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Message: Update on Nkamouna Cobalt Project

Update on Nkamouna Cobalt Project

posted on Jan 23, 2009 01:57PM
January 23, 2009
Geovic Provides Update on Nkamouna Cobalt Project
DENVER, COLORADO--(Marketwire - Jan. 23, 2009) - Geovic Mining Corp. ("Geovic" or the "Company") (TSX:GMC)(OTCBB:GVCM), on behalf of its 60%-owned subsidiary Geovic Cameroon PLC (GeoCam), is pleased to provide an update on progress at its Nkamouna cobalt-nickel-manganese project (Project) in Cameroon, Africa, as well as an outline of research programs and testing currently underway to improve its financial performance.

Significant progress was achieved during 2008, including an extensive drilling program, expansion of the site's infrastructure, and advancement of numerous engineering and design aspects of the Project, including:

- Application of process technologies that could enhance Nkamouna's technical and financial performance and reduce related risks

- Completion of 54,900 meters of drilling, doubling the data base at Nkamouna and quadrupling the data base at the adjacent Mada deposit. The objective of the drilling was to increase and enhance resources and reserves available to the Nkamouna process plant

- Expansion of site infrastructure and advancement of Project engineering and design

- Reductions in the prices of services, chemicals, freight, equipment, and other bulk supplies that should reduce capital and operating costs

- Pursuit of opportunities to increase ore grade during the early production stages through optimized mine scheduling

Process Technology

Following receipt of the Nkamouna Feasibility Optimization Study ("FOS") in September 2008, several process improvement programs were initiated in an attempt to further enhance the Project's economics and reduce technical risks.

Preliminary test work has validated the application of certain of these technologies. Subsequent pilot scale tests are scheduled for completion by mid-2009. A summary of this work is as follows:

1. Geovic has undertaken gravity and magnetic separation tests targeted at improving the quality of concentrates obtained by well-established size separation methods. Application of such methods may increase process feed grades, as well as revenue from a given leach plant's throughput rate.

2. In October 2008, GeoCam became aware that its concentrates might be better leached using iron sulfide and sulfuric acid rather than sulfurous acid as planned in the FOS. Results of 30 bench tests completed to date have yielded average cobalt leach extractions of 97% in less than two hours compared to 94% in four hours of leaching with sulfurous acid. This leach chemistry was successfully pioneered on similar manganese-bearing ores several decades ago, and GeoCam's management believes its application at Nkamouna could improve financial performance while lowering process risks.

3. Based on extensive tests completed in 2008, GeoCam may replace the technology proposed in the FOS with more conventional solvent extraction equipment. Conventional circuits could potentially have a solution throughput rate at least 80% less than contemplated in the FOS.

2008 Drilling Program Summary

The table below depicts the number of drill holes and test shafts completed during the past 13 months.

                     Drill     Test  Total Depth    Samples
                     Holes   Shafts      (Meters) for Assay
                    ------  -------  -----------  ---------

Nkamouna               975       20       26,018     22,874
Mada (i)               833      147       22,717     19,839
Rapodjombo (ii)        237        0        6,217      5,382
                    ------  -------  -----------  ---------

Total                2,045      167       54,952     48,095

(i)  Immediately north of the Nkamouna plant site
(ii) Immediately north of Mada
This extensive exploration and development work has more than doubled the data base at Nkamouna and quadrupled the data base at Mada, which the Company believes will lead to the expansion of the respective mineral resources and reserves at both deposits. It is expected that the preparation of these samples will be completed by May 2009, with updated 43-101 compliant reserve and resource estimates anticipated to be published during the third quarter of 2009.

Other 2008 Nkamouna Accomplishments

Other activities completed at Nkamouna during 2008 include the following:

1. Improved 23.6 kilometers of access roads between the city of Lomie and the Nkamouna Project

2. Installed a 72-meter tower to provide nearly all long-term communication and information technology links for the Project, as well as the general region

3. Expanded the field compound, building 16 additional living units with a new common kitchen

4. Completed the final engineering and design of the dam required for storing tailings from physically upgrading ore and leaching concentrates

5. Advanced the engineering, design, and infrastructure of the process plant

6. Received a permit from the Cameroon Ministry of Forestry and Wildlife to collect and use wood resources from the deforestation of a 150 hectare area in the vicinity of the Nkamouna project

"We are extremely pleased with the progress made during 2008, a time when many companies struggled just to maintain the status quo," said John E. ("Jack") Sherborne, CEO of Geovic Mining. There is no doubt that 2009 will be challenging, but we are confident that the steps taken over the past year have positioned us to deal with these challenges in a creative and positive way."

Geovic Background

Geovic is a U.S.-based corporation whose principal asset is a significant cobalt-nickel-manganese deposit in the Republic of Cameroon. Additionally, the company controls a diverse portfolio of energy, precious metals, base metals, and uranium projects in the United States, operated through its wholly-owned subsidiary Geovic Energy.

Additional Company and project information may be found on the websites www.sedar.com and www.sec.gov.

On behalf of the Board

John E. Sherborne, CEO and Director
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