Recoverable in-place potash equivalent tonnes, assuming usingstandard deductions and an overall recovery of 36% (10% geologic anomalyand expected 40% extraction), are calculated to a net recoverable Indicatedresource of 12.49 MMT of K2O and a net recoverable Inferred resource of16.83 MMT of K2O.
Indicated Mineral Resources and Inferred Mineral Resources have beenestimated based on the distance from cored and assayed drill holes usingbest available practice similar to that adopted by Mosaic at the BellePlaine operations. The distance from an existing cored and assayed drillhole for inclusion of resource in the inferred and indicated categories isas follows:
-- Indicated Mineral Resource: 1-Mile (1.60 km) radius-- Inferred Mineral Resource: 5-Mile (8.05 km) radius
The Indicated Mineral Resource and Inferred Mineral Resource has beenestimated based on the radius from the cored drill holes, the estimatedextent of the beds with grade and thickness greater than estimated cutoffvalues of 1.1m and 12% K2O, the thickness and grade of the selected miningintervals at the corehole locations, the loss factors for unaccountedgeologic anomalies assumed to be 10%, an areal extraction ratio of 40%, andlosses incurred by removal of resources in buffer zones.
This resource estimate determined using the Volumetric and Borehole RadiusAnalysis method, is based on two drill holes approximately 3.2 kilometersapart in the southwest corner of the KP441 disposition. This resourcecovers an area of approximately 17% of the KP441 disposition orapproximately 5% of Raytec's 291,330 acres under application.
While it was not the objective of the NI43-101 report to select a miningmethod for exploiting the potash contained in the KP441 area, the resourceclassification was established in part by resources that are amenable tocurrent mining technologies using typical grade values. "For the purpose ofdelineating potash resources, the Lower Patience Lake, Upper Belle Plaine,and Lower Belle Plaine Submembers are considered to have mining potential,"states the report.
A complete copy of the NI43-101 compliant report will be published on theCompany's website and on SEDAR shortly.
Carnallite is a hydrated magnesium chloride. It is considered an impuritythat can be detrimental to solution mining. An industry threshold formagnesium chloride in plant feed is 1%. The average magnesium chloridecontent in the KP441 area resource estimate is 0.25% which is within thethreshold limit and well below 1%.
"We are very pleased with the results of our current resource estimate. Webelieve this shows that Raytec has some very prospective potash ground inSaskatchewan. Our goal is to expand our current resources through seismicexploration and drilling of the property.
