PERTH, Australia, Feb. 6, 2012 /CNW/ - Elemental Minerals Ltd. (ASX,TSX: ELM) ("Elemental" or "the Company") continues to intercept potash mineralisation and is pleased to announce the receipt of additional high-grade assay results from the Kola Potash Deposit Pre-Feasibility Phase 2 drilling programme within its Sintoukola Potash Project in the Republic of Congo. (Figure 1)
- Widest sylvinite zone yet intersected in the deposit area demonstrating potential for increased tonnage yields from the Upper Seam
- Drill-holes EK_17, EK_18, and EK_19 have returned significant high-grade results underpinning Phase 1 resources results and signalling the extension of the shallow mineralization footprint of the Kola deposit
- Shallow sylvinite intersections include:
- EK_18: 3.86m at 16.14% K2O (25.57% KCl) from 286.59m and 9.56m at 20.69% K2O (32.78% KCl) from 290.70m; and
- EK_19: 4.54m at 21.58% K2O (34.18% KCl) from 278.22m and 2.39m at 20.95% K2O (33.19% KCl) from 291.10m.
- Potash mineralisation has been further extended to both the west and east and still remains open laterally in most directions.
At the time of reporting, the Company had completed 11 core holes (EK_17 to EK_27) of Phase 2 for an interim total of 3,535m (Figure 2). Laboratory assay results for core samples have been received for 3 drill holes (EK_17 to 19). The assay sequence for EK_17 is incomplete at present as several core intervals through the mineralisation were selected for geotechnical testing. A complete sample and assay record will be reported when the data becomes available.
Drill hole EK_17 was drilled 370m northeast of Phase 1 drill hole EK_15 within an area of Inferred Mineral Resources and to a depth of 337.60m. The drill hole targeted an area of interpreted structural complexity that was treated as a loss zone within the original Resource Estimate, but intersected gently dipping strata and a typical mineralisation zonation including the presence of both the upper and lower seams.
Drill hole EK_18 was collared on the north western side of the Kola deposit approximately one kilometre west-southwest of Phase 1 drill hole EK_12 with the objective to test continuity of the mineralisation in a westerly direction (Figure 2). The drill hole intersected a 13.7m thick interval of potash (sylvinite) mineralisation before the hole had to be abandoned for drilling reasons.
The 13.7m wide intersection in EK_18 further extends high-grade sylvinite mineralisation to the west confirming geological interpretations made from Phase 1 exploration data (Figure 3). The lack of interburden layer (rock salt) in EK_18 makes differentiation between the upper and lower seams difficult. It is possible that only the upper seam has been intersected which would indicate an increase in sylvinite thickness of the upper seam in this location. For comparative purposes, the nearest Phase 1 drill hole EK_12 intersected potash intervals of 4.51m in the upper seam and 4.91m in the lower seam (Figure 3). The results from EK_18 indicate that potash mineralisation continues in significant stratigraphic quantities to the west of the area drilled in Phase 1 exploration.
Drill hole EK_19 is located on the north eastern side of the current Kola deposit perimeter, approximately one kilometre to the east of Phase 1 drill EK_01 (Figure 2). The drill hole was completed to a depth of 302.60m and intersected typical potash mineralisation in the upper and lower seams (Figure 4). The drill hole was collared in the Inferred Mineral Resource area and as a result it not only confirms continuity of sylvinite mineralisation in the north eastern part of the deposit but also will contribute to reclassification of the Mineral Resource during the planned update to the resource model. Currently the potash mineralisation remains open in this direction.
The grades from this latest drilling (announced above) are consistent with other high-grade intercepts reported to date, and continue to support the initial geological interpretation and confirm that the high-grade sylvinite mineralization at Kola is laterally extensive. The Phase 2 Exploration Target* of between 320 million tonnes and 1.08 billion tonnes of potash mineralisation grading between 19% K2O (30.15% KCl) to 21% K2O (33.33% KCl) is supported by the latest results.
The drilling component of the Phase 2 programme now consists of a total of 41 drill holes for 9,600m, of which 19 drill holes (6,850m) are designed for geotechnical, structural and resource extension purposes and a further 22 are hydro-geological drill holes. The drilling will provide additional data for the company's Pre-Feasibility Study and planned update to the NI 43-101 Mineral Resource estimate.
Of the 19 planned drill holes for resource evaluation purposes, 11 drill holes (3,535m) are complete and three more are currently in progress. Of the 11 completed holes, nine penetrated both sylvinite target horizons with assay results pending for EK_17, EK_20, EK_22, EK_23, EK_24, EK_26 and EK_27. Drill hole EK_21 (209.88m EOH) and EK_25 (EOH 287.30m) were abandoned short of the sylvinite horizons in the evaporite cover sequence due to drilling difficulties.
"These highly encouraging results further support the Company's view that the Kola deposit has the potential to be one of the premier potash deposits recently developed. The Company actively continues with its drilling programme and this data, coupled with the now completed Phase 2 high-resolution seismic survey and assays from the remaining holes in our Phase 2 drilling programme, will underpin our updated Mineral Resource estimate due in the next quarter" said Iain Macpherson, Chief Executive Officer. "I am especially encouraged by the intercept on drill hole EK_17 that targeted a structural loss zone, but returned a good sylvinite intercept, pointing to a simplification of the Resource model. The fact that the mineralisation remains open laterally, will allow us to consider planning for a longer life and/or higher tonnage operation than proposed in our initial economic assessment."
Table 1: Drill hole coordinates
Table 2: Assay returns from EK_18 and EK_19
|Hole||Zone||From (m)||To (m)||True Width (m)||% K2O||% KCl|
|EK_18||Upper Upper Seam||286.59||290.45||3.86||16.14||25.57|
|EK_18||Lower Upper Seam||290.70||300.26||9.56||20.69||32.78|
Sampling & Analytical Details:
Drill core samples (PQ core diameter sizes) are split in half by a diamond saw cutting machine at the project site. The half split samples, each weighing about three to seven kilograms, are collected at an average interval of 0.3 to 0.6 metres. The samples were processed and analysed by Genalysis, Perth, Australia. Sample preparation and analysis is done by Genalysis. Potassium, Sodium, Calcium, Magnesium, Chlorine, and Sulphur were analysed by ICP-ES. Routine international-standard QA/QC procedures were used by Genalysis. One of the six elements analysed are reported here: potassium (K) and its molecular equivalent of Potassium oxide (K2O, by multiplication with a factor of 1.204). The detection limit for K is 0.001%.
About Elemental Minerals
Elemental Minerals Limited is an advanced mining exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project on the Republic of Congo coastline. 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
Mineral Resource Summary - Kola Deposit of Sintoukola Project
- The Sintoukola Project's Kola deposit currently contains 362 Mt Indicated Mineral Resources and 442 Mt Inferred Mineral Resources, with an average grade of 19.5% K2O (30.8% KCl) and 19.6% K2O (31.0% KCl) respectively, at a 15.0% K2O cut-off grade.
- Within such Mineral Resources, the upper seam of the Kola deposit contains 229 Mt Indicated Mineral Resources and 289 Mt Inferred Mineral Resources, grading at 21.3% K2O (33.8% KCl) and 21.4% K2O (33.9% KCl) respectively, which upper seam is a higher-grade sylvinite only zone.
- The upper seam has a high-grade domain containing 151 Mt Indicated Mineral Resources and 186 Mt Inferred Mineral Resources, grading at 25.1% K2O (39.7% KCl) and 25.2% K2O (40.0% KCl) respectively, at a 20.0% K2O cut-off grade of pure sylvinite in a largely continuous mineralized horizon. This deposit is contained within 28 km2 of the current 1,400 km2 license area and current exploration activities aim to test a much larger area of the license to further expand resources.
- 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 respecting Elemental's Sintoukola Project is contained in a technical report entitled ''NI 43-101 Technical Report, Sintoukola Potash Project, Republic of Congo'' prepared by Neal Rigby of SRK Consulting (U.S.), Inc. and Messrs. Simon Dorling, Jeff Elliott, Andrew Scogings and Peter Davies of CSA Global Pty Ltd. for the Company dated August 1, 2011 with an effective date of June 10, 2011 (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.
* The potential quantity and grade of the Exploration Target 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 determination of a Mineral Resource.
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/20120206_C9516_PHOTO_EN_9628.jpg
Image with caption: "Figure 2: Phase 1 and 2 Drill Hole Locations. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120206_C9516_PHOTO_EN_9629.jpg
Image with caption: "Figure 3: Geological cross section showing EK_18. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120206_C9516_PHOTO_EN_9630.jpg
Image with caption: "Figure 4: Geological cross section showing EK_19. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120206_C9516_PHOTO_EN_9631.jpg
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