SASKATOON, Saskatchewan–(BUSINESS WIRE)– Gensource Potash (TSXV:GSP) is pleased to advise that it has received assay results from Well #2 of its two-well drilling program on its 100% owned Vanguard project area. The current two well program has been designed to complement and build upon two previous wells drilled on the property in 2012.
Mike Ferguson, Gensource’s President & CEO commented: “We are very pleased to report that grades and thicknesses encountered in Well #2 met our expectations. Previous wells drilled in the area (in 2012) showed excellent mineralization and we had hopes that our new wells would compare favourably. In fact, Well #2 does provide evidence of consistency of resource from the earlier wells in both grade and thicknesses of the prairie evaporative members. This validates the potential extraction potential (tonnes of final sellable potash product per square mile) that was used in the Preliminary Economic Assessment (PEA) completed in May 2016, representing cost-efficient drilling and mining using our selective dissolution technique. We are excited to see these results. Now that all the assay data have been received, we will be working towards an updated NI 43-101 Resource Report.”
Over 200 samples were selected from the 30+ meters of sylvinite-bearing core, representing all three members of the prairie evaporite formation. The samples were assayed by SRC Geoanalytical Laboratories, an ISO 17025 accredited testing facility in Saskatoon. The resulting assay data have been analyzed by Gensource’s independent geologist from Terra Modelling Services Inc. Highlights are:
- All three members of the Prairie Evaporite (Patience Lake, Belle Plaine and Esterhazy) are present and intact.
- Patience Lake Member
- Average grade of 36.9% KCl
- Total thickness of 12.7m
- Of particular note are high grade intersections of 42.6% KCl of 2.2 m and 44.9 % KCl over 3.6m
- Belle Plaine Member
- Average grade of 34.6% KCl
- Total thickness of 9.4m
- Of particular note is a high-grade intersection of 44.1% KCl over 2.1m
- Esterhazy Member
- Average grade of 18.29% KCl
- Total thickness of 6.34m
It is well worth noting that there is a near-absence (less than 1%) of carnallite in the Patience Lake and the Belle Plaine Members.
Below is a table illustrating the general consistency in results with the nearby 1-18 well, drilled previously in 2012, and the 1-16 well (Well #1) recently reported on:
(Drilled early 2017)
(Drilled late 2016)
|Average Grade (wt% KCl)||36.9||34.2||33.9|
|Average Grade (wt% KCl)||34.6||33.8||35.7|
|Average Grade (wt% KCl)||18.3||18.7||15.8|
The scientific and technical information contained in this news release was reviewed and approved by Louis Fourie, P.Geo., President of Terra Modelling Services Inc., an independent consultant and Qualified Person under NI 43-101.
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.
Gensource operates under a business plan that has two key components – vertical integration with the market to ensure that all production capacity built is directed to a specific market, eliminating market-side risk; and, technical innovation which will allow for a small and economic potash production facility, the output of which can then be directed to a single, specific market.
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 settlement of a definitive joint venture agreement with the Essel Group on the terms of the MOU or at all, the expected timing for release of a reserve estimate and a feasibility study and whether or not the study will conclude that mineral production is feasible on a technical or economic basis, and 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, among other things, settlement of a definitive joint venture agreement with the Essel Group, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource’s mineral properties, the ability to complete a feasibility which supports the technical and economic viability of mineral production, Gensource’s financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers, including approval of the Yancoal Canada off take agreement by its parent company, could differ materially from those currently anticipated in such statements for many reasons such as: failure to settle a definitive joint venture agreement with the Essel Group on the terms as announced or at all, and advance and finance the project in accordance with the terms of the definitive joint venture agreement; an inability to finance and/or complete an update of the resource estimate to a reserve estimate, and a feasibility study which supports the technical and economic viability of mineral production; changes in general economic conditions and conditions in the financial markets; the ability to find distributors and source off-take agreements including approval of the Yancoal Canada off take agreement by its parent company; 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 & CEO