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From: Biniam Tekle (biniamt@dehai.org)
Date: Mon Aug 15 2011 - 13:13:11 EDT
press release
Aug. 15, 2011, 12:07 p.m. EDT
NGEx to Commence Drilling at Bada Potash Project in Eritrea
VANCOUVER, BRITISH COLUMBIA, Aug 15, 2011 (MARKETWIRE via COMTEX) -- NGEx
Resources Inc. /quotes/zigman/46530 CA:NGQ +11.82%
<http://www.marketwatch.com/investing/stock/NGQ?countrycode=CA&link=MW_story_quote>("NGEx"
or the "Company") is pleased to announce the start of the initial drill
program on its wholly owned Bada Potash project located in the Danakil
Depression of Eritrea. This large license, encompassing over 431 square
kilometres, is located 30 kilometres inland from the Red Sea port of Mersa
Fatma and 150 kilometres southeast of the capital city of Asmara.
The Bada license is situated within the Eritrean portion of the Danakil
Depression, an evaporite basin extending southward into Ethiopia, where
exploration in the 1960's resulted in the discovery of the large Crescent
and Musley potash and sylvite deposits. The Company plans to drill an
initial 6-8 shallow holes that will test the potash potential of its
license.
This initial drill program will investigate the margins of the basin for
shallow (less than 100m) potash mineralization on both sides of the basin.
To help target the drilling the Company has completed geological mapping and
ground magnetic surveying over the entire license, and has also completed 4
lines of gravity. Modeling of the geophysical data suggests that the basin
contains up 1 kilometre of sediments which are thought to include thick
evaporite sequences that host potash mineralization elsewhere in the basin.
All drilling and sampling will be under the supervision of ERCOSPLAN
Ingenieurgesellschaft, a potash consulting company with extensive experience
in both the Eritrean and Ethiopian parts of the Danakil. Drill results are
expected be available in October.
The Danakil Basin was first explored for potash, in the early 1900's and
there was active exploration and trial mining in the Ethiopian part of the
basin in the 1960's. There was no further exploration from the late 1960's
until recently. Today the Danakil Basin hosts several potash projects in
Ethiopia where Sainik Coal and Allana Resources are actively exploring
historic potash deposits immediately south of the Eritrean border and BHP
holds a large license to the south of the Sainik and Allana projects. The
Musley deposit was discovered and explored from surface and underground in
the 1960's and is now held by Sainik Coal, an Indian company who have
announced plans to build a pilot plant at the project. Allana Resources
recently reported measured and indicated resources of 673 Mt @ 18.65 KCl and
inferred resources of 19.96% KCl. In Eritrea, South Boulder Mines is
exploring the Colluli potash project located about 20km south of the Bada
license. South Boulder has reported potash intercepts at less than 100 metre
depths at both their 'A' zone, with JORC/43-101 compliant measured,
indicated and inferred resource estimate of 547Mt grading 18.58% KCl. South
Boulder have also announced intercepts of shallow potash mineralization in
their "B" Zone located approximately 10 kilometres south of the Bada License
boundary. Information about third party projects is taken from their
published information and the reader is referred to those companies'
websites for details.
Commenting on the commencement of the drill program, Wojtek Wodzicki,
President and CEO of NGEx said, "We are very pleased to be drilling our
first holes on this exciting new exploration play. Potash has excellent
supply/demand fundamentals and is in very high demand. Any discovery on our
license has the potential to have a very significant positive impact on the
Company. The Danakil Basin is emerging as potentially the most significant
new potash play in the world. Elsewhere in the basin, potash has been
intersected at depths of less than 100 metres which compares favorably with
other well known potash basins such as Saskatchewan where the potash beds
lie at depths of approximately 1 kilometre. The potential for shallow
mineralization will dramatically reduce exploration and development costs.
The location of the license so close to the Red Sea coast would give any
discovery significant logistical and cost advantages over any deposits on
the Ethiopian side of the border."
Dr. Wojtek Wodzicki, P. Geo. (BC), President and CEO of NGEx, a Qualified
Person as defined by National Instrument 43-101, has reviewed the technical
contents of this release.
On behalf of the board
Wojtek Wodzicki, President and CEO
Contacts:
NGEx Resources Inc.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
ngexresources@namdo.com
www.ngexresources.com
SOURCE: NGEx Resources Inc.
mailto:ngexresources@namdo.com
http://www.ngexresources.com
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