PhosCan Announces Winter Drill Program for Martison Phosphate Project
08 January 2008 - 5:19AM
Marketwired
TORONTO, ONTARIO and Baltic Resources Inc. (TSX VENTURE: BLR)
(collectively, the "JV Parties") are pleased to announce the start
of the 2008 winter work program at their jointly owned Martison
Phosphate Project located approximately 70 km northeast of Hearst,
Ontario.
PhosCan, as operator of the joint venture, will conduct a major
$6.5 million, 80 hole drilling program focused on moving the
project towards a bankable feasibility study. The JV Parties intend
to immediately commence the feasibility study upon completion of
the pre-feasibility study, which is expected by early March,
2008.
The Martison Phosphate Project
The Martison Phosphate Project is currently being examined for
its potential as the key supplier of phosphate concentrate for a
vertically integrated phosphoric acid plant to be developed near
Hearst, Ontario. The plant would utilize the Martison phosphate
deposit as well as sulphuric acid from nearby Ontario base-metal
smelters. Phosphate concentrate and sulphuric acid are the two
primary inputs in the production of phosphoric acid. The Martison
project and the proposed plant are strategically positioned in
proximity to target markets with ready access to infrastructure
including rail, power, labour and an abundant supply of sulphuric
acid. The phosphoric acid produced, will be used as feedstock for
the production of higher-value products in the fertilizer and
industrial phosphate markets.
Current resource estimates for the Martison deposit are based on
data from 120 holes completed in six drilling campaigns. The
Measured and Indicated resources form the foundation for the
pre-feasibility study currently being conducted by Jacobs
Engineering and Golder Associates. The highlights include:
- Measured and Indicated resource of 62.2 million tonnes
averaging 23.55 % P2O5 and 0.34 % Nb2O5.
- Inferred resources of 55.7 million tonnes averaging 21.87 %
P2O5 and 0.34 % Nb2O5.
- Significant areas of the residuum in the central portion of
the deposit remain open at depth.
The 2008 Winter Work Progam
The program will include three major components. The first
component is a geotechnical study which will focus on the proposed
mine pit area as well as proposed areas for infrastructure
construction. The second component of the program is dedicated to
the collection of a 40-tonne bulk sample of residuum (Litho Units
2A and 2B). The bulk sample will provide the material for further
bench-scale refinement of the selected metallurgical process as
well as pilot-plant scale confirmation testing of the selected and
refined process. Concentrate ("phosrock") from the pilot plant
testing will be used in phosphoric acid manufacturing and
fertilizer manufacturing testing and process refinement. The third
component of the program will focus on the definition of the bottom
of the residuum, which is currently undefined in the central area
of the proposed mine pit.
The three components of the planned 2008 winter field program
will involve drilling approximately 80 holes in 60 locations. As
the drill program advances, an independent survey crew will be
responsible for surveying all of the drill hole locations and other
surface features to tie these sites into the most recent airborne
survey data. The total cost of the 2008 winter program is estimated
to be approximately $6.5 million, which forms part of the budgeted
costs for the bankable feasibility study.
James S Spalding completed the independent resource estimate
according to CIM resource categories in compliance with NI 43-101
guidelines and a Technical Report for the Martison property is
available on SEDAR.
First Nations Access Agreement
In connection with the planning and implementation of the 2008
winter work program, the JV Parties are pleased to announce they
have entered into a pre-mining exploration agreement (the "Access
Agreement") with Constance Lake First Nation ("CLFN"), which claims
traditional lands rights on the property where the Martison
Phosphate deposit is located. The Access Agreement, among other
things, provides full access to the JV Parties to carry out the
above-noted winter work program on the property, funding for CLFN
to negotiate a broader mining exploration agreement in respect of
the Martison Phosphate Project and commits the JV Parties to enter
an Impact Benefit Agreement (IBA) with the affected First
Nations.
Proposed Merger to Consolidate 100% Project Ownership
As jointly announced on October 29, 2007, PhosCan and Baltic
have agreed to merge to consolidate ownership of the Martison
Phosphate Project. Upon completion of the proposed merger, PhosCan
would own a 100% interest in the Martison Phosphate Project. The
former Baltic shareholders will own common shares of PhosCan and
common shares of a newly-formed company, Canadian Orebodies Inc.,
which will own all property interests of Baltic other than its
interest in the Martison Project. PhosCan and Baltic are proceeding
with the merger, which has been approved by both boards of
directors and is subject to the favourable vote of shareholders.
The merger is now expected to be completed in early March,
2008.
INFORMATION IN THIS NEWS RELEASE THAT IS NOT CURRENT OR
HISTORICAL FACTUAL INFORMATION MAY CONSTITUTE FORWARD-LOOKING
INFORMATION OR STATEMENTS WITHIN THE MEANING OF THE UNITED STATES
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND APPLICABLE
CANADIAN SECURITIES LEGISLATION. IMPLICIT IN THIS INFORMATION,
PARTICULARLY IN RESPECT OF STATEMENTS AS TO FUTURE OPERATING
RESULTS AND ECONOMIC PERFORMANCE OF THE COMPANY, AND RESOURCES AND
RESERVES AT THE COMPANY'S MINERAL PROJECTS, ARE ASSUMPTIONS
REGARDING PROJECTED REVENUE AND EXPENSE, COMMODITY PRICES, AND
MINING COSTS. THESE ASSUMPTIONS, ALTHOUGH CONSIDERED REASONABLE BY
THE COMPANY AT THE TIME OF PREPARATION, MAY PROVE TO BE INCORRECT.
READERS ARE CAUTIONED THAT ACTUAL RESULTS ARE SUBJECT TO A NUMBER
OF RISKS AND UNCERTAINTIES, INCLUDING RISKS RELATING TO GENERAL
ECONOMIC CONDITIONS AND MINING OPERATIONS, AND COULD DIFFER
MATERIALLY FROM WHAT IS CURRENTLY EXPECTED. THE COMPANY DISCLAIMS
ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING
STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS
OR OTHERWISE.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."
Contacts: PhosCan Chemical Corp. Stephen Case President &
CEO (416) 972-9222 Baltic Resources Inc. Don McKinnon President
& CEO (705) 268-9000
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