Athabasca Potash Inc. Announces Indicated Mineral Resources of 241 Million Tonnes in the Burr Project
29 September 2008 - 11:22PM
Marketwired Canada
Athabasca Potash Inc. ("Athabasca") (TSX:API) is pleased to announce an updated
potash resource estimate for the Burr Project prepared by AMEC Americas Limited
("AMEC"). The potash resource estimate is based on the 14 wells completed to
date in the Burr Project. The Lower Patience Lake Sub-Member ("LPL") contains
Indicated Mineral Resources of 241,200,000 tonnes with a grade of 23.3% K2O and
an Inferred Mineral Resource of 183,100,000 tonnes with a grade of 23.2% K2O.
There is an additional Inferred Mineral Resource of 39,300,000 tonnes, with a
grade of 13.2% K2O in the Upper Patience Lake Sub-Member ("UPL").
The Indicated Mineral Resource of 241,200,000 tonnes at a grade of 23.3% K2O
contains 89,000,000 tonnes of KCl (multiplied K2O tonnes by 1.596 KCl tonnes).
The following table summarizes the details of the resource estimate on a
well-by-well basis.
Tabulation of Mineral Resource of the Lower Patience Lake Member for the
Burr Project
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Net Acid H2O
Thickness Tonnage K2O (%) eK2O MgO Insol Insol eInsol
Wells (m) (t) (1) (%) (%) (%) (%)(1) (%)
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LPL Indicated Resources
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Burr-01 4.55 24,900,000 24.44 - 0.04 3.59 - -
Sinn-01 5.07 23,700,000 25.35 - 0.06 2.32 - -
Casey-01 4.65 6,800,000 23.32 - 0.04 2.88 - -
Attica-01 4.38 17,900,000 23.55 - 0.05 2.80 - -
Loyola-01 4.39 0 24.71 - 0.06 2.32 - -
Burr07-16-24 5.30 33,500,000 20.40 - 0.08 - 6.84 -
Burr07-09-29 4.84 27,500,000 23.01 - 0.12 - 7.97 -
Burr07-01-17 5.53 18,400,000 20.26 - 0.10 - 6.78 -
Burr08-04-23 5.00 25,400,000 - 24.3 - - - 7.6
Burr08-01-34 4.70 24,800,000 - 25.2 - - - 5.0
Burr08-16-32 4.20 16,700,000 - 24.9 - - - 8.0
Burr08-16-36 4.20 21,600,000 - 22.8 - - - 6.3
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Summary 241,200,000 23.3 0.07 2.58 6.48
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(1) The summary value at the bottom of this column is inclusive of the eK2O
and eInsol values
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LPL Inferred Resources
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Burr-01 4.55 17,300,000 24.44 - 0.04 - 3.59 -
Sinn-01 5.07 15,500,000 25.35 - 0.06 2.32 - -
Casey-01 4.65 12,000,000 23.32 - 0.04 2.88 - -
Attica-01 4.38 13,000,000 23.55 - 0.05 2.80 - -
Loyola-01 4.39 11,000,000 24.71 - 0.06 2.32 - -
Burr07-16-24 5.30 10,100,000 20.40 - 0.08 - 6.84 -
Burr07-09-29 4.84 3,000 23.01 - 0.12 - 7.97 -
Burr07-01-17 5.53 42,400,00 20.26 - 0.10 - 6.78 -
Burr08-04-23 5.00 12,000,000 - 24.3 - - - 7.60
Burr08-01-34 4.70 28,600,000 - 25.2 - - - 5.00
Burr08-16-32 4.20 6,300,000 - 24.9 - - - 8.00
Burr08-16-36 4.20 14,900,000 - 22.8 - - - 6.30
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Summary 183,100,000 23.2 0.07 2.57 6.1
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(1) The summary value at the bottom of this column is inclusive of the eK2O
and eInsol values
The resource estimation was built using a polygonal method in GEMS(R) software.
Inferred Mineral Resources were estimated using 3 km radius polygons and the
Indicated Mineral Resources were estimated using 1.5 km polygons. The polygons
for the Indicated Mineral Resources were extended up to 2.22 km in areas where
the data demonstrated good continuity between the potash test wells but
insufficient area remained to justify an infill test well. Freehold mineral
rights not currently in the possession of Athabasca were deducted from the
polygonal areas and a 35% mineable extraction rate was applied to account for
materials lost due to mine pillars and allowance for salt replacement, small
collapse areas and carnallite. Additional deductions were made for anomalies
identified from the 2007 3D Seismic Survey. A density factor of 2.08 was used to
estimate tonnages for each of the polygons. The deposit is assumed to be mined
using conventional underground methods and processed into saleable products
using technology similar to that currently in use at nearby potash mines. Due to
uncertainty associated with Inferred Mineral Resources, additional exploration
work on the property may or may not succeed in upgrading the Inferred Mineral
Resource to an Indicated or Measured Mineral Resource. Because confidence in the
estimate is insufficient to allow the meaningful application of technical and
economic parameters or to enable an evaluation of economic viability worthy of
public disclosure, the Inferred Mineral Resources must be excluded from
estimates forming the basis of feasibility or other economic studies.
Estimated or eK2O grades for the 2008 potash test wells were included in the
resource estimation and have previously been disclosed in the press release
dated September 16, 2008 entitled Athabasca Potash Inc. Announces Potash
Equivalent Grades on Four Recent Wells.
Tabulation of Mineral Resource of the Upper Patience Lake Member for the
Burr Project
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Net Acid H2O
Thickness Tonnage K2O (%) eK2O MgO Insol Insol eInsol
Wells (m) (t) (1) (%) (%) (%) (%)(1) (%)
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UPL Inferred Resources
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Burr07-13-21 2.85 22,800,000 17.04 - 0.08 - 6.60 -
Burr07-13-23 2.85 16,500,000 7.84 - 0.10 - - -
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Summary 39,300,000 13.2 0.09 6.60
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The UPL member was included in the resource estimate in the north-west corner of
the resource area due to the presence of carnalite in the LPL in Burr07-13-21
and very low grade found in the LPL in Burr07-13-23. The Inferred Mineral
Resource for the UPL was estimated using polygons of 1.5 km. Due to the lower
grade and thickness of the UPL in these test wells additional test wells will be
required to increase Athabasca's confidence in the UPL resource estimate;
however, it cannot be assumed that all or any part of an Inferred Mineral
Resource will be upgraded to an Indicated or Measured Mineral Resource as a
result of continued exploration. An evaluation of the UPL will also require more
detailed study of the hydrogeology and geotechnical character in this area of
the property. The UPL intersections in the other potash test wells on the
property are above minimum grade and thickness in most areas of the LPL mineral
resource. API has decided that the LPL is the target horizon in these areas for
any future mine planning but the UPL is considered a viable alternative mining
horizon if there are areas where the LPL is not mineable locally.
The historical assay data from the pre-2007 potash test wells were validated
through reassay of the core from two wells. The results showed the historical
assays to be fair and accurate representation of the potash grades used in this
estimate. The 2007 potash test well assays were analysed with the benefit of
standard reference samples and repeat samples were sent to a second laboratory
for confirmation analysis. These assays were found to be reasonable for
inclusion in this estimate.
The potash wells have all encountered stable overlying rocks which are an
important consideration for reasonable prospects of economic extraction. The
geological setting and favourable mineralization shown at the Burr Project are
consistent with characteristics of existing Saskatchewan potash mines.
"The exploration results continue to confirm and validate the Burr Project's
potential to be evaluated as a stand-alone mine. With the substantial potash
resource that has now been identified, Athabasca intends to complete the
drilling of the remaining five wells by the end of October and then move on to
mine development studies," stated Dawn Zhou, President and Chief Executive
Officer.
As recommended in the Technical Report dated September 19, 2007, Athabasca will
send core samples from the four recent potash wells for analysis at SRC to
corroborate the geophysical log results. These results will not be available
until the final 5 wells of the 2008 drilling program are completed. When
Athabasca receives the analytical results for the 2008 drilling program, another
resource estimate update for the project will be commissioned.
The 14 potash test wells on the Burr Project as of September 8, 2008 include 5
historical wells completed in 1950s, 5 wells drilled by Athabasca in 2007 and 4
wells completed in 2008. The confidence level and sufficient tonnage of the
Indicated Resource of 241 million tonnes in the Burr Project will allow
Athabasca to commence a preliminary feasibility study in the near future. A new
National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101") compliant technical report will be available within 45 days of this
press release.
The Technical Report dated September 19, 2007 and a number of press releases
related of the Burr Project exploration are available at www.sedar.com or
www.athabascapotash.ca. A Burr Project exploration map is also available at
www.athabascapotash.ca.
Susan Lomas, P.Geo. of Lions Gate Geological Consulting Inc., is the Qualified
Person (as defined by NI 43-101) for having prepared the mineral resource
estimates, and scientific and technical information in this press release and
has reviewed the results as reported in the tables above.
About Athabasca:
Athabasca Potash Inc. is a Canadian based corporation and was founded with a
goal of establishing itself as a pre-eminent Canadian public company engaged
solely in potash exploration and development, and to provide its shareholders
with a unique investment opportunity focused entirely on potash.
Caution Regarding Forward-Looking Information
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of certain securities laws.
This includes statements concerning Athabasca's plans at its mineral properties,
which involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Athabasca, or industry
results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking information.
Forward-looking information is subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in the
forward-looking information, including, without limitation, exploration risks,
lack of historic potash test well documentation, challenges or impairments to
title, access to certain potash mineralization must be negotiated, permit
requirements, governmental regulations, environmental risks and competition in
attracting and retaining personnel. In addition, forward-looking information is
based on various assumptions. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in forward-looking
statements. Accordingly, readers are advised not to place undue reliance on
forward-looking information. Except as required under applicable securities
legislation, Athabasca undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.