St. John?s ? Altius and Sprott Resource Corp. (?SRC?) have entered into an
agreement to explore for potash in the St. Georges Basin in southwestern
Newfoundland.
The St. George?s Basin is geologically analogous to the Moncton sub-basin in
New Brunswick, which is Canada?s second major potash mining district.
Under the agreement SRC may earn an interest in a large land package that
has been assembled by Altius to cover several known potash occurrences within
the basin. SRC may earn up to a 60% interest in the St. George?s Project by
spending C$2,500,000 over 4 years subject to an underlying 2% gross sales
royalty retained by Altius.
The St. Georges project consists of 1,400 claims (35,000 hectares) to cover
four primary target areas for potash deposits. These targets feature
historical potash drill intercepts, low gravity anomalies and salt springs that
are underlain by a relatively unexplored evaporite-bearing sequence. An
exploration program to evaluate the area and to identify drill targets has
commenced.
In addition to the St. George?s Basin joint venture, Altius and SRC have
also signed a strategic alliance regarding the assessment of potash exploration
opportunities in Canada. Under this agreement, the two parties have
agreed to collaborate in the acquisition and exploration of potash projects in
Canada.
?SRC is excited to be working with Altius, a company with great exploration
expertise and proven success in Eastern Canada. We feel that there are
excellent opportunities for potash exploration in Eastern Canada, which has a
lower cost profile than the Saskatchewan Potash Basin,? states Kevin Bambrough,
President and CEO of SRC.
SRC is a Canadian based company, the primary purpose of which is to invest, directly
and indirectly, in natural resources. Through acquisitions, joint
ventures and other investments, SRC seeks to provide its shareholders with
exposure to the natural resource sector for the purposes of capital
appreciation and real wealth preservation.
Altius? business activities include the generation and acquisition of
projects related to natural resources opportunities mainly located in
Newfoundland & Labrador.
For further information regarding this news release please contact Chad Wells.