PERTH, Australia, May 1, 2014 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ('Elemental' or 'the Company') is pleased to provide
the following strategic update:
Advance the world class Kola project, which will include further
drilling aimed at expanding the high grade Hangingwall Seam ('HWS')
sylvinite Mineral Resource.
Dougou HWS Prospect being advanced. Exploration remobilisation and
finalisation of the associated drill programme currently underway.
Recently obtained historic seismic and drill data enables a fast track
A search is underway for appropriate directors in order to reconstitute
the board and lead the company to success.
Studies on Kola recommenced with a view to reducing and optimising lower
Negotiations with potential infrastructure carve out partners
Elemental management has developed a two pronged strategy which will
continue to advance the Kola project and also an aggressive follow up
exploration programme for the Dougou Prospect aimed at unlocking the
largely untested potential of the greater Sintoukola permit.
Resource Expansion Programme
The Company believes that the Congo Basin is a potash province that
could rival those found in Canada and Russia. Elemental has an
exploration permit covering a total of 1 408km2. Less than 15% of this
area has been tested and to date only one borehole (ED_01), as
previously reported on 4 September 2012, has been drilled outside of
the Kola Deposit.
During the second half of 2013 Elemental announced the acquisition of a
large historic database that includes geological and assay data for a
number of historic boreholes drilled at Dougou. This data is being used
in conjunction with Elemental's existing data to generate an
Exploration Target for the HWS at Dougou which will be announced during
May. Following which, the Company's planned exploration programme aims
to a substantially increase Elemental's potash resource.
Following the recent changes to the Board, the Company is actively
searching for new board members/strategic partners. Emphasis has been
placed on candidates having the requisite track records commensurate
with the size and scale of the Sintoukola project.
The Company is also in discussions with a very large African
conglomerate who have recently entered the fertilizer scene through a
major investment, and have recommenced discussions with various
companies that had, prior to the Dingyi bid, shown real interest in the
infrastructure carve out at Kola.
The Company is of the opinion that the recent break-up of the Russian
based cartel will be remedied and that potash prices will rise, however
due to the robust economics of the Kola project the NPV at these
artificial low prices is still substantial and it remains in the lowest
quartile of cost producers.
Commenting on the update, Elemental's CEO, Iain Macpherson stated: "The Dougou exploration program should confirm our belief that
Sintoukola is at the heart of a stand-out, strategically important
potash basin with the potential to develop a number of potash projects
rivalling those found in major potash producing regions. This should
take the project right back to centre stage and will also add
optionality to the development strategy for the project."
About Elemental Minerals
Elemental Minerals Limited (ASX/TSX: ELM) is an advanced mineral
exploration and development company whose primary asset is the
93%-owned Sintoukola Potash Project in the Republic of Congo. ELM
completed an advanced Pre-Feasibility Study on its Kola Project in
September 2012 and was awarded a mining license and an environmental
license in August 2013. The Sintoukola project has the potential to be
among the world's lowest-cost potash producers and its strategic
location near the coast of Central Africa offers a transport cost
advantage to key Brazilian and Asian fertilizer markets. For more
information, visit www.elementalminerals.com
Image with caption: "Figure 1. Geological map of the RoC coastal basin, showing the Sintoukola Permit and the Kola Deposit and Dougou Prospect. Elemental and historic boreholes are shown. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20140430_C6014_PHOTO_EN_39827.jpg
SOURCE: Elemental Minerals Limited
For further information:
Chief Executive Officer
Tel: +27 76 238 4461
Tel: +61 419 936 040
Investor Relations Manager
Tel: +27 83 604 0820
Johannesburg Office: +27 11 469 9140