Exploration Potential Estimated to Range From 460 Million to 500 Million Metric Tonnes KCL
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 2, 2011) – Passport Potash Inc. (TSX VENTURE:PPI) (“Passport”) is pleased to announce that it has received a NI 43-101 compliant technical report on the exploration potential for Passport’s Holbrook Basin Project. The Company expects that the report will be filed on SEDAR and will be readily available for public viewing by Friday November 4th, 2011. The report, prepared by SRK Consulting (US) Inc. (SRK), indicates that it is possible to assess the exploration potential for Passport’s lands, using only Passport’s verifiable drill data as an order of magnitude estimate. In that regard, SRK has reported that:
- Passport’s drill hole data shows that evaporite layers containing potash range in thickness from 2.6 to 18.4 meters and range in grade from 3.2% to 9.4% K2O, with an average thickness of 6.4 meters and a weighted average grade of 5.3% K2O.
- The exploration potential for the total areal extent of Passport lands (554 sq. Km.) is estimated to range between 290 and 315 million metric tonnes of K2O using a grade of 2% K2O as a threshold of mineralization, which is equivalent to a range from 460 to 500 million metric tonnes of KCL.
- The exploration potential is not a resource estimate and Passport is not representing this or any other number as a resource estimate for the Holbrook property. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Additional exploration work is necessary and historical data would have to be verified to report a resource estimate.
- Further work toward a resource estimate, and to determine the potential for economic extraction, is justified.
Exploration Potential on Passport Controlled Lands – Holbrook Basin
|Thickness||Grade||Tonnage||Contained K2O||Contained KCL|
|(Meters)||(%K2O)||(million tonnes)||(million tonnes)||(million tonnes)|
|2.6 to 18.4||3.2 to 9.4||5,500 to 6,000||290 to 315||460 to 500|
Based on Passport Drilling. Source: SRK, 2011
Findings in support of SRK’s estimated exploration potential are that:
- Passport’s drilling and sampling programs have helped confirm analytical and stratigraphic data from the twinned historic holes, improving confidence in the historic holes.
- Passport’s drill results have generally verified historical accounts of thickness and grade of potash mineralization.
- Passport’s digital gamma log converted equivalent K2O data generally compares with Passport’s chemical assay data from core. SRK has made recommendations for the next phase of exploration, the development of a drill hole database (particularly for historical drill hole data) for use in a subsequent resource estimate and the approach to be taken for resource estimation.
Passport’s President Joshua Bleak states, “We are very excited by what we have read and considered. A lot of hard work and effort has been put into this report and we are pleased to see that the project merits further exploration and development. SRK has made recommendations regarding this and related matters. We look forward to completing additional drilling on lands that were not included in this initial report.”
About Passport Potash Inc.
Passport Potash Inc. is a publicly traded corporation engaged in the exploration and development of advanced potash properties with its major focus on a previously explored potash property in Arizona. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 81,315 acres. For more information regarding the Holbrook Basin, please visit http://www.azgs.az.gov/arizona_geology/archived_issues/Summer_2008.pdf.
Stephen B. Butrenchuk, P.Geol., Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors of Passport Potash Inc.
Joshua Bleak, President
This news release includes certain statements that may be deemed “forward-looking statements”. Forward-looking information includes, but is not limited to: statements with respect to the effect and estimated timeline of the drilling and assay results on the Company; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting ; government regulation of mining operations; potential future expansion of the PFNP; environmental risks; unanticipated reclamation expenses; and title disputes or claims. Generally, 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”, or “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 statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include : unsuccessful exploration results; changes in metals prices; changes in the availability of funding for mineral exploration; unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company’s annual filings that are available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.