Geomega shares jump on strong drill results

Geomega Resources (GMA-V) set the pace for miners on the Venture Exchange on June 22.

The company’s share price made the largest gain by percentage points, shooting up 24%, or 65¢, to $3.35 on 209,000 shares traded.

The catalyst for the leap was a set of drill results from the first phase of drilling at its Montviel property in Abitibi, Que.

One hole, 11-10, returned 1.41% total rare earth oxides (TREO) over the entire 545-metre core length, while the second, 11-09, returned 1.51% TREO over the first 128 metres of core.

The two holes indicate that the mineralized zone extends 200 metres west along strike, and 175 metres south. Mineralization is now defined over an area 500 metres along strike and 400 metres width, with a 450-metre depth, the company says.

Also significant is the concentration of neodymium oxide, which came in at 0.25% for the first hole, and 0.22% for the second.

Neodymium, along with dysprosium, europium, terbium and yttrium, are among the most sought-after rare metals lately, thanks to their energy applications.

“These latest results confirm that it is one of the world’s most significant known deposits of neodymium that can be developed quickly, given the excellent local infrastructure such as road access, nearby hydroelectric services and rail,” Simon Britt, Geomega’s president, said in a statement.

Along with the drill results, the company announced a new vice-president of exploration, Jacquelin Gauthier, who takes on the position with experience serving as exploration manager for the likes of Kinross Gold (K-T), Bema Gold, Cambior and Noranda Exploration.