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Gensource Potash Provides Update on Resource Confirmation Work at Vanguard Property

Gensource Potash Corporation is pleased to provide an update related to the ongoing efforts to expand upon the resource confirmation work completed to-date at its 100% owned Vanguard property in central Saskatchewan.

The Vanguard area comprises two Saskatchewan subsurface mineral leases, KL 244 and KL 245, surrounding the Villages of Tugaske and Eyebrow, Saskatchewan.

Following the completion of the Vanguard One feasibility study (see news release dated May 31, 2017), Gensource announced initial efforts to increase both the breadth and the depth of its knowledge of the resource on its two leases, with the goal to identify and begin to define additional project areas. With its goal to help bring potash production into the 21st century, Gensource has teamed up with ADROK Ltd ("ADROK"), to investigate the use of their patented and exclusive Atomic Dielectric Resonance (ADR) imaging technology, for the mapping and delineation of the potash members within the Prairie Evaporite. The main aim for the project is for ADROK to deploy their ADR technology for a proof of concept survey looking at potash deposits, with the aim to establish confidence that ADR can assist Gensource's exploration and resource evaluation efforts. The project included data collection from 13 virtual boreholes ("V-bores"), and analysis of two V-bores to-date. A virtual borehole is just that - virtual. By utilizing ADR and proprietary analysis methods, ADROK is able to obtain geological and lithographic data similar to that obtained by actually drilling, logging and coring an exploration borehole, without doing any drilling. In Gensource's case, the effort was focused on:

  • Identifying the boundaries of the Prairie Evaporite Formation.
  • Differentiating the Potash members within the Prairie Evaporite Formation.
  • Detection of high grade zones within the Potash members.
  • Identifying wet, potentially brackish-water-bearing zones at depth for use in Gensource's selective solution mining technique.

Following the initial field investigation, ADROK completed data conversion on two V-bores as a calibration and "training" exercise and has provided an initial interpretation of the results.

The initial results indicated potash mineralization in both V-bores, consistent with the traditional geological logging and testing completed on those holes (including core retrieval, sampling and assaying). The ADR techniques were able to distinguish sylvinite (potash-containing ore) from halite (predominantly salt-only mineralization) layers at depth. Additionally, the evidence collected suggests that the ADR techniques can differentiate high-grade versus low-grade sylvinite layers within the potash-containing ore zone - not just differentiating the three main members of the Prairie Evaporite (Patience Lake, Bell Plaine and Esterhazy) but high and low-grade layers within each member. Further, the established lithology relationships using the ADR technology were consistent with the data recorded from the geophysical logs provided from the exploration phase of the two training holes.

Gensource's President & CEO, Mike Ferguson, said, "The potential to apply ADROK's technology in the potash industry is an exciting prospect. Not only are these methods drastically faster and substantially less costly than traditional exploration and confirmation methods, but also the ADR virtual boreholes are a low energy, low disturbance and non-destructive means of accomplishing field work - an ethos that fits well with Gensource's mission to be innovative, and to take a more environmentally friendly and responsible approach to exploring for and producing potash. By utilizing new and more efficient techniques, it is Gensource's goal to decrease cost and time requirement during the exploration and development phases, the result of which will save time and money and add more value to our shareholders. We look forward to further collaboration with ADROK on the assessment and advancement of the potential opportunities this technology can bring to our industry."

The scientific and technical information contained in this news release was reviewed and approved by Mike Ferguson, P.Eng., the President and CEO of Gensource and a Qualified Person under NI 43-101.

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