Geology of Zeus Property
The Kipawa deposit is hosted by a syenite body that is part of the Kipawa Alkalic Complex, a concordant folded sheet of mildly peralkaline syenite and granite. The deposit itself has been drilled over an extent of about 1450 m x 200 m x 100 m true depth and contains two types of mineralized zones. The “TREO enriched” zones consist of 3 mineralized layers that, in addition to ZrO2, contain significant concentrations of rare earth elements (REE) and yttrium. Between these three layers, the syenite contains “ZrO2” zones, enriched in zirconium with by-product quantities of REE.
The Kipawa deposit is a rare earths and yttrium resource with zirconium as a by-product.
In June 2010, the independent engineering firm SGS Canada Inc. – geological department of Geostat calculated that drilling to date has defined an indicated resource of 3.35 million tonnes at a grade of 0.58% total rare earth oxides with 0.89% zirconium and an inferred resource of 6.48 million tonnes at a grade of 0.60% total rare earth oxides with 0.99% zirconium with a cut-off grade superior to 0.10% yttrium. The ratio of heavy rare earths + yttrium/total rare earths is 33% in the indicated resources and 34% in the inferred resources, with heavy rare earths defined as terbium to lutetium.
Moreover, preliminary analytical results from Matamec’s summer 2010 campaign have now been received. The best preliminary result is 0.954% total rare earth oxides with 38% heavy rare earths + yttrium/total rare earth oxides over 16.45 metres. An updated resource calculation and a definition drilling program are currently underway.
Also, Matamec announced on October 18th that it has successfully leached 89.2% of the rare earths from samples taken from its main mineralized zone at the Kipawa deposit. Matamec’s leading metallurgist, Les Heymann, has confirmed that the Kipawa deposit is a potential source of heavy rare earths-yttrium which could compete with the South China clays deposit. Both deposits contain heavy rare earths-yttrium which is at the high value end of the rare earths market.