Gensource Potash Corporation (Gensource or the Company) (TSX.V: GSP) is pleased to announce that as of November 2, 2018, it has successfully completed drilling and coring a new potash exploration well, in its 100% owned Vanguard Area. The results from this well will enable Gensource to further define and upgrade the extent, grade, and classification of the potash resource in the Vanguard Area; paving the way for the next possible mining areas for future project ˜modules. This exploration work will conclude with the issuing of a NI 43-101 report.
Mike Ferguson, Gensources President & CEO commented that: We are thrilled to report another successful drilling project, having safely and successfully achieved our objectives for this well. The resulting drilling analysis is a key contributor to supporting our efforts and mission to create additional opportunities for an off-taker to own their own potash production source under our business model. With the recent significant progress on the Vanguard One project, which is expected to enter the execution phase upon completion of the financing package, we are seeing more potential customers take notice and become increasingly interested in the opportunities Gensource provides. As a result, we must work ahead of any additional memoranda of understanding (MOUs) for additional off-take agreements by preparing for future projects. This newly drilled well will allow us to identify those next projects.
Gensource contracted Horizon Drilling to complete the well using their rig number 18. Highlights from the 2018 exploration well include:
- 16 days on site and over 5,000 man-hours worked with zero injuries, zero reportable incidents, and no environmental issues.
- Total vertical depth drilled: 1,591m
- Approximately 65m of 3.5 diameter core cut and retrieved from the Prairie Evaporite Formation.
- Several geophysical logs were run including: hole volume, directional, neutron-density-PE, induction, spectral gamma ray, dipole sonic, and cement bond logs.
- A successful Drill Stem Test (DST) was performed in the Mannville formation, to help determine the flowrate availability of brackish water for mining activities.
Upon initial inspection, the potash core recovered from this well reveals that:
- All three members of the Prairie Evaporite (Patience Lake, Belle Plaine and Esterhazy) are present and in-tact.
- Thicknesses of the three members are consistent with adjacent wells, meeting expectations.
- Significant Sylvinite mineralization is present, especially the Patience Lake and Belle Plaine Members.
The core was securely transported to Saskatoon where it is being logged. Once logged, the core will be sampled and the samples will be crushed and assayed to provide chemical composition data, most specifically K2O grade.
The scientific and technical information contained in this news release was reviewed and approved by Louis Fourie, P.Geo., Pri.Sci.Nat., of Terra Modelling Services Inc., an independent consultant and Qualified Person under NI 43-101.
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province “ but with a radically and fundamentally different approach. Gensources President & 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: (1) vertical integration with the market to ensure that all production capacity built is directed, and pre-sold, to a specific market, eliminating market-side risk; and (2) technical innovation which will allow for a small and economic potash production facility, which is much friendlier to the environment to construct and operate – 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
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 Gensources future plans, objectives or goals, to the effect that Gensource or management expects a stated condition or result to occur, including 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 Gensources financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers could differ materially from those currently anticipated in such statements for many reasons such as: failure to settle a definitive joint venture agreement with a party and advance and finance the project; changes in general economic conditions and conditions in the financial markets; the ability to find and source off-take agreements; 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 Gensources 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 Gensources forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Gensources 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.
For further information please contact:
Mike Ferguson, President & CEO
Email: [email protected]