Elemental Minerals Boosts M&I Resource By 38% At Kola Potash Project To 573Mt

Elemental Minerals (ASX: ELM, TSX: ELM) has delivered an impressive resource upgrade for the Kola deposit on the Sintoukola property, located in the Republic of Congo. The upgrade provides a boost to the economics of the project.

The Measured and Indicated Sylvinite Resource has increased 38% to 573 million tonnes at 20.92% K2O (33.13% KCl), and importantly the Kola deposit remains open in several directions - providing the intriguing potential for additional future increases.

Sylvite is potassium chloride (KCl), and pure KCl represents 63.18% K2O by weight. K2O grade is converted to KCl grade (the basis used in potash sales) by multiplying by a factor of 1.583.

The Inferred sylvinite Resource jumped 82% to 475 million tonnes at 20.39% K2O (32.27% KCl). CSA Global of Perth conducted the review.

The total potash Mineral Resource (sylvinite and carnallitite) for all seams now stands at 1.32 Billion Tonnes grading 15.65% K2O (24.78% KCl) in the Measured and Indicated Mineral Resource categories and 948 Mt grading 16.20% K2O (25.64% KCl) of Inferred Mineral Resources.

Highlighting just how successful Elemental has been at the project to date, the company has achieved nearly a 100% conversion rate from the Inferred to Indicated category.

Iain Macpherson, chief executive officer, commented on the positive news and said:
"Elemental Minerals now has well over half a billion tonnes of sylvinite in the Measured and Indicated Mineral Resource categories, contained within two shallow seams that can be mined by conventional, underground mining methods.

"This resource update is expected to support excellent economics in the upcoming PFS. Given the exceptional grade and potential for a very positive impact on already robust economics, Elemental is now planning further exploration of the Hangingwall seam, both at Kola and at the Dougou target.

"This revised Mineral Resource estimate underlines the strategic nature of Sintoukola and the potential for the Congo Basin to become a major potash producer."

The importance of the latest resource upgrade is that it reinforces the strategic significance of both the Sintoukola Project and the Congo Basin as a source of global potash supply.

Maiden resource for the exceptionally high-grade Hangingwall Seam

Another plus for Elemental was a the delivery of a maiden Inferred Resource for the exceptionally high-grade Hangingwall Seam of; 47 million tonnes at 34.75% K2O (55.01% KCl).

This seam provides the company with a high priority target, with an aggressive expansion of the high-grade Hangingwall Seam is planned.

Total potash now 1.32 billion tonnes

The total potash Mineral Resource (sylvinite and carnallitite) for all seams now stands at 1.32 billion tonnes grading 15.65% K2O (24.78% KCl) in the Measured and Indicated Mineral Resource categories and 948 million tonnes grading 16.20% K2O (25.64% KCl) of Inferred Mineral Resources.

Pre-Feasibility Study

The study team consisting of Elemental staff, SRK Consulting, AMEC Americas, EGIS International and CSA Global have advanced the PFS, and have achieved good progress.

Planning of the DFS work programme, including requirements for the detailed shaft design was completed. In preparation for the PFS, a draft economic model has been completed. This will be revised as the individual engineering studies provide updated costing to support the 2mtpa MoP production rate in the PFS.

Broker support provides $1.35 valuation

Earlier in the month Elemental received a buy recommendation from Patersons Securities with a price target of $1.35, well above the last traded price of the company around the low $0.80 range.

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