Gensource Announces Completion of Field Activities FOR Its 3D Seismic Program at Vanguard
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GENSOURCE ANNOUNCES COMPLETION OF FIELD ACTIVITIES FOR ITS
3D SEISMIC PROGRAM AT VANGUARD
SASKATOON, Saskatchewan – March 16 , 2017 – Gensource Potash
Corporation (“Gensource” or the “ Company”) ( TSX.V: GSP ) is pleased to
announce the completion of field activities related to its 3D seismic program at its
100% owned Vanguard property in central Saskatchewan . The Vanguard area
comprises two Saskatchewan subsurface mineral leases, KL244 and KL245,
surrounding the Villages of Tugaske and Eyebrow, Saskatchewan.
Field activities for the 3D seismic program were initiated on February 21, 2017 for
the purpose of:
covering a large potential mining area with 3D seismic data to aid in
determination of continuity of resource between drill holes,
assist with mine/wellfield planning details for the on-going feasibility study,
to aid in the selection of the initial wellfield location for the Vanguard One
project, and
to allow for the ultimate conversion of resources to reserves following the
completion of the feasibility study.
Two vertical resource confirmation wells were drilled in late 2016 and early 2017
and a NI 43 -101 Resource Estimate was subsequently completed, providing a n
Indicated Resource estimate for the project area (see Gensource news release
dated February 17, 2017). The 3D seismic data is required in order to set the
wellfield location and design in support of the on-going feasibility study.
The 3D seismic area was selected to be as focused as possible to define the
resource to the extent necessary , while being large enough to provide many
options in terms of the selection of the initial wellfield area. Overall, the 3D seismic
program covered an area of 34.37 square kilometres (13.27 square miles). Figure
1 illustrates the location of the 2017 Vanguard 3D.
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FIGURE 1 – Location Map showing the extent of the 3D seismic program
at Vanguard.
Gensource engaged Boyd Exploration Consultants Ltd., a wholly-owned subsidiary
of RPS Energy Canada Ltd. (RPS) of Calgary, as the prime contractor for the 3D
seismic program. RPS has a unique understanding of the Prairie Evaporite section
gleaned from tens of thousands of kilometres of 2D and 3D seismic work in
Saskatchewan, Canada , and other basins around the world . A cting as Prime
Contractor and a s the preferred geophysicial service provider to the potash
industry, RPS has managed over $200 million in projects over the past ten years.
RPS was responsible for the 2D seismic previously completed on KL244 and KL245.
The final interpretation should be completed in May, 2017, matching the schedule
required for the preparation of the feasibility study.
Gensource’s President & CEO, Mike Ferguson, said , “The 3D seismic program is
the final step in the geological definition work required to support the feasibility
study and well field planning and we are very pleased to be working again with
RPS for this work. The 3D seismic interpretation will provide a solid basis to carry
forward with wellfield location and layout and will support the locat ion of future
drilling activities . Additionally, the 3D seismic interpretation will support the
conversion of resources to reserves in conjunction with the results of the feasibility
study”.
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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.
About RPS
RPS has grown into one of the world’s pre -eminent consultancies by supporting
local connections with the resources and knowledge of an international business.
RPS employs more than 5,000 people in the UK, Ireland, the Netherlands, Norway,
the Russian Federation, the United States, Canada, Brazil, Africa, the Middle East
and Australia and Asia Pacific regions.
RPS has been fortunate to become the preferred seismic technology services
provider for the potash industry . RPS has been involved with seismic acquisition
and interpretation since 1977, conducting the first seismic operation for potash
with PCS Allan in 1985. Since then, RPS has been involved with potash mine
exploration and development; salt mine development; and, gas and chemical
storage facilities . RPS has become the preferred seismic technology services
provider for the potash industry in Saskatchewan.
About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the
next potash production facility in that province. Gensource’s President and CEO,
Mike Ferguson P.Eng., has assembled a management and technical team with
direct and specific expertise and experience in potash development in
Saskatchewan, and organized that team with a business plan focusing on small
scale, economical production and vertical integration. Gensource plans to use up-
to-date techniques and technologies to implement a potash facility like no other
in the province – one that has a very small environmental footprint and community
impact.
For further information about the Company please contact:
Gensource Potash Corporation:
Mike Ferguson, President and CEO
Telephone: (306) 974-6414
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
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This news release may contain forward looking information and Gensource cautions readers that forward
looking information is based on certain assumptions and risk factors that could cause actual results to differ
materially from the expectations of Gensource in cluded in this news release. This news release includes
certain "forward-looking statements”, which often, but not always, can be identified by the use of words such
as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". These
statements are based on information currently available to Gensource and Gensource provides no assurance
that actual results will meet management's expectations. Forward -looking statements include estimates and
statements with respect to Gens ource’s future plans, objectives or goals, to the effect that Gensource or
management expects a stated condition or result to occur, including settlement of a definitive joint venture
agreement with the Essel Group on the terms of the MOU or at all, the expected timing for release of a
reserve estimate and a feasibility study and whether or not the study will conclude that mineral production
is feasible on a technical or economic basis, and the establishment of vertical integration partnerships and
the sourcing of end use potash purchasers. Since forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results relating to, among other things, settlement of a definitive joint venture agreement with the
Essel Group, results of exploration, the economics of processing methods, project development, reclamation
and capital costs of Gensource’s mineral properties, the ability to complete a feasibili ty which supports the
technical and economic viability of mineral production, Gensource’s financial condition and prospects, the
ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers,
including approval of the Yancoal Canada off take agreement by its parent company, could differ materially
from those currently anticipated in such statements for many reasons such as: failure to settle a definitive
joint venture agreement with the Essel Group on the terms as announced or at all, and advance and finance
the project in accordance with the terms of the definitive joint venture agreement ; an inability to finance
and/or complete an update of the resource estimate to a reserve estimate, and a feasibility study wh ich
supports the technical and economic viability of mineral production; changes in general economic conditions
and conditions in the financial markets; the ability to find distributors and source off -take agreements
including approval of the Yancoal Canad a off take agreement by its parent company; changes in demand
and prices for potash; litigation, legislative, environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties encountered in co nnection with
Gensource’s activities; and other matters discussed in this news release and in filings made with securities
regulators. This list is not exhaustive of the factors that may affect any of Gensource’s forward -looking
statements. These and other factors should be considered carefully and readers should not place undue
reliance on Gensource’s forward-looking statements. Gensource does not undertake to update any forward-
looking statement that may be made from time to time by Gensource or on its be half, except in accordance
with applicable securities laws.