Millennial Potash Announces Maiden Mineral Resource Estimate in the Northern Part of the Banio Potash Project: Indicated Mineral Resources of 657 Million Tonnes of 15.9% KCl and Inferred Mineral Resources of 1.159 Billion Tonnes of 16.0% KCl
Millennial Potash Announces Maiden Mineral
Resource Estimate in the Northern Part of the
Banio Potash Project: Indicated Mineral
Resources of 657 Million Tonnes of 15.9% KCl
and Inferred Mineral Resources of 1.159
Billion Tonnes of 16.0% KCl
Vancouver, British Columbia--(Newsfile Corp. - January 16, 2024) -
Millennial Potash Corp. (TSXV:
MLP) (OTCQB: MLPNF) (FSE: X0D) ("MLP", "Millennial" or the "Company")
is pleased to
announce the results of a maiden Mineral Resource Estimate ("MRE") for the northern part of its Banio
Potash Project in Gabon.
The estimate was completed by ERCOSPLAN Ingenieurgesellschaft
Geotechnik und Bergbau mbH ("ERCOSPLAN"), an established potash specialist with significant
experience in the Congo Basin.
The MRE includes new assay data from historic holes BA-002, and BA-
003 plus assay results from additional potash cycles intersected in the drilling extension of BA-002,
completed in September 2023, (see Press release dated Nov. 14, 2023).
The MRE includes Indicated
Mineral Resources of approximately 657 million tonnes grading 15.9% KCl which equates to 104.6
million tonnes of contained KCl and Inferred Mineral Resources of approximately 1.159 billion tonnes
grading 16.0% KCl which equates to 185.3 million tonnes of contained KCl (see Tables 1 and 2).
Farhad Abasov, Millennial's Chair, commented "Millennial Potash is delighted to announce its maiden
Mineral Resource Estimates (MRE) for the northern part of its Banio Potash Project.
These substantial
resources, with 657M tonnes at 15.9% KCl for Indicated and additional Inferred resources of 1.159
billion tonnes grading 16% KCl, underscores the project's immense potential, considering that only 2
holes have been used in the compilation of the resource estimate.
The presence of sylvinite seams
constitute a higher-grade resource that adds further promise to the Project and will be explored in future
drill programs. It is important to note that the resources cover only a fraction of the northern part of the
entire Project area, and based on the historical drill results and seismic work we believe the deposit
continues to the south. We also believe there is a significant potential in the northern part that needs
further exploration. Particularly exciting for the Project is confirmation that the carnallite-rich potash
seams that are potentially exploitable by solution mining exceed 70m in thickness.
Moving forward this
MRE is expected to provide a solid base for a follow-on Preliminary Economic Assessment (PEA) which
will investigate various production scenarios via solution mining and is expected to include a proven
processing route producing MOP right on the Atlantic coast."
The Banio Potash Project is located at the north end of the Early-Cretaceous (Aptian) aged Congo
Evaporite Basin which extends southwards from Gabon into the Republic of Congo. This is a well-
established potash basin with historic potash production (Holle Mine) and ongoing exploration and
development of extensive potash deposits (Kore Resources, Kanga Resources) in the Republic of
Congo.
The Mineral Resource Estimate for MLP's Banio Potash Project is comprised of Indicated and
Inferred resources based on the definition of potash-bearing seams or beds in numerous sedimentary
evaporite cycles or stages that were identified from drill core collected from potash specific exploration
drill holes. The resources are comprised of sylvinite and carnallitite resources as outlined in Tables 1
and 2.
Table 1:
Indicated Mineral Resources
*
DRILLHOLE
EVAP.CYCLE
MINERALOGY
TONNAGE (MT)
GRADE % KCl
TONNAGE
(MT KCl)
BA-002
VIII
Sylvinite
7.73
24.9
1.93
BA-003
VIII
Sylvinite
12.38
19.5
2.41
INDICATED
SUBTOTAL
Sylvinite
20.12
21.6
4.34
BA-003
VIII
Carnallitite
37.02
15.7
5.79
BA-002
VII
Carnallitite
88.69
14.8
13.11
BA-003
VII
Carnallitite
102.90
15.8
16.26
BA-002
VI
Carnallitite
105.72
15.1
16.01
BA-003
VI
Carnallitite
144.78
16.5
23.81
BA-002
V
Carnallitite
51.72
15.0
7.73
BA-003
V
Carnallitite
72.12
15.9
11.50
BA-002
IV
Carnallitite
15.79
17.1
2.69
BA-002
III
Carnallitite
17.76
18.7
3.33
INDICATED
SUBTOTAL
Carnallitite
636.53
15.8
100.23
TOTAL IND
CT+SYL
656.65
15.9
104.57
Table 2:
Inferred Mineral Resources*
DRILLHOLE
EVAP.CYCLE
MINERALOGY
TONNAGE (MT)
GRADE % KCl
TONNAGE
(MT KCl)
BA-002
VIII
Sylvinite
13.94
24.9
3.47
BA-003
VIII
Sylvinite
29.85
19.5
5.81
INFERRED
SUBTOTAL
Sylvinite
43.79
21.2
9.28
BA-003
VIII
Carnallitite
43.16
15.7
6.76
BA-002
VII
Carnallitite
160.76
14.8
23.76
BA-003
VII
Carnallitite
173.82
15.8
27.46
BA-002
VI
Carnallitite
191.64
15.1
29.02
BA-003
VI
Carnallitite
244.57
16.5
40.22
BA-002
V
Carnallitite
93.74
15.0
14.01
BA-003
V
Carnallitite
121.83
15.9
19.42
BA-002
IV
Carnallitite
40.39
17.1
6.88
BA-002
III
Carnallitite
45.42
18.7
8.51
INFERRED
SUBTOTAL
Carnallitite
1115.35
15.8
176.04
TOTAL INF
CT+SYL
1159.14
16.0
185.32
*Cautionary Notes:
1.
MT=Million Tonnes, tonnage is for in-situ resource with no discount for recovery as mining and processing methods are to be finalized. Potash
deposits have been mined by underground, open pit and solution mining methods.
2.
The numbers for tonnage, average KCl per cent are rounded figures
3.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The estimates of mineral resources may be
materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
4.
The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to
define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading
them to an Indicated or Measured mineral resource category.
5.
Densities used in resource calculations are 2.11-2.14 g/cm3 for Sylvinite and 1.67-1.92 g/cm
3
for Carnallitite
Geological Model
The geological model of Banio Potash mineralization identifies 16 carnallitite seams and 3 sylvinite
seams. Each of the seams identified meets the required thickness and grade to be considered
potentially suitable for solution mining, which is deemed to be the best potential mining method to
sustain an economic operation at Banio.
In order to be considered as potentially mineable via solution
mining the following cut-off parameters were employed on the carnallitite and sylvinite seams:
Carnallitite:
seam thickness has to be > 2.5 m when single, and > 1.25 m when other seams are
present within 5 m vertical distance, and Carnallite content > 47 %.
Sylvinite:
seam thickness has to be > 2 m and the Sylvite content > 16 %. Combined
Sylvite/Carnallite seams (e.g., Cycle VIII seam 4 in Ba-003, Cycle VII seam 14 in Ba-002) have
been considered as separate seams.
The seams which meet these criteria are outlined in Table 3 below.
Table 3 Composite carnallitite and sylvinite seam data from drillholes utilized in the MRE.
*NA=Not Applicable as seam is not present, too narrow or beyond depth of drillhole (Cycle III, IV)
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The flat-lying nature of the Congo Evaporite Basin, confirmed in the project area by results from
extensive seismic studies coupled with drillhole geological information, allows for extrapolation of the
various cycles and seams over significant distances.
The results showing in Figure 1 confirms continuity
of potash seams over +2,260m based solely on drill holes BA-002, BATC-1 and BA-003. Note that the
potash cycles in BATC-1 are interpreted from downhole gamma-ray logs and geological logging and
that no assays are available, and that BA-001 was not drilled deep enough to intersect the full potash
stratigraphy.
Resource Estimate
In calculating the mineral resource tonnages, the following procedures were completed (Mineral
Resources are given as in-situ mineralisation):
(1) Around each drill hole, a Radius of Influence (ROI) was defined and by intersection of these
ROIs, polygons around drill holes where constructed.
(2) Each polygon was clipped by the coast of Banio Lagoon and restricted to only onshore areas
within the Mayumba Permit. The volume for each potash seam was calculated by multiplying the
clipped polygon area with the thickness of the potash seam.
(3) The carnallitite tonnage was calculated by multiplying the volume assigned to each seam with a
carnallitite tonnage factor (density). The density for each seam was determined individually from
the relative abundance of the salt minerals in the carnallitite seam and varies from between 1.67
g/cm³ for high grade carnallitite and 1.92 g/cm³ for low grade carnallitite seams. For Sylvinite
seams, a sylvinite tonnage factor was similarly determined. Based on Sylvite grade, density varied
between 2.11 g/cm³ and 2.14 g/cm³.
(4) The KCl grade of each seam was calculated from a weighted average grade of drillholes
sample results collected from the individual seams.
The MRE classifies the carnallitite and sylvinite mineralisation as Indicated and Inferred Mineral
Resources as defined by NI 43-101.
This reflects the level of confidence in the extent and grade of both
the carnallitite and sylvinite bodies.
There is insufficient drilling and assaying completed on the Project at
this time for Measured Mineral Resources to have been defined.
The criteria used in the MRE to define the extension of mineralization from each drillhole for Indicated
and Inferred carnallitite resources is as follows:
Indicated Mineral Resources occur within a radius of 1,000m of a drill hole, as long as the seismic
survey results show no significant change in thickness of the overall salt section. The ROI for
Indicated Mineral Resources is not extended beyond the position of faults interpreted from the
seismic survey sections.
Inferred Mineral Resources occur within a radius of 2,000m of a drillhole, minus the Indicated
resources within this area. Considering that for Inferred Mineral Resources the continuity of grade
and thickness only have to be implied, the ROI for this category is predicted to extend into the fault
bounded downthrown block that has been interpreted from the seismic sections.
Fig. 1 Correlation of potash cycles displaying good continuity from BA-002, BA-003 drillholes.
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Similarly, the MRE utilizes the following criteria to estimate the extension of the Indicated and Inferred
sylvinite resources from a drillhole:
Indicated Mineral Resources occur within a radius of 500m of a drill hole, as long as the seismic
survey results show no significant change in thickness of the overall salt section.
Inferred Mineral Resources occur within a radius of 1,000m of a drill hole, minus the Indicated
resources within this area.
Since the extent of the Sylvite mineralisation is secondary and mainly structurally controlled, the ROIs for
the sylvinite mineralisation are not extended beyond faults interpreted from the seismic survey sections.
Minor uncertainty remains regarding the exact position of the faults interpreted from the seismic sections
and consequently a 100 m wide barrier with no Mineral Resources is defined along the interpreted fault.
Fig. 2 presents the ROI distribution for carnallitite seams in Cycles V to VII showing the Indicated
resource ROI clipped at interpreted faults and the Inferred ROI extending beyond these same faults.
The resulting Indicated and Inferred mineral resources for the Banio Project are presented in Tables 1
and 2.
The robust carnallitite Indicated Resource of 636.5M tonnes at 15.8% KCl and Inferred Resource
of 1.1B tonnes at 15.8% KCl provide a solid base for continuing exploration at the project and for a
Preliminary Economic Assessment which is planned on this resource base with completion in Q1 2024.
The PEA the Company plans to complete will focus only on the North Target although significant potential
for potash mineralization is interpreted from downhole geophysical studies completed in several oil and
gas wells at the South Target of the permit area.
In addition to carnallitite resources, the sylvinite mineralization with Indicated resources of 20.1M tonnes
at 21.6 % KCl and Inferred resources of approximately 43.8M tonnes at 21.2% KCl represent an
attractive exploration target with higher grades that may enhance the overall grade of the project.
In
addition, the potential to expand resources at the North Target are considered excellent, the flat-lying
potash beds remain open for expansion in all directions with the exception of northeast which trends
under the lagoon.
The Company's Phase 1 drill program includes additional drilling at the North Target including the
extension of BA-001 and the drilling of a new hole to test the potential of potash mineralization east of
the current drilling.
Preparation work and repairs to the drill on site remain in progress however
procurement of spare parts and supply chain delays have now pushed restart of the drilling program into
Q1 2024.
The Company is required to file an NI 43-101 compliant technical report on SEDAR within 45 days of the
initial disclosure of the MRE made herein.
The Company has granted a total of 2,181,000 incentive stock options to certain directors, officers, and
consultants of the Company.
The incentive stock options are exercisable for a period of 5 years at an
exercise price of $ 0.35 per share..
The options are granted pursuant to the Company's stock option
plan and are subject to its approval by the TSX Venture Exchange.
Figure 2 Indicated and Inferred ROI Polygons for Carnallitite Seams in Cycles V to VII
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The information in this
news release has been reviewed and approved by Sebastiaan van der Klauw,
EurGeol, of ERCOSPLAN and Peter J. MacLean, Ph.D., P. Geo, Director of the Company, and both are
Qualified Persons as that term is defined in National Instrument 43-101.
To find out more about Millennial Potash Corp. please contact Investor Relations at (604) 662-8184 or
email at
.
MILLENNIAL POTASH CORP.
"Farhad Abasov"
Chair of the Board of Directors
Neither the 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.
This document may contain certain "Forward-Looking Statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When
used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan" or
"planned", "forecast", "intend", "may", "schedule" and similar words or expressions identify forward-
looking statements or information. These forward-looking statements or information may relate to future
prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources,
regulatory or government requirements or approvals including approvals of title and mining rights or
licenses and environmental (including land or water use), local community or indigenous community
approvals, the reliability of third party information, continued access to mineral properties or
infrastructure, changes in laws, rules and regulations in Gabon or any other jurisdiction which may impact
upon the Company or its properties or the commercial exploitation of those properties, currency risks
including the exchange rate of USD$ for Cdn$ or CFA or other currencies, fluctuations in the market for
potash or potash related products, changes in exploration costs and government royalties, export
policies or taxes in Gabon or any other jurisdiction and other factors or information. The Company's
current plans, expectations and intentions with respect to development of its business and of the Banio
Potash Project may be impacted by economic uncertainties arising out of any pandemic or by the
impact of current financial and other market conditions on its ability to secure further financing or funding
of the Banio Potash Project. Such statements represent the Company's current views with respect to
future events and are necessarily based upon a number of assumptions and estimates that, while
considered reasonable by the Company, are inherently subject to significant business, economic,
competitive, political, environmental and social risks, contingencies and uncertainties. Many factors, both
known and unknown, could cause results, performance or achievements to be materially different from
the results, performance or achievements that are or may be expressed or implied by such forward-
looking statements. The Company does not intend, and does not assume any obligation, to update these
forward-looking statements or information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements and information other than as required by
applicable laws, rules and regulations.
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