Elemental Minerals Announces Award of Mining License for the Sintoukola Potash Project

PERTH, Australia, Aug. 15, 2013 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to announce the award of the Mining License for its Sintoukola Potash project in the Republic of Congo ("RoC").

The award of the mining license marks another positive step in the key permitting requirements and taken in conjunction with the expected approval of the application for the Environmental and Social Impact Assessment (ESIA) Permit, will mark the completion of the key permitting stage. The ESIA application was submitted to the Ministry of Mines on 17 December 2012.

The mining license includes the area containing the Mineral Reserves and Resources defined in the Company's Pre-feasibility Study, released in September 2012 and covers an area of 205 km², approximately 15% of the existing Exploration Licence of 1,408km².

Commenting on the award Elemental's CEO, Iain Macpherson, stated:

"This timely approval continues to demonstrate the support for the high quality Sintoukola Potash project. The mining license is another positive step in the development of the project and puts Elemental in a strong position to begin construction once our engineering and feasibility work is completed. It also emphasises the seriousness with which the RoC Government is committed to the development of mining assets in the region."

Elemental recently announced the award of an extension of its exploration licence for an additional two years. This allows the Company to continue exploring the highly prospective Dougou and other targets within its 1,408 km² holding.

About Elemental Minerals

Elemental Minerals Limited (ASX/TSX: ELM) is an advanced mineral exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project. The Sintoukola project has the potential to be among the world's lowest-cost potash producers and its strategic location near the coast of Central Africa offers a transport cost advantage to key Brazilian and Asian fertilizer markets. For more information, visit www.elementalminerals.com.

Elemental announced on 1 July 2013 that the Company and Dingyi Group Investment Limited ("Dingyi"), a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange have following the successful completion of a thorough technical and financial due diligence exercise by Dingyi, executed a bid implementation agreement under which Dingyi will make an off-market takeover offer for 100% of the fully paid ordinary shares of Elemental at A$0.66 per share.

Kola Project Summary¹

The Kola Prefeasibility Study (PFS) was completed in September 2012 and was led by SRK Consulting (US) Inc. Based on a Measured and Indicated sylvinite Mineral Resource of 573 Mt grading 20.92% K₂0 (33.14% KCl), a Proven and Probable Mineral Reserve of 151.7Mt grading 20.02% K₂0 (31.69% KCl) was declared. This Mineral Resource was based entirely on the Upper and Lower Seam.

Run of mine material will be transported over 36km via an overland conveyor to a process plant located at the coast. Final MOP product will be transshipped by a 750m jetty.

The Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code), which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards 2005 and hence complies with NI 43-101.

Forward-Looking Statements

This news release contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this news release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

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¹ For a full description refer to the NI 43-101 Technical Report, dated 17 September 2012 available on SEDAR, www.sedar.com

 

SOURCE: Elemental Minerals Limited

Iain Macpherson
Chief Executive Officer
Tel: [phone]
[email protected] 

Ilja Graulich
Investor Relations Manager
Tel: [phone]
[email protected] 

Johannesburg Office: [phone]