Anglo Minerals proves up potash (October 17, 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 National Instrument 43-101 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% K2O, 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% K2O was estimated in the Lower Patience Lake sub-member.

Additional inferred resources of 394 million tonnes of recoverable sylvinite grading 23.2% K2O and 243 million tonnes of recoverable sylvinite grading 24.7% K2O 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% K2O.

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

Average thicknesses of drilled intervals and grades are as follows:

– Upper Patience Lake: 6.3 metres averaging 22.5% K2O, 6.8% insols and less than 1% carnallite;

– Lower Patience Lake: 4.2 metres averaging 25.6% K2O, 5.6% insols and less than 1% carnallite;

– Upper Belle Plaine: 3.3 metres averaging 21.3% K2O, 3.1% insols and less than 1% carnallite; and

– Lower Belle Plaine: 4.2 metres averaging 16.8% K2O, 3.1% insols and less than 1% carnallite.

Through its wholly owned subsidiary, Prairie Potash, Anglo Minerals operates the project and holds 85% of it. 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.