AgriMinco Corp.

TSX VENTURE : ANO


AgriMinco Corp.

February 11, 2014 16:45 ET

AgriMinco Corp.: Danakil Potash Joint Venture Announces Maiden NI 43-101 Mineral Resource Estimate (MRE)

Indicated Sylvinite Resource 227 Million Tonnes @ 25.9% KCL

Inferred Sylvinite Resource 357 Million Tonnes @ 25.2% KCL

Total Indicated Resource 708 Million Tonnes @19,4% KCL

Total Inferred Resource 1,116.5 Million Tonnes @19.1% KCL

Only 14% of the Tenement Explored to Date

The Sylvinite Resource Has an Average Thickness of 6.13M

TORONTO, ONTARIO--(Marketwired - Feb. 11, 2014) - AgriMinco Corp. (TSX VENTURE:ANO) ("AgriMinco" or the "Company") is pleased to announce it has received the maiden NI 43-101 compliant mineral resource estimate ("MRE") from the operator of the Danakil Joint Venture, Plinian Capital LLP, who have reviewed the MRE that was prepared by independent consultants K-UTEC Salt Technologies ("K-UTEC"), a German consulting firm with expertise in potash mining, and have agreed to the release of the MRE.

The MRE for the Danakil potash deposit (the "Project") was commissioned by AgriMinco's joint venture partner the Danakil Potash Corporation ("Danakil Corp."). Currently AgriMinco holds 30% interest in the Project with Danakil Corp. holding 70%.

The total MRE includes the Sylvinite ("SYL"), Upper Carnallitite ("UCAR"), Lower Carnallitite ("LCAR") and the Kainitite ("KAI") potash bearing beds and comprises of an Indicated mineral resource totalling 708.8 Mt at an average grade of 19.4% KCl (equivalent to 12.2% K2O), for a total of 137.6 Mt of contained KCl (equivalent to 87.1 Mt of contained K2O).

The Inferred mineral resource (for all four potash bearing beds) totals 1,116.5 Mt at an average grade of 19.1% KCl (equivalent to 12.0% K2O), for a total of 213.2 Mt contained KCl (equivalent to 134.7 Mt contained K2O). A summary of the mineral resource estimate is detailed in the tables below.

Indicated Mineral Resource
POTASH MEMBER TONNAGE
(Mt)
KCl
(%)
K2O
(%)
CONTAINED
KCl (Mt)
CONTAINED
K
2O (Mt)
Sylvinite 227.4 25.9 16.36 58.9 37.2
Upper Carnallitite 43.1 18.09 11.60 7.8 5.0
Lower Carnallitite 136.3 13.51 8.59 18.4 11.7
Kainitite 302.1 17.38 10.99 52.5 33.2
TOTAL 708.8 19.4 12.2 137.6 87.1
Inferred Mineral Resource
POTASH MEMBER TONNAGE
(Mt)
KCl
(%)
K2O
(%)
CONTAINED
KCl (Mt)
CONTAINED
K
2O (Mt)
Sylvinite 357.8 25.24 15.96 90.3 57.1
Upper Carnallitite 71.6 18.85 11.87 13.5 8.5
Lower Carnallitite 233.7 13.65 8.64 31.9 20.2
Kainitite 453.4 17.09 10.79 77.5 48.9
TOTAL 1,116.5 19.1 12.0 213.2 134.7

AgriMinco's CEO, George Roach comments, "The resource estimate confirms management's confidence in the project and reaffirms our expectations that this property has the potential to be developed into a world-class exceptionally low-cost Potash producer. The technical report due for publication is expected to add further confidence. AgriMinco is now entirely focussing its efforts to secure finance to avoid dilution and/or dispose of our retained interest in a manner that best presents value to our shareholders."

The MRE is based on all drilling to date, completed by both G&B Central African Resources Limited and Danakil Corp. between 2010 to 2013, and comprised of 55 core drill holes totalling 15,664 m metres. The mineral resource estimate was calculated using polygon areas of each drill hole locations with a defined radius of 375 metres (diameter 750 meters) for the Indicated category, and 750 metres (diameter 1,500 metres) for the Inferred category. Average dry densities used in the resource calculations for the four potash bearing beds were 2.07 g/cm3, 1.76 g/cm3, 1.85 g/cm3 and 2.05 g/cm3 for the SYL, UCAR, LCAR and KAI respectively. Average densities were from on-site measurements on the core from 34 holes.

The top of the potash bearing sequence consists of the SYL member and UCAR members which have an average thickness of 6.13 metres and 2.28 metres respectively and can be separated from the lower potash bearing sequence by the Bischofitite member which has an average thickness of 44.1 metres. The lower potash bearing beds in the sequence are the LCAR and KAI members which have average thicknesses of 4.93 metres and 8.78 metres respectively.

A copy of the NI 43-101 Technical Report will be available on the SEDAR website (www.sedar.com) under AgriMinco's profile within 45 days of this press release.

Qualified Persons

The mineral resource estimate was completed by independent K-UTEC consultant Thomas Schicht, EurGeol, Assistant Head of Geophysics, K-UTEC Independent Salts Technologies, a Qualified Person under the National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

AgriMinco's Qualified Person, Bruce Cumming holds a Bachelor of Science (Honours) in Geology from the University of Cape Town and is accredited to the South African Counsel for Natural Scientific Professionals (SACNASP). Mr. Cumming has sufficient geological experience (over 35 years) and is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information presented in this release.

About AgriMinco

AgriMinco Corp. is a Canadian company based in Toronto, Ontario Canada. For more information regarding AgriMinco visit our website at www.agriminco.com.

This press release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Forward-looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to changes in general economic conditions or conditions in the financial markets. Such forward-looking information is based on a number of assumptions, including but not limited to, there being no significant decline in existing general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligations to update publicly or otherwise revise any forward-looking information, except as may be required by law. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company's filings with the Canadian securities regulators available on 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.

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