Confederation Minerals is Pleased to Announce 56% Owned Magna Resources Receives Third Drill Permit and Submits Exploration Plan, Green River Potash Project, Utah
CONFEDERATION MINERALS LTD.
Suite 1980, 1075 West Georgia Street, Vancouver, British Columbia, V6E 3C9 Tel: 604 688 9588; Fax: 778 329 9361
PRESS RELEASE
September 13, 2012 TSX‐V Symbol: CFM
Confederation Minerals is Pleased to Announce 56% Owned Magna Resources Receives Third Drill Permit and Submits Exploration Plan, Green River Potash Project, Utah
Vancouver, B.C., September 13, 2012. Confederation Minerals Ltd. (TSX VENTURE: CFM.V) is pleased to report that American Potash LLC (“American Potash”), a wholly owned subsidiary of 56% owned Magna Resources Ltd. (“Magna” or the “Company”), has received final approval from the State of Utah to commence drilling on three of its State leases which form part of the 100% owned Green River Potash Project (the “Property”) in Utah’s renowned Paradox Basin.
Key highlights include:
- To date, 3 drill permits granted on State leases;
- Proposed drill holes in vicinity of historic 24.3% eKCl* over 5.9m and 26.4% eKCl over 3.4m intercepts;
- Exploration Plan submitted to BLM initiates review process towards the granting of prospecting permits on Federal Lands;
- Property contains a 600 million – 1 billion tonne potash NI 43‐101 Exploration Target** with Cycle 5, the main target, known to host potash at a nearby producing mine; and
- Drilling is planned for early 2013 on the State Leases to test the extent, grade and thickness of Cycle 5 within the Property.
State Lease Drill Permits
Stratigraphic test wells have been designed to test the Cycle 5 potash evaporite horizon in the northwest portion of the Green River Potash Project on select Utah State leases. To date, three drill permits have been granted.
The first drill hole to receive final approval (as announced in Company press release dated March 28, 2012) is “Duma Point” targeting the Cycle 5 potash zone proximal to the historic Shell Quintana Fed 1‐1 well that intercepted 5.9 m (19.4 feet) of potash mineralization grading 24.3% eKCl* (*the prefix ‘e’ in eKCl indicates that the grade was estimated utilizing the response from the gamma ray log surveys and was not measured from chemical analysis of the core).
The other two drill holes to receive final approval are “Ten Mile” and “Mineral Springs”, situated 5 kms (3 miles) to the SW and 8 kms (5 miles) to the South respectively from “Duma Point”, that straddle the historic Federal 1‐26 well that intercepted 3.4 m (11.2 feet) of potash mineralization grading 26.4% eKCl.
The Company plans to commence drilling on the State Leases in early 2013 to test the extent, grade and thickness of Cycle 5 within the Property.
Exploration Plan
As stated in the Company’s May 26, 2011 press release, a Memorandum of Understanding was executed with the Bureau of Land Management (“BLM”) to expedite drilling on Federal Lands administered by the BLM. The Company has formally initiated the review process towards the granting of prospecting permits on Federal Lands by recently submitting an Exploration Plan. The Exploration Plan calls for drilling 4 exploration holes on Federal Lands in addition to the 4 holes proposed on State Leases.
The exploration Plan is currently under review and the Company is focussed on facilitating a timely completion to the Prospecting Permit approval process.
Green River Potash Project
The Property is situated in the renowned Paradox Basin, which contains the stratigraphic sequence of evaporite/salt layers that comprise the United States’ sole solution mining potash operation, the Cane Creek potash mine. The Cane Creek mine is currently exploiting Potash Cycle 5, which underlies and extends throughout the Green River Project area and is the Company’s prime exploration target.
Preliminary analysis of down‐hole electric log (“elog”) data from 33 local and regional oil and gas wells suggests that Potash Cycle 5 is a regionally extensive sylvite‐sylvinite bed in the northern Paradox Basin demonstrating continuous thicknesses and improving in thickness and grade across the Property to the northwest. The most prospective zone of mineralization appears to be located beneath the central and northwest portion of the Property where potash‐bearing Cycle 5 is inferred to range from about 3 to 6 m thick and grades from 22 to 25% eKCl.
The Company’s technical report on the Green River Potash Project (the “Report”) classifies Cycle 5 as a NI 43‐101 exploration target (the “Exploration Target”) projected to contain between 600 million and 1 billion tonnes of sylvinite with an average grade ranging between 19 and 29% eKCl, assuming a bed thickness cut‐off of 2.0 m and a composite grade cut‐off of 15.8% eKCl. Cycle 5 ranges between 1,200 and 1,900 m depth on the Property.
Table 1: Summary of the Cycle 5 Exploration Target** Range Average grade (% eKCl) 19 – 29 Average thickness (m) 2.5 – 5.0 Tonnage (Mt) 600 – 1,000 Target cut‐offs: 15.8% eKCl bed composite grade and 2.0 m bed thickness.
**It should be noted that Exploration Targets are conceptual in nature and there has been insufficient exploration to define them as Mineral Resources, and, while reasonable potential may exist, it is uncertain whether further exploration will result in the determination of a Mineral Resource under NI 43‐ 101. The Exploration Target stated in the Report is not being reported as part of any Mineral Resource or Mineral Reserve.
The Report was prepared by Vanessa Santos, Chief Geologist with Agapito and a Licensed Professional Geologist in the State of South Carolina, and Registered Member of the Society for Mining, Metallurgy, and Exploration, and Leo Gilbride, Senior Consultant with Agapito and a licensed Professional Engineer in the State of Colorado, each of which are qualified persons as defined by and independent of the Company for the purposes of National Instrument 43‐101; and have reviewed the related scientific and technical information in this press release.
The specific data referred to in the Report was obtained from historical sources believed to be reliable but which have not and cannot be verified. For additional details regarding the Property, the Report and the Exploration Target, refer to the Company’s press release dated May 30, 2012.
The Report is available under the Company’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR).
About Magna Resources Ltd.
Magna Resources Ltd. is dedicated to the acquisition and development of potash mineral deposits in the USA and elsewhere, and trades on the Canadian National Stock Exchange under the symbol MNA. American Potash, a Nevada limited liability corporation, is a wholly owned subsidiary of Magna Resources Ltd., which holds certain potash leases and an option in respect of certain potash lease applications in the State of Utah that constitute the Green River Potash Project.
About Confederation Minerals Ltd.
Confederation Minerals Ltd. is a British Columbia based company engaged in the business of acquisition, exploration and development of mineral properties. Its objective is to locate and develop economic precious and base metals properties of merit. Confederation Minerals Ltd. holds an option agreement to acquire up to 70% of the Newman Todd project in the Red Lake Mining District of Northern Ontario as well as 100% ownership in two other properties in the Red Lake Mining District of Ontario.
On Behalf of the Board:
“Brian Bapty”
Brian Bapty, Ph.D.
President and Director
CORPORATE INQUIRIES Confederation Minerals Ltd.
Suite 1980, 1075 West Georgia Street Vancouver, B.C.
Brian Bapty, President and Director 604‐688‐9588 [email protected] www.confederationmineralsltd.com
Forward‐Looking Information
This release includes certain statements that may be deemed "forward‐looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward‐looking statements. Forward‐looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward‐looking statements. Factors that could cause the actual results to differ materially from those in forward‐looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward‐looking statements. Forward‐looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward‐looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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