I have been researching KRN (TSX) lately. It is similar to TRH (Solution Mining) but has a market Cap at $234 million according to an investor presentation on their homepage.
This is gambling at it best on the biggest cASXino in Australia.
KARNALYTE RESOURCES INC. RECEIVES SEVEN DRILLING LICENSES FOR THE WYNYARD CARNALLITE PROJECT
CALGARY, April 7 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced that it has received seven drilling licenses from the Province of Saskatchewan, permitting additional drilling and exploration of the Corporation's potash resources on the area covered by the Corporation's Subsurface Mineral Permit KP 360A ("Permit KP360") and the Subsurface Mineral Lease KLSA 010, located near Wynyard Saskatchewan (the "Karnalyte Property"). The seven targets have been selected based on existing 3D seismic information and are located outside of the current development area expected to produce 2 million tonnes of potash per year.
"Karnalyte intends to delineate its lease and permit holdings as it progresses towards construction of a potash facility. These seven drilling licenses enable Karnalyte to explore high-potential targets and potentially enhance our resource base," said Robin Phinney, President and CEO of the Corporation. "We believe the new drilling and exploration activities could help identify significant potash resources in addition to the mineral resource estimates already indentified in the preliminary assessment."
To date, the Corporation has conducted advanced exploration on an area covering only approximately 7.5% of the Karnalyte Property. In 2010, the Corporation received a technical report entitled "Preliminary Assessment Study, Wynyard Carnallite Project, Subsurface Mineral Permit KP 360, Saskatchewan, Canada" (the "Preliminary Assessment") prepared by ERCOSPLAN Ingenieurgessellschaft Geotechnik und Bergbau mbH, North Rim Exploration Ltd. and Foster Wheeler USA Corporation in accordance with National Instrument 43-101 ("NI 43-101"). In the Preliminary Assessment, it was estimated that the Karnalyte Property has Indicated Mineral Resources and Inferred Mineral Resources of approximately 56.2 million tonnes of KCl (13% - 17% grade range) and 186.3 million tonnes of KCl (13% - 19% grade range), respectively. Karnalyte intends to proceed immediately with the drilling of the seven holes and expects a new NI 43-101 compliant report to follow. The Corporation is concurrently conducting an environmental impact statement as well as a feasibility study where two drill cores, completed in early 2011, are currently undergoing dissolution testing, rock mechanics and assaying to further characterise the mineralization of deposits on the Karnalyte Property.
About Karnalyte Resources Inc.
Karnalyte is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products. Karnalyte intends to develop and extract a carnallite - sylvite mineral deposit through a known solution mining process at competitive costs and with minimal environmental impact. The Corporation plans to construct and operate a solution mining facility capable of producing 2 million tonnes of potash per year. Karnalyte owns a 100% interest in Permit KP 360 and Subsurface Mineral Lease KLSA-010 located near Wynyard, Saskatchewan, comprising a total of 85,126 acres.
TRH Price at posting:
46.5¢ Sentiment: None Disclosure: Held
