TSX: ST and ST.WT
TORONTO, June 15, 2012 /CNW/ - Stonegate Agricom Ltd. ("Company") (TSX: ST) today announced assay results for an additional five drill hole intercepts of the Lower Phosphate Zone ("LPZ") at its Paris Hills Phosphate Project in Idaho.
The LPZ assay results, reported in the table below, are for holes drilled (1) in areas between previously drilled holes to confirm mineralization continuity and (2) in areas to the north to confirm extension of the mineralization.
"The assay results from our latest diamond drill holes at the Paris Hills LPZ show the high-grade mineralized area covers more of the property than previously included in Measured and Indicated Resource estimates announced in a news release dated March 26, 2012, including in the northern portion, for holes PA171, PA183 and PA184, where grades and thicknesses are consistent with ranges previously published for the deposit," said Mark Ashcroft, President and Chief Executive Officer.
"As a result, we expect that when a Mineral Resource update is announced in the second half of this year, the Measured and Indicated Resource estimates will show an increase from what was included in the Pre-Feasibility Study announced on March 26, 2012. In addition, we expect an increase in Measured and Indicated Resource estimates will likely generate a revised Mineral Reserve estimate and longer estimated mine life when the mine plan is updated for the bankable Feasibility Study that is planned for release by the end of 2012.
"Another positive feature of these latest drilling results is that the deposit remains open to the north, leaving open the possibility for the Company to engage in future additional exploration drilling in a northern direction and thereby potentially adding further to the known mineralized phosphate deposit area for the LPZ," Mr. Ashcroft stated.
The LPZ assay results for the five holes being reported in this news release show grades ranging from 28.6% to 31.6% P2O5 and phosphate bed thicknesses ranging from 1.4 to 1.7 meters. By comparison, assay results for the other 33 holes reported for the LPZ as of March 26, 2012 showed grades ranging from 24.5% to 34.3% P2O5 and phosphate bed thicknesses ranging from 1.1 to 2.7 meters.
A map of the drill hole sites for the reported and pending LPZ assay results, along with the March 26, 2012 Mineral Resource Classification Areas , is available at: http://files.newswire.ca/923/Stonegate_Paris_Hills_LPZ_Drill_Hole_Status_Map_June_15.pdf
Paris Hills Phosphate Project Assay Results for the LPZ as of June 15, 2012
| Zone | Hole | From | To | Cored Interval |
True Bed Thickness |
% P2O5 |
| LPZ | PA106A | 628.2 m (2060.9 ft) | 629.9 m (2066.5 ft) | 1.7 m (5.6 ft) | 1.7 m (5.5 ft) | 28.6 |
| PA142A | 652.0 m (2139.1 ft) | 654.0 m (2145.7 ft) | 2.0 m (6.6 ft) | 1.9 m (6.4 ft) | 28.7 | |
| PA171 | 674.0 m (2211.4 ft) | 676.0 m (2217.7 ft) | 2.0 m (6.3 ft) | 1.9 m (6.1 ft) | 31.6 | |
| PA183 | 808.0 m (2651.0 ft) | 809.5 m (2655.9 ft) | 1.5 m (4.9 ft) | 1.4 m (4.7 ft) | 30.4 | |
| PA184 | 931.9 m (3057.3 ft) | 933.6 m (3063.0 ft) | 1.7 m (5.7 ft) | 1.6 m (5.3 ft) | 30.1 |
The holes reported in the table above were drilled in a vertical orientation, have a down hole survey to define any deviation from vertical and are located in the center and northern parts of the property. True bed thicknesses have been calculated based on down hole drilling deviations and stratigraphy orientation.
Drill core samples are submitted to IAS EnviroChem of Pocatello, Idaho for preparation and analysis. Internal standard and blanks were submitted with the samples as part of Stonegate's quality control program. For a description of analytical and testing procedures utilized by the Company, see the Technical Report (as defined below).
Previously Reported Pre-Feasibility Study Results
The Company on March 26, 2012 announced the results of a positive Pre-Feasibility Study for the development of an underground mine in the LPZ of the Paris Hills Project that will produce a direct shipping phosphate rock concentrate with an average grade of 29.4% P2O5 and which meets or exceeds typical industry standards. The Pre-Feasibility Study was compiled by Agapito Associates Inc. of Grand Junction, Colorado. The study's estimates include (all amounts are estimates and in U.S. dollars):
Previously Reported Mineral Reserves and Resources as of March 26, 2012
The Pre-Feasibility Study announced on March 26, 2012 provided an update of the Mineral Resource estimate, and for the first time a Mineral Reserve estimate, for the LPZ, based on assay results from 33 exploration holes drilled on the property. The Mineral Resource and Mineral Reserve calculations are compliant with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Best Practice Guidelines for Industrial Minerals. Only Measured and Indicated Mineral Resource estimates (not Inferred Resource estimates) are eligible for inclusion in Mineral Reserve estimates. The following two tables summarize the results.
| Mineral Reserve of the Lower Phosphate Zone (effective date March 26, 2012) | |||||||||
| P₂O₅ | Fe₂O₃ | Al₂O₃ | MgO | CaO | CaO/P₂O₅ | ||||
| Tonnes †, ‡ | Thickness | Grade | Grade | Grade | Grade | MER | Grade | Ratio | |
| (meters) | (wt %) | (wt %) | (wt %) | (wt %) | (wt %) | ||||
| Proven | 5,167,101 | 1.8 | 30.0 | 0.56 | 1.07 | 0.44 | 0.069 | 45.22 | 1.51 |
| Probable | 4,848,361 | 1.7 | 28.8 | 0.54 | 0.93 | 0.58 | 0.071 | 44.95 | 1.56 |
| Reserves | 10,015,462 | 1.8 | 29.4 | 0.55 | 1.00 | 0.50 | 0.070 | 45.09 | 1.53 |
| † Average in-situ bulk dry density of 2.6 t/m3. | |||||||||
| ‡ Minimum mining height of 1.5 m + 0.15 m dilution. | |||||||||
| Mineral Resource of the Lower Phosphate Zone2 (effective date March 26, 2012)6 | |||||||||
| In-Place Tonnes1,2 |
Thickness | P₂O₅ Grade |
Fe₂O₃ Grade |
Al₂O₃ Grade |
MgO Grade |
MER | CaO Grade |
CaO/P₂O₅ Ratio |
|
| (millions) | (meters) | (wt %) | (wt %) | (wt %) | (wt %) | (wt %) | |||
| Measured3 | 12.2 | 1.8 | 30.5 | 0.51 | 0.99 | 0.27 | 0.059 | 45.8 | 1.50 |
| Indicated4 | 10.1 | 1.7 | 29.7 | 0.51 | 0.89 | 0.29 | 0.056 | 45.5 | 1.52 |
| Total M&I | 22.3 | 1.8 | 30.1 | 0.51 | 0.94 | 0.28 | 0.057 | 45.7 | 1.51 |
| Inferred5 | 8.1 | 1.7 | 29.3 | 0.51 | 0.86 | 0.29 | 0.055 | 45.3 | 1.52 |
| 1 Average in-situ bulk dry density of 2.6 t/m3. | |||||||||
| 2 Zone thickness cut-off 1.0 m, composite grade cut-off 24.0% P2O5, excludes out-of-seam dilution. | |||||||||
| 3 Measured Mineral Resource located within a 200-m radius of an exploration hole. | |||||||||
| 4 Indicated Mineral Resource located between a 200-m and 400-m radius of an exploration hole. | |||||||||
| 5 Inferred Mineral Resource located between a 400-m and 800-m radius of an exploration hole. | |||||||||
| 6 Numbers may not add up due to rounding. | |||||||||
The Pre-Feasibility Study was compiled by Agapito Associates Inc. of Grand Junction, Colorado supervised by Leo J. Gilbride, P.E., Vanessa Santos, P.G., and Gary L. Skaggs, P.E., P.Eng., each of whom are independent qualified persons under the standards set forth by National Instrument 43-101.
Additional technical information on the Paris Hills Phosphate Project, including the results of the Pre-Feasibility Study for the LPZ, is contained in the report entitled "NI 43-101 Technical Report Paris Hills Phosphate Project Bloomington, Idaho, USA" dated March 26, 2012 (the "Technical Report") and in the Company's annual information form dated March 29, 2012.
This news release has been reviewed and approved by Daniel Thompson, P.E., Manager, Technical Services of the Company, who is a qualified person as defined in National Instrument 43-101.
About Stonegate Agricom
Stonegate Agricom, which is actively engaged in acquiring and developing agricultural nutrient projects, is currently focused on the development of two potentially world-class, long-life phosphate deposits, the Paris Hills Phosphate Project located in Idaho and the Mantaro Phosphate Project located in Peru. Stonegate is confident that the two deposits have sufficient size and grade to become strategic, cost-effective sources of phosphate supply for major fertilizer producers. The Company intends to continue definition and exploration drilling to confirm and expand estimates of NI 43-101 compliant mineral resources in the deposits and then complete feasibility studies leading to a decision to proceed with extracting and processing the phosphate. More information is available at www.stonegateagricom.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law, which include statements herein relating to the potential to increase mineral resource and mineral reserve estimates. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: risks relating to assumptions used in preparation of the Pre-Feasibility Study on the Lower Phosphate Zone of the Paris Hills Phosphate Project including government regulation, phosphate prices, labour costs and capital costs, and project risks including a project location, permitting requirements, project delays, ground control and dilution and water management; the general risks associated with the speculative nature of the Company's business, commodity prices, current global financial conditions, uncertainty of additional capital, price volatility, the Paris Hills is an advanced exploration stage project, limited operating history, no history of earnings, government regulation in the mining industry, environmental risks and hazards, impending climate change legislation, required approvals and permits, foreign subsidiaries, risks relating to the retention of the Paris Hills project, expiration of leases and permits for the Paris Hills Project, title to mineral properties, obtaining and converting mineral concessions and surface rights, community relations and project support, water rights, exploration, development and operating risks, uncertainty in the estimation of mineral reserves and resources, uncertainty of inferred mineral resources, mineral exploration, reliability of historical exploration work, absence of public trading market, risks associated with having a controlling shareholder, arbitrary offering price, dilution to the common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends as well as those factors discussed in the section entitled "Risk Factors" in the Company's most recently filed annual information form available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The forward-looking statements and forward-looking information contained in this press release are included for the purpose of providing investors with information to assist them in understanding the offering as well as the Company's expected financial and operational performance and may not be appropriate for other purposes. Stonegate does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.
Cautionary Note to United States Investors Concerning Estimates of Mineral Resources
This news release uses the terms "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources". United States investors are advised that while such terms are recognized and required by Canadian regulations to be disclosed, the United States Securities and Exchange Commission generally does not permit disclosure of mineral resources of any kind in documents filed with the United States Securities and Exchange Commission. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured Mineral Resources or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
PDF available at: http://stream1.newswire.ca/media/2012/06/15/20120615_C9191_DOC_EN_15168.pdf
Wayne Cheveldayoff
Vice President, Investor Relations
Stonegate Agricom Ltd.
Tel: 416-864-0303
[email protected]
Christine Stewart
Renmark Financial Communications Inc.
Tel: 416-644-2020
[email protected]
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