -- 07/16/09 -- Matamec Explorations Inc. (TSX VENTURE: MAT) ("Matamec") is pleased to announce that it has received the NI 43-101 technical report titled "Technical Report on the Rare Earth Elements-Yttrium-Zirconium Zeus Property, Kipawa Alkaline Complex, Temiscamingue, Quebec for Matamec Explorations Inc." from Alex Knox, Leslie Heymann and Frederic Fleury, filed on SEDAR and Matamec's websites (www.matamec.com/Properties/Zeus).
This independent NI 43-101 report, together with SGS Geostat Ltd. independent re-sampling of four of Unocal Canada Ltd. (Unocal) thirteen historic trenches (see press release on June 30th, 2009), prepare the way for the planned NI 43-101 compliant resource report on the Kipawa Deposit. The next step towards that goal will be the proposed 2,000 metres HQ drilling program, which will establish Rare Earth Elements (REE) resources as well as verify the quantity and the quality of historic Y and Zr resources (including the possibility of increasing these resources). Following this program, Matamec will probably be able to begin a prefeasibility study on the Kipawa Deposit. This study will aim to continue the mineral processing and metallurgical testing begun in 1990, to verify the possibility to produce a mixed REE oxide concentrate, or, if economically viable, to produce individual REE oxide concentrates. It should be noted that, due to its favourable location, an open pit method of mining was contemplated for this deposit in 1990.
In addition, a possible short on the world supply of heavy REE (HREE) such as Terbium (Tb), Dysprosium (Dy) and associated Yttrium (Y), has been forecast for 2014 by end users as well as by Dudley J. Kingsnorth ("The Rare Earths Market: Can Supply Meet Demand in 2014?", PDAC, March 2009). As noted by Ron Mandel reporting points from D. J. Kingsnorth in "Rare earth metals: on the cusp of a rally?" (Northern Miner, June 22, 2009), the time estimate to bring a REE project to production is in the range of four to eight years. In view of the favourable REE distribution emphasizing HREE in the Kipawa Deposit (see Table 2) and considering both the work done on the deposit between 1985 and 1991 by REE companies such as Unocal and Molycorp and exploration work done by Matamec since 2007, Matamec believes that it is possible to complete the process for a 2014 deadline.
NI 43-101 Technical Report's Summary
Authors
The first author Alex Knox (M.Sc., P. Geo) led the 1986 to 1990 Unocal exploration campaigns and was involved as a geologist during the 1988 drilling campaign. The second author Leslie Heymann (P. Eng.) has expertise in chemical engineering and rare earths extraction processes. The last author, Frederic Fleury (B.Sc., Geo), led Matamec's 2007 and 2008 exploration campaigns on the Zeus property. His team discovered four new REE-Y-Zr showings.
Location
The 100% owned Zeus property is located in the Temiscamingue region of Quebec (see Figure 1: Location map), some 140 km south of Rouyn-Noranda, 50 km west of the town of Temiscaming and 90 km northeast of North Bay, Ontario. The property totals 15,244 ha in area and covers part of the Kipawa Alkaline Syenite Complex. The property includes the partially drilled Kipawa Deposit, site of an historic Y and Zr resource calculation by Unocal circa 1990.
Figure 1. Location Map: http://media3.marketwire.com/docs/fig1-eng.JPG
Logistics
Area topography is characterized by small hills with a total relief of about 100 m, while vegetation consists of a mixed forest which has been partially logged. Bedrock can be found under a moderate amount of overburden (0-30 m.). Access to the property via Temiskaming, Bearn or Val d'or is provided by a network of logging roads of variable quality. These towns are all connected by well maintained paved roads. In addition, Temiscaming is linked to North Bay and Sudbury via a railroad operated by the Ottawa Valley Railway Company.
Geology
The Zeus property covers most of the Kipawa Alkaline Complex (KAC): a concordant folded sheet of mildly peralkaline syenite and granite less than 200 m thick (see Figure 2: Geology and historical mineralization on the Zeus property). The KAC lies entirely in metamorphosed Precambrian gneiss of the Grenville Province, between a paragneiss unit and a quatzofeldspathic gneiss unit acting as the footwall. The KAC has been divided into two main units in the mineralized zone: a peralkaline granite gneiss unit and a syenite gneiss unit (with calc-silicates rocks interlayered within the syenite gneiss). The numerous REE-Y-Zr showings doting the property are centered in and around those syenites.
Figure 2. Geology and historical mineralization on the Zeus property: http://media3.marketwire.com/docs/fig2-eng.JPG
Project History
Exploration was initiated in the region after gold-uranium mineralization was found in 1957 at Hunter's point by Hollinger Quebec Exploration Co. Ltd. (Hollinger), some 26 km northwest of the Zeus property (best value of 0.97% U and 10 g/t Au over 22.5m of channel sampling). Subsequent exploration, along with the recognition of the KAC which underlies part of the Zeus property, can be divided in three broad periods.
Prior to 1985, most of the exploration work was oriented towards uranium and was concentrated near Sheffield Lake. Though only sporadic U values were discovered during this period, most notably on the Valdez-Nuspar Zone (0.07% U over 2 metres), REE minerals were identified by Hollinger, Imperial Oil and Sturdy Mines in the area east of Sheffield Lake while Valdez Resources and Nuspar Resources identified REE mineralization on the Valdez-Nuspar Zone, south of Sheffield Lake.
From 1985 to 1992, exploration focused on mineral containing rare metals. This wave of exploration was initiated by a study by Dr. Mariano (1985) on the presence of yttrium in eudialytes from varied geologic environments. The main interest in yttrium-bearing eudialyte came as a consequence of the discovery of ion-adsorbed Y and REE in the South China clays which had a profound effect on the sources and world market price of these elements. It was believed that easily-dissolved Y and REE in eudialyte would be a source that could compete economically with the south China clays. Unocal and its subsidiary Molycorp, owner of the Mountain Pass REE deposit in California (USA), were the sole claim owner and operator of this period.
Exploration work conducted by Unocal concentrated on three mineralized zones, which they identified as the Main Zone (identified here as the Sheffield Zone), the PB-PS Zone and the KR Zone (identified here as the Valdez-Nuspar Zone). Unocal's goal was to evaluate the Y-Zr potential of the property, including a general evaluation of its lanthanide potential. Exploration work included:
- Geological mapping, rock chip sampling, airborne radiometric-magnetic-VLF surveys on the KAC and adjacent metasediments, ground radiometric and magnetic surveys, a soil geochemical survey;
- Thirteen 100-meter overburden trenches were dug and channel-sampled on the Kipawa deposit in 1990 for a total of 666.5 meters sampled.
- Diamond drilling, mainly on Sheffield Zone (1988: 12 DDH on 980 m and 1990: 27 DDH on 1531 m, for a total meterage of 2,511 m; and 5 DDH on the PB Zone on 464m);
- A study of the yttrium-bearing minerals undertaken by Dr. Mariano;
- Six 300 to 800 lbs bulk samples and four 50 lbs bulk samples were also blasted from the trenches. Four of those samples were sent to Mountain States R&D International Inc. for preliminary metallurgical testing;
- These DDH, channel and bulk samples allowed Unocal to realize a first resource calculation on the Kipawa Deposit.
From 2001 to 2009, exploration work was oriented towards diamonds, uranium, uranium-gold, gold and REE-Y-Zr. Presently, the main exploration players in the KAC are Aurizon Mines Ltd. (Aurizon) and Matamec. Since 2005, Aurizon has announced that it delineated four gold dispersal trains following a till survey (till up to 16.9 and 100 g/t Au) and discovered the Eagle and Snake REE showings. Aurizon carried out a drilling program during the summer of 2008, mainly for gold, uranium and REE mineralization. Four DDH targeted the Snake REE Zone with the best intersection consisting of 38.1 m at 0.074% REE+Y. Since 2007, Matamec continued exploration work begun on the mineralized zones discovered in past, mainly the Sheffield Zone, and discovered in 2008 four new REE-Y-Zr zones, namely the Couleuvre, Falaises, TH and Surprise showings.
Mineralized Zones
Seven REE-Y-Zr mineralized zones and showings are located on the property: the Sheffield zone, PB-PS, Valdez-Nuspar (eastern extension-last 600 m included in the Zeus property) and the Couleuvre, Falaises, TH and Surprise showings (see Figure 2: Historical mineralization).
Sheffield Zone (also known as the Kipawa Deposit)
The Sheffield Zone is the best mineralized of the existing zones and was defined over a length of 1,300 m with a width ranging from 10 to 80 m. The main characteristic of the zone is its three types of mineralization. From the upper syenite portion to the lower calc-silicate dominant part of the calc-silicate/syenite complex (see Figure 3: Sheffield Zone - Schematic cross section), we find an eudialyte dominated zone (REO Wt: up to 10%), then a mosandrite/yttro-titanite dominated zone (REO Wt: up to 65%) and finally a britholite dominated zone associated with the lower calc-silicate rocks (REO Wt: up to 62%). Zr is generally more uniformly distributed than Y in the Sheffield zone and occurs in some horizon independent of Y and REE. REE mineralization features enrichment both in LREE and in HREE and shows well-crystallized medium grains which are amiability to physical separation and easy chemical dissolution.
Figure 3. Sheffield Zone - Schematic cross section: http://media3.marketwire.com/docs/fig3-eng.JPG
Y and Zr mineralization on the Sheffield Zone has been the subject of an historical resource calculation which returned 2.27 Mt grading 0.11% Y and 0.78% Zr (see next section for details). It should be noted that REE content was not systematically measured in drill holes at the time since the main element considered was yttrium. REE mineralization is therefore known through the analysis of bulk samples. Four of these were analyzed for Y, Zr and Ce and three were analysed for Y, Zr and REE as shown in the following tables:
Table 1: Summary of Unocal bulk samples (%)
-----------------------------------------------------------
Location Sample Weight
number in kg Y% Ce% REE% Zr%
-----------------------------------------------------------
West Zone 88-K-1 20 0.53 - 0.86 -
-----------------------------------------------------------
90KBS-1 350 0.53 0.33 - 1.2
-----------------------------------------------------------
88-K-3 20 0.51 - 1.41 -
-----------------------------------------------------------
Central Zone 90KBS-3 350 0.25 1.01 - 0.32
-----------------------------------------------------------
90KBS-5 350 0.41 1.01 - 0.95
-----------------------------------------------------------
East Zone 88-K-4 20 0.23 - 1.75 -
-----------------------------------------------------------
90KBS-2 350 0.24 0.62 - 0.42
----------------------------------------------------------- Table 2: REE distribution for three Unocal bulk samples
------------------------------------------------------------
Rare Earth 88-K-1 88-K-3 88-K-4
Elements (ppm) (ppm) (ppm)
------------------------------------------------------------
Trench # 1 2c 3
------------------------------------------------------------
Mineralized Zone Eudialyte Mosandrite/ Britholite
Yttro-titanite
------------------------------------------------------------
Y: Yttrium 5300 5120 2280
------------------------------------------------------------
La: Lanthanum 1280 2130 4600
------------------------------------------------------------
Ce: Cerium 2280 4640 7820
------------------------------------------------------------
Pr: Praeseodymium 330 660 830
------------------------------------------------------------
Nd: Neodymium 1200 2490 2490
------------------------------------------------------------
Sm: Samarium 340 690 430
------------------------------------------------------------
Eu: Europium 50 85 45
------------------------------------------------------------
Gd: Gadolinium 430 690 260
------------------------------------------------------------
Tb: Terbium 85 170 70
------------------------------------------------------------
Dy: Dysprosium 870 1050 350
------------------------------------------------------------
Ho: Holmium 175 260 85
------------------------------------------------------------
Er: Erbium 700 700 260
------------------------------------------------------------
Tm: Thulium 90 90 35
------------------------------------------------------------
Yb: Ytterbium 700 440 180
------------------------------------------------------------
Lu: Lutetium 90 55 25
------------------------------------------------------------
Th: Thorium 60 530 1,760
------------------------------------------------------------
In addition, on June 16th, 2009, Matamec received SGS Geostat independent report on the re-sampling of four of Unocal's thirteen historic trenches (see Matamec's press release on June 30, 2009). These four channels were reproduced by Matamec in order to verify previous historic results and to test REE distribution over their entire length. Two trenches tested the width of the Western Sheffield Zone (trenches T-1 and T-3), one tested the Eastern Sheffield Zone (trench T-8) and the last tested the zone between the two which has no calculated historic resources (trench T-11). It should be noted that on trenches T-8 and T-11, sites of 3 historic blast sites (KBS-2, KBS-3 and KBS-5), could not be re-sampled due to highly-irregular trench floors (total length of 5 m in T-8 and 20 m in T-11, see Table 1 for those intersections). Results are presented in Table 3 (for sampling Quality Control and selection of the most appropriate analysis method, see SGS report, appendix III to the NI 43-101 technical report).
Table 3: Summary of 2008 channeling results (%), averaged by trench
Table 3 is available at the following address: http://media3.marketwire.com/docs/tab3-eng.pdf
Y and Zr Historic Resources on the Sheffield Zone
In terms of historic resources, the Sheffield Zone is composed of the West Main Zone (1.26 Mt @ 0.15% Y2O3 and 0.96% ZrO2) and the East Main Zone (1.009 Mt @ 0.14% Y2O3 and 1.17% ZrO2). Please note that as a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, the issuer is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon.
Unocal's drill holes were designed to be short and only a few penetrated into the lower calc-silicate dominant part of the unit (12 DDH on a total of 34) and none tested the down-dip extension of the deposit at depth (i.e. towards the south-west).
In addition, the central part of the Sheffield Zone, 620 metres long, has been trenched (1990) and drilled (1988) only at very wide spacing and therefore has no established resources. However every drill hole and trench in this zone contains mineralization of potentially economic grade and width. In addition,
For the 1990 resource calculation, J.F. Allan, a geologist contracted by Unocal and Molycorp, used the homogeneous block method based on channelling and drilling assays. Each homogeneous block is based on surface sampling from one trench and core sampling from 2 or 3 underlying drill holes at a spacing of 50-75 metres. Due to its favourable location, an open pit method for the mining of yttrium mineralization was contemplated at the time.
The Kipawa deposit is presently considered open both laterally and at depth.
Metallurgy conclusion on the Sheffield Zone
According to Leslie Heymann, REE mineral processing expert, the Kipawa deposit is a potential source of heavy rare earths. It will compete with the South China clays and the dissolution of Xenotime at the high value end of the rare earth market. If the liquid/solid separation step can be solved, it is anticipated that production costs per kg of rare earth oxide produced will fall somewhere between those of the two processes identified above.
Six other REE-Y-Zr zones and showings found to date
As well as the Sheffield zone, six other REE-Y-Zr mineralized zones are located on the property: PB-PS, Valdez-Nuspar (eastern extension-last 600 m included in the Zeus property) and the Couleuvre, Falaises, TH and Surprise showings (see Figure 2: Historical mineralization). Exploration by Unocal to the end of 1990 delineated two zones of Y and Zr mineralization: PB-PS and Valdez-Nuspar. The PB-PS zone rest at the base of the KAC, in syenite gneiss and calc-solicate rocks, while the Valdez-Nuspar zone is thought to be a sill intruding the overlying metasedimentary gneiss. The mineralized zones are conformable with the layering of the enclosing rocks.
The PB Zone is located 2.5 km south-east of the Sheffield Zone and corresponds to a radiometric anomaly caused by boulders and fine fraction of till containing britholite enriched in thorium. Two of the five holes drilled in 1990 nearest to the Kipawa River intersected significant Y and Zr values contained in a fairly thick calc-silicate horizon. As for the PS Zone, it is located on the north of the Kipawa River, facing the PB Zone. It too corresponds to a boulder field, though of a more syenitic nature.
The Valdez-Nuspar Zone consists of a series of east-west sills on the south shore of the Kipawa River, 2 km south-east of the PB and PS Zone. The presumed eastern extention of those sills, as defined by one of Nuspar Resources's historic radon surveys, rests within the Zeus property boundary.
The other four showings are recent discoveries by Matamec. The TH showing (Y-Zr-REE) is located in the north section of the property, in the same area as the Eagle showing of Mines Aurizon. The TH showing lies at the centre of a 200m east-west by 700m north-south soil anomaly and consists of 4 outcrops on the eastern face of a low-lying hill trending north-south. The showings does have interesting REE, Y and Zr values (7.19% REE, 2.16% Y and 2.9% Zr). The distribution of outcrops combined with the size of the soil anomaly indicates at least the possibility of an economic extension for this showing. The Surprise showing (Y-Zr-REE-Nb) is located in the far eastern section of the property and is hosted in biotite and amphibole-rich rocks with large quantities of associated garnets. It is interesting to note that this new type of mineralization shows greater relative enrichment of more valuable HREE versus the LREE as compared with the classic Sheffield Zone type. This makes it a valuable exploration target should significant volumes be located.
Of lesser importance but potentially leading to mineralization of greater volume, the Couleuvre (Y-Zr-REE) and Falaises (Zr-REE) Zones are located in the heart of the property and are associated respectively with a thin intermediate sill and with marbles.
Samples of these four new Y-REE-Zr showings were sent to Universite Laval in Quebec City in order to identify Y-REE-Zr bearing minerals. The results of this work will be known later this summer.
Conclusions
REE mineralization is spatially and genetically associated with the KAC. Whereas REE mineralization is widespread within the KAC, the best occurrences discovered to date are associated with two horizons: the base of the KAC and an horizon of sills intruding the overlying meta-sedimentary gneiss. The vast majority of the REE occurrences, both in bedrock and in boulders, are under-explored and need further exploration work. Given the widespread REE mineralization present within the KAC and the very poor bedrock exposure, it is concluded that there is very good potential for the KAC to host additional, yet undiscovered REE deposits. Finally, the Zeus property possibly holds a potential for precious metals Au, Pt, Pd, as well as U, mineralization associated with unrecognized hydrothermalism or small magmatic system.
Recommendations and budget
The two most economically significant areas (where potentially ore grade values are widespread and concentrated) are the Sheffield Zone and the PB-PS Zones. A two phase exploration program with a budget of 1.35 M$ targeting REE, U and Th associated with the Y-Zr bearing KAC, and possible Au mineralization on the Zeus property. The phase I ($974,800) consists of a systematic re-evaluation and resource consolidation on the Sheffield Zone including data-compilation, trenching ($40,000), channel sampling ($16,000), definition drilling (2,000 metres HQ proposed drilling: $400,000, see Figure 4 for location of the proposed 1,305 metres drilling program on Sheffield Zone), laboratory assays ($156,000), and extractability study ($250,000). Altough the entire Zone will be covered, emphasis is to be directed on the following known targets:
- the Central Zone, part of which is under-explored, correlation work done by the first author suggesting that the mineralization zones could be semi-continuous in this area;
- the lower part of the syenite unit, under-explored by Unocal's 1988 and 1990 drilling campaigns;
- Additional drilling ("twinning" of existing holes) in the eastern and western zone to confirm previous results and extends assays to the entire suite of REE;
- Excavating, mapping and channel sampling new trenches;
- Mineralogical and metallurgic testing with a consideration of metal extractability with regards to metal ratio (e.g. U, Th) and REE mineralogy.
If possible, Phase II ($377,000) should be run concurrently with Phase I to cover the entire property. Emphasis is to be directed on known targets.
Figure 4. Sheffield Zone - Proposed drill holes: http://media3.marketwire.com/docs/fig4-eng.JPG
The geological data in this press release was prepared by Aline Leclerc, geologist and Matamec's Vice-President Exploration, a Qualified Person as defined by NI 43-101.
About Matamec
Matamec is exploring for significant gold deposits in the Timmins mining camp in Ontario, of which the three main targets are the following: Matheson JV with Goldcorp Canada Ltd and Goldcorp Inc., Montclerg and 2W properties. In Quebec, the Company is exploring mainly for precious and base metals on Lesperance/Wachigabau with Northern Superior Resources Inc., Sakami, Tansim, Valmont and Vulcain properties, rare metals and uranium on Tansim, and REE on Zeus property.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts:
Matamec Explorations Inc.
Andre Gauthier
President
514-844-5252
info@matamec.com
www.matamec.com
SECURITY ADDITIONS
DL Date Symbol Company Name Effective Date OATS Reportable Flag Comments
7/23/2002 MTCEF Matamec Explorations Inc (Canada) 7/24/2002
http://www.otcbb.com/asp/dailylist_search.asp?SearchSymbolForm=TRUE&OTCBB=ALL&searchby=symbol&searchfor=mtcef&searchwith=Starting
Followers
|
10
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
103
|
Created
|
07/21/09
|
Type
|
Free
|
Moderators |
The Matamec Gold division comprises 8 properties, with another 2 in the process of acquisition. The company focuses on acquiring high-potential properties in Québec and Ontario that share geological settings with gold mines in production. These include:
The Matamec Energy division is focused on the exploration and development of properties that feature key elements related to energy. These include its flagship project, the Kipawa Rare Earths JV, a joint venture with Ressources Québec located in the Témiscamingue region. The Kipawa deposit features light and heavy rare earth elements, and is enriched in heavies.
The Matamec Energy division portfolio also includes lithium deposits at the Tansim, Opinaca Lithium and R2D2 properties; cobalt and silver at the Fabre property; and nickel, copper, cobalt and platinum group metals at the Vulcain property.
Guy Desharnais, P.Geo., Ph.D. (OGQ No.1141), is a Qualified Person as per NI 43-101; he is employed by SGS Canada Inc., is independent of Matamec, and has reviewed and approved the technical content of the properties in this section.
Total Shares Issued and Outstanding 136,079,794 | : | ||
Shares Under Option Plan* | : | ||
Share Purchase Warrants Outstanding ** | : | ||
| |||
Total Shares Fully Diluted | : |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |