MagIndustries Reports Huge Inferred Potash Resource on Makola Property

2010-08-12

MagIndustries recently reported that its subsidiary, MagMinerals Potash, has completed a National Instrument 43-101 compliant Technical Scoping Report for the 1,111 square kilometer Makola exploration license on the Atlantic coast of the Republic of Congo. The Report by Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau mbH estimates inferred resources of 9.2 billion tonnes of carnallitite at an average K2O grade of 12.1%, for a total inferred resource of 1.7 billion tonnes of potash (KCl).

The 1.7 billion tonnes of inferred potash (KCl) resources within the Makola exploration license were indentified in 16 carnallitite bearing horizons using historical drill hole data which did not include the carnallite grade of the carnallitite horizons. The Report also estimates inferred resources of 70 million tonnes of sylvinite at an average K2O grade of 20.7% for a total inferred resource of 23 million tonnes of potash (KCl). These sylvinite resources are located in the area of the past producing underground Holle Potash Mine (1969 to 1977) which lies within the Makola exploration license. 

MagMinerals acquired the Makola exploration license in 2009 through the purchase of all of the shares of Potasse du Congo, a Congolese company. PdC also holds the Tchizalamou and Loango exploration licenses which are also undergoing preliminary assessment. The total area of the three PdC exploration licenses (Makola, Tchizalamou and Loango) is 2,056 square kilometers, all of which is underlain by multiple potash bearing horizons. 

The Makola exploration license surrounds the 136 square kilometer Mengo mining license which is under preliminary development by MagMinerals for a 1.2 million tonne per year potash operation. In June, 2009, the Company filed an updated NI 43-101 compliant technical report in respect of the Mengo License area entitled Updated Reserve and Resource Estimate for MagMinerals Kouilou Potash Project, Republic of Congo. The 2009 Technical Report concluded that the Mengo License contains a proven and probable resource of 33.2 million tonnes of potash (KCl) which is sufficient to support a 26 year mine life, and an additional inferred resource of 209 million tonnes of potash (KCl) which could significantly extend the mine life.