Last updated on April 16, 2014 at 1:21 EDT

Great Western Minerals Group announces an increase in the mineral resource estimate on Steenkampskraal rare earth deposit, South Africa

January 21, 2013

TSX Venture Symbol: GWG

CUSIP: 39141Y 10 3

SASKATOON, Jan. 21, 2013 /PRNewswire/ – Great Western Minerals Group Ltd.
(“GWMG” or the “Company”, TSX:V – GWG)  today announced that its
updated National Instrument 43-101 resource estimate and technical
report (the “NI 43-101 Report”) shows a significant increase in the
mineral resource (both Indicated and Inferred categories) compared to
the Company’s previously released NI 43-101 report of May 18, 2012.

The updated NI 43-101 Report, which has been prepared by Snowden Mining
Industry Consultants Inc. (“Snowden”) for the Company’s Steenkampskraal
rare earth property located in the Western Cape of South Africa, is
dated effective December 15, 2012 and will be filed and available under
the Company’s SEDAR profile at www.sedar.com within 45 days.


        --  A mineral resource estimate of 32,000 metric tonnes of total
            rare earth oxides plus yttrium oxide ("TREO") under the
            Indicated category and 42,100 metric tonnes of TREO under the
            Inferred category, each using a 1% TREO cut-off grade (the
            "Resource Estimate").
        --  The new results demonstrate the success of GWMG's exploration
            programs at Steenkampskraal with a 114% increase in the
            Indicated Resource and a 218% increase in the Inferred Resource
            as compared to May of 2012.
        --  The drilling program continues at Steenkampskraal with goals
            of: expanding the Resource Estimate; increasing the confidence
            in the geological model, upgrading the categories of reported
            resources; providing technical data for mine planning; and to
            check for mineralisation in those areas of the property where
            the concentrator and other infrastructure facilities will be
        --  The core logging and assay results of 55 completed drillholes
            remain to be evaluated and reported in a future update.

Resource Estimate

This Resource Estimate, which incorporates and supersedes that reported
on May 31, 2012, indicates a significant increase in tonnage of the
deposit primarily as a function of increased drilling along strike to
the East (as shown in Table 1, below).  The Resource Estimate includes
the historic mine area (the “Monazite Mine Area”), the exploration
areas to the east and west of the past producing Monazite Mine Area
(the “EXP Area”) and the upper and lower tailings dams.

Table 1: Updated Mineral Resource Estimate for Steenkampskraal at a 1%
cut-off grade (as of October 31, 2012)

    Updated Resource    Monazite   Average    Contained    LREO2    HREO2
        Estimate1        Tonnes     TREO%    TREO tonnes   tonnes   tonnes

      Monazite Mine

           Indicated     71,500      23.0       16,400     15,200   1,260

           Inferred      95,800      17.1       16,400     15,100   1,270

      EXP Area                                                          

           Indicated     68,200      18.1       12,400     11,400     970

           Inferred     181,000      14.2       25,600     23,500   2,100

      Upper Tailings                                                    

           Indicated      8,000       9.3          700       700       60

           Inferred       1,200       7.5          100       100       10

      Lower Tailings                                               

           Indicated     28,600       8.8        2,500     2,300      210

           Inferred          0                      0         0        0

      Category Totals
      for Updated

           Indicated    176,000      18.2       32,000     29,600   2,500

           Inferred     278,000      15.2       42,100     38,700   3,400

    Previous (May
    2012) estimate                                                      

      Total (Monazite
      Mine Area,
      Upper and Lower

           Indicated     82,090      16.8       13,800     12,700   1,100

           Inferred      87,160      16.2       14,100     13,100   1,100

(1)  For the updated Resource Estimate, “tonnes” and “grades” were
rounded to 3 significant figures. Apparent errors may occur due to

(2) “LREO” means lanthanum (La2O3), cerium (CeO2), praseodymium
(Pr6O11), neodymium (Nd2O3) and samarium (Sm2O3).  “HREO” means
europium (Eu2O3), gadolinium (Gd2O3), terbium (Tb4O7), dysprosium
(Dy2O3), holmium (Ho2O3), thulium (Tm2O3), ytterbium (Yb2O3) lutetium
(Lu2O3) and yttrium (Y2O3).

The additional drilling completed since May of 2012 has provided
significantly more density measurements which has yielded an increase
in the calculated average specific gravity of the deposit from 3.23
g/cm(3) to 3.50 g/cm(3).

Table 2 shows a summary of individual REO results for the in-situ Mine
and EXP Areas, which were the focus of the updated Resource Estimate. 
Complete Resource Estimate results for individual REOs will be
available in the NI 43-101 Report once filed on SEDAR.

Table 2: Updated Mineral Resource Estimate of REO Percentage for the
Mine and EXP Areas at Steenkampskraal using a 1% cut-off grade (as of
October 31, 2012)

    |           | Resource|Y2O3|La2O3| CeO2 |Pr6O11|Nd2O3|Sm2O3|Eu2O3|Gd2O3|Tb4O7|Dy2O3|Ho2O3|Er2O3|Tm2O3|Yb2O3|Lu2O3|
    |       Area| Category| %  |  %  |  %   |  %   |  %  |  %  |  %  |  %  |  %  |  %  |  %  |  %  |  %  |  %  |  %  |
    |           |Indicated|0.91|4.780|10.500| 1.180|4.100|0.643|0.014|0.436|0.052|0.221|0.033|0.065|0.006|0.025|0.003|
    |       Mine|_________|____|_____|______|______|_____|_____|_____|_____|_____|_____|_____|_____|_____|_____|_____|
    |           | Inferred|0.69|3.530| 7.830| 0.887|3.090|0.484|0.010|0.326|0.038|0.166|0.025|0.049|0.005|0.019|0.002|
    |           |Indicated|0.73|3.820| 8.130| 0.926|3.310|0.513|0.011|0.357|0.042|0.174|0.026|0.052|0.005|0.020|0.002|
    |           | Inferred| 0.6|2.990| 6.320| 0.725|2.600|0.408|0.011|0.280|0.034|0.143|0.021|0.045|0.005|0.020|0.003|
    |      Indicated Total|0.83|4.311| 9.343| 1.056|3.714|0.580|0.012|0.397|0.047|0.198|0.030|0.059|0.006|0.023|0.002|
    |       Inferred Total|0.63|3.177| 6.844| 0.781|2.770|0.434|0.011|0.296|0.036|0.151|0.023|0.046|0.005|0.020|0.003|

GWMG President and Chief Executive Officer Marc LeVier said, “The
substantial increase in TREO tonnage from this Resource Estimate update
significantly improves the economic potential of the Steenkampskraal
Monazite Project. The resource update reported today will be
incorporated into the Preliminary Economic Assessment that is being
prepared concurrently.  We expect the Steenkampskraal analysis will be
bolstered further with the upcoming addition of a minimum of 55
drillholes for which assay work is currently in progress.”

Geology and Mineralization

The Steenkampskraal mineralization consists of a narrow, shallow and
irregular dipping (from 10(o) to 60(o) to the south), pinch and swell monazite vein which is exposed at
surface as an east-west striking body (the “MMZ”). It has an average
thickness of about 1.0 metre (“m”), varying from less than 20
centimetres (“cm”) to 9.5m. The vein has been traced for a
strike-length of just over 1,050m and a known southerly down-dip
extension of up to 150m. The Resource Estimate covers a strike length
of about 920m.  The vein structure exhibits good lateral and vertical
continuity.  Mineralization is open on strike in both directions and
down-dip below a depth of 130m along most of the strike length explored
to date.

Mineralogical investigations indicate that the vein is composed
predominantly of the mineral monazite, which accounts for more than 91%
of total rare earth elements, with lesser amounts of rare earth
element-bearing allanite, thorite, and xenotime.  Alteration minerals
are dominated by quartz, Fe-chlorite, magnetic Fe-oxide minerals,
ilmenite, and sulphides including chalcopyrite, pyrite and galena. 
Vein material at Steenkampskraal contains from 0.4% to 46% TREO with
the average grade typically dependent on the amount of diluting
materials (such as quartz, feldspar, magnetite and sulphides) within
the vein structure.


The historic Steenkampskraal mine has been partially rehabilitated by
GWMG and all three access levels and most of the old workings are open
to geological and geotechnical investigations.  Evaluation and
exploration work from September 2011 to December 2012 consisted of
surveying, mapping 67 underground channel samples and199 HQ and NQ
surface drillholes totalling 23,305.31m within the Mine and the EXP
Areas.  In addition, GWMG undertook evaluation drilling and sampling of
the historic tailings dams. The rock dump has also been sampled, but
has not yet been included in the resource estimates.

The May, 2012 estimate reported on 40 initial evaluation and
metallurgical drillholes from the Monazite Mine Area, the first two
exploration drillholes in the EXP Area, and sampling of the tailings
dams.  Subsequent to this investigation, an additional 157 HQ and NQ
size core holes were completed in the EXP Area.  Of these, EXP Area
drillholes STKEXP-003 to STKEXP-105 have been added to the geological
model and Resource Estimate which form the basis for the current NI
43-101 Report.  Drillhole survey information, intercept thicknesses,
lithological descriptions, density measurements, scintillometer
readings, and assay results for drillholes STKEXP-003 to STKEXP-067 are
included in the current NI 43-101 Report, as well as similar
information for drillholes STKEXP-068 to STKEXP-105 (other than assay
results) which were received after the  data cut-off date.

Of the 105 exploration drillholes (STKEXP-001 to STKEXP-105) reviewed by
Snowden, 27 did not intersect the MMZ. The reported “misses” represent
either drilling beyond the vein boundaries, or local areas of
non-mineralization within the “pinch and swell” vein system. Drillhole
fence lines are oriented along down-dip lines perpendicular to strike
on nominal 25m to 50m line spacing, and 25m collar centers.    The
western, eastern and down-dip extensions of the MMZ remain open to
date.  Drillholes STKEXP-106 to STKEXP-159 will be included in a future

Quality Assurance / Quality Control (“QA/QC”)

Caracle Creek International Consultants (Pty) Ltd (“CCIC”) examined the
assay data of the blanks, certified reference materials, and field
duplicates to assess the reliability of the overall assay dataset, and
to assist in the determination of the robustness of the resource
estimation that has been carried out using the assay results. Addition
of quality control samples for all core, channel and tailings samples
amounts to 30% representing approximately 10% each for blanks,
duplicates, and standard references.  It was concluded by CCIC in
general, that the addition of reference material and blanks to the
Steenkampskraal sample batches was sufficiently adequate.

The validated database for the Resource Estimate includes information on
569 samples from 145 diamond drillholes of which 88 drillholes
contained assay data using a September 2012 data cut-off date.  Drill
holes that did not contain assay data were included as they provided
lithological information for the wireframe modelling and radiometric
data was used for potential grade interpolation. The database also
included information for 223 samples from a total of 67 underground
channel sections and 270 tailings samples.

Table 3: Comparison of May 2012 and current databases used for the in-situ Resource Estimate

    |             | May 2012 Database |  Current Database |
    |     Sample  |___________________|___________________|
    |      Type   |  Number   |Number |  Number   |Number |
    |             |Drilled/Cut|Sampled|Drilled/Cut|Sampled|
    |Diamond Drill|      107  |   44  |      145  |   88  |
    |Channel      |      67   |   59  |      67   |   67  |

Limited Grade Estimation using the Scintillometer / TREO% Relationship

REE-bearing minerals at Steenkampskraal have associated thorium and
uranium content and subsequent radioactivity.  Radiation measurements
in counts per second using a Terraplus RS-125 Gamma Ray Spectrometer
were acquired for all samples that were submitted for assay from 127
drillholes and 32 out of 67 channel samples.

There is a strong positive association (correlation coefficient of
approximately 0.95) between TREO grade from assay results and
radioactivity as defined using detailed scintillometer measurements. 
The linear formula generated by the correlation was subsequently
applied to obtain an indicative TREO% in all drillholes that have been
sampled, have radiometric measurements, and are awaiting assays.

In the absence of chemical assays, it is Snowden’s considered opinion
that because of the strong relationship between the scintillometer
measurements and the TREO grades at Steenkampskraal, the application of
the TREO-radioactivity correlation is sufficiently reliable to estimate
“calculated and inferred” grades for the drillholes missing assay
values at a low to moderate level of confidence, and that these values
are suitable for use in the estimation of an Inferred Resource.

Modelling and Estimation Method

The mineralized zone wireframe, representing the MMZ, was generated
using Leapfrog(TM) software after much verification work, based on drill
intersections of the MMZ and guided by the available geological
information.  All of the assay intervals falling within the MMZ were
composited to the dominant sample length of 0.5m.

Establishment of Block Models and Variography Analysis

The interior of the MMZ wireframe was populated with blocks measuring
10m by 10m by 0.5m using Datamine(TM) Studio version 3 software. 
Sub-blocking was used to provide for a more accurate volume
determination; the smallest dimension for sub-blocks being 1.25 m by
1.25 m by 0.1 m. No rotation of blocks was applied as the strike and
dip of the monazite was honoured through the small dimensions of

Variograms were generated for each of the rare earth oxides (“REOs”) as
well as yttrium, thorium and uranium, and only using the assay data
from the MMZ.  Spherical, two structured, directional variogram models
were used.  Down-hole variograms were calculated and modelled to
determine the nugget variance for the variogram models. The data
occurring within the MMZ wireframes were combined for the three main
zones to generate more robust variograms.  The nugget, determined from
the down-hole variogram, ranges from 28% to 35% of the total variance
of the data. The variograms showed well developed structure and long

The combined block model (unclassified and depleted) comprises 8,358
indicative value estimated blocks out of 40,702 total blocks.  None of
the blocks estimated using the indicative data are reported as part of
the Indicated Resource.

Grade Interpolation Parameters

Block grades for the individual REOs, yttrium, thorium and uranium were
estimated using ordinary kriging. Four domains were delineated based on
the location of major faults, and a small area of complexity
characterized by bifurcation or interleaving of several monazite
veins.  The zones were estimated separately and individual block models
combined for classification.

TREO%, LREO% and HREO% values, which were calculated for reporting by
combining the estimated grades of the individual REOs, were also
estimated in the block model as a check to ensure the preservation of
the total package and for validation, but these were not reported.

The final block model was a combination of two estimates; initially
using composited assay data to estimate the blocks, and secondarily
using the composited assay data as well as composited radiometric
generated indicative grades (from drill holes where mineralization was
logged and sampled but awaiting assays).

Density values were estimated into the block model using the Inverse
Distance (“ID”) estimation method.  ID was used because there were
insufficient drillholes with density values to form structured

The block model was depleted for ‘past production’ using current survey
information pertaining to the underground development and mined-out
areas.  This ensured that stopes and development workings were not
included in the Resource Estimate.

Previous Resource Estimate for Tailings Dams

The Resource Estimate restates the resources in respect of the tailings
dams, the results of which remain unchanged from the May 2012
estimate.  A gridding approach was used to sample the tailings dams
with sample holes at 10m spacing over the extent of the two tailings
dams. Samples were collected on a per metre basis using a “Shelby tube”
that was manually driven into the tailings to the base of the pile. The
larger of the tailings dams contained material up to 2m thick and the
smaller dam up to 4m thick. Sample material from each station, and each
metre depth, were divided in a three level riffle-splitter to make
representative sub-samples for independent grade analysis by SGS Canada
and metallurgical studies by Mintek Analytical Services Division. This
procedure was subject to the same QA/QC as for the drill core.  The
database of the tailings dams comprised information from 270 drill

Qualified Persons

The NI 43-101 Report was prepared by Mr. Ivor Jones, (BSc. Hons), MSc,
FAusIMM, CP Geo., the Group General Manager of Geosciences with
Snowden.  He contributed to and supervised the Resource Estimate for
the main monazite deposit as well as the tailing dams.  Mr. Jones
consents to the inclusion in this news release of the matters based on
his information in the form and context in which it appears. Mr. Jones
has sufficient experience relevant to the type of deposit under
consideration and to the activity which he is undertaking to qualify as
a Qualified Person as defined under NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101″) and supervised the preparation of the contents of the
Resource Estimate section of this news release.

Snowden was assisted by Dr. John Hancox, Pr.Sci.Nat., of Caracle Creek
International Consulting (Pty) Limited of Johannesburg. Dr. Hancox
provided geological interpretations and the drillhole and underground
channel sampling database for the Resource Estimate. Dr. Hancox has
sufficient experience relevant to the style of mineralization and type
of deposit under consideration and to the activity which he is
undertaking to qualify as a Qualified Person as defined under NI 43-101
and supervised the preparation of the contents of the geology,
exploration, and data assurance sections of this news release. Dr.
Hancox consents to the inclusion in this news release of the matters
based on his information in the form and context in which it appears.

Brent C. Jellicoe, B.Sc. (Hon.), P.Geo., Director of International
Exploration for GWMG, is the Qualified Person responsible for
supervising the preparation of the technical content of this news

About Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd. is engaged in becoming an integrated
rare earth producer. Its specialty alloys are used in the battery,
magnet and aerospace industries. Produced at the Company’s wholly owned
subsidiaries Less Common Metals Limited in Ellesmere, U.K. and Great
Western Technologies Inc. in Troy, Michigan, these alloys contain
transition metals including nickel, cobalt, iron and rare earth
elements. As part of the Company’s vertical integration strategy, GWMG
also holds 100% equity ownership in Rare Earth Extraction Co. Limited,
which controls the Steenkampskraal monazite mine. In addition to an
exploration program at Steenkampskraal, GWMG also holds interests in
four active rare earth exploration and development properties in North

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.

Cautionary Statements

Certain information set out in this News Release constitutes
forward-looking information.  Forward-looking statements (often, but
not always, identified by the use of words such as “expect”, “may”,
“could”, “anticipate” or “will” and similar expressions) may describe
expectations, opinions or guidance that are not statements of fact and
which may be based upon information provided by third parties.
Forward-looking statements are based upon the opinions, expectations
and estimates of management of GWMG as at the date the statements are
made and are subject to a variety of known and unknown risks and
uncertainties and other factors that could cause actual events or
outcomes to differ materially from those anticipated or implied by such
forward-looking statements. Those factors include, but are not limited
to, risks associated with the uncertainty of resource estimates, in
particular those relating to Inferred resources;  risks relating to
estimating grades, in particular where interpolation is used to
estimate grades; the successful and timely completion of its
preliminary economic assessment at Hoidas Lake; the successful and
timely completion and the results of its preliminary economic
assessment of the Steenkampskraal project; the construction,
commissioning and operation of the proposed monazite processing
facility and separation facility and mine refurbishment activities; the
adequacy of the Company’s financial resources and the availability of
additional cash from operations or from financing on reasonable terms
or at all; reliance on third parties to meet projected timelines and
commencement of production at Steenkampskraal; risks related to the
receipt of all required approvals including those relating to the
commencement of production at the Steenkampskraal mine, delays in
obtaining permits, licenses and operating authorities in Canada, South
Africa and China, environmental matters, water and land use risks;
risks associated with the industry in general, commodity prices and
exchange rate changes, operational risks associated with exploration,
development and production operations, delays or changes in plans;
health and safety risks; uncertainty of estimates and projections of
production, costs and expenses; risks that future Hoidas Lake or
Steenkampskraal and region exploration results may not meet exploration
or corporate objectives; political risks inherent in South Africa and
China; risks associated with the relationship between GWMG and/or its
subsidiaries and communities and governments in Canada and South
Africa, radioactivity and related issues, dependence on one mineral
project; loss of, and the inability to attract, key personnel; the
factors discussed in the Company’s public disclosure record; and other
factors that could cause actions, events or results not to be as
anticipated. In light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place undue
reliance upon forward-looking information. Although GWMG believes that
the expectations reflected in the forward-looking statements set out in
this press release or incorporated herein by reference are reasonable,
it can give no assurance that such expectations will prove to have been
correct. Except as required by law, GWMG does not assume any obligation
to update forward-looking statements as set out in this news release.
The forward-looking statements of GWMG contained in this News Release,
or incorporated herein by reference, are expressly qualified, in their
entirety, by this cautionary statement and the risk factors contained
in GWMG’s Professional Securities Market listing particulars available
at www.sedar.com.

Cautionary Note For US Investors Concerning Estimates of Indicated and
Inferred Resources

This press release uses the terms “Indicated” and “Inferred” resources. 
United States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States
Securities and Exchange Commission does not recognize them. “Inferred”
mineral resources have a great amount of uncertainty as to their
existence, and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an Inferred mineral resource will ever
be upgraded to a higher category. Under Canadian rules, estimates of
Inferred mineral resources may not form the basis of feasibility or
other economic studies except in limited circumstances and with
specific notification to the reader.  United States investors are
cautioned not to assume that all or any part of any mineral resources
will ever be converted into mineral Reserves (as defined under NI
43-101). United States investors are also cautioned not to assume that
all or any part of an Inferred mineral resource exists, or is
economically or legally mineable.

SOURCE Great Western Minerals Group Ltd.

Source: PR Newswire