Summary of content of Potash News Releases for Inspiration Mining Corporation (ISM)
Source: ISM news releases of June 25 2012, August 14 2012 and September 20 2012
Inspiration Mining Corporation announced in June 2012 that it has acquired 1,250,000 common shares, or 20% of the issued and outstanding securities in the capital of Potash Dragon Inc. ("Potash Dragon").
In addition, Potash Dragon issued an aggregate of 3,750,000 common share purchase warrants to ISM, which entitles ISM to acquire an additional Potash Dragon Share at an exercise price of $0.80 per share.
Each Warrant entitles the Company to acquire an additional Potash Share at an exercise price of $0.80 per share at any time prior to 5:00 p.m. (Toronto time) on the earlier of the date that is: (a) September 22, 2013, and (b) 45 days from the date that Potash Dragon receives an executed geological report (the "43-101 Report") prepared in compliance with National Instrument 43-101 with respect to Potash Dragon's brine resource in Chile.
In the event that the Company exercises all of the Warrants, the Company shall exercise control over 50% of the issued and outstanding securities in the capital of Potash Dragon.
Potash Dragon Inc. is a private company incorporated under the laws of Barbados.
Potash Dragon SpA, is a private company incorporated under the laws of Chile, and is a 100% owned subsidiary of Potash Dragon and holds various potash properties and applications covering an area of 4,133 Hectares in Region I of Northern Chile some 160 km south east of the town of Iquique and adjacent to the Pan American (Ruta 5) highway.
All the potash properties are located on the Salar de Llamara, and some of the tenements are situated adjacent to a brine extraction well field operated by Sociedad Qu-mica y Minera de Chile S.A. ("SQM").
The initial exploration strategy was to employ the use of a Transient Electromagnetic ("TEM") geophysical survey technique to define the mineralised brine bearing horizon volumes, which are likely to host minerals including potassium, magnesium, sulphate, lithium, boron and nitrates.
As of June 2012, ISM announced the intention of Potash Dragon to commence with a TEM survey of approximately 45 line kilometers of geophysical survey with results expected during November 2012.
The data generated by the TEM survey was intended to define the size and extent of the brine pools within the Llamara basins and enable individual basin profiles to be constructed. This information was to be utilized in planning a sampling and/or drilling program.
Prior experience of the application of TEM techniques in the Llamara basin has proved this method accurate in the definition of brine bearing horizons up to a depth of approximately 400m below surface.
On August 14 2102 ISM announced the commencement, and increased scope, by Potash Dragon of the TEM survey to include a total of 289 individual setups to be carried out resulting in a planned total of 133 line-km of TEM survey. The data collection and processing was expected to take about 8 weeks to complete with the results to be included in a technical report, scheduled for completion at the end of November 2012.
On 20 September ISM announced that Potash Dragon had completed the Transient Electromagnetic Survey ("TEM") geophysical survey, as reported in its press release of August 14, 2012, and that data processing had commenced ahead of schedule, with the results to be included in a technical report, which is scheduled for completion at the end of November 2012.
Sedimentary rocks in the Pampa del Tamarugal are fluvial, lacustrine and evaporitic and include highly soluble residues such as halite and related evaporite minerals such as potash.
Interspersed in this succession are horizons of volcanic tuff from eruptions in the Andes to the East. The sequence is estimated to be up to 1,000 m thick (Sez et al., 1999).
Alluvial fans incised by ephemerally active canyons descend across the eastern Pampa from the Precordillera and the talus of the median and distal fans locally masks the underlying lake sediment accumulation.
The Pampa can be considered to have an upper, gradational altitudinal limit around 1,500 metres above sea level where it merges into the proximal alluvial fans of the Precordillera front.
Precipitation that occurs at higher elevations of the Andes Mountains reports to fluvial braided fans which ultimately feed significant aquifers that flow beneath the Pampa del Tamarugal. The individual rivulets within these fans are referred to locally as Quebrada.
Ground water flowing within the pampa interacts with the evaporite sequences resulting in the dissolution of halite and other soluble minerals contained within the sedimentary sequences of the Soledad formation.
The dissolution results in a karst topography within the soluble formations that contain vast amounts of highly saline brines containing sodium, magnesium, potassium, calcium, lithium, boron, sulphates, chlorine, iodine and nitrates in varying quantities.
The Llamara and Solida projects are situated at an elevation of approximately 750 metres above sea level in an area that has an exceptionally long geological history of aridity in the Atacama Desert, particularly during the post Oligocene period (since 34 Mya) when the region has been continuously the most arid region on Earth with high evaporation and evapotranspiration rates.
The location of the project, in close proximity to the ocean, which serves as an abundant source of process water, combined with very high solar evaporation rates creates an ideal opportunity for the implementation of low cost solution mining and solar evaporation recovery techniques for the recovery of soluble minerals such potash, other fertilizers and related minerals.