11 May 2011 12:00
For immediate release: 11 MAY 2011
Sirius Minerals Plc
("Sirius" or the "Company")
Increased York Potash Mineral Rights
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to announce a significant increase in onshore mineral rights held under option by the Company for its York Potash Project.
Sirius has obtained options over further onshore mineral rights within the Company's project focus area covering approximately 1,300 hectares (13km2) between the towns of Whitby and Scarborough. The mineral rights were obtained on terms similar to those already held within the focus area in the form of an option to enter into a lease on the potash mineral rights. The Company now holds options over a total mineral rights portfolio of approximately 621km2 for the Project.
The land overlying these mineral rights has also been host to historical potash and gas exploration. The Company has identified five historical boreholes drilled on this land and has so far acquired the core data and exploration logs for four of these boreholes, three of which contain assay data. Sirius is working with its consultants to evaluate the full significance of this data. However, initial examination indicates the presence of significant potash mineralisation.
All three boreholes for which core and assay data has been obtained intersected the Boulby Potash seam, but were not drilled deep enough to intersect the polyhalite seam. Initial findings are shown below.
Borehole | A | B | C |
Depth (m) | 1,335 | 1,231 | 1,393 |
Thickness (m) | 11.5 | 7.6 | 3.1 |
Grade (KCl) | 51.30% | 44.40% | 36.00% |
Table - Boulby Potash Seam Historical Intersections
A fourth borehole, for which no core or assay data are available, intersected 15.5 metres of the Boulby Potash seam from 1,422 metres depth and 24 metres of mineralisation believed to be polyhalite from 1,562 metres depth. The fifth borehole is also expected to have been drilled to a depth sufficient to pass through the polyhalite seam, but no data are currently available.
Chris Fraser, Managing Director and CEO of Sirius said: "The addition of 1,300 hectares represents a significant increase in our onshore mineral rights position. The outstanding potash intersections within our contracted mineral rights area gives us further confidence in defining a significant, world-class potash project. These holes demonstrate the quality of the potassium chloride seam lying above our potentially massive polyhalite target, which remains our principal focus. Our mineral rights process remains ongoing and we expect to update the market in due course."
For further information, please contact:
Sirius Minerals Plc | |||
Chris Fraser(MD & CEO) | Tel: +44 7582711382 or +61 404 073 288 | Andrew Lindsay(FD & CFO) | Tel: +44 20 7917 2800 |
NOMAD | Joint Brokers | Media Enquiries | |
Beaumont Cornish Limited | XCAP Securities Plc | Daniel Stewart & Company Plc | Gth Media Relations |
Roland Cornish/ James Biddle | John Grant, Karen Kelly, David Newton | Christopher Theis / Noelle Greenaway | Toby Hall/Christian Pickel |
Tel: +44 207 628 3396 | Tel: +44 20 7101 7070 | Tel: + 44 20 7776 6550 | Tel: + 44 20 3103 3903 |
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland and Western Australia).
The Company is additionally progressing ongoing Research and Development initiatives into the secondary uses of salt and potash beds for energy storage and carbon dioxide sequestration.
Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through the use of a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.
Competent Person's Statement and Risk Statement
The information in this Stock Exchange Announcement that relates to Mineral Exploration results, together with any related assessments and interpretations, have been verified by and approved for release by Dr Frederick W. Smith FIMMM., CEng, CSci., a qualified geologist and full-time employee of FWS Consultants Limited ("FWS"), Environmental and Geological Consultants. Dr Smith, who is a Fellow of the Institute of Materials, Minerals and Mining (IMMM), has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person for the purposes of the AIM Rules. Dr Smith and FWS consent to the inclusion of the information contained in this announcement and the respective references to them in the form and context in which they appear.