* Matamec Expl. Heavy REO (hREO) in Kanada *

Chief St. Denis added "we have determined that a Joint Review Panel pursuant to section 38 © of the CEAA with our Algonquin First Nation Governments would provide a much more appropriate means of evaluating this Project and we have written to the federal Minister of the Environment Peter Kent calling on him to establish a Joint Review Panel."

Eagle Village Chief Madeleine Paul also stated today "from meetings that have been held in our two Algonquin First Nation communities we know that there is a high degree of public concern among our Algonquin Peoples and also within the non-Algonquin population. While the environmental impacts and public concern are reason enough to refer the Project to a review panel, we feel the real opportunity with a Joint Federal-Algonquin Panel is in the potential for inter-jurisdictional cooperation with our two Algonquin First Nation Governments (Eagle Village & Wolf Lake)."

The proponents of the proposed Rare Earth Elements open pit mine are Matamec Explorations Inc. a junior mining exploration company with the financial support of Toyota Tsusho Corporation.

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 the shared territory of the Algonquin First Nations.

Contacts:
Chief Madeleine Paul
Office:  (819) 627-3455
Eagle Village First Nation

Chief Harry St. Denis
Office:  (819) 627-3268
Wolf Lake First Nation

Matamec Explorations proposes the construction, operation and decommissioning of a rare earths open-pit mine about 40 kilometres east of the municipality of Kipawa. The proposed project would process 1.5 million tonnes of ore per year over a 13-year operation period with a daily average extraction rate of 4,200 tonnes. The concentrate would be shipped by train and then by boat to Asian or European refineries. The proposed project would also include the construction of a concentrator, as well as ancillary buildings such as storage, a laboratory and administrative offices.


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The results of the feasibility study will be announced on September 4. This will be an important achievement, considering the difficulties that many emerging rare earth companies have been facing in order to reach this stage. Matamec has shown the importance of securing partnerships, whether in the form of an off-take agreement or other forms of cooperation, with influential industry players in order to advance investment and technology intensive mining projects as are those involving rare earths. Matamec is unique in that it is the only rare earths company to have signed a major automotive manufacturer as a joint venture partner with a guaranteed sale of its products for the duration of the mine, estimated at 13 years. Clearly, this has greatly reduced Matamec’s economic risk. TTC considers the Kipawa deposit as an essential source of HREE to build hybrid vehicles, an area in which the parent company Toyota has placed a great deal of its future growth prospects.

The actual amount of rare earths used in hybrid vehicles is small; however, these elements are absolutely crucial for the manufacturing of the magnets, superconductors, catalysts and batteries that are increasingly used in hybrid and electric vehicles. HREE’s are making it possible to reduce battery weight, dimensions while increasing their power in conjunction with developments in battery charging technology that will drive demand for EV’s and hybrids over the next few years. Demand for rare earths could soon exceed supply, given that China produces 97% of these critical metals and is tightening the reins on exports.

Matamec specializes in the development of heavy rare earths in the Canadian provinces of Quebec and Ontario but the focus has been its Kipawa project in Quebec. The partnership with Toyotsu is ensuring that production stage will be reached by 2016. Toyotsu has agreed to buy all metals produced at the Kipawa property. In March 2012, Matamec decided to skip the ‘preliminary feasibility study’ phase – in view of a favorable preliminary economic assessment – and move directly to the full FS. Meanwhile, Matamec has already started metallurgical tests, including the construction of a pilot test facility. Last April, Matamec announced the discovery of new REE zones, bringing the total number on the property to 12. The property includes HREE’s and some niobium (Nb). Niobium has a number of applications but in the automotive sector it is especially desired for its steel strengthening qualities and used to make the future ‘high strength low alloys’ to enable manufacturers to reduce weight and, therefore, lower fuel consumption. Moreover, as rare earths expert Jack Lifton noted a few years ago, the Toyota Prius is the “biggest user of rare earths of any object in the world,” including a kilo (2.2 lb) of neodymium (Nd) in the electric motor and 10 to 15 kg (22-33 lb) of lanthanum (La) in the battery pack. The higher the desired fuel efficiency, or duration of the electric charge, the more Nd and La would be required.

The partnership has enabled Matamec to overcome the financial hurdle of funding the FS, which will determine whether to proceed,or not, with construction; a ‘yes’ decision would see production starting by the second half of 2016 as scheduled. Matamec will then join Lynas and Molycorp as one of the few companies outside China able to supply high-quality rare metals. This will be no small feat, given the difficulties faced by other exploration companies in achieving project targets. Matamec has other exploration activities as well; it holds seven other sites in Quebec and Ontario, all located in well-mineralized zones, featuring gold, silver, other minerals, as well as rare earths. However, these projects are in the early stages and the Kipawa Project remains its main activity.


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