PERTH, AUSTRALIA, Feb. 4, 2013 /CNW/ - Elemental Minerals Ltd. (ASX,TSX: ELM) ("Elemental" or "the Company") is pleased to announce the commencement of Phase 3A drilling at the Kola deposit on the Company's Sintoukola Potash Project in the Republic of Congo.
- Phase 3A will comprise two boreholes (Fig 1) to test the extension of sylvinite seams in the western part of the Kola deposit. There is good potential to intersect further high-grade sylvinite of the Upper and Lower Seams as well as additional extremely high-grade mineralisation of the Hangingwall Seam.
- EK_46 is located 1 kilometre southwest of EK_43 and drilling is underway. The drill site for EK_47 is ready, positioned 1.5 kilometres northwest of EK_45. As previously reported EK_43 and EK_45 intersected 3.11 metres grading 37.80% K2O (59.86% KCl) and 3.75 metres grading 34.20% K2O (54.15% KCl) respectively in the Hangingwall Seam1
- Results from the new boreholes will be incorporated into an updated Mineral Resource estimate for Kola which will be used to support the Bankable Feasibility Study due to commence Q2 2013.
To date Elemental Minerals has completed 45 boreholes at Kola for the purpose of target definition and resource estimation. EK_43 and EK_45 were completed in June and July 2012 and are the most recent holes to intersect the Hangingwall Seam. No further drilling has taken place at Kola since, as the Company's focus has been the completion of the Kola Pre-Feasibility Study (released 17 September 2012).
The limited amount of drilling of the Hangingwall Seam to date constrained the size and classification of resources of this seam (47 Mt grading 34.75% K2O (55.01% KCl) and precluded its inclusion in the Pre-Feasibility Study. An updated Mineral Resource estimate will be incorporated into the Kola Bankable Feasibility Study which will commence Q2, 2013. Preliminary economic analysis suggests that even if a relatively small Hangingwall Seam Mineral Reserve is defined it could have a significant positive impact upon the already robust economics of the project.
The relatively high stratigraphic position of the Hangingwall Seam at Kola (Figure 2) means it is best preserved on the flanks of the Kola rise (a geological high that the Kola deposit sits on). The extremely high-grades in the Hangingwall Seam have been intersected on the western flank of the deposit in boreholes EK_43 and EK_45. The Company's exploration model predicts that it may also occur on the eastern flank of the deposit' however, as these areas remain relatively lightly tested by drilling the extent of the Hangingwall Seam is unknown.
To assist in the Mineral Resource upgrade, Elemental has reached agreement with an oil exploration company for the acquisition of an additional 12 kilometres of recent oil industry 2D seismic data covering the Kola Northwest area.
Commenting on the start of the Phase 3A drilling Elemental's CEO, Iain Macpherson stated: "At well over 50 percent KCl, the Hangingwall Seam presents an exceptional opportunity; if either of these boreholes are positive it would support substantial increase in ELM's resource target for this 'super-high-grade' sylvinite. Intersection of a sylvinite Upper and/or Lower Seam would also be a great result, opening up possibility for significant westward extension of these thick high-grade seams upon which the PFS is based."
Table 1: Borehole coordinates*
*Handheld GPS position only.
About Elemental Minerals
Elemental Minerals Limited (ASX/TSX:ELM) is an advanced mineral exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project. 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. With construction due to begin in 2014, Elemental Minerals is expected to begin initial potash production in 2017 and reach full capacity in 2018. Elemental Minerals is dual listed on the Australian Stock Exchange and the Toronto Stock Exchange under the symbol ELM. For more information, visit www.elementalmineralsltd.com
Kola Project Summary2
The Kola Prefeasibility Study (PFS) was completed in September 2012 and was led by SRK Consulting (US) Inc. Based on a Measured and Indicated sylvinite Resource of 573 Mt grading 20.92% K20 (33.14% KCl), a Proven and Probable Reserve of 151.7Mt grading 20.02% K20 (31.69% KCl) was declared. This Resource was based entirely on the Upper and Lower Seam.
The PFS supports a 23 year life of mine producing 2 Mt MOP/annum through conventional underground mining at an average depth of 270m. Run of mine material will be transported over 36km via an overland conveyor to a process plant located at the coast. Final MOP product will be transshipped by a 750m jetty.
At a 10% discount rate the project NPV is USD2.97M, with an after-tax IRR of 29.3%. ELM is now committed to completion of the Kola Bankable Feasibility Study (BFS) by June 2014 and first MOP production Q1 2017.
The Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code), which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards 2005 and hence complies with NI 43-101.
Competent Person / Qualified Person Statement:
Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Simon Dorling and Jeff Elliott, of CSA Global Pty Ltd, the Company's geological consultants. Dr. Dorling and Mr. Elliott are members of the Australian Institute of Geoscientists (MAIG) and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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. Dorling and Mr. Elliott are also Qualified Persons for the purposes of Canadian National Instrument 43-101 and they consent to the inclusion in this report of the Information, in the form and context in which it appears.
Further information with respect to Elemental's Sintoukola Project is contained in a technical report summarising the PFS, entitled ''NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo'' prepared for the Company by SRK Consulting (U.S.), Inc., CSA Global Pty Ltd., EGIS International and AMEC Americas, dated September 17, 2012 with an effective date of September 17, 2012 (the "Technical Report"). The Technical Report can be accessed on the Company's profile on SEDAR.
This news release contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking 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 news 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 resource estimates and statements that describe 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. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
1 Refer to Elemental announcement 9 August 2012 " Elemental Minerals Announces Exceptional Intersections at Kola"
2 For a full description refer to the NI 43-101 Technical Report, dated 17 September 2012 available on SEDAR, www.sedar.com
Image with caption: "Figure 1: Location of Phase 3A boreholes EK_46 and EK_47 (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20130203_C2410_PHOTO_EN_23201.jpg
Image with caption: "Figure 2: Sequence of potash seams in previously reported borehole EK_43. Labels:TS (Top Seam), Hangingwall Seam (HWS), US (Upper Seam), LS (Lower Seam), FWS (Footwall Seam). (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20130203_C2410_PHOTO_EN_23202.jpg
SOURCE: Elemental Minerals Limited
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