Great Western Minerals Group Ltd (fka GWG)

[Spartacus77]

Great Western Minerals Group Reports Initial Steenkampskraal Rare Earth Assays (ccnm)



SASKATOON, SASKATCHEWAN--(Marketwire - April 10, 2012) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (OTCQX:GWMGF) today announced assay results for the first batch of samples taken at the Company's Steenkampskraal rare earth operation in South Africa for confirmation of historic work and for metallurgical purposes. 198 of 841 samples submitted to SGS Canada Inc., including QA/QC blanks, duplicates and standards, are reported at this time.

Assay highlights include:

•Underground Channel Sampling: Assays ranging from 15.90% Total Rare Earth Oxide ("TREO") to 40.12% TREO with an average of 23.75% TREO.
•Drill Core: Assays ranging from 0.18% TREO to 31.07% TREO with an average of 13.83% TREO.
•Surface Tailings: Assays ranging from 3.85% TREO to 12.01% TREO with an average of 7.27% TREO.
•Comparison to Historical Data: Higher distribution of Neodymium, Dysprosium and Terbium.
GWMG President and Chief Executive Officer Jim Engdahl said, "These preliminary results are extremely encouraging for two reasons. First, the assays reported have either matched or exceeded the historical data. Second, the comparison of Rare Earth Element ("REE") distribution indicates that Neodymium, the primary REE consumed by our wholly owned subsidiary Less Common Metals, is at a higher distribution level than the historical data indicated. While these assay results are preliminary, we are confident that we will be able to confirm and enhance the historic information as we move toward the preparation of a National Instrument 43-101 technical report."

Underground Channel Sampling: The initial batch of 46 samples, representing 16 underground locations, taken on the 2.5 level along the main zone, over a strike length of 250 meters, returned assays ranging from 15.90% TREO to 40.12% TREO across the mineralized zone with a weighted average of 23.75% TREO:

Channel No. From To True Width (m.) TREO %
STK-C016 0.63 1.82 1.19 24.45
STK-C017 0.00 1.80 1.80 15.90
STK-C018 0.48 1.02 0.54 40.12
STK-C019 0.49 0.94 0.45 19.34
STK-C020 0.53 0.89 0.36 37.72
STK-C021 0.00 0.20 0.20 35.74
STK-C022 0.48 1.05 0.57 22.60
STK-C023 0.00 0.81 0.81 18.86
STK-C024 0.80 1.89 1.09 33.38
STK-C025 0.00 0.20 0.20 36.99
STK-C026 0.30 1.23 0.93 15.97
STK-C027 0.00 1.03 1.03 19.40
STK-C028 0.00 1.00 1.00 27.06
STK-C029 0.00 1.45 1.45 26.41
STK-C030 0.00 0.56 0.56 22.65
STK-C031 0.52 1.25 0.73 17.88

Drill Core: The diamond drill program had two primary goals: firstly, to provide information in support of a fully compliant National Instrument 43-101 resource estimate for the area within the main mine site; and secondly, to collect a representative mini-bulk sample for metallurgical testing. The program comprised 39 diamond drill holes totaling 3,780 meters. This included 17 holes for resource confirmation (1,932 meters) and 22 holes dedicated to metallurgical sampling (1,848 meters). The initial assay batch of 47 samples, representing 8 drill holes, returned grades ranging from 0.18% TREO to 31.07% TREO with a weighted average of 13.83% TREO in the mineralized zone:

Core True
Hole No. Dip (deg.) From To Length (m.) Width (m.) TREO %
STK-104C -77 72.14 72.64 0.50 0.50 0.18
STK-104D -77 75.67 76.28 0.61 0.60 16.33
STK-108A -63 84.87 85.49 0.62 0.60 31.07
STK-112B -60 74.44 75.06 0.62 0.62 16.72
STK-114A -76 85.30 85.80 0.50 0.50 9.83
86.84 87.34 0.50 0.50 7.00
STK-114B -76 85.16 85.66 0.50 0.35 9.08
STK-115A -65 114.21 115.42 1.21 1.19 1.07
STK-119 -61 112.30 113.30 1.00 0.98 29.59

Surface Tailings: Results from the first batch of 54 assays ranged from 3.85% TREO to 12.01% TREO with an average of 7.27% TREO.

Comparative of Tested Distribution to Historical Data: The distribution of rare earth oxides across all three sample areas showed significant improvement for those oxides of importance to GWMG and its alloy processing operations which produce permanent magnet alloys:

Core % Channel % Tailings % Historical %

La2O3 20.13 21.30 20.71 21.67
CeO2 45.73 45.78 44.20 46.67
Pr6O11 5.05 5.06 5.12 5.00
Nd2O3 18.15 17.32 17.63 16.67
Sm2O3 2.79 2.79 2.92 2.50
Eu2O3 0.06 0.06 0.07 0.08
Gd2O3 1.99 1.82 2.14 1.67
Tb4O7 0.22 0.22 0.26 0.08
Dy2O3 1.01 0.95 1.23 0.67
Ho2O3 0.15 0.13 0.18 0.05
Er2O3 0.31 0.26 0.36 0.08
Tm2O3 0.03 0.02 0.03 0.07
Yb2O3 0.11 0.10 0.14 0.07
Lu2O3 0.01 0.01 0.01 0.01
Y2O3 4.26 4.17 5.01 5.00

LREO* 91.88 92.25 90.57 92.51
HREO*-Y2O3 3.90 3.58 4.42 2.78
Y2O3 4.26 4.17 5.01 5.00
HREO* 8.12 7.75 9.43 7.78

Total (rounded) 100.00% 100.00% 100.00% 100.00%

*LREO refers to Light Rare Earth Oxides and includes the oxides of lanthanum, cerium, praseodymium, neodymium and samarium. HREO refers to Heavy Rare Earth Oxides and includes the oxides of europium, gadolinium, terbium, dysprosium, holmium, erbium thulium ytterbium, lutetium and yttrium. The table above shows the HREO proportion both excluding and including yttrium.

Relative to the historical data, the first batch of assays reported indicate: Neodymium having a distribution increase of between 4% and 9%; Samarium having an increase of between 12% and 18%; Dysprosium having an increase in distribution of between 42% and 84%; and Terbium having a distribution increase of between 175% and 225%. As a group the HREO proportion, not including yttrium, showed an increase of between 29% and 59% over historical values.

With 198 of 841 samples returned to date, final conclusions cannot be determined until all results are received, compiled and interpreted. In addition to Rare Earth Oxide analysis, the samples are also being assayed for copper, gold, silver and phosphate content and such results are pending for all of this set of samples.

Sample preparation, being provided by SGS South Africa at their facility in Johannesburg, includes drying, weighing, crushing, screening, and pulverizing. Analytical work for the sampling programs continues at the SGS Canada Inc. laboratory in Toronto, Ontario using a sodium peroxide fusion procedure with ICP-MS finish. SGS Toronto is accredited to ISO 9001 and operates according to SGS Group standards consistent with ISO 17025 methods at other laboratories. Strict internal quality control procedures were implemented using randomly inserted blanks, duplicates, and certified reference materials (standards), which were blinded to the analytical laboratory.

Results from the analyses at SGS Canada Inc. are evaluated continuously by Brent Jellicoe, a Qualified Person pursuant to National Instrument 43-101. Quality assessment of the results from the current data set indicates acceptable accuracy and precision. Blank analyses also indicated no issues with carry-over contamination.

Gary Billingsley, C.A., P.Eng., P.Geo., Executive Chairman of GMWG, is the Qualified Person responsible for supervising the preparation of the contents of the exploration section of this news release.

The complete assay tables and Steenkampskraal exploration map are located on GWMG's website at:
http://www.gwmg.ca/attach_nr20120410gwmg/figures.cfm