Stonegate Drilling Activity Expands Area of High-Grade Intercepts at the Paris Hills Phosphate Project in Idaho

TORONTO, April 19 /CNW/ - Stonegate Agricom Ltd. ("Company") (TSX: ST) today announced additional definition drilling results that significantly expand the area of high-grade intercepts at its Paris Hills Phosphate Project in Idaho.

Detailed assay results reported in the table below include drill holes in the northeastern part of the property in an area that had not been previously drilled by Stonegate and are consistent with assay results previously reported for holes in the southern and southwestern parts as reported in news releases dated December 7, 2010, January 17, 2011 and February 8, 2011.

Paris Hills Phosphate Project Assay Results as of April 19, 2011

                                           
Zone     Hole   From   To   Interval   % P2O5   CaO:P2O5   % Al2O3   % Fe2O3   % MgO   MER
Upper     PA012   256.64m (842 ft)   259.99m (853 ft)   3.25m (11 ft)   23.79   1.97   1.81   0.75   0.74   0.15
      PA014   368.50m (1209 ft)   371.25m (1218 ft)   2.74m (9 ft)   23.58   2.02   1.48   0.62   0.63   0.14
      PA016B   80.16m (263 ft)   81.99m (269 ft)   1.83m (6 ft)   32.37   1.32   2.79   0.63   0.31   0.12
      PA023   390.14m (1280 ft)   393.80m (1292 ft)   3.66m (12 ft)   23.61   1.94   1.29   0.55   0.43   0.10
      PA089   47.09m (154.5 ft)   48.92m (160.5 ft)   1.83m (6 ft)   25.80   1.40   4.27   0.99   0.38   0.23
      PA109   651.21m (2136.5 ft)   654.71m (2148 ft)   3.51m (11.5 ft)   21.87   1.91   1.84   0.82   0.39   0.15
Lower     PA012   318.67m (1045.5ft)   320.34m (1051 ft)   1.68m (5.5 ft)   31.55   1.46   1.57   0.41   0.34   0.09
      PA014   439.94m (1443 ft)   441.17m (1449 ft)   1.83m (6 ft)   31.55   1.47   0.98   0.73   0.35   0.07
      PA023   447.29m (1467.5 ft)   449.73m (1475.5 ft)   2.44m (8.0 ft)   33.37   1.40   1.13   0.22   0.27   0.05
      PA025   303.12m (994.5 ft)   304.95m (1000.5 ft)   1.83m (6 ft)   31.86   1.46   0.97   0.43   0.39   0.06
      PA089   59.44m (195 ft)   61.87m (203 ft)   2.44m (8 ft)   33.82   1.37   1.53   0.54   0.16   0.07
      PA109   715.37m (2347 ft)   717.19m (2353 ft)   1.88m (6.2 ft)   30.24   1.53   1.01   0.70   0.25   0.07

MER = minor element ratio

An updated map of the drill hole sites at the Paris Hills Phosphate Project is available at: http://files.newswire.ca/923/Paris_Hills_Map.pdf

"With the release of holes PA109 and PA089, we are demonstrating the consistency of the grades and thicknesses from the southern to the northern part of the property.  These holes are approximately 2.4 kilometres apart.  Combined with previous announcements, we have now reported assay results with consistently high grades for holes located about 2,400 metres apart in a north-south direction and about 1,500 metres apart in an east-west direction," said Mark Ashcroft, President and Chief Executive Officer.

"The assay results continue to confirm the continuity and high-grade nature of the Upper and Lower Zones with grades in the Lower Zone averaging above 30% P2O5. This last batch of assays concludes our reporting on our drilling program of earlier this year prior to a pause due to spring melt. Additional drilling is planned to commence this week in areas not yet drilled, mostly in the northwestern and southwestern parts of the property."

The holes reported in the table above were drilled in the northeastern and southeastern part of the property.  All drill holes are vertical and the stratigraphy near horizontal and, accordingly, the intervals are approximately true thickness. The Lower Zone in hole PA016B was not intersected, as this hole was designed to intersect the Upper Phosphate Zone only.

Drill core samples are submitted to ALS Laboratory Group in Elko, Nevada, for preparation.  Analyses are being completed at ALS's Vancouver laboratory.  Internal standard and blanks were submitted with the samples as part of Stonegate's quality control program.

This news release has been reviewed and approved by Donald H. Hains, P.Geo., Hains Technology Associates, who is a qualified person as defined in National Instrument 43-101.

Additional technical information on the Paris Hills Phosphate Project is contained in the Company's annual information form dated March 31, 2011.

About Stonegate Agricom

Stonegate Agricom, which is actively engaged in acquiring and developing agricultural nutrient projects, is currently focused on the development of two potentially world-class, long-life phosphate deposits, the Mantaro Phosphate Project located in Peru and the Paris Hills Phosphate Project located in Idaho. Stonegate is confident that the two deposits have sufficient size and grade and are in the right locations to become strategic, cost-effective sources of phosphate supply for major fertilizer producers. The Company intends to continue definition and exploration drilling to confirm and expand estimates of NI 43-101 compliant mineral resources in the deposits and then complete feasibility studies leading to a decision to proceed with extracting and processing the phosphate. More information is available at www.stonegateagricom.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law.  Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".  All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information.  Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: the general risks associated with the speculative nature of the Company's business, commodity prices, current global financial conditions, uncertainty of additional capital, price volatility, the Mantaro and Paris Hills projects are advanced exploration stage projects, limited operating history, no history of earnings, government regulation in the mining industry, environmental risks and hazards, impending climate change legislation, required approvals and permits, foreign subsidiaries, political and economic risk in Peru, risks relating to the retention of the Mantaro project, risks relating to the retention of the Paris Hills project, expiration of leases and permits for the Paris Hills Project, title to mineral properties, obtaining and converting mineral concessions and surface rights, community relations and project support, water rights, exploration, development and operating risks, uncertainty in the estimation of mineral resources, uncertainty of inferred mineral resources, mineral exploration, reliability of historical exploration work, absence of public trading market, risks associated with having a controlling shareholder, arbitrary offering price, dilution to the common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends as well as those factors discussed in the section entitled "Risk Factors" in the Company's most recently filed annual information form available at www.sedar.com.  Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information.  Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information.  The forward-looking statements and forward-looking information contained in this press release are included for the purpose of providing investors with information to assist them in understanding the offering as well as the Company's expected financial and operational performance and may not be appropriate for other purposes.  Stonegate does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.

SOURCE Stonegate Agricom Ltd

For further information:

Wayne Cheveldayoff
Vice President, Investor Relations
Stonegate Agricom Ltd.
Tel: 416-864-0303
wcheveldayoff@stonegateagricom.com
      Christine Stewart
Renmark Financial Communications Inc.
Tel: 416-644-2020
cstewart@renmarkfinancial.com

 


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