Matamec Explorations Inc.: Kipawa HREE Project Feasibility Study
Progressing As Scheduled
MONTREAL, QUEBEC -- (Marketwire) -- 09/13/12 -- Matamec Explorations
Inc. ("Matamec" or the "Company")(TSX VENTURE:MAT)(OTCQX:MHREF) and
Toyotsu Rare Earth Canada, Inc. ("TRECan") are pleased to announce
that the Kipawa heavy rare earth project feasibility study is
progressing as scheduled, the results of which are expected by
PRESS RELEASE HIGHLIGHTS
-- The feasibility study mandate was awarded last May 2012 to a consortium
of two engineering firms which are Roche and Genivar;
-- A 16,158-metre drilling campaign was completed (see September 10, 2012,
press release on):
-- To define all resources within the pit outline to the measured
category (177 holes);
-- To establish the quality of the rock around the deposit for use in
the design of the future open pit (5 geotechnical holes);
-- To furnish material to be used to establish the effects of
variability in grade and mineralogical content in the Kipawa deposit
-- The hydrometallurgical pilot plant successfully extracted critical HREEs
and produced a rare earth concentrate (see press release on September
-- Golder & Ass. have been carrying out the environmental and social impact
assessment ("ESIA") since may 2012 (see press release on September 12,
After reviewing the preliminary economic assessment, it was decided
by Matamec and TRECAn to skip the pre-feasibility phase and to
proceed directly with the feasibility study. The feasibility study
mandate was awarded last May 2012 to a consortium of two engineering
firms which are Roche and Genivar. As mentioned in a previous press
release, Matamec and TRECan, a Canadian subsidiary of Toyota Tsusho
Corp., reached an agreement in July and now have a joint venture
agreement for the Kipawa HREE Project.
The completion of a 16,158-metre drilling campaign followed by a
mineral resource estimation update, the conclusion of the mineral
processing pilot plants and the start-up of the ESIA were the three
key items to complete before the feasibility study could be
accelerated. Matamec now confirms that the feasibility study is
planned to be delivered by Q2-2013, as previously scheduled.
Matamec's experienced project management team is coordinating the
different employees and firms involved in the feasibility study in
order to keep the project on schedule. At the moment, the main focus
is to finalize the setting of design criteria in all aspects of the
project. Most of the advanced design criteria and process flowsheets
will be completed in September. The rest of the feasibility study
will follow as planned. To summarize, the feasibility study is
progressing on many fronts simultaneously.
Andre Gauthier, President and CEO of Matamec stated: "due to its good
location and its fairly simple metallurgy, the Kipawa project shows a
potential mine operation start-up for the last quarter of 2015.
However, in light of the Quebec Government's recent legislative
examination of the act respecting the development of mineral
resources in keeping with the principles of sustainable development
(Bill n degrees 14), we will have to remain vigilant and put a lot of
effort in foreseeing public hearing requirements."
Bertho Caron, V-P Project Development & Construction (Eng.) is
Matamec's Qualified Person for this press release.
Matamec Explorations Inc. is a junior mining exploration company
whose main focus is in developing the Kipawa HREE deposit with
Toyotsu Rare Earth Canada, Inc. ("TRECan"). Following the positive
conclusion of the PEA study filed on SEDAR in March 2012 and the
hiring of a V-P 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
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
"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."
Matamec Explorations inc.
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