HIGHLIGHTS
- NI43-101 Report on the Spar Property estimates a total indicated resource of 12.49 million tonnes of K2O and an inferred resource of 12.24 million tonnes of K2O.
- Over 180,000-acres of potash claims in the Prairie Evaporite Formation
- Currently undertaking a 2-D seismic program on the Spar Property
SPAR PROPERTY
Ownership & Location
Raytec owns a 100 per-cent interest in Exploration Permits Applications KP441, KP455, KP466, KP467, and KP468 (referred to as the Spar Property), totalling 145,000 acres of contiguous ground within the extensive Middle Devonian Prairie Evaporite formation of south-central Saskatchewan. The claims are immediately adjacent to claims currently held by BHP Billiton Diamonds Inc.
Previous Exploration
Two phases of exploratory drilling have been conducted on the Spar Property permit area in the past:
- In 1946, Sohio Exploration Ltd. drilled three stratigraphic exploratory wells in the north and central parts of the area. The historic drill hole information from this is unknown.
- In 1969, Canadian Exploration Ltd. drilled six potash exploration holes within a 10-kilometre square area near the southern extent of KP441. Two of these holes were within the KP441 area, and the other four were located on adjacent claims currently held by BHP Billiton Diamonds Inc. The two drill holes that were drilled on KP441 ground are located approximately 3.3 kilometres apart and intersected several significant potash-rich horizons. Historic analyses from the most significant intersections in these two holes are presented below:
Historic drill hole 16-6-39-7W3:
- 3.06 metres grading 28.77 per cent K(2)O, 50.77 per cent NaCl, 0.28 per cent MgCl(2) 4H(2)O, 2.96 per cent insoluble (from 928.3 m to 931.36 m depth)
- 6.49 metres grading 12.24 per cent K(2)O, 43.37 per cent NaCl, 0.29 per cent MgCl(2) 4H(2)O, 4.05 per cent insoluble (from 940.58 m to 947.07 m depth)
Historic drill hole 16-18-39-7W3:
- 6.64 metres grading 14.49 per cent K(2)O, 50.73 per cent NaCl, 0.45 per cent MgCl(2) 4H(2)O, 6.41 per cent insoluble (from 920.37 m to 927.02 m depth)
(Note: Potash (K(2)O) grades were calculated by applying a 0.6318 conversion factor to the historically reported sylvite (KCl) values. MgCl(2) 4H(2)O is the mineral carnallite. NaCl is common salt.)
Geology
Saskatchewan Ministry of Energy and Resources data indicate that the lands are underlain by both the Patience Lake and the Belle Plain potash members. An Isopack thickness map of the Patience Lake member evaporite shows thicknesses under the Spar Property equal to those at mines in close proximity. These include Potash Corporation of Saskatchewan's Cory (located approximately 25 kilometres to the south) and Patience Lake (located 33 km to the southeast) mines, and Agrium Products Inc.'s Vanscoy potash and salt mine (located approximately 34 km south of The Spar Property).
Information derived from Agrium's website explains that mining operations at Vanscoy are currently at 1,075 metres below surface with active headings along four different faces of the orebody. The stratum currently being mined is 3.3 metres thick.
2008 Work Program
In 2008 Raytec announced the results of a NI43-101 compliant resource calculation compiled by Agapito Associates, Inc. on the Spar Property Potash Disposition Application.
- Recoverable in-place potash equivalent tonnes, assuming using standard deductions and an overall recovery of 36%, are calculated to a Indicated resource of 12.49 MMT of K2O and an Inferred resource of 12.24 MMT of K2O.
This resource estimate was determined based on the two holes drilled by Canadian Exploration Ltd. in 1969. The holes are located approximately 3.2 kilometres apart in the southwest corner of the KP441 disposition. The resource covers an area of approximately 17% of the property.
Raytec has engaged the services Kinetix Inc. to conduct 2-D seismic work on the Spar property. Final results are expected to be received in June 2009.
KP452 CLAIM
The company also holds a 100% interest in the KP452 claim block located in the southeastern portion of the evaporite formation, approximately 380 kilometres southeast of the company's KP441 group of claim blocks. An exploration permit has been granted to the company by the Saskatchwan Ministry of Energy and Resources in July 2008. The permit grants Raytec the right to explore approximately 36,113 acres of prospective potash ground. The claim lies approximately 42 kilometres southwest of the Mosaic Company-Compass Mineral Group's K-1 and K-2 potash-salt mines. It is also located 53 kilometres west of Potash Corp. of Saskatchewan's Rocanville potash-salt mine.
Data from the Saskatchewan Ministry of Energy and Resources indicate that EPAA KP452 is underlain by both the Belle plain and the Esterhazy potash members. Exploratory drilling has been conducted on the newly acquired ground in the past and the historic information will be reported once the company has reviewed all pertinent data.
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