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  • Highfield Resources Inks Large Potash Exploration Target At Pintano In Spain 0 comments
    Feb 26, 2013 6:14 PM

    Spanish potash company Highfield Resources (ASX:HFR) has inked an Exploration Target for its newly named Pintano Potash Project of between 44 million to 76 million tonnes of KCl (potash).

    This equates to 306 - 338 million tonnes (NYSE:MMT) of sylvinite located in Spain's potash producing Ebro Basin.

    The Exploration Target K2O grade is estimated at 9.1% to 14.1% (14.4% to 22.3% KCl).

    The Exploration Target was primarily based on historic drill hole logs and re-interpreted seismic.

    Interestingly, the Exploration Target has only focussed on K2O from sylvinite and has not taken into account other mineralogical potential.

    Project overview and Exploration Target rationale

    The potash deposits underlying the Pintano Project Area appear to be characterised by a predominantly "simple" deposit mineralogy dominated by various potash salts; sylvite, halite and minimal carnallite, with accessory insolubles such as clays, muds, and anhydrite.

    The mineralisation is hosted within thick evaporite packages consisting of a hanging wall salt, potash member, and a footwall salt member showing an overall regional dip to the southeast. A basal anhydrite marker is typical within the Project Area vicinity, found at the base of the footwall salt and acting as a good marker bed.

    Depth to the potash interval chosen for the Exploration Target varies from approximately 510 metres to 800 metres, which is considered reasonably shallow compared to many other world wide deposits.

    The thick evaporite packages could be reviewed for halite potential as well as sylvite mineralisation.

    The seismic interpreted salt packages will be used in conjunction with historical drilling and exploration data to determine suitable future drilling locations for the Pintano Area.

    If future positive drilling and geochemical results are achieved, Pintano shows promise for increased mineralisation development and delineation.

    Mineralisation is open to the northeast, southeast and south-southwest due to lack of drilling and shows promise for increased mineralisation potential if drilling results are positive.

    Although the deposit appears open in many directions North Rim and Highfield have taken a conservative approach in defining the Exploration Target based on the level of confidence of the mineralisation and available data at the time.

    Highfield Resources is presently planning a drilling programme to test this Exploration Target as well testing the potential additional areas of mineralisation as detailed above.

    The geological continuity and mineralisation within the Pintano Project Area has been shown through historical drilling, geochemical assay results, geophysical wireline, and re-interpreted seismic data.

    Good continuity of potash mineralisation is evident between the three drill holes PP-2B, P-1, and PP-3 with increased mineralisation thickness towards P-1 and PP-3. Due to lack of wireline data in P-1, continuity of the potash beds is assumed through the historical assays.

    The geophysical logs were reviewed for potash mineralisation. The geophysical log signatures correlate well to the historical assay results in PP-2B and PP-3 (no wireline for P-1) and can independently confirm the likely presence of potash mineralisation within Pintano.

    Wireline gamma ray logs read radioactive elements, including potassium and can be used to validate the presence of potassium from sylvite (KCl) based on the values and signatures given during the downhole testing.

    In all three wells (PP-2B, P-1, and PP-3) the historical assays were sampled in intervals of approximately 30 centimetres or less. This sampling interval selection is consistent with typical current industry standards to ensure proper sampling resolution is achieved over the mineralised intersection.

    It is also worth noting that the historical geological formation picks correlated well to seismic and wireline data where available. Although the assays cannot be confirmed, confidence lies in the presence of notable potash intersections within Pintano.

    In addition to the historical data review, seismic for the Pintano Project Area was re-interpreted by RPS Energy Canada Limited in January 2013.

    The re-interpretation results showed no indication of widespread salt removal due to faulting or dissolution, which is very positive.

    Most of the structural disturbance appears to be below the salt package however, the quality of the seismic data deteriorates over fault controlled structural highs.

    Analysis

    The Exploration Target for Pintano is actually a JORC resource in disguise given the geophysical logs correlate well to the historical assay results but due to reporting requirements it has to be called an Exploration Target.

    There is also evidence that the Target is conservative given the deposit appears open in many directions and that Highfield have taken a conservative approach in defining the Exploration Target.

    Highfield Resources is presently planning a drilling programme to test this Exploration Target as well testing the potential additional areas of mineralisation.

    That the re-interpretation results showed no indication of widespread salt removal due to faulting or dissolution, is also very positive.

    With plenty of news flow ahead, today's release of the Target is a positive development for Highfield increasing the confidence levels of potash mineralisation being at Pintano. It should open development options and paths to progress a faster development route. It may also be a clarion call given the project's favouable location and clear path to mining.

    It also re-affirms the undervalued nature of Highfield Resources at current prices of $0.25.

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