Stonegate Agricom Announces Drilling Results Confirm High-Grade Nature of the Paris Hills Phosphate Project in Idaho
Stonegate Agricom Ltd. ("Company") (TSX: ST) is pleased to announce the confirmation of the high-grade nature of the Upper and Lower Zones of its Paris Hills Phosphate Project in Idaho following the receipt of assay results on core samples obtained from its initial definition drilling activity at the property.
The assay results show a high-grade intercept in the Lower Zone in hole PA002, which contained 30.5% P2O5 over seven feet from 680 to 687 feet below the surface.
The Upper Zone intersected in hole PA002 assayed at 24.9% P2O5 over 16 feet from 476 to 492 feet, including 12 feet of 27% P2O5 from 476 to 488 feet.
Stonegate has received assay results only for the Upper Zone intersected in hole PA001, with a grade of 23.5% P2O5 over 16 feet from 450 to 466 feet. Holes PA001 and PA002 are approximately 1,500 feet apart.
"We are excited to see such high grades from our own work at the property. If confirmed by additional drilling, the Paris Hills Phosphate Project would rank as one of the highest-grade phosphate deposits in the Americas," said Mark Ashcroft, President and Chief Executive Officer.
The Company plans to continue drilling activity in the coming months at the Paris Hills Phosphate Project, which it acquired in 2009. The assay results and the planned beneficiation testing of the core samples in the first half of 2011 will be important information for the Company's pre-feasibility study, which is expected to be completed by the end of 2011.
Drilling began September 23, 2010 and the drilling contractor (Major Drilling America Inc.) has completed pre-collaring of 24 drill holes thus far using reverse circulation drilling and followed up with diamond drilling to obtain core samples from both zones at 10 of the drill holes.
Diamond drilling will be stepped up with the arrival of a second diamond drill rig in mid-December 2010 at the property and a third diamond drill rig in January 2011.
In addition, a reverse circulation drilling rig is expected to return to the property in January 2011 to begin pre-collar drilling for an additional 60 to 75 holes as part of the second stage of definition drilling planned at the project.
While the Company has released assay results for the core samples for one and a half holes to inform shareholders of the initial results, it intends to collect assay data into larger batches before releasing results in the future.
All samples were analyzed by x-ray fluorescence (XRF) at ALS Laboratory Group in Vancouver, Canada. Trace element data is pending. Internal standard and blanks were submitted with the samples as part of Stonegate's quality control program.
This news release has been reviewed and approved by Michelle Stone, Ph.D., P.Geo., Vice President Exploration of Stonegate Agricom, who is a qualified person as defined in National Instrument 43-101.
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