Great Western Minerals Group Ltd.
TSX Venture Symbol: GWG
Nickel-Cobalt Summer Work Planned
Saskatoon, SK, Monday, June 25, 2007 -The Company reports that work will begin on its Crescent nickel-cobalt property, located in northern California, in early July. The initial work will include baseline surface mapping and sampling in order to confirm previous surface sample results and locate previous drill locations. New drill locations will then be selected for a 2007 fall/winter drill program, the results of which will be used to generate a National Instrument 43-101 compliant resource estimate.
The Crescent property covers 3 areas of nickel laterite mineralization that were well known 30 years ago. Between 1964 and 1972, 124 drill holes and 36 back-hoe pits tested the nickel laterite mineralization. Extensive metallurgical work was also carried out that resulted in the Secretary of the Interior, on behalf of the U.S. government, patenting a leach process designed specifically for the Crescent mineralization with resulting recoveries of nickel and cobalt of 90% and 85% respectively.
In 1986, Davy McKee Corporation completed a "Phase I Feasibility Study" on the property. They assigned an in-situ tonnage of 27,168,290 tons grading 1.0% nickel, 0.13% cobalt and 8.2% magnesium. The economic model was based on a 2,500 ton per day open-pit mining, milling and metal production operation with a capital cost of US$258 million. Using pricing of US$1.82 per pound nickel with an 85% recovery, US$11.00 per pound cobalt with an 85% recovery, and US$1.50 per pound magnesium with a 50% recovery, the project generated an ROI of 20.6%. This study is not 43-101 compliant, and as such a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the economic results reported above are not current, are no longer valid and should not be relied upon. The Company is treating the report as an historical study and is using it as a guideline only for developing the work p
rograms necessary to bring results into compliance with NI 43-101.
"We are anxious to accelerate development of the Crescent Project because of the value-added capability we are developing at Great Western Technologies Inc.", says Jim Engdahl, GWMG President. "Many of the products we are currently producing at GWTI not only contain rare earth elements, but nickel and cobalt as well. It would be a tremendous benefit to have mine-to-market capability for nickel and cobalt as well as the rare earths."
Gary L. Billingsley, P.Eng., P.Geo. is the Qualified Person responsible for the project and has reviewed this release.
Great Western Minerals Group Ltd., is a Canadian based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiary Great Western Technologies Inc., located in Troy, Michigan, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing nickel, cobalt and the rare earth elements.
Jim Engdahl
President
For further information, please contact Ron Malashewski, Manager of Investor Relations at (807) 467-8847. Email inquiries should be made to info@gwmg.ca and the company website is located at www.gwmg.ca. Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 226 Cardinal Crescent, Saskatoon, SK S7L 6H8
Renmark Financial Communications Inc.
Christine Stewart : cstewart@renmarkfinancial.com
John Boidman : jboidman@renmarkfinancial.com
Tel. : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com
(THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE)
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VanEck Vectors Global Alternative Energy ETF
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EXPLORATION STAGE |
CODE : GWG.V |
ISIN : CA39141Y1034 |
CUSIP : 39141Y103 |
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