PERTH, Australia, March 12, 2012 /CNW/ - Elemental Minerals Ltd. (ASX,TSX: ELM) ("Elemental" or "the Company") is pleased to announce the receipt of further high-grade assay results from the Kola Potash Deposit Phase 2 drilling programme within its Sintoukola Potash Project in the Republic of Congo. (Figure 1).
- High-grade sylvinite intersection at EK_23 more than 1000m east of the nearest previously completed drill hole.
- Further extension of the mineralised footprint will assist the Phase 2 Mineral Resource update.
- Shallow potash intersections from EK_23 include:
- Upper Seam: 4.04m at 23.49% K2O (37.29% KCl) from 296.32m; and
- Lower Seam: 8.97m at 11.08% K2O (17.58% KCl) from 303.56m.
At the time of reporting, the Company had completed 14 core holes of the Phase 2 programme for an interim total of 4,488m (Figure 2). Laboratory assay results for core samples have been received for 5 drill holes (EK_17 to EK_20 and EK_23). Results of EK_18 to EK_20 have been reported previously and the assay sequence from EK_17 remains incomplete due to geotechnical testing.
Drill hole EK_23 was drilled 1,040m east of Phase 1 drill hole EK_06, within an area of Inferred Mineral Resources, to a depth of 362.45m (Figures 2 and 3). The drill hole was positioned with the intent of confirming grade, thickness and composition of mineralisation in an area of a "layer-cake" geological environment akin to other potash fields (e.g., Saskatchewan, Canada). The primary objective was to upgrade the existing Inferred Mineral Resources to the Indicated Mineral Resource category and to extend the Phase 1 mineralised footprint in a south-easterly direction.
These results are very encouraging as they indicate that the potash mineralisation of the Upper Seam maintains a relatively constant thickness over a vast distance and indicate that mineralisation to the south east of the deposit continues to be open ended. The southern sector of the Kola deposit, as for the northern sector, remains an area for future expansion of Mineral Resources.
The 4.04m wide intersection in EK_21 further extends high-grade sylvinite mineralisation to the south east confirming geological interpretations made from Phase 1 exploration data (Figure 3). Based on these and previous results, the Company is therefore on target to achieve 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). 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 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, 14 drill holes (4,488m) are complete and three more are currently in progress. Of the 14 completed holes, 12 penetrated both potash target horizons with assay results pending for EK_17, EK_22, EK_24, EK_26, EK_27 and EK-28. Drill holes 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.
Commenting on these results Elemental's CEO, Iain Macpherson, stated: "This latest set of encouraging results supports the Company's view that the Kola deposit has the potential to be one of the premier potash deposits worldwide coming into development and is strategically located in an important region of the Congo Basin. The extent and scalability of the existing Mineral Resource footprint, is further demonstrated by these results, which indicate the deposit is still open in most directions. This 'scalability' may well lead to the Company reassessing its production and cost profiles in the near future.
The current Phase 2 drilling programme will underpin our updated Mineral Resource estimate due in the next quarter and coupled with the now completed Phase 2 high-resolution seismic survey and assays from the remaining holes, will provide the required Mineral Resource to be integrated into the pre-feasibility study due for completion mid-year."
Table 1: Drill hole coordinates
Table 2: Selected assay returns from EK_23
|Hole||Zone||From (m)||To (m)||True Width (m)||% K2O||% KCl|
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/20120312_C3534_PHOTO_EN_11006.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/20120312_C3534_PHOTO_EN_11007.jpg
Image with caption: "Figure 3: Geological cross section showing EK_23. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120312_C3534_PHOTO_EN_11008.jpg
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