Mesa Exploration Corp. is pleased to announce that it has agreed to sell the Utah Green Energy mineral brine project to Prima Diamond Corp.
Terms of the agreement are $10,000 upon signing, 1,500,000 shares of Prima issuable within 5 days of TSX Venture Exchange approval and 1,500,000 shares one year after approval. The issued shares will be post consolidation: 1 new for 5 old Prima shares, pending Prima shareholder approval.
Green Energy Lithium Property
The Green Energy Lithium Property encompasses 4,160 acres and is located 15km west of the city of Moab. The Property exists over an extensive area with historic fluid analysis assays ranging from 81-1,700 mg/l lithium in saturated brines. The brine was discovered in the 1960's when over pressurized oil exploration wells encountered blow-outs upon drilling. Approximately 20 wells have been drilled on the Green Energy Property. Of these, 5 have analytical data for lithium.
Historic exploration of the property was conducted by Fidelity Exploration and Production Co., U.S Borax, King Oil Co. and Amerada Co. since the 1960's. In March 2011, Mesa Exploration completed a NI 43-101 technical report which reviewed the geology and historic work performed on the property. This review concluded that there exists a historic resource estimate of 15 million barrels of brine containing 96,000 tons of sodium, 158,000 tons of potassium (302,400 tons of KCl), 5,750 tons of lithium (30,535 tons of Li2CO3), 157,000 tons of calcium and 147,000 tons of magnesium (576,450 tons of MgCl2) (Gwynn, 2008).
All of the lithium, magnesium, sodium, potassium and calcium drill results and estimates are of historic resources. The Company is not treating the historical estimates as current mineral resources or reserves. The Company has not undertaken any independent investigation of the drill results or resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources. The Company is not treating the historical estimate as a current mineral resource or mineral reserves. The Company believes that these historical drill results and estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration.
Lithium occurs at the project in an over saturated brine (40% minerals, 60% water) and was discovered during oil exploration when drill wells intercepted Bed #31 of the Paradox Formation. Bed #31 is approximately 6,000 feet deep and consists of 30 feet of shale, anhydrite and dolomite; the bed is not part of any oil reservoir. Engineering reports from the 1960s conclude that the brine reservoir is extensive (over 10 square miles) and is recharged from fresh in-flows as indicated by well pressure measurements, drawdown tests and oxygen-deuterium isotopes.
Prima Diamond Corp. intends to conduct a review of recent and historic well logs, along with chemical analysis in the area and reprocessing of seismic data focusing on mineral brine. Evaluation of reservoir potential will be done in preparation for the re-entry of shut in wells.