Mitis ... As Per your Questions.I still cant tell from this...

Mitis ... As Per your Questions.

I still cant tell from this extract from todays announcement if they are going to drill along side a historic oil hole to see if they replicate the thickness and grades, or if they going to drill a distance away from a historic hole ?

Oil well Threemile 43-18h was drilled in 2009. The Potash bed was not cored but the intersections and grade was estimated via the geophysical logs. Gamma readings etc. I am no expert at this but some of the research papers that I have posted on HC highlight that Potassium can be estimated.

The image above highlights that TRH's state hole 1 was drilled in the blue square left of the Husky Fed Oil well. HorseHead Unit 1 to the left also had some Potash intersections as estimated via oil well logs. Additionally, state hole 2 recently spudded in the bottom left corner of the blue square ,just right of oil well threemile 43-18h. AS per todays announcement, State hole 2 is approx 8 kms east of hole 1.

I should point out that Stone Energy's threemile 16-17 (drilled in 2010 from memory) is fairly close to TRH's state hole 2. This is not an old well so TRH might not have the geophysical data. Stone Energy's Threemile 12/7 oil well was drilled in 2011.




"Mineral Resource Estimation: Assumptions and Methodology # Source: An Overview of the Geology of Solution Mining Of Potash in Saskatchewan , 2007.

In determining the potential extent, quality, and volume of potash mineral resource, explorers can be guided by the following principles of exploration techniques and sampling methods commonly employed by other Saskatchewan potash mine operators.

The primary tool employed by Saskatchewan potash operators is drill core as obtained by oil well drilling technology. The extent of potash mineralization and continuity between drill holes (i.e., areal extent of potash beds) is presently determined by subsurface mapping and maps compiled from dated and limited “2D” seismic lines, the limiting factor being either property boundaries or structural disturbances related to dissolution of the Prairie Evaporite and subsequent collapse of overlying beds.
While in the past, information obtained from drill holes and limited “2D” seismic line coverage was deemed sufficient to proceed with mine development, current practice would require that at least the initial development area be evaluated as to mining suitability and development workings location through “3D” seismic investigation.

In Canada, it is recommended that mineral resource estimations follow the principles set forth in National
Instrument (NI) 43-101, a document adopted by securities regulators across the country. For exploration purposes, this standard classifies the economic mineralization in terms of Inferred, Indicated, and Measured Mineral Resource. In the vicinity of the cored drill holes, the evidence is sufficient to classify areas as Inferred and Indicated Mineral Resource. No Measured Mineral Resource is identified because no engineering studies have been completed. As an example, the classification of resources as Inferred and Indicated Mineral Resource is as follows:

• Indicated Mineral Resource: Within 1 mile (1.60 km) of a cored and assayed drill hole.
•
Inferred Mineral Resource: Within 1 mile (1.60 km) minimum and 5 miles (8.05 km) maximumradius of cored and assayed drill hole. "