Sennen Potash Corporation
TSX VENTURE : SN

Sennen Potash Corporation

July 29, 2015 15:18 ET

Sennen Potash - Summary of Results of Ni 43-101 Technical Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 29, 2015) - Mr. Ian Rozier, President and CEO of Sennen Potash Corporation (TSX VENTURE:SN) ("Sennen" or the "Company") is pleased to provide a summary of the results of the National Instrument ("NI") 43-101 Technical Report (the "Report") on its Monument Potash Project in Utah, USA. Sennen commissioned North Rim Exploration Ltd. ("North Rim") to complete a Mineral Resource Estimate as part of the Report. The Report was prepared by Ms. Tabetha Stirrett, P.Geo, and Ms. Debbie Shewfelt, M.Sc., P.Geo, of North Rim.

In a news release dated January 15, 2015, Sennen reported initial results from its Johnson 1 Well (the "Johnson Well"). The highlights were as follows:

  • High grade of 46.1% KCl (29.1% K2O) over 6.3 m (20.6 ft), the Upper bed in Cycle 18 of the Paradox Formation.
  • Ambient temperature over intersected potash zone of 68°C (154°F).
  • The high ambient temperatures are favorable for solution mining.
  • The existence of a second potash bed ("Lower Potash Bed").
  • Strong continuity of the potash beds across the Monument project area.

These initial results have been refined by further technical analyses and by the Mineral Resource Estimate.

Mineral Resource Estimate

The Mineral Resource Estimate was prepared by Ms. Tabetha Stirrett, P.Geo, who was the Qualified Person ("QP") for the Report. The Saskatchewan Research Council Geoanalytical Laboratory was used for geotechnical analyses and analytical quality control and assurance. Roger Edgecombe and Adam Flynn of RPS provided consulting services for the 2D seismic interpretations for input into calculating the Mineral Resource.

The Inferred Resources are reported for the Upper and Lower Potash Beds of Cycle 18 for the Johnson Well, and a Potential Quantity Tonnage is reported for the Upper Potash Bed of Cycle 18 based on correlation with historical well log data from the Western Natural Gas 1 Well.

The complete resource summary is provided in Table 1 entitled Sennen Potash Resource Summary Table. Areas used in the Mineral Resource Estimate are illustrated in the Report which will be filed on SEDAR (www.sedar.com).

The Monument Project currently has a defined Mineral Resource of:

  • Inferred Resource Upper Potash Bed: 107.3 MMt, grading 26.96% K20 (42.67% KCl) with 0.01% Carnallite and 0.62% Insolubles.
  • Inferred Resource Lower Potash Bed: 81.0 MMt, grading 22.60% K20 (35.77% KCl); Carnallite and Insoluble content not available.

In addition to the Inferred Mineral Resource, there is a Potential Quantity Tonnage of between: 72.1-108.2 MMt, grading between 5.0-17.0% K20 (7.9-26.9% KCl). The Report notes that the Potential Quantity and grade are conceptual in nature and there has been insufficient exploration to define a mineral resource at this time.

The parameters and deductions included in the Mineral Resource Estimate are listed in detail as footnotes to the Resource Summary (Table 1). The main parameters used in the determinations are as follows:

  • For the estimation of the Mineral Resource and Potential Quantity Tonnage a radius of inference ("ROI") of 2,400m was used.
  • A 25% deduction was applied for undetectable seismic anomalies.
  • A 5% K20 grade cut-off was used to delineate the geological (top and base) of the mineralized section of the potash bed.
  • The Potential Quantity Tonnage is defined by a 5% K20 cut-off to delineate the geological boundaries and thickness range between the thickness measured in, the Western Natural Gas 1 Well of 10.5m, and a minimum thickness of 7.0m as seen in the Johnson Well.
  • Carnallite and Insolubles from the Johnson Well are very low, and similar values would be expected in Cycle 18 at the Western Natural Gas 1 Well location.

To view the table associated with this press release, please visit the following link: http://media3.marketwire.com/docs/1019347T.pdf

Report Conclusions

The following is a summary of conclusions pertaining to the geology, mineral resource, infrastructure, and data quality;

  • North Rim believe the data used for the Report is of acceptable quality and reliance for use in a Mineral Resource Estimation.
  • Potash mineralization showing economic potential was identified in two principal zones; The Cycle 18 Upper Potash Bed and the Cycle 18 Lower Potash Bed.
  • The Cycle 18 Potash Beds are at a favourable depth for solution mining.
  • The mapped beds are all relatively flat units that dip gently in an S-SW direction at an angle of 10-15°. The generally flat-lying nature of the potash beds further contribute to the potential economic viability of solution mining.
  • The estimated bottom hole temperature from the wireline tools of 68°C (154°F) is favourable for solution mining.
  • Very low Carnallite (0.01%) and Insoluble content (0.56%) are favourable for solution mining in the Upper Cycle 18 Potash Bed. Similarly, lower Carnallite and Insoluble content in the Lower Cycle 18 Potash Bed, as indicated in geophysical well logs, are also advantageous.
  • Major structural irregularities and geological anomalies were not identified within the project area in the review of the 2D seismic data.
  • Access to the project area is good via several paved state highways and gravel roads.

Recommendations

The following recommendations are made by North Rim:

  • A Phase 2 drill program should be conducted to further delineate and classify the mineral resource.
  • Phase 2 drilling should comprise two wells and these should be drilled on existing 2D seismic lines.
  • Dissolution testing and rock mechanics testing should be conducted on recovered drill core.
  • Completion of a Scoping Study/Preliminary Economic Assessment.
  • Upon completion of the Phase 2 drill program and Scoping Study, a 3-D seismic program should be conducted to confirm continuity of the Cycle 18 unit across the area and to define any anomalous features in the area.
  • Start an Environmental Impact Study.
  • 1 to 3 additional holes may be required for infill drilling in order to refine the geological model prior to mine planning.
  • Results of the Phase 2 drill program and Scoping Study will determine if the project will progress to a Prefeasibility Study.
  • Estimated costs for the Phase 2 drill program are approximately $5-7m.

Mining Potential

For the purpose of the Report, the Mineral Resource is based on the assumption that the recovery of potash would be by Solution mining methods. No Preliminary Economic Assessment or Scoping Study has been conducted. However, the Company will proceed with further technical work on the basis that with such a thick potash bed (7-10m), high-grade (~ 43% KCl), and high down-hole temperatures (68°C), the Cycle 18 Potash Bed appears to be ideally suited to Solution mining methods. More details on Solution mining methods and their potential application at the Monument Project are provided in a Corporate Presentation available on the Company's website (www.sennenpotash.com).

Qualified Persons

The disclosure of technical and scientific information in this news release has been approved by Tabetha A. Stirrett, P. Geo., of North Rim Exploration. Tabetha Stirrett is a Professional Geologist registered in the province of Saskatchewan, as well as professionally registered with American Institute of Professional Geologists (AIPG) and is a Qualified Person as defined by NI 43-101.

About Sennen

Sennen currently owns a 70% interest in the exploration and development stage Monument Potash Project. Monument is comprised of over 106,000 net mineral acres of contiguous mineral leases in south-east Utah and south-west Colorado and is located less than 70 miles from Intrepid Potash Corp.'s operating Cane Creek Solution Mine.

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

Caution concerning forward-looking information

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Sennen in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Sennen's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by Sennen with Canadian securities regulatory authorities and available at www.sedar.com. Sennen disclaims any obligation to update or revise any forward-looking information or statements except as may be required.

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