Anglo Minerals proves up potash (October 07, 2005)

Vancouver – Anglo Minerals (ALM-V, AGOGF-O) has filed an independent resource estimate on its Jansen Lake potash deposit located about 135 km east of Saskatoon in central Saskatchewan.

The report, prepared by North Rim Exploration, reviews significant potash resources on Permit KP 286 within Upper and Lower Patience Lake sub-members of the Middle Devonian Prairie Evaporite Formation.

The Upper Patience Lake sub-member is estimated to contain an indicated resource of 376 million tonnes of recoverable sylvinite grading 23.2% K₂0, using a “Base Case” where the entire mineralized bed would be removed. An additional indicated resource of 229 million tonnes of recoverable sylvinite grading 25.4% K₂0 was estimated in the Lower Patience Lake sub-member.

Additional inferred resources of 394 million tonnes of recoverable sylvinite grading 23.2% K₂0 and 243 million tonnes of recoverable sylvinite grading 24.7% K₂0 were estimated in the Upper and Lower Patience Lake sub-members respectively.

All resource estimates are based on chemical assays from drill sections that sampled the sedimentary horizons, and are net of a 25% deduction for unidentified mining anomalies and the application of a 40% extraction ratio.

In an “Optimized Case” applied to the Upper Patience Lake sub-member, where only the removal of the upper zone mineralized beds is considered, the indicated resource drops to 250 million tonnes of recoverable sylvinite albeit at a higher grade of 26.9% K₂0.

The potash deposit is generally flat lying with interbedded halite, sylvite, carnallite, clay and minor anhydrite and dolomite beds, the mixture of which is termed sylvinite.

Average thicknesses of drilled intervals and grades are:

• Upper Patience Lake: 6.3 meters averaging 22.5% K₂0, 6.8% insols and less than 1% carnallite;
• Lower Patience Lake: 4.2 meters averaging 25.6% K₂0, 5.6% insols and less than 1% carnallite;
• Upper Belle Plaine: 3.3 meters averaging 21.3% K₂0, 3.1% insols and less than 1% carnallite; and
• Lower Belle Plaine: 4.2 meters averaging 16.8% K₂0, 3.1% insols and less than 1% carnallite.

Through its wholly-owned subsidiary Prairie Potash, Anglo Minerals holds 85% of the project and is operator. Partner Statebanke Potash holds the remaining 15% of the permit.

Shares of Anglo Minerals have recently rallied about 75% to the 70 level on moderate volume. With its 17.3 million shares outstanding, the company has a market capitalization of about $12 million.