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Rare Earths: Mine to Magnet and Supplying the Permanent Magnets Industry Outside of China
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Rare Earths: Mine to Magnet and Supplying the Permanent Magnets Industry Outside of China


Great Western Minerals' President Gary Billingsley presents his company's mines to market strategy and an update on their Company's progress.

Great Western Minerals' President Gary Billingsley presents his company's mines to market strategy and an update on their Company's progress.

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  • 1. Rare Earths: Mine to Market andSupplying the Permanent Magnet IndustryOutside China Metal Pages Rare Earths 2011 Beijing, PRC September 2011 TSX.V: GWG OTCQX: GWMGF
  • 2. Safe HarbourCautionary Note On Forward-Looking Statements• "Forward-looking statements include, but are not limited to, statements regarding projected processing capacity, output and revenue, GWMG’s continued advancement of its mineral exploration, projects, processing operations and business plans. When using this presentation, the words “potential”, “anticipate”, “estimate”, “forecast”, “believe”, “expect”, “may”, “project”, “plan” and similar expressions are intended to be among the statements to identify forward-looking statements.“• Although GWMG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Readers are advised to refer to GWMG’s current Annual Information Form available at for a full description of risk factors.• GWMG shall not be liable or responsible for any claim or damage, directly or indirectly, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information contained in this presentation. 2
  • 3. GWMG Strategy: Mines to Markets 1. Processing: • Producing Rare Earth metals and alloys at Less Common Metals (LCM) in the U.K. • Producing alloys at Great Western Technologies Inc. (GWTI) in Michigan • Separating RE in South Africa 2. Mining: • Steenkampskraal Mine in South Africa in production 2013 3. Exploration: • GWMG actively exploring and developing properties in North America and South Africa 3
  • 4. Corporate Structure Canada 100% 100% 75% Various % 100% Great Western GQD Rareco Rare Earth LCM Materials Co. Ltd.* Exploration GWTI 74% JV Separation Plant, SA *details being finalized SKK Hoidas LakeBirkenhead, U.K (Steenkampskraal) Troy, Michigan Douglas River USA Red Wine, Former-producing Steenkampskraal Canada Mine, SA 4
  • 5. Why Do We Care About Permanent Magnets? • Powerful • Light weightSource: Arnold Magnetics 5
  • 6. Historic NdFeB DemandSource: Arnold Magnetics 6
  • 7. Forecast Increase in Demand-Magnet REO China’s Share of Demand/SupplyNd2O3 2010 2015Demand 79% 79%Supply 97% 63%Dy2O3Demand 79% 79%Supply 99% 77%Total REO Demand for Magnets 26kt 48kt (85% increase)Source: TMR, IMCOA, GWMG 7
  • 8. GWMG Integrated Production Model MAGNET MAKERS LCM/GWTI ALLOY PROD’N ALLOY SALES METAL MAKING RE METAL SALES SEPARATION REO SALES PROCESSING BY-PRODUCT SALES • A rare earth mine alone is not MINING of much use to a magnet maker • Enterprise profitability EXPLORATION increases with each stage of processing 8
  • 9. 1 PROCESSING: World Class Today at Less Common Metals • Located in Birkenhead, England • LCM, a world class producer trading globally: • European Union 60% • Japan, China including Taiwan 30% • United States 10% • Focused on Permanent Magnet industry • Supplies 20% of the world’s Samarium Cobalt Alloy • Significant supplier of NdFeB alloys • Supplies US and EU Aerospace Industry with special alloys • 19 years of high quality, profitable production • LCM products end up in Swiss watches, EU Aerospace and Guidance Systems, electric hand tools, and Automobiles 9
  • 10. Global Expansion for LCM• 100% capacity expansion driven by forecast demand from major customers in Europe and Japan seeking NdFeB alloy (note agreement with Aichi Steel Corp.)• New state of the art facility now being developed to increase capacity to 2,000 tonnes per annum RE alloy production• First special casting furnace ordered and scheduled to have saleable product by second half 2011-2nd furnace in 2012• First phase of metal-making to be located at LCM• Processing capacity matches REE distribution of planned output from Steenkampskraal for La, Nd, Pr. Sm, Dy 10
  • 11. Producing Metals and Alloys• LCM and GWT will consume RE oxides, metals and fluorides for metal and alloy production• LCM currently operates a co-reduction process for converting samarium oxide to samarium cobalt metal alloy and we will rebuild facilities to produce samarium metal.• LCM is developing a fused salt electrolysis process for oxides from South Africa to produce lanthanum, neodymium and praseodymium metal• LCM is developing a process to produce dysprosium, terbium and yttrium metal using calciothermic reduction of rare earth fluorides 11
  • 12. Samarium Cobalt by Co-Reduction 12
  • 13. World Class atGreat Western Technologies • Located in Troy, Michigan, USA • Strategic asset for revitalization of the Rare Earth industry in the United States • Working with DARPA on aerospace “Super Alloy” R+D • Versatile production capacity including: • Permanent magnet alloys • NiMH alloy for rechargeable batteries • “Super Alloy” production for aerospace materials • Hydriding capability for solid-state hydrogen- storage alloys, both rare earth and transition metal types 13
  • 14. 2 MINING: Steenkampskraal SA History • Former operating mine located 70 kilometers north of Vanrhynsdorp in the Western Cape Province of South Africa • Excellent infrastructure, access to the site by paved and gravel roads • Close proximity to rail and sea-port • Pro-development governments with strong interest in Rare Earth industry • 474 hectare property • Mining permit received June 2010; National Nuclear Regulator (“NNR”) approvals received May 2011 14 14
  • 15. Mining: Steenkampskraal Attributes• One of the highest grade RE deposits known at 16.74% REO• Significant supply of mined feedstock already at surface• Favourable Metallurgy: The technology for REE extraction from Monazite is well established allowing for more rapid approval of process and plant design• Minimum 10-year mine life• Nuclear License allows storage of radioactive material including thorium• Low capital cost• Planned exploration program has a high probability of increasing the known resources on and near the property 15
  • 16. Steenkampskraal Strategy Execution• Feasibility/EPCM work well underway• Discussions in progress for accessing additional monazite from 3rd parties that can be processed at Steenkampskraal• Agreement reached with Ganzhou Qiandong Rare Earth Group Ltd. (“GQD”), an experienced separator and metal maker, to construct and operate a separation plant in South Africa under a joint venture• Discussions in progress for offtake of material not required by LCM/GWTI• Mill/Separation plant construction targeted to commence Q1 2012 with completion by Q4 2012• GWMG goal is first commercial Steenkampskraal REO production of in Q1 2013 16
  • 17. 17
  • 18. 2013: Projected Processing Outputs (metric tons REO) REO REO to Converted to REO Alloy Produced Production* LCM/GWTI REE Metal Lanthanum 1,084 75 64 30 Cerium 2,334 0 0 Praseodymium 250 250 207 690 Neodymium 834 834 714 1,964 Samarium 125 80 69 230 Europium 4 0 0 Gadolinium 83 0 0 Terbium 4 0 0 Dysprosium 34 34 29 417 Holmium 2 0 0 Erbium 4 0 0 Thulium 3 0 0 Ytterbium 3 0 0 Lutetium 0 0 0 Yttrium 250 8 6 8 TOTAL (Tonnes) 5,014 1,281 1,089 3,339 *Based on Rareco Historical Resource Estimate – not 43-101 compliant 18
  • 19. 3 EXPLORATION: GWMG Projects GWMG Exploration Projects: • Hoidas Lake, Saskatchewan, Canada • 2009 NI 43-101 shows 2.5 million tonnes Measured & Indicated • Enriched in Nd • Significant progress on metallurgy; mini pilot plant test in progress • Being evaluated for 2015 production • Douglas River, Saskatchewan, Canada • 100% HREE + Y in xenotime Joint Venture Projects: • Red Wine REE Project with Search Minerals, Labrador, Canada • 35%+ HREE + Y Heavy Rare Earth/Permanent Magnet Focus 19
  • 20. GWMG Corporate Strategies/GoalsProcessing:• Undertake 100% expansion of Less Common Metals in two phases• Begin construction of leaching plant and separation plant in South Africa Q1 2012Mining:• Complete mine refurbishment and commence mining/stockpiling Q1 2012• Achieve commercial production in Q1 2013• Conclude arrangements for 3rd party material and evaluate expansion of Steenkampskraal productionExploration:• Continue to advance Hoidas Lake project in Canada• Continue exploration of HREE-enriched projects• Increase resource at Steenkampskraal 20
  • 21. GWMG Corporate Strategies/GoalsCorporate:• To be among the very first fully integrated suppliers of RE oxides, metals and alloys outside of China• To continuously identify expansion opportunities• To create certainty of supply for customers 21
  • 22. GWMG Overview Shares Outstanding / Fully Diluted 383.4mm / 475.7mm (as at Sept 9, 2011) Share Price (as at Sept 9, 2011) $0.71 52 week High / Low $1.23 / $0.28 Market Cap (as at Sept 9, 2011) $272 million Institutional Holdings (est.) 26% Thank You! 22