All is it took was one hole to get the market in a tizzy over Geomega Resources’ (GMA-V) Montviel rare earths property in Quebec. But what a hole it was.
The hole in question assayed 1.24% total rare earth oxides (TREO) over its entire 480 meters core length, from 21 to 501 metres and included a high grade section of 2.03% TREO over 39.4 meters from 266.6 to 306 metres.
The news was released on Feb. 8, a day after the company’s shares were halted. Before the halt its shares were trading at just $1.30. Three days later, on Feb. 11, Geomega closed at $2.78. On Feb. 11 alone the company’s shares were up 39% or 78¢ on 640,000 shares traded.
It is safe to say that Geomega knows how to make an entrance as the results came out of the first phase of drilling on the property which is underlain by the Montviel carbonatite complex. The complex extends over an area of 32 sq km making it one of North America’s largest carbonatites.
Montreal-based Geomega says he distribution of middle to heavy rare earth oxides (MHREO) content represents up to 22% of TREO in a 7.55 meter core length section from 39.00 to 46.55 metres.
MHREO is defined as samarium through lutetium plus yttrium. Cerium, Lanthanum and Neodymium are the most abundant of the total rare earth elements.
In addition to TREO, Niobium oxide values were also intersected in the hole with best intersection returning 0.158% Nb2O5 over 22.05 metres from 280.95 to 303.00 metres.
The company has thus far drilled five holes for 2,800 metres and plans to keep on drilling until the spring break up.
Montviel sits 200-km north of Val-d’Or in the Abitibi region of Quebec, its being situated near good infrastructure will allow the project to be fast tracked, Geomega says.
The company currently has roughly $2.7 million in the kitty.