TSX: ST and ST.WT
TORONTO, Dec. 7 /CNW/ - Stonegate Agricom Ltd. ("Company") (TSX: ST) is pleased to announce the confirmation of the high-grade nature of the Upper and Lower Zones of its Paris Hills Phosphate Project in Idaho following the receipt of assay results on core samples obtained from its initial definition drilling activity at the property.
The assay results show a high-grade intercept in the Lower Zone in hole PA002, which contained 30.5% P2O5 over seven feet from 680 to 687 feet below the surface.
The Upper Zone intersected in hole PA002 assayed at 24.9% P2O5 over 16 feet from 476 to 492 feet, including 12 feet of 27% P2O5 from 476 to 488 feet.
Stonegate has received assay results only for the Upper Zone intersected in hole PA001, with a grade of 23.5% P2O5 over 16 feet from 450 to 466 feet. Holes PA001 and PA002 are approximately 1,500 feet apart.
"We are excited to see such high grades from our own work at the property. If confirmed by additional drilling, the Paris Hills Phosphate Project would rank as one of the highest-grade phosphate deposits in the Americas," said Mark Ashcroft, President and Chief Executive Officer.
The Company plans to continue drilling activity in the coming months at the Paris Hills Phosphate Project, which it acquired in 2009. The assay results and the planned beneficiation testing of the core samples in the first half of 2011 will be important information for the Company's pre-feasibility study, which is expected to be completed by the end of 2011.
Drilling began September 23, 2010 and the drilling contractor (Major Drilling America Inc.) has completed pre-collaring of 24 drill holes thus far using reverse circulation drilling and followed up with diamond drilling to obtain core samples from both zones at 10 of the drill holes.
Diamond drilling will be stepped up with the arrival of a second diamond drill rig in mid-December 2010 at the property and a third diamond drill rig in January 2011.
In addition, a reverse circulation drilling rig is expected to return to the property in January 2011 to begin pre-collar drilling for an additional 60 to 75 holes as part of the second stage of definition drilling planned at the project.
While the Company has released assay results for the core samples for one and a half holes to inform shareholders of the initial results, it intends to collect assay data into larger batches before releasing results in the future.
All samples were analyzed by x-ray fluorescence (XRF) at ALS Laboratory Group in Vancouver, Canada. Trace element data is pending. Internal standard and blanks were submitted with the samples as part of Stonegate's quality control program.
This news release has been reviewed and approved by Michelle Stone, Ph.D., P.Geo., Vice President Exploration of Stonegate Agricom, who is a qualified person as defined in National Instrument 43-101.
About Stonegate Agricom
Stonegate Agricom, which is actively engaged in acquiring and developing agricultural nutrient projects, is currently focused on the development of two potentially world-class, long-life phosphate deposits, the Mantaro Phosphate Project located in Peru and the Paris Hills Phosphate Project located in Idaho. Stonegate is confident that the two deposits have sufficient size and grade and are in the right locations to become strategic, cost-effective sources of phosphate supply for major fertilizer producers. The Company intends to conduct definition and exploration drilling to confirm and expand estimates of NI 43-101 compliant mineral resources and reserves in the deposits and then complete feasibility studies leading to a decision to proceed with extracting and processing the phosphate. More information is available at www.stonegateagricom.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: the general risks associated with the speculative nature of the Company's business, commodity prices, current global financial conditions, uncertainty of additional capital, price volatility, the Mantaro and Paris Hills projects are advanced exploration stage projects, limited operating history, no history of earnings, government regulation in the mining industry, environmental risks and hazards, impending climate change legislation, required approvals and permits, foreign subsidiaries, political and economic risk in Peru, risks relating to the retention of the Mantaro project, risks relating to the retention of the Paris Hills project, expiration of leases and permits for the Paris Hills Project, title to mineral properties, obtaining and converting mineral concessions and surface rights, community relations and project support, water rights, exploration, development and operating risks, uncertainty in the estimation of mineral resources, uncertainty of inferred mineral resources, mineral exploration, reliability of historical exploration work, absence of public trading market, risks associated with having a controlling shareholder, arbitrary offering price, dilution to the common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends as well as those factors discussed in the section entitled "Risk Factors" in the Company's preliminary prospectus. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The forward-looking statements and forward-looking information contained in this press release are included for the purpose of providing investors with information to assist them in understanding the offering as well as the Company's expected financial and operational performance and may not be appropriate for other purposes. Stonegate does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.
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