Athabasca Potash Inc. Announces an
Updated Potash Resource Estimate for the Burr Project including 425 Million
Tonnes of Measured & Indicated Mineral Resources
SASKATOON,
SASKATCHEWAN--(Marketwire - May 29, 2009)
Athabasca Potash Inc. ("API" or the "Company")
(TSX:API) is pleased to announce an updated National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101")
compliant potash resource estimate for the Burr Project prepared by Lions
Gate Geological Consulting Inc. ("LGGC"). The targeted mining
members, including both the Upper Patience Lake ("UPL") and Lower
Patience Lake ("LPL") Sub-Members, contain Measured Mineral
Resources of 125,800,000 tonnes at a grade of 21.27% potassium oxide
("K2O"), Indicated Mineral Resources of 299,000,000 tonnes at a
grade of 23.07 % K2O, and Inferred Mineral Resources of 186,900,000 tonnes
at a grade of 23.55% K2O. The updated resource estimate has an effective
date of May 22, 2009.
The updated resource estimate is based on 17 potash test wells, including
new assay results from three test wells - Burr08-13-19, Burr08-01-32 and
Burr08-09-34 - that were not included in the mineral resource estimate
announced on September 29, 2008. New assay results were also used for two
test wells included in the 2008 resource estimate, Burr08-04-23 and
Burr08-16-36. In the 2008 mineral resource estimate, equivalent or eK2O
results were used for these test wells. The assay results received to date
for the 2008 test well core samples have corroborated the eK2O results used
in the 2008 mineral resource estimate. API was given permission by the
Saskatchewan government to sample some previously unsampled core in the
historical drill hole Burr-04-14. The assay results returned high grade
potash mineralization that increased the thickness of the potash
intersection in this test well and has been included in the updated
resource estimate.
The confidence level and sufficient tonnage of the Measured and Indicated
Mineral Resource of 424,800,000 tonnes in the Burr Project is sufficient to
support API's Pre-feasibility Study (the "Pre-feasibility Study")
being led by SNC-Lavalin Inc. The Pre-feasibility Study is expected to be
completed in the third quarter of 2009. A new NI 43-101 compliant technical
report will be prepared by SNC-Lavalin Inc. upon completion of the
Pre-feasibility Study.
"This resource update confirms management's assumptions and validates
the potential development of the Burr Project as a potential low operating
cost conventional potash mine" states Dawn Zhou, President and Chief
Executive Officer.
Polygonal Resource Tabulation for the Burr Project 2009 Mineral Resource
Update
(Tonnages are Net of Deductions for Freehold Lands, Identified Collapse
Structures and a 35% Extraction Ratio, May 22, 2009)
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���������������������� Tonnes���� K2O(1)���� MgO�� Carnallite�� H2O Insol(1)
�������������������������� (t)������ (%)����� (%)��������� (%)���������� (%)
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LPL Measured����� 125,800,000���� 21.27���� 0.07�������� 0.51��������� 5.67
LPL Indicated���� 191,000,000���� 24.28���� 0.08�������� 0.54��������� 5.94
LPL M&I�� ��������316,800,000���� 23.09���� 0.08�������� 0.53��������� 5.83
LPL Inferred����� 117,500,000���� 23.97���� 0.08�������� 0.52��������� 5.75
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UPL Indicated���� 108,000,000���� 20.93���� 0.08�������� 0.53��������� 6.55
UPL Inferred������ 69,400,000���� 22.84���� 0.08�������� 0.53��������� 6.25
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Total Measured��� 125,800,000���� 21.27���� 0.07�������� 0.51��������� 5.67
Total Indicated�� 299,000,000���� 23.07���� 0.07�������� 0.45��������� 5.48
Total M&I�������� 424,800,000���� 22.54���� 0.07�������� 0.47��������� 5.28
Total Inferred��� 186,900,000���� 23.55���� 0.07�������� 0.49��������� 5.07
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(1) The summary value at the bottom of this column is inclusive of the eK2O
��� and eInsol values.
The resource estimate was built using a polygonal method in GEMS�
software using the same criteria as was used in the 2008 resource estimate.
The classification protocols were changed to include Measured Mineral
Resources within the 3D Seismic study area. For the LPL potash horizons
within the 3D seismic area, a 1.5 kilometre radius was applied for the
Measured Mineral Resource polygons, a 2.0 kilometre radius for the
Indicated Mineral Resource polygons and a 3.0 kilometre radius for the
Inferred Mineral Resource polygons. For the LPL potash horizon outside of
the 3D seismic survey a 1.5 kilometre radius was applied for the Indicated
Mineral Resource polygons and a 3.0 kilometre radius for the Inferred
Mineral Resource polygons. For the UPL potash horizon a 1.5 kilometre
radius was applied for the Indicated Mineral Resource polygons and a 3.0
kilometre radius for the Inferred Mineral Resource polygons. The outer
perimeter of the 1.5 kilometre and 2.0 kilometre radius polygons was used
to define areas of mineralization classified as Measured or Indicated
Mineral Resources. This eliminated gaps between polygons that were too
small to warrant drilling a new hole where the confidence in the grade and
physical continuity of the potash horizons was good. The polygons in the
area between potash test wells Burr07-09-29, Burr08-01-34, Burr08-04-23 and
Casey-01 were extended the longest distance, 2.22 kilometres.
The limits of all polygons used in the resource estimate were restricted to
the boundary of the Burr Project. Freehold mineral rights not currently in
the possession of API were deducted from the polygonal areas and a 35%
mineable extraction rate was applied to account for materials lost due to
mine pillars and allowance for salt replacement, small collapse areas and
carnallite. Additional deductions were made for collapse anomalies
identified from the 2007 3D seismic survey. A density factor of 2.08 was
used to estimate tonnages for each of the polygons. The deposit is assumed
to be mined using conventional underground methods and processed into
saleable products using technology similar to that currently in use at
nearby potash mines.
Due to uncertainty associated with Inferred Mineral Resources, additional
exploration work on the property may or may not succeed in upgrading the
Inferred Mineral Resource to an Indicated or Measured Mineral Resource.
Because confidence in the Inferred Mineral Resource estimate is
insufficient to allow the meaningful application of technical and economic
parameters or to enable an evaluation of economic viability worthy of
public disclosure, the Inferred Mineral Resource must be excluded from
estimates forming the basis of feasibility or other economic studies. The
UPL member was included in the resource estimate in the north-west corner
of the resource area due to the presence of carnallite in the LPL in
Burr07-13-21, Burr08-01-32 and Burr08-13-19 and very low grade found in the
LPL in Burr07-13-23. The UPL intersections in the other potash test wells
on the property are above minimum grade and thickness in most areas of the
LPL mineral resource. API has concluded that the LPL is the target horizon
in these areas for any future mine planning. The UPL is considered a viable alternative mining
horizon if there are areas where the LPL is not mineable locally, which is
a method of mining similar to that currently in use at nearby potash mines.
The potash wells have all encountered stable overlying rocks which are an
important consideration for reasonable prospects of economic extraction.
The geological setting and favourable mineralization shown at the Burr
Project are consistent with characteristics of existing Saskatchewan potash
mines.
The results from three test wells included in this resource estimate were
based on eK2O values. Drill core from Burr08-04-23 and Burr08-16-36 is
being used for geomechanical testing and will be submitted to the
Saskatchewan Research Council Laboratory in Saskatchewan ("SRC")
for analysis as soon as the study work is completed. The eK2O value was
used for Burr07-13-23 for the UPL intersection in place of the assay results
after LGGC reviewed the drill core and the log data and determined that the
log data in this case is more reliable due to the local anomalous feature
intersected in Burr07-13-23. The log data samples a larger area than the
assayed samples. The assay results for the UPL in the test well
Burr07-13-23 returned 8.99% K2O over 2.85 m, whereas the log data returned
11.7% eK2O over 3.60 m and is considered more reliable.
Assay Results for Burr-04-14 and the 2008 Potash Test Well Intersections
Included in the Burr Project 2009 Mineral Resource Update
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�������������� From���� To Width�� eK2O�� K2O��� MgO� Carnallite����� Water
��������������������������������������� Total������� �������������Insoluble
����������������� m����� m���� m�� wt %� wt %�� wt %������� wt %������ wt %
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Upper Patience Lake Sub-Member
Burr08-13-19 939.39 946.01� 6.62������� 22.05�� 0.08������� 0.56������ 6.51
Burr
�08-01-32��� 927.92 934.25� 6.33������� 25.20�� 0.06������� 0.43������ 5.47
Lower Patience Lake Sub-Member
Burr-04-14�� 957.41 964.08� 6.67��� ����19.70�� 0.05������� 0.32������ 3.17
Burr08-01-34 931.56 936.24� 4.68������� 28.01�� 0.08������� 0.54������ 5.01
Burr08-04-23 940.30 945.30� 5.00�� 24.3 Assay Results Pending���������� 7.6
Burr08-16-32 945.97 950.15� 4.18������� 24.63�� 0.11������� 0.74������ 6.39
Burr08-16-36 939.40 943.60� 4.20�� 22.8 Assay Results Pending���������� 6.3
Burr08-09-34 940.95 945.11� 4.16������� 23.61�� 0.08������� 0.55������ 4.46
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Susan Lomas, P.Geo. of LGGC, is the Qualified Person (as defined by NI
43-101) for having prepared the mineral resource estimates, and scientific
and technical information in this press release and has reviewed the
results reported herein. Details regarding the 2008 mineral resource
estimate and the three 2008 test wells not included in the 2008 resource
estimate are documented in the technical report entitled NI 43-101
Technical Report for a Resource Estimation on the Burr Project, Athabasca
Potash Inc., Saskatchewan, Canada, with an effective date of September 18,
2008 (the "Technical Report"). New assay results included in this
updated resource estimate were assayed at SRC and verified by Ms. Lomas..
The sampling and analytical procedures, QAQC program and sampling for new
assay results are the same as those used for the 2007 assay results as
described in the Technical Report. The Technical Report as well as a number
of press releases related to the Burr Project exploration program, the
Environmental Impact Studies currently being undertaken at the Burr Project
and the Pre-feasibility Study are available at www.sedar.com or www.athabascapotash.ca.
About Athabasca:
Athabasca Potash Inc. is a Canadian based corporation and was founded with
a goal of establishing itself as a pre-eminent Canadian public company
engaged solely in potash exploration and development with focus on the Company's
wholly owned Burr Project, and to provide its shareholders with a unique
investment opportunity focused entirely on potash.
Caution Regarding Forward-Looking Information
This press release contains forward-looking
information within the meaning of applicable Canadian securities
legislation. Such forward-looking information includes, but is not limited
to, statements with respect to estimated Mineral Resources at the Burr
Project, the filing of a new NI 43-101 compliant technical report for the
Burr Project and the completion of the Pre-feasibility Study.
Forward-looking information involves known and unknown risks, uncertainties
and other factors which may cause actual results, performance or
achievements of API, or industry results, to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among others,
exploration risks, lack of historic drill hole documentation, challenges or
impairments to title, the negotiation of access to certain potash
mineralization, permit requirements, governmental regulations, aboriginal
land use, environmental risks and competition in attracting and retaining
personnel. In addition, the forward-looking information contained in this
press release is based upon what management believes to be reasonable
assumptions, including, but not limited to, assumptions regarding the
mining and processing methods to be used in connection with any future
development at the Burr Project, mining and processing costs, transport
costs, minimum mining widths, metallurgical recovery rates, the long term
price of potash, the bulk density of potash mineralization and the
estimated extraction ratio. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in the forward-looking
information contained herein. Accordingly, readers are advised not to place
undue reliance on forward-looking information. Except as required under
applicable securities legislation, API undertakes no obligation to publicly
update or revise forward-looking information, whether as a result of new
information, future events or otherwise.
For more information, please contact:
Athabasca Potash Inc.
Dawn Zhou
President and Chief Executive Officer
(306) 933-4298
Email: info@athabascapotash.ca
Website: www.athabascapotash.ca
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