The estimate was completed by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH ('ERCOSPLAN'), an established potash specialist with significant experience in the
Geological Model
The geological model of Banio Potash mineralization identifies 16 carnallitite seams and 3 sylvinite seams. Each of the seams identified meets the required thickness and grade to be considered potentially suitable for solution mining, which is deemed to be the best potential mining method to sustain an economic operation at Banio. In order to be considered as potentially mineable via solution mining the following cut-off parameters were employed on the carnallitite and sylvinite seams:
Carnallitite: seam thickness has to be > 2.5 m when single, and > 1.25 m when other seams are present within 5 m vertical distance, and Carnallite content > 47 %.
Sylvinite: seam thickness has to be > 2 m and the Sylvite content > 16 %. Combined Sylvite/Carnallite seams (e.g., Cycle VIII seam 4 in Ba-003, Cycle VII seam 14 in Ba-002) have been considered as separate seams.
The flat-lying nature of the
Resource Estimate
In calculating the mineral resource tonnages, the following procedures were completed (Mineral Resources are given as in-situ mineralisation):
Around each drill hole, a Radius of Influence (ROI) was defined and by intersection of these ROIs, polygons around drill holes where constructed.
Each polygon was clipped by the coast of
The carnallitite tonnage was calculated by multiplying the volume assigned to each seam with a carnallitite tonnage factor (density). The density for each seam was determined individually from the relative abundance of the salt minerals in the carnallitite seam and varies from between 1.67 g/cm-3 for high grade carnallitite and 1.92 g/cm-3 for low grade carnallitite seams. For Sylvinite seams, a sylvinite tonnage factor was similarly determined. Based on Sylvite grade, density varied between 2.11 g/cm-3 and 2.14 g/cm-3.
The KCl grade of each seam was calculated from a weighted average grade of drillholes sample results collected from the individual seams.
The MRE classifies the carnallitite and sylvinite mineralisation as Indicated and Inferred Mineral Resources as defined by NI 43-101. This reflects the level of confidence in the extent and grade of both the carnallitite and sylvinite bodies. There is insufficient drilling and assaying completed on the Project at this time for Measured Mineral Resources to have been defined.
The criteria used in the MRE to define the extension of mineralization from each drillhole for Indicated and Inferred carnallitite resources is as follows:
Indicated Mineral Resources occur within a radius of 1,000m of a drill hole, as long as the seismic survey results show no significant change in thickness of the overall salt section. The ROI for Indicated Mineral Resources is not extended beyond the position of faults interpreted from the seismic survey sections.
Inferred Mineral Resources occur within a radius of 2,000m of a drillhole, minus the Indicated resources within this area. Considering that for Inferred Mineral Resources the continuity of grade and thickness only have to be implied, the ROI for this category is predicted to extend into the fault bounded downthrown block that has been interpreted from the seismic sections.
Since the extent of the Sylvite mineralisation is secondary and mainly structurally controlled, the ROIs for the sylvinite mineralisation are not extended beyond faults interpreted from the seismic survey sections. Minor uncertainty remains regarding the exact position of the faults interpreted from the seismic sections and consequently a 100 m wide barrier with no Mineral Resources is defined along the interpreted fault. Fig. 2 presents the ROI distribution for carnallitite seams in Cycles V to VII showing the Indicated resource ROI clipped at interpreted faults and the Inferred ROI extending beyond these same faults.
The robust carnallitite Indicated Resource of 636.5M tonnes at 15.8% KCl and Inferred Resource of 1.1B tonnes at 15.8% KCl provide a solid base for continuing exploration at the project and for a Preliminary Economic Assessment which is planned on this resource base with completion in Q1 2024. The PEA the Company plans to complete will focus only on the North Target although significant potential for potash mineralization is interpreted from downhole geophysical studies completed in several oil and gas wells at the South Target of the permit area.
In addition to carnallitite resources, the sylvinite mineralization with Indicated resources of 20.1M tonnes at 21.6 % KCl and Inferred resources of approximately 43.8M tonnes at 21.2% KCl represent an attractive exploration target with higher grades that may enhance the overall grade of the project. In addition, the potential to expand resources at the North Target are considered excellent, the flat-lying potash beds remain open for expansion in all directions with the exception of northeast which trends under the lagoon.
The Company's Phase 1 drill program includes additional drilling at the North Target including the extension of BA-001 and the drilling of a new hole to test the potential of potash mineralization east of the current drilling. Preparation work and repairs to the drill on site remain in progress however procurement of spare parts and supply chain delays have now pushed restart of the drilling program into Q1 2024.
The Company is required to file an NI 43-101 compliant technical report on SEDAR within 45 days of the initial disclosure of the MRE made herein.
The Company has granted a total of 2,181,000 incentive stock options to certain directors, officers, and consultants of the Company. The incentive stock options are exercisable for a period of 5 years at an exercise price of
This document may contain certain 'Forward-Looking Statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words 'anticipate', 'believe', 'estimate', 'expect', 'target, 'plan' or 'planned', 'forecast', 'intend', 'may', 'schedule' and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals including approvals of title and mining rights or licenses and environmental (including land or water use), local community or indigenous community approvals, the reliability of third party information, continued access to mineral properties or infrastructure, changes in laws, rules and regulations in
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