PERTH, Australia, April 10, 2013 /CNW/ - Elemental Minerals Ltd. (ASX,TSX: ELM) ("Elemental" or "the Company") is pleased to announce the results of Phase 3A drilling programme at the Kola deposit on the Company's Sintoukola Potash Project in the Republic of Congo.
- Thick, high-grade sylvinite seams intersected at shallowest depth to date, at approximately 220 metres.
- Mineralisation of the Upper Seam and Lower Seam extended by 1.5 to 2 kilometres laterally.
- Upper Seam and Lower Seam sylvinite in both boreholes include:
4.92 metres grading 23.59 K2O (37.36% KCl) in EK_46; and
3.05 metres grading 23.91 K2O (37.87% KCl) in EK_47
- Extends the width of the Kola sylvinite deposit to over 9 kilometres
- Deposit remains open in most directions laterally.
- Highlights the huge potential to expand and upgrade the current sylvinite Mineral Resource
Phase 3A boreholes EK_46 and EK_47 were drilled to test the extension of sylvinite mineralisation in the north-western portion of the Kola deposit. Both the Upper and Lower Seams were intersected in both boreholes and contain sylvinite of high grade, which will likely contribute to an increase and upgrade of the Mineral Resource and further demonstrates the extent of high grade mineralisation, which remains open in almost all directions, as is shown in Figure 1.
The depth to the seams in EK_46 and EK_47 is the shallowest to date with the top of the Upper Seam occurring at 219 metres and 217 metres below surface respectively. The thickness of the halite above the Upper Seam exceeds 20 metres in both boreholes, well in excess of the minimum 'salt-back' required for mining.
Through an extension of the data swap agreement with a prominent oil and gas exploration group active in the area, Elemental has acquired additional 2D seismic data covering 40 square kilometres of the western portion of the Kola deposit and possible extension (Figure 1). The additional seismic data will complement existing datasets and assist with resource modelling and classification. Both datasets will be utilised in the review of the classification of the resources in this area when updated as part of the Bankable Feasibility Study.
Though not present in the Phase 3A boreholes, the exceptionally high grade Hangingwall Seam remains a target at Kola and the Dougou Prospect areas. It will require more detailed seismic interpretation to guide drill hole targeting so that relative highs and lows in the salt sequence can be better predicted.
Commenting on the results Elemental's CEO, Iain Macpherson stated: "As the drilling 'steps-out' further, we continue to intersect thick, high-grade sylvinite and there is no reason for it not to continue much further. It's also pleasing that the seams remain at a similar depth to the existing resource, in fact it's slightly shallower here, which enhances mining simplicity and of course compares favourably with the depth of mining of other deposits of this grade and thickness in Saskatchewan that are typically about 1,000 metres below surface. The Kola sylvinite deposit is clearly much larger than anyone anticipated and the grade of the deposit and these latest intersections are amongst the best in the world at well above 30% KCl. The existing very attractive economic fundamentals of the project will be augmented further by the results of these boreholes and the processing of the data into the forthcoming Feasibility Study."
Table 1: Significant intersections in EK_46 and EK_47
|Hole||Zone||From (m)||To (m)||True Width (m)||% K2O||% KCl|
Table 2: Drill hole 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 adjacent to the West coast of Africa offers a transport cost advantage to key Brazilian and Asian fertilizer markets. For more information, visit www.elementalminerals.com
Kola Project Summary1
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 USD2.97billion, with an after-tax IRR of 29.3%.
Results from the new boreholes (EK_46 and EK_47) will be incorporated into an updated mineral resource estimate for Kola as part of the planned Bankable Feasibility Study.
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 the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards 2005 and hence complies with NI 43-101.
Sampling and Analyses
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 1.0 metre. 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%.
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.
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.
1For 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. Map showing the distribution of sylvinite mineralisation at Kola. Includes the Upper Seam, Lower Seam and Hangingwall Seam, where over 1 metre in thickness and in Measured, Indicated or Inferred Mineral Resource categories. Arrows indicate portions of the deposit where the sylvinite is 'open' (potential to expand). The red lines show the recently acquired 2D seismic data. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20130409_C3810_PHOTO_EN_25350.jpg
SOURCE: Elemental Minerals Limited
For further information:
Chief Executive Officer
Tel: +27 (0) 76 238 4461
Investor Relations Manager
Tel: +27 (0) 83 604 0820
Johannesburg Office: +27 11 469 9140