Stonegate Agricom Proceeds with Additional Drilling at the Mantaro Phosphate Project in Peru


TORONTO, Jan. 11 /CNW/ - Stonegate Agricom Ltd. ("Company") (TSX: ST) today announced that the Company successfully secured an exploration permit and commenced drilling in late December 2010 at its Mantaro Phosphate Project in Peru.

The Company intends to drill approximately 4,500 metres from 12 drill platforms on the East and West Zones and to trench in two locations on the East Zone under this existing permit.

Phosphate mineralization at Mantaro appears in three zones that are each approximately 20 metres wide, more than 200 metres deep and stretch along the surface for approximately 30 kilometres. Each zone has been mapped in detail for approximately 22 km, giving the mineral property a total mapped strike length of 66 km.

"The resumption in drilling at Mantaro builds on the Company's 2009 drilling program and is an important part of our plans to expand the estimates of NI 43-101 compliant mineral resources in the deposit and to complete feasibility studies leading to a decision to proceed with extracting and processing the phosphate," said Mark Ashcroft, President and Chief Executive Officer.  

"It will also be the first time that the East Zone has been drilled and trenched. Previous estimates of NI 43-101 compliant Measured and Indicated mineral resources at Mantaro have been based on drilling and trenching only on the West Zone."

The Company is now in the process of applying for a more extensive exploration permit that will allow approximately 26,000 metres of diamond drilling from 138 drill platforms and trenching in 27 locations on all three zones. The Company expects to submit its application and obtain a permit by the end of the first quarter 2011. After the permit is obtained, drilling will be conducted using four diamond drill rigs and is expected to take approximately nine months.

Based on Stonegate's 2009 drilling program at Mantaro, the West Zone alone is estimated to contain 39.5 million tonnes of Measured and Indicated mineral resources with an average grade of 10% P2O5 (consisting of 5.5 million tonnes of Measured mineral resources with an average grade of 10.8% P2O5 and 34.0 million tonnes of Indicated mineral resources with an average grade of 9.9% P2O5). The West Zone also is estimated to contain 376.3 million tonnes of Inferred mineral resources with an average grade of 9% P2O5.

In addition, the East and Far East Zones are estimated to contain over 700 million tonnes of conceptual tonnage with an average grade of 9 to 9.5% P2O5.

Mineral resources are estimated by Michelle Stone, Ph.D., P.Geo. as described in a Technical Report by Hains and Stone dated February 21, 2010. Measured and Indicated mineral resources are reported using a 4% P2O5 cut-off. Inferred mineral resources are reported with an assumed grade of 9% P2O5 and no cut-off.

The potential conceptual tonnage estimates of phosphate rock are on zones that are considered exploration targets at this stage. The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The East and Far East Zones have been geologically mapped and exhibit surface mineralization widths similar to the West Zone on which NI 43-101 compliant mineral resources have been estimated.

This news release has been reviewed and approved by Michelle Stone, Ph.D., P.Geo., Vice President Exploration of Stonegate Agricom, who is a qualified person as defined in National Instrument 43-101.

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 conduct definition and exploration drilling to confirm and expand estimates of NI 43-101 compliant mineral resources and reserves 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

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 preliminary prospectus.  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
Christine Stewart
Renmark Financial Communications Inc.
Tel: 416-644-2020

Profil de l'entreprise

Stonegate Agricom Ltd

Renseignements sur cet organisme


Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .


Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.


Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.