Elemental Minerals (ASX: ELM) looks set to increase the Resource base of its Sintoukola Potash Project in early August with the completion of the Phase 2B resource expansion drilling program that has delivered yet more high quality results.
The completion of the Phase 2B resource expansion program is a key step to finalising the inputs for the Pre-Feasibility Study, scheduled for release in September 2012.
The latest assays confirm the extension of sylvinite mineralisation significantly beyond the limits of the May 2012 Resource estimate.
Highlight intersections include:
- 3.68 metres at 21.94% K2O (34.75% KCl) from 286.82 metres (Upper Seam) and 5.14 metres at 17.93% K2O (28.39% KCl) from 293.49 metres (Lower Seam);
- 5.18 metres at 20.81% K2O (32.95% KCl) from 279.14 metres (Lower Seam);
- 5.95 metres at 20.29% K2O (32.13% KCl) from 319.85 metres (Footwall Seam);
- 4.31 metres at 23.43% K2O (37.11% KCl) from 287.40 metres (Upper Seam) and 3.41 metres at 22.08% K2O (34.97% KCl) from 294.96 metres (Lower Seam); and
- 3.85 metres at 20.24% K2O (32.05% KCl) from 231.65 metres (Lower Seam).
Further exploration upside exists with the mineralisation remaining open in all lateral directions, highlighting the potential for continued expansion of the Kola potash deposit.
Iain Macpherson, chief executive officer, commented: "The completion of the Phase 2B resource expansion program is an important step to finalising the inputs for the Pre-Feasibility Study, scheduled for release in September 2012.
"Phase 2B results to date demonstrate that the Kola section of the Sintoukola licence remains open-ended in most directions and continues to highlight the exceptional scale of this deposit and potential for continued growth."
The Phase 2B drill program comprised nine holes for a total of 2,991.5 metres, of which assays are remaining for two of the holes.
These last assays are likely to be highly anticipated given the results to date, which demonstrate Kola has comparable grades to those of many operating mines around the world, and is higher grade than most potash development projects.
Sintoukola's JORC Resource
The Sintoukola Project's Kola deposit currently contains 959 million tonnes of Measured and Indicated Resources with an average grade of 15.11% K2O (23.93% KCl), and 513 million tonnes of Inferred Resources with an average grade of 15.33% K2O (24.27% KCl), at a 10.0% K2O cut-off.
Within such Resources, the sylvinite portion of the deposit contains 413 million tonnes of Measured and Indicated Resources with an average grade of 20.39% K2O (32.39% KCl), and 261 million tonnes of Inferred Resources grading 19.16% K2O (30.33% KCl), at a 10.0% K2O cut-off.
With average grade at the Kola sylvinitic Upper and Lower Seams of 20% K2O (32% KCl), Kola has comparable grades to those of many operating mines around the world, and is higher grade than most potash development projects.
Importantly - considerable exploration upside remains at the deposit with mineralisation open in several directions. Kola covers just 60 kilometres of the over 1,400 square kilometre permit area.
Share price catalysts
Investors are likely to be monitoring Elemental closely as it amps up news flow.
Catalysts for re-rating are likely to be the impending Resource update, set for early August, followed by the completion of the Pre-Feasibility Study in September.
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