SOURCE: Raytec Metals Corp.

June 10, 2008 03:05 ET

Raytec Announces NI43-101 Potash Resource

VANCOUVER, BC--(Marketwire - June 10, 2008) - Raytec Metals Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) (PINKSHEETS: RAYMF) is pleased to announce the receipt of resource calculations from the Company's KP441 Potash Disposition Application ("KP441") located in south central Saskatchewan.

KP441 was the Company's first potash acquisition within the Saskatchewan potash basin and accounts for 88,320 acres of the Company's total land package of 291,330 acres under application. After reviewing data from historic drilling on KP441, the Company contracted Agapito Associates, Inc ("Agapito") to prepare a NI43-101 report for the newly acquired KP441 disposition. Agapito is a professional organization of engineers and geologists with over 25 years experience in Mining and Civil Engineering and Geology. Mr. Joseph E. Crawford L.P.G. and Dr. Michael Hardy P.E. are the qualified professionals who co-authored this technical report. Dr. Hardy has been involved with potash exploration, solution mining pilot testing, solution mining engineering studies including feasibility studies, and resource and reserve estimation since 2001. Agapito's client list includes over 180 Mining companies, including Intrepid Mining LLC., Potash One Inc. and Mississippi Potash.

The authors of the Company's NI43-101 technical report were able to obtain data from historic drilling on the KP441 disposition through the Saskatchewan Ministry of Energy and Resources as well as the Saskatchewan Industry and Resources branches. Cores from drilling in the potash rich members of the Prairie Evaporite Formation for Canadian Exploration Ltd. holes 16-6-39 and 16-18-39, were logged, split and assayed, using an appropriate protocol and security, to provide the authors with current data and assay results with which to prepare their report. Using results from both new and historic core assays, the authors were able to prepare a resource estimate for the extreme southwest corner of KP441. The resource estimate contains both an Indicated and Inferred resource for the Lower Patience Lake, the Upper Belle Plain and Lower Belle Plain formations. The potash resource remains open to the north and east of the study area, truncated to the south and west by the limits of the Company's potash lease application boundary.

In summary, the report estimates a total Indicated resource of 148.02 million metric tonnes ("MMT") grading 23.44% K2O and an additional Inferred resource of 229.16 MMT grading 20.40% K2O.

The above noted figures calculate to a total in-place Indicated resource of 34.70 MMT of K2O and a further in-place Inferred resource of 46.76 MMT of K2O. Recoverable in-place potash equivalent tonnes, assuming using standard deductions and an overall recovery of 36% (10% geologic anomaly and expected 40% extraction), are calculated to a net recoverable Indicated resource of 12.49 MMT of K2O and a net recoverable Inferred resource of 16.83 MMT of K2O.

Indicated Mineral Resources and Inferred Mineral Resources have been estimated based on the distance from cored and assayed drill holes using best available practice similar to that adopted by Mosaic at the Belle Plaine operations. The distance from an existing cored and assayed drill hole for inclusion of resource in the inferred and indicated categories is as 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 been estimated based on the radius from the cored drill holes, the estimated extent of the beds with grade and thickness greater than estimated cutoff values of 1.1m and 12% K2O, the thickness and grade of the selected mining intervals at the corehole locations, the loss factors for unaccounted geologic anomalies assumed to be 10%, an areal extraction ratio of 40%, and losses incurred by removal of resources in buffer zones.

This resource estimate determined using the Volumetric and Borehole Radius Analysis method, is based on two drill holes approximately 3.2 kilometers apart in the southwest corner of the KP441 disposition. This resource covers an area of approximately 17% of the KP441 disposition or approximately 5% of Raytec's 291,330 acres under application.

While it was not the objective of the NI43-101 report to select a mining method for exploiting the potash contained in the KP441 area, the resource classification was established in part by resources that are amenable to current mining technologies using typical grade values. "For the purpose of delineating 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 the Company's website and on SEDAR shortly.

Carnallite is a hydrated magnesium chloride. It is considered an impurity that can be detrimental to solution mining. An industry threshold for magnesium chloride in plant feed is 1%. The average magnesium chloride content in the KP441 area resource estimate is 0.25% which is within the threshold limit and well below 1%.

"We are very pleased with the results of our current resource estimate. We believe this shows that Raytec has some very prospective potash ground in Saskatchewan. Our goal is to expand our current resources through seismic exploration and drilling of the property. Through my recent conversations with personnel at the Saskatchewan Government Mines Branch I expect to have our permit for KP441 issued in July. Raytec's main focus remains potash and fertilizer commodities," states Raytec president, Mr. Brian Thurston.

In addition, the Company wishes to announce the granting of incentive stock options to its directors, officers, consultants and employees, under its Stock Option Plan, for the purchase of up to 900,000 common shares of the Company for a period of 2 years at a price of $0.80 per share.

Raytec's disclosure of a technical or scientific nature has been reviewed by Wayne J. Roberts, P.Geo, and Director of Raytec, a qualified person under the definition of National Instrument 43-101.

On behalf of the Board, RAYTEC METALS CORP.

Brian Thurston, President, CEO

Cautionary note: This report may contain forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43-101 report on the Key Lake properties and will be filing a NI 43-101 report on the Company's KP441 Potash Lease Application property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • Contact:
    Raytec Metals Corp.
    Tel: (604) 669-9330
    Fax: (604) 669-9335