Mr. John Sherborne reports

GEOVIC INITIATES CORNUDAS MOUNTAINS ADVANCED METALS EXPLORATION PROGRAM, NEW MEXICO

Geovic Mining Corp. has completed the staking of five square miles (13 square kilometres) of mining claims at its Cornudas Mountains exploration prospect in southern New Mexico. Initial work completed by the company indicates that the Cornudas Mountains claims host an alkaline laccolithic intrusion that contains significant concentrations of the heavy-rare-earth-enriched mineral eudialyte. In addition to the rare earths, significant enrichment in zirconium, hafnium, tantalum, tin, yttrium and niobium have been identified.

Project background

Detailed surface geologic mapping and sampling programs carried out over the past six months have established the geological potential of the higher-grade resource areas located on the new claims block. The nepheline syenite host rocks are characterized by mineral-filled cavities, which contain on average 10 per cent eudialyte, ranging up to 30 per cent in analyses completed to date. Eudialyte is typically composed of 11.8 per cent zirconium and 2.5 per cent to 5 per cent rare earths, preferentially enriched in the more valuable heavy element suite. Preliminary laboratory tests indicate that the crushed eudialyte-bearing rock samples may be easily and inexpensively processed and leached, producing high-value mineral concentrates, as well as a potential fibreglass/bottle-glass byproduct.

Geovic scientists working together with researchers at the Minerals Engineering Centre of Dalhousie University have devised a new ore beneficiation technology through a combination of physical and chemical separation techniques that were refined to take advantage of the unique properties of eudialyte. This new technology, together with proprietary hydrometallurgical extraction protocols, could lead to the development of a new class of rare earth ore deposit. Moreover, this research work found that 75 per cent of the gangue minerals of the host rock can also be utilized as a nepheline-feldspar byproduct, an essential component of green products, such as fibreglass insulation and recyclable glass containers and bottles.

In a publication released in October, 2010, by the U.S. Geological Survey entitled, "the principal rare earth elements deposits of the United States," it is stated that the Wind Mountain portion of the Cornudas Mountains area, where the company's claims are located, hosts dikes and sills of nepheline syenite and syenite, at least some of which contain thorium, uranium and rare earth elements mineralization. The alkaline dikes and sills reportedly also contain anomalous concentrations of beryllium, niobium, lithium, nickel, tin, zirconium and fluorine (in fluorite). Other analyses reported in the USGS publication from Wind Mountain listed concentrations of 70 parts per million lanthanum, 270 ppm neodymium and 242 ppm yttrium. The publication further states that, "However, a full rare earth elements resource evaluation of the Wind Mountain uplift would require much more sampling than has been completed thus far." While these reported whole-rock concentrations are relatively low, the apparent ability to upgrade substantially and process a eudialyte concentrate significantly enhances the potential economic viability of the project. The Cornudas Mountains claims have the potential to host a large advanced-metal resource capable of becoming a long-life small-scale limited-impact mining operation which would strongly support long-term growth in the local economy.

"The eudialyte mineral is the host to all the advanced minerals of interest. The key is to concentrate the mineral and process it separately, which is what we have done on a small-scale test basis. These advances in processing technology and scientific research are quite exciting," comments company founder, William Buckovic, who further notes, "If this exploration project works out the way we expect, it will enable production of many key ingredients for materials essential to the new greentech (green technology) and national defence systems industries, with limited impact on our environment."

Year 2011 work program

Geovic has filed its initial work program for consideration by the Bureau of Land Management and New Mexico mining and mineral division. This program consists of a first-stage minimal-impact (disturbed area of less than 0.8 acre) drilling program to test the extent and grade of subsurface mineralization in a small portion of the claimed area. This low-impact program will utilize a portable hand-operated Winkie drill to complete several shallow core holes. The drill will be carried to each of the preapproved drill sites, and the small quantity of water necessary for the drilling operation will be pumped in temporary water lines to the sites using water trucked in on existing roads, thereby eliminating the need for any new roads or heavy equipment in the area. A more extensive program would follow later in the year, pending the success of the initial program and further approvals.

Rare earths include a number of metals critical to the industrial and green movement in America. Recent legislation has been introduced by the federal government supporting the immediate development of prospective rare earth deposits in the United States of America. The critical importance of these advanced metals to all aspects of energy and industrial development is driving the reprioritization of such developments nationwide. The Cornudas Mountains prospect has the potential to supply a portion of long-term advanced metals needs.

Gary R. Morris, senior vice-president of the company and a registered professional geologist, is the qualified person, as defined by Canadian National Instrument 43-101, responsible for the technical information contained in this press release.

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