Latest Drilling Results Confirm Presence of Sylvinite Mineralisation
Up to 2km to the West of the Current Mineral Resource Boundary
PERTH, Australia, March 27, 2012 /CNW/ - Elemental Minerals Ltd. (ASX,TSX: ELM) ("Elemental" or "the Company") is pleased to announce the receipt of further assay results from the Kola Potash Deposit Phase 2 drilling programme within its Sintoukola Potash Project in the Republic of Congo (Figure 1).
- Shallow potash intersections from EK_17 include:
- Upper Seam: 4.18m at 22.63% K2O (35.85% KCl) from 256.25m; and
- Lower Seam: 5.14m at 19.78% K2O (31.32% KCl) from 263.33m (includes 3.45m at 26.69% K2O (39.11% KCl).
- Shallow potash intersections from EK_26 include:
- Upper Seam: 6.58m at 16.38% K2O (25.94% KCl) from 311.25m (includes 1.65m at 22.85 % K2O (36.20% KCl) from 312.04m; and
- Lower Seam: 6.48m at 12.55% K2O (19.88% KCl) from 320.90m.
At the time of reporting, the Company had completed 16 core holes of the Phase 2 programme for an interim total of 5,135m (Figure 2). Complete laboratory assay results for core samples have been received for six drill holes (EK_17 to EK_20, EK23 and EK26). Results of EK_18 to EK_20 and EK_23 were reported previously and recent results from EK_17 and EK_23 are reported below. Complete assays are pending for seven boreholes including EK_22, EK_24, EK_27, EK_28, EK_29, EK_31 and EK_32.
Drill hole EK_17 was drilled to investigate continuity of mineralisation and hanging wall conditions in a zone of possible structural disturbance (interpreted from 2D seismic data collected during Phase 1). The drill hole was positioned approximately 370m north east of EK_15 (Phase 1 drill hole which intersected mineralisation of 3.97m @ 24.25% K2O in the Upper Seam). EK_17 was terminated at a depth of 336.70m after intersecting sylvinite mineralisation in both the Upper and the Lower Seams (Figures 2 and 3).
The analytical results and geological observations suggest that potash mineralisation continues below the zone of reflector disturbance mapped in the cover sequence of the evaporites. Closed-spaced 2D seismic data across and adjacent to EK_17 suggest that the zone of disturbance is aerially restricted, has an elliptical and cylindrical shape and is possibly related to local dissolution of salt in the hanging wall to the mineralisation. While grade, geometry and width of mineralisation in the adjacent holes are compatible, the thickness of barren halite above the mineralisation is considerably less in EK_17 (~22.5m) than it is in EK_15 (~36m).
The results of EK_17 indicate that the Lower Seam is comprised of sylvinite in this area and this may represent a significant opportunity to the project.
Drill hole EK_26 was drilled 2,000m south west of Phase 1 drill hole EK_13, within an area of Inferred Mineral Resources, to a depth of 383.25m (Figures 2 and 4). The Upper Seam in this borehole was comprised of an upper portion of sylvinite mineralisation; 2.34m at 17.92% K2O (28.38% KCl) and a lower carnallitic portion. Ordinarily the upper seam is comprised entirely of sylvinite.
These results are encouraging as they show that the sylvinite mineralisation of the Upper Seam extends over a great distance and indicate that mineralisation to the south west 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.
Based on these and previous results, the Company continues to be on track 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.
Three rigs are operating at present on the Phase 2 programme which comprises some 25 drill holes (8,600m) for resource evaluation and resource extension purposes. As mentioned above 16 drill holes have been completed (and results have been reported for seven holes), three drill holes are currently in progress and a further six are planned. Two of the completed boreholes (EK_21 and EK_30) were abandoned short of the sylvinite horizons due to drilling difficulties and another did not intersect the potash seams (EK_25, the only one of Phase 2 drilling to do so). The remainder of the Phase 2 drill holes completed thus far have intersected significant potash mineralisation in areas peripheral to the currently defined Kola deposit.
A further 22 boreholes have been completed for hydrogeological studies and an additional 3 holes are planned. This drilling will provide additional data for the company's Pre-Feasibility Study and planned update to the NI 43-101 Mineral Resource estimate.
Commenting on these results Elemental's CEO, Iain Macpherson stated: "These exciting new results reinforce our belief that the Kola deposit has the potential to be one of the world's premier sylvinite potash deposits coming into development. 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, is expected to provide the required Mineral Resource to be integrated into the Pre-Feasibility Study due for completion Q3 2012."
Table 1: Drill hole coordinates
Table 2: Selected assay returns
|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 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%.
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, of which the 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/20120327_C7925_PHOTO_EN_11572.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/20120327_C7925_PHOTO_EN_11573.jpg
Image with caption: "Figure 3: Geological cross section showing EK_17 (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120327_C7925_PHOTO_EN_11574.jpg
Image with caption: "Figure 4: Geological cross section showing EK_26 (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120327_C7925_PHOTO_EN_11575.jpg
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