120mt high grade potash proven + 300mt target, page-8

Elemental Minerals maiden drilling hits shallow high grade potash in Congo

Monday, March 07, 2011 by Jeff Coote

Elemental Minerals (ASX: ELM) has intersected additional shallow high grade potash at the Kola Prospect in the Republic of Congo, extending the shallow mineralization.

Shallow sylvinite intersections include:

EK_13: 3.39 metres at 22.69% potassium oxide (K2O) (36.01% KCl) from 246.25m and 3.73m at 34.47% K2O (54.72% KCl) from 258.74m;

EK_14: 4.04m at 23.62% K2O (37.49% KCl) from 294.71m, including 2.82 at 26.27% K2O (41.70% KCl) from 296.23m; and

EK_15: 3.97m at 24.25% K2O (38.50% KCl) from 265.83m including 2.95m at 26.44% K2O (41.92% KCl) from 266.85m.

Sylvinite is the most important ore for the production of potash. The latest results exceed grade expectations and continue to bolster confidence, not only the targeted tonnages, but also demonstrate the potential lateral extent of the Kola target mineralisation.

The results underpin the company's continued aggressive drilling program and is now set to drill into phase 2 on the Sintoukola potash project in Central Africa.

Potash mineralisation has been further extended to the west and still remains open laterally in most directions.

Importantly, these results provide a launch pad for the company to commence the Phase 2 infill and step-out drill program to define potash mineralisation beyond the Phase 1 target. Phase 2 is planned to commence at the end of April 2011.

The extension of the current mineralised footprint and the fact that the Kola grid is open in most directions, points to the potential for a very large exploration target on the property and the next drilling phase will aim to further test the exploration upside.

Elemental is bullish that its initial exploration target of between 170 million tonnes (Mt) and 300Mt of sylvinite grading between 23.1% and 23.5% K2O (36.67% KCl and 37.30% KCl respectively) will be achieved.

The mineralisation may be present across an area of approximately 3km by 9km.

Elemental is on track to define relatively high-grade, shallow sylvinite mineralisation with a view to developing a substantial, potentially low cost sylvinite producer.

The company?s objective to advance the project through the Definitive Feasibilty Study (DFS) stage and to production in 2015 remains on target.

The drilling program falls within the 1436.5 km2 Sintoukola Licence area, located 56 kilometres north of Pointe Noire.

To provide an insight into the re-rating of potash companies recently, Fortis Mining (ASX: FMJ) this week hit $3.98, compared to just $0.21 three months ago, with South Boulder Mines last week trading to $6.25, up from $0.26 just one year ago.

The phase 2 program will consist of 25 exploration holes, a proportion of which will be utilised to infill drill the current mineralised footprint for resource upgrade purposes and the balance to extend the mineralisation on the current grid which is open laterally.

Ten of the 25 holes will also serve as metallurgical drill holes required for the previously announced definitive feasibility study (DFS) which is to start shortly.

An additional 12 exploration holes for 4200m are planned to test the lateral extension of the Kola mineralisation and also the extent of potash mineralisation on the broader 1436.5 km2 Sintoukola Licence as indicated by the previously completed historical drilling.

http://www.proactiveinvestors.com.au/companies/news/14435/elemental-minerals-maiden-drilling-hits-shallow-high-grade-potash-in-congo-14435.html