Gensource Announces Ni 43-101 Report FOR Vanguard
GENSOURCE ANNOUNCES NI 43-101 REPORT for VANGUARD
SASKATOON, Saskatchewan – February 17 , 2017 – Gensource Potash
Corporation (“Gensource” or the “Company”) (TSX-V: GSP) is pleased to announce
that it has completed an updated NI 43-101 Technical Report (“NI 43-101”, “43-101”,
or “Technical Report”) on its 100% owned Vanguard Project in central Saskatchewan.
Vanguard Area comprises two leases, KL 244 and KL 245, as well as several parcels of
freehold encompassed by KL 245 now leased by Gensource . While other freehold lease
negotiations are in progress, a cut-off date of 1 Febru ary 2017 has been applied for
reporting purposes. Initial project and resource development work has occurred, as a
starting point, primarily within KL 245.
The Updated Technical Report, dated February 1 6, 2017 , supports that the Vanguard
project area overlies a rich and thick potash resource. The report documents the
geological work completed by Gensource since the initial 43-101 Resource Report was
announced 28 April 2016.
Since that initial Resource Report, Gensource has completed two exploration wells on
the property, which, when combined with the two existing wells (completed in 2012)
and the re-interpreted 2D seismic, provide the data for the cur rent resource modelling
effort.
The Technical Report defines a resource at Vanguard in the Indicated and Inferred
categories as defined by CIM Standards 2010. The Technical Report was completed by
Terra Modelling Services Inc., an independent geological/geostatistical consultant.
Gensource’s President & CEO, Mike Ferguson, said “The updated 43-101 Resource
Technical Report announced today shows an excellent resource, amenable to our planned
selective solution mining method . The results support our earlier estimations of the
resource on the Vanguard property and our decision to comm ence project development
work in the area. The resource defined in this Technical Report will now be used as part
of the ongoing feasibility study work and will help define the initial mining area and mine
life of the first small “module” that we plan to construct and operate at Vanguard. Using
only the Indicated Resource numbers from the Technical Report, a very long life potash
production facility here is possible. We’re ver y pleased with the results of the Technical
report and are excited to continue to drive forward in our project and business
development work towards our goal of becoming the next independent producer of potash
in Saskatchewan.”
Summary of the Technical Report:
The Technical Report defines a resource in the Vanguard area of almost 145 million
tonnes of final potash product in th e Indicated category and over 32 0 million tonnes of
final potash product in the Inferred category, based on the baseline 40% recovery. See
Tables 1 and 2 for a more detailed summary of the updated Indicated and Inferred
Resource at the Vanguard Project.
Table 1: Indicated Resource
Table 2: Inferred Resource
The basic assumptions for the Resource are as follows:
- K2O cut off grade of 15 % (equating to 24.6% KCl).
- Maximum carnallite cut-off of 6%.
- No insoluble cut-off.
- No thickness cut-off, due to the mining methodology (i.e., selective solution mining).
- Representative density samples were taken from the new core and yielded an average
of 2.10 for the Belle Plaine Member and 2.12 for the Patience Lake Member.
- 2250 m Radius-of-Influence from existing wells (based on thickness variography) for
the Indicated Resource, and 6000 m for the Inferred Radius. This is based on
Variography for all sub-units, as well as geological continuity.
-All relevant anomalies discovered by 2D seismic have deducted, while a fur ther 20%
deduction for unknown anomalies was applied within the Indicated category and 25% in
the Inferred category . A range of recoveries, which are inclusive of mining an d plant
recoveries, are presented.
The KCl and carnallite cut-offs as well as other assumptions listed above were based on
cut-offs common to solution mining projects in Saskatchewan, as well as on the
Preliminary Economic Assessment Released in April 2016.
Estimation of the Resource proceeded with Kriging, using a grid model in Maptek Vulcan.
An example of the output is given in Figure 1, which shows a portion of KL 245 with the
new drilling indicated (1-14 and 1-16), with the KCl grade grid shown.
The Technical Report also provides the following recommendations for next-step work in the
Project Area: “...that Gensource complete a feasibility study complete with 3-D seismic
work to advance this project.”
The Company will file this Technical Report with Canadian securities regulators within 45
days of this release pursuant to NI 43-101 requirements. It will be available on SEDAR at
www.sedar.com, and also on the Company's website at www.gensource.com
Figure 1: KCl Grade for the Patience Lake 1 (PLM1) sub-member, the initial target zone.
The technical information presented in this news release has been reviewed and approved
by Mr. Louis Fourie, P. Geo., Pri. Sci. Nat. from Terra Modelling Services Inc., who is a
Qualified Person according to NI 43-101 requirements, and an independent consultant to
the Company.
About Terra Modelling Services
Terra Modelling Services Inc. is a geological consulting company based in Dalmeny,
Saskatchewan, with specific expertise in potash and related minerals, as well as
diamonds and kimberlites.
For further information about Terra Modelling Services, contact:
Terra Modelling Services Inc.
Louis Fourie, Owner and Principal
Telephone: (306) 292 9154
Email: [email protected]
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 exp ertise and experience in pot ash 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
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 Gensour ce included 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 Gensource’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 feasibilit y 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 whi ch 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 Canada 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 con nection 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 beh alf, except in accordance with
applicable securities laws.