Gensource Potash Announces 43-101 Resource At Its New Vanguard Project

Gensource Potash (TSXV:GSP) announced it has completed an initial National Instrument 43-101 compliant resource estimate for the properties.
As quoted in the press release:

• Resource estimate is based on the geological data being purchased with the properties and defines 100 million tonnes of potash in the inferred category
• The 43-101 Technical Report also defined additional “exploration target” for conceptual resource in the upper Patience Lake and upper Belle Plaine members.
• Recommended next step – complete a PEA( Preliminary Economic Assessment) for a potential project on the Properties.

Time:
The purchase of the two mining leases from YCR jump-starts the project development phase at Vanguard, saving Gensource time and costs. To drill these wells and shoot seismic would take 8-10 months to plan, execute and analyze. Instead, this data is available at the outset.
Money:
To drill the two wells and shoot the seismic would cost nearly $4M to complete today. Instead, the data is available as part of the cost of the Leases.
Springboard to PEA:
The ability to define a formal 43-101 resource based on the geological investigations completed by YCR allows Gensource to move very quickly towards the next step: A PEA, or Preliminary Economic Assessment. A PEA is the first glimpse of what a project might look like in the Vanguard area. It would include the geological information already published with the initial 43-101 Technical Report with an inferred resource, but it also would include engineering, infrastructure, transportation, market and economic data. In Short, a PEA covers the same ground as a Preliminary Feasibility Study( PFS) and a Feasibility Study (FS), but covers it in less depth and less detail. A PEA is not a PFS or a FS, as it is based on an inferred resource only, however it is the first glimpse into what a project might look like on the property”.
Off-Take:
One of the most important aspects of the transaction is that YCR, a subsidiary of Yanzhou Coal Mining Company (traded on the NYSE as YZC) acting as the “market” and has committed to acquire 100% of the targeted 250,000 t/a production for the first five years, if a production decision is made on the basis of a feasibility study.

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