Grizzly finds potash in Alberta, investors find somewhere else to put their money
On much heavier volumes than usual Grizzly Discoveries shed 4c or 8.7% by midday Tuesday.
Before the market open the Edmonton-based company announced a potash discovery near Medicine Hat in Alberta Canada that wasn't as exciting as investors had clearly hoped – drilling yielded potash grades up to 31.1% K2O, but only over 0.3 metres.
The counter is down over 25% so far this year and in during the good times – late 2005 until the 2008 recession set in – it was trading around the $1 mark. It struck an all-time high of $1.42 in January 2006. There are 48 millions shares issued but only 15,000 change hands on an average day. 89,000 found new owners on Tuesday.
The $20 million diversified exploration company also has "world class" gold and base metal deposits in British Columbia and diamonds in Alberta (on some boards still trading under the name Grizzly Diamonds).
It holds or has an interest in permits covering more than 3 million acres along the Alberta-Saskatchewan border, in British Columbia and the Buffalo Head Hills and Birch Mountains of Alberta.
Full press release below:
Drilling Yields Potash grades up to 31.1% K2O over 0.3 metres
EDMONTON, ALBERTA–(Marketwire – Feb. 21, 2012) – Grizzly Discoveries Inc. (TSX VENTURE:GZD) (OTCQX:GZDIF) (FRANKFURT:G6H) ("Grizzly" or the "Company") is pleased to announce that it has discovered potash in a well near Medicine Hat on its 100% owned 984,000 acre South Block of its Alberta Potash Project. The Company currently owns 100% of the metallic and industrial mineral rights (including Potash) for 1,928,000 million acres in two blocks (north and South) and a 50% interest (along with Pacific Potash Corp.) in a further 523,000 acres (Provost Property) in Alberta.
Brian Testo, Director, President and CEO of Grizzly, commented "Our goal with the 2011 drill program was to confirm the presence of potash with potentially economic grades within Alberta. These results confirm the presence of potash on the property and we look forward to future drilling and development of a potential potash resource in Alberta, ranked as one of the top mining jurisdictions in the world by the Fraser Institute, and with a highly advantageous tax and royalty regime, which should have a positive impact on the future economics of an Alberta based potash development."
Table 1: Analytical results for Grizzly's 2011 Potash wells
Depth Thickness Grade Grade Grade From To K2O KCl MgO Well (m ) (ft ) (m ) (ft ) (m ) (ft ) (wt% ) (wt% ) (wt% ) GZD100 Medhat8-36-19-1W4 1,648.5 5,408.46 1,670.85 5,481.79 22.35 73.33 2.62 4.15 0.09 Upper Zone 1,649.4 5,411.42 1,653.95 5,426.35 4.55 14.93 6.4 10.14 0.11 includes 1,649.7 5,412.40 1,652.35 5,421.10 2.65 8.69 8.77 13.88 0.10 includes 1,651.2 5,417.32 1,652.35 5,421.10 1.15 3.77 13.0 20.58 0.14 includes 1,651.7 5,418.96 1,652.0 5,419.95 0.3 0.98 31.1 49.23 0.09 Lower Zone 1,661.7 5,451.77 1,665.0 5,462.60 3.3 10.83 2.45 3.88 0.06 PPC40 Provost 10-11-040-01W4 1,258.5 4,128.94 1,281.8 4,205.38 23.3 76.44 1.84 2.91 1.18 Upper Zone 1,258.85 4,130.09 1,263.35 4,144.85 4.5 14.76 3.14 4.97 1.57 includes 1,258.85 4,130.09 1,259.6 4,132.55 0.75 2.46 6.58 10.41 1.67 Lower Zone 1,280.7 4,201.77 1,281.8 4,205.38 1.1 3.61 5.39 8.54 4.41
Alberta Potash Project, South (Medicine Hat) Block
Well GZD100 Medhat 8-36-19-1W4, located within the east-central part of the property, was mobilized on November 28, 2011 to complete a potash test well on the Company's South Block of the Alberta Potash Project near Medicine Hat, Alberta. The drill rig completed the test well on December 12, 2011. Coring commenced at 1,642 metres ("m") below surface. Visible potash minerals were observed in the drill core for the interval between 1,648.5 m and 1,670.85 m below surface. The well cored a thick (22.35 m) zone of Prairie Evaporite Formation salt with low grade potash at a depth of 1,648.5 m (5,408.46 ft), which is the approximate depth of the Belle Plaine Solution Mine in Saskatchewan. This depth is ideally suited to solution mining due to the presence of high formation temperatures. Within the wide low grade potash zone, the drilling intersected two zones of sylvite mineralization (Upper zone and Lower zone) within the Patience Lake Member, near the top of the Prairie Evaporite Formation. Core samples from well GZD100 Medhat 8-36-19-1W4, were collected by Norwest Corporation ("Norwest") in Calgary, Alberta and forwarded to the Saskatchewan Research Council's ("SRC") Geoanalytical Laboratories in Saskatoon, Saskatchewan.
SRC analytical results from Well GZD100 Medhat 8-36-19-1W4 yielded weighted average grades of 2.62% K2O (4.15% KCl) over 22.35 m (73.33 ft) at a depth of 1,648.5 m (5,408.46 ft) for the low grade zone. The interval contains higher grade portions including 6.4% K2O (10.14% KCl) over 4.55 m (14.93 ft), 8.77% K2O (13.88% KCl) over 2.65 m (8.69 ft) and 13.0% K2O (20.58% KCl) over 1.15 m (3.77 ft) within the Upper Zone and 2.45% K2O (3.88% KCl) over 3.3 m (10.83 ft) in the Lower Zone. A summary of the analytical results for both the Upper Zone and the Lower Zone is shown in Table 1. Low grades of MgO indicate that sylvite is the major potash mineral, rather than carnallite. In 1980, historic oil well DEML MEDHAT 6-36-19-1W4, located 800 m west of the current well location, yielded a gamma log spike of about 218 API units at a depth of approximately 1,662 m below surface for a calculated maximum potash grade of approximately 22% K2O. Drill intercepts likely represent true thickness as the holes were drilled vertically and the potash zones are flat lying.
Alberta Potash Project, Provost (50:50) Property
As described in the Company's news release dated November 2, 2011, a drill rig was mobilized to well site 10-11-40-1W4 in east-central Alberta to complete a potash test well on the jointly-owned 50:50 Provost Potash Property. During September 2011, the Company signed a letter of intent ("LOI") with Pacific Potash Corp. (PPC:TSXV; "Pacific") to commence a multiple drill hole exploration program on the Grizzly – Pacific 50:50 owned Provost Property. The first well was completed in mid November. The core was sent to Norwest where it was logged and sampled. The core samples were then forwarded to the SRC for full geochemical analysis (Table 1). The well yielded a wide, low grade potash zone with two higher grade zones within including 6.58% K2O (10.41% KCl) over 0.75 (2.46 ft). Further drilling is under consideration south of Pacific's 100% owned Provost Property, where some higher grades have been reported by Pacific (see Pacific's news release dated February 15, 2012).
Future Work – Alberta Potash Project
Currently the Company has permitted for four additional well site locations on the 100% owned North Block of its Alberta Potash Project, near Lloydminster, Alberta, with two sites near Vermillion, Alberta and two sites near Provost, Alberta. The Company is also permitting two further well site locations on its South Block. Once drill rigs become available from winter drilling commitments, Grizzly will engage a rig for drilling at least one more well in the exploration phase of its drilling.
One of the well locations that has been permitted is designed to test an area in close proximity to a reported occurrence of potash minerals in well (VCO #15) in the Vermilion area on the 100% owned North Block of Grizzly's Alberta Potash Project. The author reporting the occurrence suggested that the potash mineral "sylvite exists in substantial quantities" "throughout the first 50 feet of the Prairie Evaporite" (Golden, B.Sc., 1965). The author also suggested the potash minerals "are of the same composition and depositional sequence and depth as the potash at Unity and Saskatoon, Saskatchewan", currently the location of a number of potash mines. Recent analytical work by the Alberta Geological Survey (Eccles et al., 2009) on what is left of the core from VCO #15 has yielded up to 18.6% K2O utilizing a hand held XRF instrument and confirms the observations of Golden (1965). The reported occurrence of potash minerals is at a depth of approximately 1,061 m below surface.
All 2011 field and office exploration programs are conducted under the supervision of Mr. Michael Dufresne, M.Sc., P.Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under National Instrument 43-101.
About Grizzly Discoveries Inc.
Grizzly trades on the TSX Venture Exchange under the symbol GZD, on the OTCQX exchange under the symbol GZDIF, and the Frankfurt Exchange under the symbol G6H, with 48,475,268 common shares issued and outstanding.
Grizzly is an aggressive and diversified Canadian mineral exploration company exploring for: potash in Alberta; world class gold and base metal deposits in British Columbia; and diamonds in Alberta. Grizzly holds, or has an interest in, metallic and industrial mineral permits for potash totaling more than 2.4 million acres along the Alberta-Saskatchewan border. Grizzly currently has four precious-base metal properties in British Columbia totaling over 235,000 acres. Grizzly also currently holds more than 600,000 acres in diamond properties, which host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta.
On behalf of the Board
Grizzly Discoveries Inc.
Brian Testo, President
For further information, please visit our website at http://www.grizzlydiscoveries.com.
Caution concerning forward-looking information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as "may," "will," "should," "anticipate," "plan," "expect," "believe," "estimate," "intend" and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly's actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.