Watch GWMG while you wait...lol...Sure to get interesting just don't kick yourself to hard but think of it as you were warned...Now sit back and enjoy as GWMG climbs to the top.
The mining sector was until now one of the slow growing sectors. It currently stands at 4 percent but will soon increase its contribution to the local economy. Al least three new mining companies will soon open doors. These are RARECO, Pretoria Portland Cement and Tormin Minerals that will extract rare earth minerals near Kliprand, lime near Vanrhynsdorp and heavy minerals at the coast respectively.
Steenkampskraal where the mine is located is a monazite operation. There are sufficient reserves for 10 years. The mine has not been in production for forty years and will require a newly appointed workforce. There is capacity for 147 employees. Minerals are mined and process on site. Further processing will take place at a Mineral separation plant (MSP) to be located in the industrial area of Vredendal-North
Permission has been granted by the Department Minerals Resources to continue with mining operations. Mining operations are planned to commence
Getting the EIA approved in time, late approval will have negative effects on the MSP project. Maintenance of the gravel road from the mine to the N7
Vredendal Separation Plant Basic Assessment Report: GWMG commissioned Savannah Environmental (Pty) Ltd., of Gauteng, South Africa, to prepare a Basic Assessment Report ("BAR"), which addresses all regulatory and environmental requirements for projects located on the industrial zoned land on which GWMG plans to construct its separation plant (see GWMG news release August 30, 2012). During the development of the BAR, the Company made the decision to increase the amount of land designated for the separation plant to 19.9 hectares on the advice of its technical advisor on the project, Ganzhou Qiandong Rare Earth Group Ltd. ("GQD"). As a result of the site expansion, a road transport study was necessitated. GWMG anticipates the expanded report will be submitted to the South African Department of Environmental Affairs and Development Planning by mid-February 2013. In addition, a Land Use Planning Ordinance ("LUPO") application is underway through the Company's consultants, Planning Partners. The preliminary LUPO application for rezoning has been submitted, accompanied by information and technical studies from the draft BAR, to the Matzikama Municipality. It is anticipated the LUPO application process will be completed by the end of the 1st Quarter of 2013.
Steenkampskraal Mixed Chloride Production Plant: GWMG's mixed chloride production plant contractor, DRA Mineral Projects (Pty) Ltd., has developed a revised "Work Breakdown Structure" and is fully engaged in the tendering process for goods and services for the construction of the mixed chloride plant at the Steenkampskraal site. GWMG is targeting the 1st Quarter of 2013 for the commencement of on-site
Preliminary Economic Assessment ("PEA"): GWMG plans to issue a media release that contains the results of its PEA in January 2013. While the Company had targeted the issuance of the release for the 4th Quarter of 2012 it was determined that the relative complexity of the PEA, incorporating mining, chloride production, separation, metal making, alloy manufacturing and product sales, meant that additional time would be required in order to integrate all components of the analysis. In addition, during the course of work on the PEA, GWMG made the decision to undertake a revised resource estimate. This extended, yet again, the scope of work to be incorporated into the PEA.
Planned Milestones for Early 2013: During the early stages of 2013, GWMG anticipates the execution of a number of significant milestone events as it continues to develop as a first mover in the rare earth industry outside of China and one of the most fully integrated rare earth companies in the world. These milestones include:
Preliminary Economic Assessment: As noted, the PEA news release scheduled for January 2013, is to include confirmation of estimated capital expenditure requirements for the mine, mixed chloride facility and separation facility, estimated operating expenditures for the fully integrated business model, a new resource estimate and timelines for the next steps in the Steenkampskraal construction process. Significantly, the PEA will enable the Company to publicly discuss financial projections for the fully integrated business model.
An announcement that production using the new strip cast furnace has commenced on a commercial basis at the Company’s wholly owned subsidiary Less Common Metals ("LCM") in the United Kingdom.
An announcement that LCM’s second strip cast furnace has arrived and is being commissioned for production.
Updates on the chloride production plant at Steenkampskraal.
Updates on the separation plant at Vredendal.
Updates on the Company’s previously announced evaluation of the spinoff of its non-South African exploration properties.
Additional assay results from the ongoing exploration program at GWMG's Steenkampskraal operation.
GWMG Interim President and Chief Executive Officer Robert Quinn said, "We realize the past months have been a trying time for investors. Company management is aware of the impact of slippages from previously announced time targets. We remain committed to executing our plan that will create one of the most highly integrated rare earth companies outside of China. As we continue through the process with the milestones noted in this release we believe the market will be able to see, with increasing clarity, the financial strength of the business model that has been envisaged since the formation of GWMG."