Jul 27 2017
Gensource Potash Corporation ("Gensource" or the "Company") is pleased to announce that initial steps are underway to advance resource development work in its Vanguard Area in south central Saskatchewan.
Expanding the definition of the resource in the Vanguard Area creates additional project opportunities for Gensource and potential market partners.
The general Vanguard Area consists of mineral extraction leases KL 245 and KL 244, surrounding the villages of Tugaske and Eyebrow in south central Saskatchewan. Field work completed to-date at Vanguard (2D seismic, drilling and 3D seismic) has been focused on the north-west portions of KL 245 and forms the basis of the Resource and Reserve associated with the Company's Vanguard One project and subsequent Feasibility Study (see May 31, 2017 News Release for Feasibility Study Results). As previously discussed, because of the small-scale nature of Gensource's projects, it is the Company's general business plan to implement several projects on each lease. Each small project will be executed under a joint venture arrangement and will allocate its production to a specific market as directed by the joint venture partner.
Gensource is excited to now kick-off initial work in the neighbouring lease, KL 244, with an aim to advance definition of the resource there. Lease KL 244 has a total area of 16,562.832 hectares (40,927.649 acres) of crown mineral rights available for development.
The normal course of work for resource confirmation is to execute a 2D (two dimensional) seismic program to obtain a better idea of the geological structures across large areas and to help determine drilling locations. A drilling program is then defined (number of holes, locations, drilling depths and coring procedures) and executed to provide reliable stratigraphic data and potash zone thicknesses and grades. Finally, a 3D (three dimensional) seismic program is executed across the area of the lease most prospective as a future mining area and is used to help define mineral reserves in conjunction with a feasibility study. All of these steps will be taken on the KL 244 lease.
Gensource, however, continues to drive innovation in the potash industry, just as it has done to-date with its advanced mining and processing techniques, significantly improved environmental impact and its unique business approach. With innovation at its core, the Company is pleased to announce it has entered into a test phase of using a novel set of geophysical tools as a first step in resource definition, prior to the 2D seismic program. The results of this new geophysical program will be correlated to existing well log and geological/geophysical data and then, once calibrated, will be utilized as a precursor to the planned 2D seismic program, with the aim of helping to optimize 2D seismic locations and augment the seismic results obtained from the program. These novel geophysical analyses will be executed over the summer period, allowing for the execution of the optimized 2D seismic program starting in the fall.
Mike Ferguson, President & CEO of Gensource, said "We are excited to move forward with plans to further define and understand our resource on the KL 244 lease. KL 245 has proven to be a fantastic area for project development, as evidenced by the recently completed NI 43-101 Technical Report summarizing the feasibility study and we are confident, from the data available to-date, that KL 244 will be an excellent addition to our overall resource available for our small-scale selective solution mining project modules. Using innovative techniques, and a staged-approach, our goal is to gain valuable information and insight into the geology of KL 244, and optimize our field programs to extract the most value for our shareholders in the most cost-efficient manner."
Source: http://www.gensourcepotash.ca/wp-content/uploads/2013/03/GSP-NR-Initiation-of-next-stage-resource-confirmation-at-Vanguard-26July-2017-Final.pdf