Inspiration reports on progress with potash property
TORONTO, ONTARIO–(Marketwire – Sept. 20, 2012) – Inspiration Mining Corporation (“Inspiration” or the “Company”) (TSX:ISM)(FRANKFURT:OI8) is pleased to announce that Potash Dragon Inc. (“Potash Dragon”) has completed the Transient Electromagnetic Survey (“TEM”), as reported in its press release of August 14, 2012, at its Llamara project located in the Atacama Desert, Chile. The project area comprises the western Llamara Project as well as the eastern Solida Project. A total of 289 individual setups were completed resulting in a total of 133 line-km of TEM survey. The data processing has commenced ahead of schedule and the results will be included in a technical report, which is scheduled for completion at the end of November 2012.
“As stated in our communication in June, the project is proceeding as planned,” stated Randy Miller, the President of the Company. “We are pleased to have completed the next phase of our exploration program ahead of schedule and we look forward receiving the analysis of the results of the geophysical surveys and the brine volume study,” commented Gordon Miller, President and CEO, Potash Dragon.
About Potash Dragon Inc.
Potash Dragon is a private company incorporated under the laws of Barbados. Through its wholly owned subsidiary, Potash Dragon SpA, a private company incorporated under the laws of Chile, Potash Dragon holds various potash properties and applications covering an area of 4,133 Hectares in Region I of Northern Chile some 160km south east of the town of Iquique and adjacent to the Pan American (Ruta 5) highway. All the properties are located within the Pampa del Tamarugal area on the Salar de Llamara, and some of the tenements are situated adjacent to a brine extraction well field operated by Sociedad Quimica y Minera de Chile S.A. (“SQM”).
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 (Sáez 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.
About the Deal
As reported in its press release dated June 25, 2012, Inspiration acquired 1,250,000 common shares (“Potash Shares”) (or 20% of the issued and outstanding securities) in the capital of Potash Dragon. In addition, the Company was issued an aggregate of 3,750,000 common share purchase warrants (the “Warrants”). 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.
TEM uses electromagnetic impulse excitation to investigate the composition of subsurface rock and water bearing horizons. It is a variation of the electromagnetic geophysical method (“EM”) in which transient pulses of electrical current in coils and antennae are applied instead of a continuous current induced magnetic field. TEM surveys have become the most popular surface EM technique used in exploration for conductive minerals and groundwater, and for environmental mapping. 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.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Inspiration is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Inspiration cannot assure investors that actual results will be consistent with these forward looking statements and Inspiration assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Inspiration Mining Corporation
Chief Executive Officer