Elemental Minerals Announces Exceptional Intersections at Kola
Highest Potash Grades, 37.80% K2O and 34.20% K2O, Reported to Date.
Opportunity to Enhance Sintoukola Economics
PERTH, Australia, Aug. 9, 2012 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to announce exceptional results from two additional intersections of the new Hangingwall Seam of the Kola deposit (see Figures 1 to 3).
- Highest grade potash intersections identified by Elemental to date:
- 37.80% K2O (59.86% KCl) in 3.11 metre sylvinite intersection in borehole EK_43 (from 222.58 metres); and
- 34.20% K2O (54.15% KCl) in 3.75 metre sylvinite intersection in borehole EK_45 (from 196.48 metres).
- Both intersections from the newly-identified Hangingwall Seam.
- The Hangingwall Seam averages over 3 metres thick, is shallow, and has an extremely high average grade, approximately 55% higher than Elemental's previously highest grading sylvinite seam (the Upper Seam).
- Significant opportunity to enhance the economics of the Sintoukola Project.
- Further supports the strategic significance of both the Sintoukola Project and the Congo Basin as a source of global potash supply.
Commenting on the results, Elemental's CEO, Iain Macpherson, stated: "These results further highlight the exciting potential of not only the Hangingwall Seam, but also the potential of the Sintoukola Project as a whole, and indeed the Congo Basin, to play a meaningful role in the future of the potash industry. The exceptional grade compares extremely favourably to both our current peers, but most significantly, appears very strong when compared to the history of potash developments. The Hangingwall Seam itself appears to be laterally extensive, is flat to gently dipping and consistently 2-4 metres thick; making it a simple, conventional mining target that presents a substantial opportunity to enhance the already excellent project economics of Sintoukola".
The Hangingwall Seam
The Hangingwall Seam is a new discovery (first announced on 3rd July 2012) and was not included within the Mineral Resource announced on the 8th May 2012 (Figure 2), which predominantly comprised mineralisation contained within the Upper and Lower Seams of the Kola deposit. The stratigraphic position of the Hangingwall Seam relative to the Upper and Lower Seams is shown in cross-sections in Figure 3.
The grade of the Hangingwall Seam intersections range from 30.58% K2O (52.36% KCl) to 37.80% K2O (59.86% KCl) (EK_38 and EK_43 respectively). The average thickness of intersections to date is 3.06 metres and the seam appears to be open to the northwest, west and southwest, flat-lying to gently dipping.
The Hangingwall Seam presents an opportunity to fundamentally change the Sintoukola deposit's potential due to its extremely high grade and, consistent with the Upper and Lower Seams at Kola; its thickness, shallow depth and suitability for simple, conventional mining.
Some of the Hangingwall Seam mineralization is expected to be included in a further update of the Mineral Resource estimate, expected to be completed during August 2012. The Hangingwall Seam is also the target seam at the Dougou prospect, 15 kilometres to the southwest of Kola, as announced on 20th of July.
Detailed Drilling Results
The two intersections from boreholes EK_43 and EK_45 are the last results from the eight-hole Phase 2B drill programme on Elemental's Kola deposit. With this announcement all assay results have now been reported as announced on the 3rd and 27th July.
Four of five boreholes (EK_33, EK_38, EK_43, and EK_45) which intersected the Hangingwall Seam are in the north-western part of the Kola deposit (Figure 2). The fifth hole which intersected the Hangingwall Seam (EK_13) is an isolated occurrence central to the existing resource area.
EK_43 and EK_45 confirm the westward continuation of the Hangingwall Seam mineralisation, as intersected in EK_38 (reported on the 3rd July). The results demonstrate consistency of grade and thickness of the seam.
Table 1: Significant intersections of the Hangingwall Seam in EK_43 and EK_45
|Hole||Zone||From (m)||To (m)||True Width (m)||% K2O||% KCl|
Table 2: Drill hole coordinates*
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%.
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.elementalminerals.com
Mineral Resource Summary - Kola Deposit of Sintoukola Project1
- The Sintoukola Project's Kola deposit currently contains 959 Mt Measured and Indicated Mineral Resources (sylvinite and carnallitite combined) with an average grade of 15.11% K2O (23.93% KCl)2, and 513 Mt Inferred Mineral Resources with an average grade of 15.33% K2O (24.27% KCl), at a 10.0% K2O cut-off grade.
- Within such Mineral Resources, the sylvinite portion of the deposit contains 413 Mt Measured and Indicated Mineral Resources with an average grade of 20.39% K2O (32.39% KCl)3, and 261 Mt Inferred Mineral Resources grading 19.16% K2O (30.33% KCl), at a 10.0% K2O cut-off grade.
- These resources are mostly within two seams, the Upper Seam and the Lower Seam which are separated by a barren halite layer averaging 3 metres in thickness. The depth to the top of the Upper Seam is within 250 to 320 metres from surface. A small portion of the Inferred Resource is contained within the Footwall Seam which occurs approximately 45 metres below the level of the Lower Seam in certain areas of the deposit. The deposit is contained within 80 km2 of the current 1,436 km2 license area.
- 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 Dr. Simon Dorling and Mr. 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 Competent Persons 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 Messrs. Simon Dorling, Jeff Elliott, and Andrew Scogings of CSA Global Pty Ltd. for the Company dated June 21, 2012 with an effective date of June 21, 2012 (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.
1 For a full description of the resource refer to the NI 43-101 Technical Report, dated 21 June 2012 available on SEDAR, www.sedar.com
2 Sylvinite & Carnallitite Measured Resource of 518 Mt @ 15.31% K2O (24.24% KCl) and Indicated Resource of 441 Mt @ 14.87% K2O (23.54% KCl)
3 Sylvinite Only Measured Resource of 230 Mt @ 20.56% K2O (32.55% KCl) and Indicated Resource of 183 Mt @ 20.17% K2O (31.93% KCl)
SOURCE Elemental Minerals Limited
Image with caption: "Figure 1: Location of Sintoukola Potash Licence within the Republic of Congo. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120808_C5882_PHOTO_EN_16730.jpg
Image with caption: "Figure 2: Phase 1, 2A and 2B borehole Locations highlighting the position of EK_43 and EK_45 and other boreholes containing the HWS. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120808_C5882_PHOTO_EN_16731.jpg
Image with caption: "Figure 3: Southwest-Northeast Cross section through EK_43, EK_38, EK_18, EK_12, EK_09, and EK_31 showing the Hangingwall Seam (in EK_38 and EK_43) is open to the southwest. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120808_C5882_PHOTO_EN_16732.jpg
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