Gensource Potash Corporation (“Gensource” or the “Company”) (TSX.V:
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:
|
|
Well #2
(Drilled early 2017)
|
|
1-18
(Drilled 2012)
|
|
Well #1
(Drilled late 2016)
|
Patience Lake Member
|
|
Average Grade (wt% KCl)
|
|
36.9
|
|
34.2
|
|
33.9
|
|
Thickness (meters)
|
|
12.7
|
|
11.1
|
|
14.4
|
Belle Plaine Member
|
|
Average Grade (wt% KCl)
|
|
34.6
|
|
33.8
|
|
35.7
|
|
Thickness (meters)
|
|
9.4
|
|
10.1
|
|
8.5
|
Esterhazy Member
|
|
Average Grade (wt% KCl)
|
|
18.3
|
|
18.7
|
|
15.8
|
|
Thickness (meters)
|
|
6.3
|
|
6.7
|
|
10.5
|
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.
About Gensource
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.
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