Red Wine

Comprising 301 claims totaling 7,525 hectares, the heavy rare earth-enriched Red Wine Property is located approximately 100 kilometers north-east of Churchill Falls, Labrador.

The property is located within 35 kilometers of a seasonal gravel road and is underlain by Proterozoic-age undersaturated perkaline syenite to nepheline syenite of the Red Wine Complex. Within the Complex are zones containing up to 30% of the heavy rare earth elements enriched eudialyte. HREE is defined as the heavy rare earth elements europium through lutetium plus yttrium.

To date, six rare earth-bearing mineralized showings have been outlined on the property. The six showings are termed Cabernet, Pinot Rose, Malbec, Zinfandel, Shiraz and Merlot. The main rare earth-bearing mineral is eudialyte. The showings range from 200 m to 1,300 m in length and are from 5 m to 60 m in width.

In September and October of 2010 10 drill holes (1,906m) tested the Cabernet and Pinot Rose showings. The drilling confirmed that the previously reported surface eudialyte-bearing rare-earth-element-zirconium-yttrium mineralization continues to depth in the Pinot Rose and Cabernet showings. Analytical results for core samples indicate 550 parts per million dysprosium, 3,451 ppm Y and 1.25 per cent total REE (1.59 per cent Y plus TREE) over four meters at the Cabernet showing. The HREE+Y proportion ranged from 34% to 43%. Metallurgical samples have been collected from three channels on the property and results are pending.

GWMG recently announced its intention to accelerate the exercise of its option to earn-in to 50% of the Red Wine Property. A 50-50 Joint Venture has been formed between Search Minerals (“Search”) and GWMG and exploration and development work will proceed under the terms detailed in the Agreement.

Search is the operator of the project and over 3,000 metres of drilling has been completed on the various showings during the 2011 work program. Results are pending.