Elemental Minerals Limited - The Company is pleased to announce the start of its Phase 2 high resolution 2D seismic survey and the receipt of metallurgical results which confirm the high quality of the Sintoukola sylvinite mineralisation

HIGHLIGHTS:

  • The company has mobilised and commenced the Phase 2, 140 line kilometre, high resolution 2D seismic survey which is a key component of the Phase 2 Exploration Programme.  The exploration activities are being completed with the aim to increase the size of the Sintoukola deposit as well as allow updating and upgrading of the existing sylvinite Mineral Resource.
  • Initial metallurgical test work has highlighted the quality of the sylvinite mineralisation and demonstrated the potential for a relatively simple, low cost processing circuit with higher than anticipated KCl recovery.
  • Pre-feasibility trade off studies completed and evaluation of results under review.
  • High resolution airborne topographic survey commissioned to commence in September 2011.

PERTH, Australia, Aug. 25, 2011 /CNW/ -

EXPLORATION

Elemental Minerals Limited, TSX: ELM, ASX: ELM, ("Elemental") has mobilised and started the 140 line kilometre high resolution 2D seismic survey for the Sintoukola potash project located in the Republic of Congo (Fig.1). Two Enviro-Vibs and associated equipment were airlifted from Johannesburg, South Africa arriving at the Pointe Noire international airport on the 19th August 2011 and transported by road to the Sintoukola Project site on the 20th August 2011 and initial test work is under way.

This 60 day seismic survey programme being conducted by GAP Geophysics is planned for completion by the end of October 2011. The survey will allow for high definition 2D seismic data to be collected over the Kola deposit that will provide high resolution subsurface geology and structural data for to allow detailed ore body modelling and mine planning.

PRE-FEASIBILITY STUDY UPDATE

Trade-off studies have been completed and evaluation of results is under review. These studies include plant location, rail, road and conveyor transport options, power supply, brine water transfer and disposal, hydropower potential, port facility, mining method, mine sizing and product specification. The final stage of the PFS will start in early September to assess the identified project alternatives within the context of the social and environmental requirements relevant to the Sintoukola Project.

The initial metallurgical test work programme has been completed at the Saskatchewan Research Council. AMEC Americas have reviewed the results and have confirmed the quality of the sylvinite mineralisation and suggest that it will allow consideration of a relatively simple, low cost flotation circuit that is expected to will yield significantly higher metallurgical recovery than is currently modelled. The composite sample tested is clean containing less than 1% insoluble material with KCL losses during desliming between 1% and 4%.  Overall KCl recovery from combined rougher/scavenger flotation is good at 90-94%. The results translate well to a conventional flotation plant utilizing crushing and rougher flotation with regrind and scavenger flotation. These results confirm that the mineralisation is of good quality and reacts easily to flotation which will require a simple flow sheet.

In preparation for final plant and infrastructure design an aerial LIDAR (light detection and ranging) survey has been commissioned and will start early in September 2011. This will allow for the delivery of an extremely high resolution topographical model of the mine site and infrastructure corridors to be developed in support of engineering and construction activities.

Elemental CEO, Iain Macpherson, commented:

"Progress in the field programmes and the engineering studies in support of the DFS is very encouraging and confirms the Company's strategy of developing a sylvinite mine based on the Mineral Resources at the Kola deposit. The commencement of the high resolution, Phase 2 seismic survey is a significant milestone both in terms of assisting with the delivery of an updated sylvinite Mineral Resource for mine planning purposes and also in the completion of the Phase 2 exploration programme that is planned to significantly increase the Mineral Resources at the Kola sylvinite deposit. Elemental is on track to deliver the DFS as scheduled in Q1, 2013 and initial results have exceeded expectations in terms of the quality of the mineralisation and the associated economic and technical benefits to the viability of the project."

Further information respecting the Sintoukola potash project is contained in the technical report entitled ''NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo'' prepared by Mr. Neal Rigby of SRK Consulting (U.S.), Inc. and Messrs. Simon Dorling, Jeff Elliott, Andrew Scogings and Peter Davies of CSA Global Pty Ltd., dated August 1, 2011 with an effective date of June 10, 2011. The technical report is available for review at Elemental's profile on SEDAR at www.sedar.com.

Competent Person Statement:

Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Dr Simon Dorling and Mr Jeff Elliott, of CSA Global Pty Ltd, the company's geological consultants. Dr Simon Dorling and Mr Jeff Elliott are members of the Australian Institute of Geoscientists (MAIG) and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr Simon Dorling and Mr Jeff Elliott are also Qualified Persons for the purposes of Canadian National Instrument 43-101 (NI 43-101) and they consent to the inclusion in this report of the Information, in the form and context in which it appears.

Forward-Looking Statements:

This press release contains statements that are "forward-looking". Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature, such statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made regarding, among other things: the Company executing its project development plans in accordance with its budgets and planning; feasibility and other studies supporting the Company's development plans; the Company being able to obtain sufficient financing when required and on reasonable terms; the Company being able to convert existing Mineral Resources into Ore Reserves; the Company obtaining required licenses and approvals in a timely manner; applicable environmental and other laws and other regulations not being amended; key management continuing to serve in their respective roles with the Company; title to the Sintoukola Project not being challenged; and no adverse changes occurring to the price of potash that might adversely affect the prospects for developing and operating the Sintoukola potash project or which might make it uneconomic to proceed with development.  Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company assumes no obligation to update or revise them to reflect new events or circumstances.

Image with caption: "Figure 1: Location of Sintoukola Potash Permit and historic drill hole locations. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20110825_C6219_PHOTO_EN_2498.jpg

SOURCE Elemental Minerals Limited

For further information:

For further information in respect of the Company's activities, please contact:

Mark Jones Iain Macpherson John Sanders
Chairman Chief Executive Officer Executive Director
Tel: +61 (0) 41 9919 250 Tel: +27 (0) 76 238 4461 Tel: +27 (0) 82 445 5291
Email: 
markj@elementalminerals.com.au
Email: 
iain.macpherson@elementalmineralsltd.com
Email: 
john.sanders@elementalmineralsltd.com

Management Office: +27 11 469 9140

Company website: www.elementalmineralsltd.com

 

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