Gensource Potash Corporation (“Gensource” or the “Company”) (TSXV:GSP) is pleased to provide an update related to the ongoing efforts to expand upon the resource confirmation work completed to-date at its 100% owned Vanguard property in central Saskatchewan.
Following the completion of the Vanguard One feasibility study (see news release dated May 31, 2017), Gensource announced initial efforts to increase both the breadth and the depth of its knowledge of the resource on its two leases, with the goal to identify and begin to define additional project areas. With its goal to help bring potash production into the 21st century, Gensource has teamed up with ADROK Ltd (“ADROK”), to investigate the use of their patented and exclusive Atomic Dielectric Resonance (ADR) imaging technology, for the mapping and delineation of the potash members within the Prairie Evaporite. The main aim for the project is for ADROK to deploy their ADR technology for a proof of concept survey looking at potash deposits, with the aim to establish confidence that ADR can assist Gensource’s exploration and resource evaluation efforts. The project included data collection from 13 virtual boreholes (“V-bores”), and analysis of two V-bores to-date. A virtual borehole is just that – virtual. By utilizing ADR and proprietary analysis methods, ADROK is able to obtain geological and lithographic data similar to that obtained by actually drilling, logging and coring an exploration borehole, without doing any drilling. In Gensource’s case, the effort was focused on:
- Identifying the boundaries of the Prairie Evaporite Formation.
- Differentiating the Potash members within the Prairie Evaporite Formation.
- Detection of high grade zones within the Potash members.
- Identifying wet, potentially brackish-water-bearing zones at depth for use in Gensource’s selective solution mining technique.
Following the initial field investigation, ADROK completed data conversion on two V-bores as a calibration and “training” exercise and has provided an initial interpretation of the results.
The initial results indicated potash mineralization in both V-bores, consistent with the traditional geological logging and testing completed on those holes (including core retrieval, sampling and assaying). The ADR techniques were able to distinguish sylvinite (potash-containing ore) from halite (predominantly salt-only mineralization) layers at depth. Additionally, the evidence collected suggests that the ADR techniques can differentiate high-grade versus low-grade sylvinite layers within the potash-containing ore zone – not just differentiating the three main members of the Prairie Evaporite (Patience Lake, Bell Plaine and Esterhazy) but high and low-grade layers within each member. Further, the established lithology relationships using the ADR technology were consistent with the data recorded from the geophysical logs provided from the exploration phase of the two training holes.
Gensource’s President & CEO, Mike Ferguson, said, “The potential to apply ADROK’s technology in the potash industry is an exciting prospect. Not only are these methods drastically faster and substantially less costly than traditional exploration and confirmation methods, but also the ADR virtual boreholes are a low energy, low disturbance and non-destructive means of accomplishing field work – an ethos that fits well with Gensource’s mission to be innovative, and to take a more environmentally friendly and responsible approach to exploring for and producing potash. By utilizing new and more efficient techniques, it is Gensource’s goal to decrease cost and time requirement during the exploration and development phases, the result of which will save time and money and add more value to our shareholders. We look forward to further collaboration with ADROK on the assessment and advancement of the potential opportunities this technology can bring to our industry.”
The scientific and technical information contained in this news release was reviewed and approved by Mike Ferguson, P.Eng., the President and CEO of Gensource and a Qualified Person under NI 43-101.
ADROK is a cutting-edge technology company headquartered in the United Kingdom with exclusive global patents to Atomic Dielectric Resonance (ADR) imaging technology. This novel technology has been adapted for use in civil engineering, mining and oil and gas sectors. ADR has been proven to map the sub-surface geology and locate accurately and identify precisely the fluids present. In trials, the ADR technology has identified oil, gas, water, various rock types and minerals and penetrated the earth to great depths with high vertical resolution and definition. For more information visit www.adrokgroup.com.
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province. Gensource’s President and CEO, Mike Ferguson P.Eng., has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan, and organized that team with a business plan focusing on small scale, economical production and vertical integration. Gensource plans to use up-to-date techniques and technologies to implement a potash facility like no other in the province – one that has a very small environmental footprint and community impact.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This news release may contain forward looking information and Gensource cautions readers that forward- looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Gensource included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Gensource and Gensource provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Gensource’s future plans, objectives or goals, to the effect that Gensource or management expects a stated condition or result to occur, including the establishment of vertical integration partnerships and the sourcing of end use potash purchasers. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to Gensource’s financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers could differ materially from those currently anticipated in such statements for many reasons such as: failure to settle a definitive joint venture agreement with a party and advance and finance the project; changes in general economic conditions and conditions in the financial markets; the ability to find and source off-take agreements; changes in demand and prices for potash; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Gensource’s activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Gensource’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Gensource’s forward-looking statements. Gensource does not undertake to update any forward-looking statement that may be made from time to time by Gensource or on its behalf, except in accordance with applicable securities laws.
Gensource Potash Corporation:
Mike Ferguson, 306-974-6414
President and CEO
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