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Gensource Announces NI 43-101 Report for Vanguard(February 17, 2017)
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Gensource Potash Corporation (?Gensource or the ?Company) (TSX-V: GSP) is pleased to announce that it has completed an updated NI 43-101 Technical Report (?NI 43-101, ?43-101, or ?Technical Report) on its 100% owned Vanguard Project in central Saskatchewan. Vanguard Area comprises two leases, KL 244 and KL 245, as well as several parcels of freehold encompassed by KL 245 now leased by Gensource. While other freehold lease negotiations are in progress, a cut-off date of 1 February 2017 has been applied for reporting purposes. Initial project and resource development work has occurred, as a starting point, primarily within KL 245.
The Updated Technical Report, dated February 16, 2017, supports that the Vanguard project area overlies a rich and thick potash resource. The report documents the geological work completed by Gensource since the initial 43-101 Resource Report was announced 28 April 2016.
Since that initial Resource Report, Gensource has completed two exploration wells on the property, which, when combined with the two existing wells (completed in 2012) and the re-interpreted 2D seismic, provide the data for the current resource modelling effort.
The Technical Report defines a resource at Vanguard in the Indicated and Inferred categories as defined by CIM Standards 2010. The Technical Report was completed by Terra Modelling Services Inc., an independent geological/geostatistical consultant.
Gensources President & CEO, Mike Ferguson, said ?The updated 43-101 Resource Technical Report announced today shows an excellent resource, amenable to our planned selective solution mining method. The results support our earlier estimations of the resource on the Vanguard property and our decision to commence project development work in the area. The resource defined in this Technical Report will now be used as part of the ongoing feasibility study work and will help define the initial mining area and mine life of the first small ?module that we plan to construct and operate at Vanguard. Using only the Indicated Resource numbers from the Technical Report, a very long life potash production facility here is possible. Were very pleased with the results of the Technical report and are excited to continue to drive forward in our project and business development work towards our goal of becoming the next independent producer of potash in Saskatchewan.
Summary of the Technical Report:
The Technical Report defines a resource in the Vanguard area of almost 145 million tonnes of final potash product in the Indicated category and over 320 million tonnes of final potash product in the Inferred category, based on the baseline 40% recovery. See Tables 1 and 2 for a more detailed summary of the updated Indicated and Inferred Resource at the Vanguard Project.
Table 1: Indicated Resource
|Weight %||Weight %||Weight %||meters||Weight %||Million tons||Million tons||Million tons||Million tons|
|Weight %||Weight %||Weight %||meters||Weight %||Million tons||Million tons||Million tons||Million tons|
Table 2: Inferred Resource
The basic assumptions for the Resource are as follows:
- K2O cut off grade of 15 % (equating to 24.6% KCl).
- Maximum carnallite cut-off of 6%.
- No insoluble cut-off.
- No thickness cut-off, due to the mining methodology (i.e., selective solution mining).
- Representative density samples were taken from the new core and yielded an average of 2.10 for the Belle Plaine Member and 2.12 for the Patience Lake Member.
- 2250 m Radius-of-Influence from existing wells (based on thickness variography) for the Indicated Resource, and 6000 m for the Inferred Radius. This is based on Variography for all sub-units, as well as geological continuity.
-All relevant anomalies discovered by 2D seismic have deducted, while a further 20% deduction for unknown anomalies was applied within the Indicated category and 25% in the Inferred category. A range of recoveries, which are inclusive of mining and plant recoveries, are presented.
The KCl 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 the Preliminary Economic Assessment Released in April 2016.
Estimation of the Resource proceeded with Kriging, using a grid model in Maptek Vulcan.
An example of the output is given in Figure 1, which shows a portion of KL 245 with the new drilling indicated (1-14 and 1-16), with the KCl grade grid shown.
See *Figure 1: KCl Grade for the Patience Lake 1 (PLM1) sub-member, the initial target zone.
The Technical Report also provides the following recommendations for next-step work in the Project Area: ?...that Gensource complete a feasibility study complete with 3-D seismic work to advance this project.
The Company will file this Technical Report with Canadian securities regulators within 45 days of this release pursuant to NI 43-101 requirements. It will be available on SEDAR at www.sedar.com, and also on the Company's website at www.gensource.com
The technical information presented in this news release has been reviewed and approved by Mr. Louis Fourie, P.Geo., Pri. Sci. Nat. from Terra Modelling Services Inc., who is a Qualified Person according to NI 43-101 requirements, and an independent consultant to the Company.
About Terra Modelling Services
Terra Modelling Services Inc. is a geological consulting company based in Dalmeny, Saskatchewan, with specific expertise in potash and related minerals, as well as diamonds and kimberlites.
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province. Gensources 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 Gensources 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 Gensources mineral properties, the ability to complete a feasibility which supports the technical and economic viability of mineral production, Gensources 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 Gensources 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 Gensources forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Gensources 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.
For further information about the Company please contact:
Gensource Potash Corporation:
Mike Ferguson, 306-974-6414
President and CEO
For further information about Terra Modelling Services, contact:
Terra Modelling Services Inc.
Louis Fourie, 306-292-9154
Owner and Principal