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.
HIGHLIGHTS
- 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 |
EK_46 |
Upper Seam |
218.95 |
220.03 |
1.08 |
16.89 |
26.75 |
EK_46 |
Lower Seam |
227.00 |
231.92 |
4.92 |
23.59 |
37.36 |
EK_47 |
Upper Seam |
216.83 |
219.88 |
3.05 |
23.91 |
37.87 |
EK_47 |
Lower Seam |
224.33 |
226.26 |
1.93 |
25.49 |
40.36 |
Table 2: Drill hole coordinates*
Hole |
East-WGS84 |
North-WGS84 |
RL |
Azimuth |
Dip |
Total Depth |
EK_46 |
792750 |
9544760 |
40 |
0 |
-90 |
260.3 |
EK_47 |
790590 |
9547860 |
40 |
0 |
-90 |
291.2 |
*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.
Forward-Looking Statements
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.
www.elementalminerals.com
1For a full description, refer to the NI 43-101
Technical Report, dated 17 September
2012 available on SEDAR, www.sedar.com
SOURCE Elemental Minerals Limited
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