HIGHLIGHTS
- Over 200,000-acre land position with potential for multiple potash projects.
- New NI43-101 Report estimates a net recoverable indicated resource of 12.49 million tonnes of K2O and a net recoverable inferred resource of 12.24 million tonnes of K2O.
- Exploration permit received on the KP441potash claim; permits for the KP455, KP466, KP467 and KP452 permits are expected to be granted in July/August 2008.
KP441 CLAIM GROUP
Ownership & Location
Raytec owns a 100% interest in Exploration Permits Applications KP441, KP455, KP466, KP467 and KP468 (referred to as the KP441 claim group), totalling 165,836 acres of contiguous ground within the extensive Middle Devonian Prairie Evaporite formation of south-central Saskatchewan. The claims are immediately adjacent to claims currently held by a joint venture between BHP Billiton Diamonds Inc. and Anglo Minerals Ltd.
Previous Exploration
Two phases of exploratory drilling have been conducted on the KP441 permit area in the past:
- In 1946, Sohio Exploration Ltd. drilled three stratigraphic exploratory wells in the north and central parts of the area. The historic drill hole information from this is unknown.
- In 1969, Canadian Exploration Ltd. drilled six potash exploration holes within a 10-kilometre square area near the southern extent of KP441. Two of these holes were within the KP441 area, and the other four were located on adjacent claims currently held by BHP Billiton Diamonds Inc. The two drill holes that were drilled on KP441 ground are located approximately 3.3 kilometres apart and intersected several significant potash-rich horizons. Historic analyses from the most significant intersections in these two holes are presented below:
Historic drill hole 16-6-39-7W3:
- 3.06 metres grading 28.77 per cent K(2)O, 50.77 per cent NaCl, 0.28 per cent MgCl(2) 4H(2)O, 2.96 per cent insoluble (from 928.3 m to 931.36 m depth)
- 6.49 metres grading 12.24 per cent K(2)O, 43.37 per cent NaCl, 0.29 per cent MgCl(2) 4H(2)O, 4.05 per cent insoluble (from 940.58 m to 947.07 m depth)
Historic drill hole 16-18-39-7W3:
- 6.64 metres grading 14.49 per cent K(2)O, 50.73 per cent NaCl, 0.45 per cent MgCl(2) 4H(2)O, 6.41 per cent insoluble (from 920.37 m to 927.02 m depth)
(Note: Potash (K(2)O) grades were calculated by applying a 0.6318 conversion factor to the historically reported sylvite (KCl) values. MgCl(2) 4H(2)O is the mineral carnallite. NaCl is common salt.)
Geology
Saskatchewan Ministry of Energy and Resources data indicate that the lands are underlain by both the Patience Lake and the Belle Plain potash members. An Isopack thickness map of the Patience Lake member evaporite shows thicknesses under KP441 equal to those at mines in close proximity to the property. These include Potash Corporation of Saskatchewan's Cory (located approximately 25 kilometres to the south) and Patience Lake (located 33 km to the southeast) mines, and Agrium Products Inc.'s Vanscoy potash and salt mine (located approximately 34 km south of KP441).
Information derived from Agrium's website explains that mining operations at Vanscoy are currently at 1,075 metres below surface with active headings along four different faces of the orebody. The stratum currently being mined is 3.3 metres thick.
2008 Work Program
Raytec has announced the results of a NI43-101 compliant resource calculation compiled by Agapito Associates, Inc. on the KP441 Potash Disposition Application.
- Recoverable in-place potash equivalent tonnes, assuming using standard deductions and an overall recovery of 36%, are calculated to a net recoverable Indicated resource of 12.49 MMT of K2O and a net recoverable Inferred resource of 12.24 MMT of K2O.
This resource estimate was determined based on the two holes drilled by Canadian Exploration Ltd. in 1969. The holes are located approximately 3.2 kilometres apart in the southwest corner of the KP441 disposition. The resource covers an area of approximately 17% of the KP441 disposition and represents approximately 5% of Raytec's 291,300 acres under application.
The company has now received the exploration permit on the KP441 potash claim from the Saskatchewan Ministry of Energy and Mines. Raytec is planning to start 2D and 3D seismic work in the upcoming weeks.
Readers are cautioned that there is no National Instrument 43-101 report on this property, nor are there proven, indicated or inferred resources until such time as the company is able to put out an NI43-101 compliant report. The information above was not collected under current NI 43-101 policy and the assays, being historic in nature, cannot be verified by the company and therefore should not be relied upon.
KP452 CLAIM
The company also holds a 100% interest in the KP452 claim block located in the southeastern portion of the evaporite formation, approximately 380 kilometres southeast of the company's KP441 group of claim blocks. An exploration permit has been granted to the company by the Saskatchwan Ministry of Energy and Resources in July 2008. The permit grants Raytec the right to explore approximately 36,113 acres of prospective potash ground. The claim lies approximately 42 kilometres southwest of the Mosaic Company-Compass Mineral Group's K-1 and K-2 potash-salt mines. It is also located 53 kilometres west of Potash Corp. of Saskatchewan's Rocanville potash-salt mine.
Data from the Saskatchewan Ministry of Energy and Resources indicate that EPAA KP452 is underlain by both the Belle plain and the Esterhazy potash members. Exploratory drilling has been conducted on the newly acquired ground in the past and the historic information will be reported once the company has reviewed all pertinent data.
