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  • Elemental Minerals Uncovers Shallowest, High Grade Sylvinite Yet At Kola  0 comments
    Apr 11, 2013 3:00 AM

    Elemental Minerals (ASX: ELM) has unlocked thick, high grade sylvinite seams at the shallowest depth to date in a Phase 3A drilling program at its Kola deposit, within the Sintoukola Potash Project in the Republic of Congo.

    Significantly, these latest results will enhance the already attractive economics of the project.

    Two Phase 3A boreholes were drilled to test the extension of sylvinite mineralisation in the north-western portion of the Kola deposit.

    Both the Upper and Lower Seams were intersected in both boreholes and contain sylvinite of high grade. Notable intercepts include 4.92 metres at 23.59 K2O (37.36% KCl), and 3.05 metres at 23.91 K2O (37.87% KCl).

    Demonstrating the quality of the Kola deposit, these latest intersections are among the best in the world at well above 30% KCl.

    Mineralisation of the two seams was extended by 1.5 to 2 kilometres laterally, in turn extending the overall Kola sylvinite deposit to over 9 kilometres.

    This will likely contribute to an increase and upgrade of the Resource and further demonstrates the extent of high grade mineralisation, which remains open in almost all directions.

    Iain Macpherson, chief executive officer, commented: "As the drilling steps-out further, we continue to intersect thick, high grade sylvinite and there is no reason for it not to continue much further.

    "It's also pleasing that the seams remain at a similar depth to the existing resource, in fact it's slightly shallower here, which enhances mining simplicity and of course compares favourably with the depth of mining of other deposits of this grade and thickness in Saskatchewan that are typically about 1,000 metres below surface.

    "The Kola sylvinite deposit is clearly much larger than anyone anticipated and the grade of the deposit and these latest intersections are amongst the best in the world at well above 30% KCl.

    "The existing very attractive economic fundamentals of the project will be augmented further by the results of these boreholes and the processing of the data into the forthcoming Feasibility Study."

    Shallow sylvinite

    The depth to the seams in EK_46 and EK_47 is the shallowest to date with the top of the Upper Seam occurring at 219 metres and 217 metres below surface respectively.

    The thickness of the halite above the Upper Seam exceeds 20 metres in both boreholes, well in excess of the minimum 'salt-back' required for mining.

    Bankable Feasibility Study

    Through an extension of the data swap agreement with a prominent oil and gas exploration group active in the area, Elemental has acquired additional 2D seismic data covering 40 square kilometres of the western portion of the Kola deposit and possible extension.

    The additional seismic data will complement existing datasets and assist with resource modelling and classification.

    Both datasets will be utilised in the review of the classification of the resources in this area when updated as part of the Bankable Feasibility Study.

    Though not present in the Phase 3A boreholes, the high grade Hangingwall Seam remains a target at Kola and the Dougou prospect areas.

    This will require more detailed seismic interpretation to guide drill hole targeting so that relative highs and lows in the salt sequence can be better predicted.

    Analysis

    Today's drilling results from Kola demonstrate the deposit is not only much larger than expected, but also compares favourably with the depth of mining of other deposits of this grade and thickness in Saskatchewan that are typically about 1,000 metres below surface.

    Being the shallowest intercepts to date will positively impact the already robust economics, which include a net present value of US$2.97 billion (at a 10% discount rate) and an after tax internal rate of return of 29.3%.

    Further highlighting the quality of the project, these latest intersections are among the best in the world at well above 30% KCl.

    Results from the new boreholes will be incorporated into an updated Resource for Kola as part of the planned Bankable Feasibility Study, with the results of this likely to act as a catalyst for re-rating.

    Elemental is also continuing its search for strategic partners for project and infrastructure development and previously reported it was considering offers.

    The company remains well-funded to continue towards the development of the Kola deposit and its broader Sintoukola Potash Project with just under A$20 million in cash at the end of the December quarter 2012.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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