Marifil Signs Purchase Agreement For K-5 And K-6 Potash Properties
Vancouver, B.C. – May 8, 2012, MARIFIL MINES LTD. (MFM: TSX-V) (“Marifil” or “the Company”) announces it has signed a definitive purchase option agreement for the K-5 and K-6 potash claims in Neuquen Province, Argentina.
The property comprises 19 MD’s (Manifestationes de Descubrimento) or mining claims totalling 52,172 hectares. These claims cover both the K-5 and K-6 potash projects.
The terms include cash payments of $4,150,000 over four years, including $25,000 on signing a Letter of Intent (see Marifil News Release of January 23, 2012) and a payment of $125,000 on signing the definitive purchase option agreement (paid). The seller retains a 2% Net Smelter Royalty but the Company can purchase 1.5% of this royalty for $1,500,000 with a second option to purchase the remaining 0.5% royalty for $1,500,000. There are no work obligations attached to the agreement. The payment schedule differs from the previous announcement because the new agreement also includes the K-6 claims, which the Company believes are extremely valuable.
The K-5 claims lie just west of Vale’s claims, which host the +2 billion tonne Potasio Rio Colorado potash deposit and are bordered on the north by claims owned by K+S Group (a giant German fertilizer corporation) which host the large El Porton potash deposit. The K-5 prospect is possibly an extension of the El Porton deposit.
At K-5 Marifil geologists have identified significant sylvite (KCl) intervals in drill logs from 52 holes drilled for oil. Potash mineralization has been identified in up to 7 separate horizons. Most of these horizons range in depth from about 1000 to 1100 meters but significant potash has been identified as deep as 1500 meters.
Table 1 below summarizes some of the more significant intervals:
Drill Hole Thickness (meters) Grade (%KCl)
- FM a17.... 2.5 meters @ 45%KCl
- and..... 4.0 meters @ 27%KCl
- FM 23... 4.0 meters @ 45%KCl
- FM 27... 3.5 meters @ 42%KCl
- and.... 2.5 meters @ 43%KCl
- and.... 4.4 meters @ 29%KCl
- FM 29... 3.5 meters @ 45%KCl
- RuC x-1.... 5.2 meters @ 40%KCl
All of the holes analyzed will be posted on our website.
The potash horizons occur in a large north-striking anticlinal or monoclinal fold. Mineralization occurs over a width of 5 kilometers and a strike length of about 20 kilometers.
The K-6 target covers a large domal structure located between the K-2 and K-5 projects. There is only a single oil well hole on the property but this hole intercepted 2.8 meters grading 25% to 30% KCl at a depth of 627 meters. The domal structure measures about five kilometers wide and 30 kilometers long, giving a total target size of about 150 square kilometers.
Mr. John Hite, President of Marifil, states, “Marifil potash claims total 350,000 hectares, making us the second largest owner of potash rights in Argentina. Our plan now is to spin these properties into a Capital Pool Company (CPC) or a shell company that is currently trading. We would then plan to raise $3 million to $10 million to be used to drill one or more of the properties, produce a NI 43-101 resource, and then raise perhaps $15 million to $20 million to complete a Feasibility Study. We have retained Dr. Robert Rennie, a renowned fertilizer company executive to lead this new company.”
“One concern raised by potential investors is the recent turmoil regarding the Argentina Government takeover of Repsol’s shares of the YPF oil company. We do not believe this will affect mining in Argentina. The Government has had a long contentious relationship with Repsol ending with Repsol’s attempt to sell its YPF shares to China’s national oil company. While this action does not instill confidence by foreign investors one must be cognizant that oil and energy are viewed as special cases by most governments around the world.”
“Further, one of our exploration programs is aimed to develop new phosphate resources. Argentina soils are deficient in phosphate and Argentina currently imports 100% of this important soil nutrient. We would hope that the Government would support this important program.”
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101. |
