When GeoMegA publishes its initial resource sometime in the 3rd quarter of 2011, its Montviel rare earths project will suddenly become one of the largest carbonatite resources in the world at perhaps 100 million tonnes of rock and 1+ million tonnes of total rare earth oxides (TREO). Carbonatite is valuable as a source of rare earths because it typically has simply mineralogy and has been historically the most common type of rock mined for rare earths. Thus there are commercial processing technologies already established for most carbonatite minerals. At Montviel, the rare earth oxides appear to be contained mainly in the intrusive body itself and therefore they are primary, which is important because many secondary rare earth minerals can form complex minerals during weathering and redeposition.

The prospects for a higher grade core to be exploited in initial operations are good with several zones of 2%+ TREO identified to date. Future drill programs will determine if these zones are contiguous or connected in a way that may allow selective mining of higher grades early in a mine plan. Moreover, the Montviel carbonatite appears to be elevated in neodymium, which is one of the most important rare earth elements and the one likely to be in the greatest demand-supply imbalance as a result of its use in high power magnets for wind turbines, advanced electric motors and other technologies.

The location of the deposit is the most attractive thing to us about Montviel. Southwestern Quebec has plenty of nearby infrastructure and few of the challenges faced by many of the other rare earth deposits currently being advanced toward development. As a result, even though Montviel has a late start on the competition, it should catch up with the others in a hurry.