Gensource Potash Releases Vanguard NI 43-101 Inferred Resource

Gensource Potash (TSXV:GSP) announced that it has completed a NI 43-101 Technical Report on its Vanguard Project in central Saskatchewan.  The Vanguard Project area is the name for the two mineral leases that are the subject of the Asset Purchase Agreement with Yancoal Canada Resources.
As quoted in the press release:

The Technical Report, dated April 22, 2016 , provides the next step for Gensource in the development of its Vanguard Project. The report documents the geological work completed by YCR on the two permit areas KP 483 and KP 363.  Based on this drilling, logging, assay and seismic data as well as the public domain historical regional geological information available, the report defines an initial Inferred resource on the Project Area, together with additional “Exploration Target” quantities.

Based on the permit Crown Mineral acres in the Project Area, the report estimates the following Inferred Resource and Exploration Target quantities for the Patience Lake and Belle Plaine members of the Prairie Evaporite Formation:

INFERRED RESOURCE:

The assumptions for the Inferred Resource are as follows:
– K₂O cut off grade of 15%
– Maximum carnallite cut-off of 2%
– No insoluble cut-off.
– No thickness cut-off, due to the mining methodology.
– 2.08 t/m³ density (standard density of sylvinite)
– 6000 m Radius-of-Influence from existing wells (based on thickness variography).
All relevant anomalies discovered by 2D seismic have deducted, while a further 25 % deduction for unknown anomalies was applied. A range of recoveries, which are inclusive of mining and plant recoveries, are presented.

The K₂O and carnallite cut-offs as well as other assumptions listed above were based on cut-offs common to solution mining projects in Saskatchewan , as well as on discussion with a third party Engineering Consultant, Mr. Max Ramey from Innovare Technologies Ltd, whom Gensource had retained for assistance in development of this as well as of their Lazlo Project.

Gensource Potash President & CEO, Mike Ferguson, stated:

The 43-101 resource estimate completed today supports our view of the value of the mineral leases being purchased from YCR under the APA.  The resource identified in the Patience Lake could support one of Gensource’s planned small production facilities for a very long time.   Also, good potential exists for increasing the resource tonnage, as planned future drilling and seismic activities will better define the resource.  The purpose of the report was to highlight the value in the mineral leases being purchased under the APA.  The fact that we can define a resource at this early stage speaks volumes for the potential of the properties when they are combined with Gensource’s small scale selective dissolution and enhanced processing.

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