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TORONTO, May 22, 2012 /CNW/ - EPM Mining Ventures Inc. (TSXV: EPK) ("EPM" or the "Company") is pleased to announce the receipt of a National Instrument 43-101 ("NI 43-101") Mineral Resource Estimate (the "Estimate") for its Sevier Lake property in Utah. The Estimate was prepared by Norwest Corporation ("Norwest") and is effective as of May 1, 2012. The Estimate indicates that the in-situ brines in the Sevier Lake contain the mineral equivalent of approximately 29.5 million tonnes of measured plus indicated potash resource, and approximately 9 million tonnes of inferred potash resource; all as K2SO4 equivalent.
Lance D'Ambrosio, Chief Executive Officer of EPM, said; "We are very pleased with the results of this estimate, which demonstrate that we have an extensive potash deposit. We are very gratified with these findings and look forward to taking the next steps towards building our sulfate of potash project."
A total of 414 holes were drilled on the Sevier Lake property using a variety of drilling methods. The following brine resource parameters were acquired from drill hole sampling of brine and host sediments:
- Gravimetric moisture content in weight percent
- Specific Gravity of brine and solid host sediments
- Cation in mg/l brine for Mg2+, Na+, and K+
- Anion in mg/l brine for Cl- and SO42-
The geometry of the brine aquifer was determined from the correlations of drill hole lithogic descriptions, penetrometer results, and moisture content measurements. The estimations of moisture content and brine grade (cations and anions) and specific gravity inputs into the 3D block model were influenced by the results of geostatistical analyses of the source drill-hole sample data. The estimated brine resource and associated major dissolved cations and anions for the brine aquifer are listed in a table below. Given that sufficient sulfate is present in the brine to utilize all potassium ions, the mineral equivalent tonnages of K2SO4 and other salt compounds that could be created using the available cations and anions in the brine resource are listed below as well.
A summary of the in-situ brine Mineral Resource and major dissolved cations and anions within the Sevier Lake is presented in the table below:
Brine Mineral Resource Summary and Major Dissolved Cations and Anions
|Mt||Wt %||Mt||Wt %||Mt||Wt %||Mt||Wt %||Mt||Wt %||Mt|
|Measured plus Indicated||4,938||0.268||13.228||2.060||101.709||7.775||383.940||6.802||335.874||0.337||16.617|
Peak Minerals Inc ("Peak"), an indirect wholly-owned subsidiary of EPM, owns a 100% leasehold interest in federal potassium leases comprising about 95,802 acres. The leases grant full rights of access and rights to utilize the surface for leasehold mining activities. The term of the leases is 20 years from the date of issuance, April 5, 2011, and for so long thereafter as Peak complies with certain rental, minimum royalty, and minimum annual production requirements, as well as other terms and conditions of the leases.
The same lease terms described above apply to the approximately 22,010 acres of federal potassium leases in which record title is held by LUMA Resources Inc. ("LUMA"). Peak will have development and operational control of these leases under the terms of its Cooperative Development Agreement dated July 15, 2011.
The 6,409 acres of State of Utah SITLA potash leases owned 100% by Emerald Peak Minerals, LLC ("Emerald Peak") grant full rights of access and rights to use the surface and subsurface for uses "reasonably incident to the mining of leased substances". Peak Minerals owns 40% of the membership interest in Emerald Peak and also has the contractual commitment from Emerald Peak to enter into a Unit Agreement or similar agreement and a Unit Operating Agreement that will be entered into by Peak, LUMA, and Emerald Peak. It is anticipated that these agreements will name Peak as Unit Operator and give Peak the sole right to develop and operate the SITLA Leases along with the Federal Leases.
A summary of the in-situ Measured, Indicated, and Inferred Mineral Resource within the Sevier Lake is presented in the table below:
Mineral Equivalent Compounds from Brine Resource
|Classification||Tonnes Mt (Million metric tonnes)|
|Measured plus Indicated||1.156||1.287||1.626||1.033||22.798|
|Measured plus Indicated||25.366||27.335||34.534||69.182||513.635|
|Measured plus Indicated||2.962||3.963||5.007||7.554||56.253|
|Measured plus Indicated||29.485||32.585||41.167||77.769||592.686|
The Company is working to finalize the technical report related to these results. Once concluded, the technical report will be posted on the SEDAR website (www.sedar.com and on the Company's website www.epmmining.com).
The results of the Estimate; in combination with the Company's ongoing engineering, geotechnical, and hydrology work that is being performed; are being used in the preparation of a NI 43-101 compliant Preliminary Economic Assessment ("PEA") that the Company expects to release in the third quarter of 2012.
Lawrence D. Henchel PG, Vice President Geological Services with Norwest Corporation, is the Qualified Person in accordance with NI 43-101 responsible for the Estimate and the technical content of this release and has reviewed and approved it accordingly. Mr. Henchel is an independent consultant contracted by the Company.
About EPM Mining Ventures
EPM, through its wholly owned subsidiary Peak Minerals Inc., controls directly or through agreement mineral leases on more than 123,000 acres on the Sevier Dry Lake property in Millard County, Utah. EPM is targeting the future development and production of Sulfate of Potash (SOP), a premium priced fertilizer used with special crops and soil types, through a cost-effective solar evaporation methodology. The Company is currently engaged in engineering and chemical analysis designed to support the completion of a definitive feasibility study.
For more information on the Company, please visit our web site at www.epmmining.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements related to activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, statements related to the Company's business strategy, objectives and goals; exploration of the Sevier Lake project; the completion of the technical report related to the Estimate, further NI 43-101 resource estimates and the PEA. Forward-looking information is often identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is based on a number of factors and assumptions made by management and considered reasonable at the time such information is provided, and forward-looking information involves known and unknown risks, uncertainties and other factors may cause the actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking information. Such factors include, among others, the inability to complete further NI 43-101 resource estimates, the inability to complete the PEA; the failure to obtain all necessary licenses to explore and develop the Sevier Lake project; inability to successfully complete additional drilling at the Sevier Lake project, as well as those factors disclosed in the Company's current Management's Discussion and Analysis, as well as other public disclosure documents, available on SEDAR at www.sedar.com. Although EPM has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company's plan, objectives and goals and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. EPM does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
For further information:
Chief Executive Officer
(416) 815-0700 ext. 267