Gensource Receives Assay Data from the Second Well at its Vanguard One Project
Gensource Receives Assay Data from the Second Well at its Vanguard One Project
SASKATOON, Saskatchewan--(BUSINESS WIRE)--January 23, 2017-- Gensource Potash Corporation (“Gensource” or the “Company”) ( TSX.V: GSP ) is
pleased to advise that it has received assay results from Well #2 of its two-well drilling program on its 100% owned Vanguard project area. The current two
well program has been designed to complement and build upon two previous wells drilled on the property in 2012.
Mike Ferguson, Gensource’s President & CEO commented: “We are very pleased to report that grades and thicknesses encountered in Well #2 met our
expectations. Previous wells drilled in the area (in 2012) showed excellent mineralization and we had hopes that our new wells would compare favourably. In
fact, Well #2 does provide evidence of consistency of resource from the earlier wells in both grade and thicknesses of the prairie evaporative members. This
validates the potential extraction potential (tonnes of final sellable potash product per square mile) that was used in the Preliminary Economic Assessment
(PEA) completed in May 2016, representing cost-efficient drilling and mining using our selective dissolution technique. We are excited to see these results.
Now that all the assay data have been received, we will be working towards an updated NI 43 -101 Resource Report.”
Over 200 samples were selected from the 30+ meters of sylvinite-bearing core, representing all three members of the prairie evaporite formation. The samples
were assayed by SRC Geoanalytical Laboratories, an ISO 17025 accredited testing facility in Saskatoon. The resulting assay data have been analyzed by
Gensource’s independent geologist from Terra Modelling Services Inc. Highlights are:
/g122All three members of the Prairie Evaporite (Patience Lake, Belle Plaine and Esterhazy) are present and intact.
/g122Patience Lake Member
/g123Average grade of 36.9% KCl
/g123Total thickness of 12.7m
/g123Of particular note are high grade intersections of 42.6% KCl of 2.2 m and 44.9 % KCl over 3.6m
/g122Belle Plaine Member
/g123Average grade of 34.6% KCl
/g123Total thickness of 9.4m
/g123Of particular note is a high-grade intersection of 44.1% KCl over 2.1m
/g122Esterhazy Member
/g123Average grade of 18.29% KCl
/g123Total thickness of 6.34m
It is well worth noting that there is a near-absence (less than 1%) of carnallite in the Patience Lake and the Belle Plaine Members.
Below is a table illustrating the general consistency in results with the nearby 1-18 well, drilled previously in 2012, and the 1-16 well (Well #1) recently
reported on:
The scientific and technical information contained in this news release was reviewed and approved by Louis Fourie, P.Geo., President of Terra Modelling
Services Inc., an independent consultant and Qualified Person under NI 43-101.
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.
Gensource operates under a business plan that has two key components - vertical integration with the market to ensure that all production capacity built is
directed to a specific market, eliminating market-side risk; and, technical innovation which will allow for a small and economic potash production facility, the
output of which can then be directed to a single, specific market.
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
Well #2
(Drilled early 2017)
1-18
(Drilled 2012)
Well #1
(Drilled late 2016)
Patience Lake
Member
Average Grade (wt% KCl) 36.9 34.2 33.9
Thickness (meters) 12.7 11.1 14.4
Belle Plaine
Member
Average Grade (wt% KCl) 34.6 33.8 35.7
Thickness (meters) 9.4 10.1 8.5
Esterhazy
Member
Average Grade (wt% KCl) 18.3 18.7 15.8
Thickness (meters) 6.3 6.7 10.5
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 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 feasibility 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 which 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 connection 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 behalf, except in accordance with applicable securities laws.
CONTACT:
Gensource Potash Corporation:
Mike Ferguson, 306-974-6414
President & CEO