VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/25/13 -- Mesa Exploration Corp. (TSX VENTURE: MSA)(PINKSHEETS: MSAJF) (the "Company") announces that, as a result of a review by the British Columbia Securities Commission (the "BCSC"), we are issuing the following news release to clarify and retract certain technical disclosure.
In response to the BCSC's technical disclosure review, the Company's technical reports "Geology and Mineral Resources, Green Energy Project, Grand County, Utah, USA" dated March 14, 2011 (the "Old Green Energy Report"), and "Geology and Mineral Resources, Utah Potash Project, White Cloud, Salt Wash and Whipsaw Areas, Grand County, Utah, USA" dated April 30, 2011 (the "Old Utah Potash Report"), which relate to adjacent properties, will be combined into one current and complete technical report (the "Updated Green Energy / Utah Potash Report"). The Old Green Energy Report and the Old Utah Potash Report contained historical in-situ potash estimates that the Company has determined are not suitable for inclusion in the Updated Green Energy / Utah Potash Report as the Company does not have sufficient information regarding the resource estimation procedures used to derive such estimates. In particular, the Company retracts the historical estimate of the sylvite resource contained on page 15 of the Old Green Energy Report and page 19 of the Old Utah Potash Report, which was also contained in the Company's website and corporate presentation, and the estimate of the K20 equivalent contained on page 15 of the Old Green Energy Report and page 19 of the Old Utah Potash Report, and the Company's website and corporate presentation. The Company also retracts the historical estimates of lithium brine and contained tons of potassium, lithium and other minerals contained on pages 3 and 17 of the Old Green Energy Report and pages 3 and 20 of the Old Utah Potash Report, as this estimate did not include information on the grades of such minerals, and estimates of liquid reservoir brines cannot readily meet the definition of a mineral resource set out in the CIM Definition Standards. The Company anticipates that the Updated Green Energy / Utah Potash Report will be filed on SEDAR on or before April 29, 2013.
Also in response to the BCSC's technical disclosure review, the Company's technical report dated February 15, 2012 titled "Geology and Mineral Resources, Bounty Potash Project, Box Elder and Tooele Counties, Utah, USA" (the "Old Bounty Technical Report") will be updated with a current and complete technical report on the Company's Bounty potash property (the "New Bounty Technical Report"). The Company retracts the historical estimate of muriate of potash that was contained on pages 3 and 17 through 19 of the Old Bounty Technical Report, as well as the disclosure of such historical resource estimate contained in the news releases of the Company dated January 31, 2012 and February 16, 2012, the Company's corporate presentation and website, and the Fundamental Research Report dated March 15, 2012 (the "Research Report"), which was formerly posted on the Company's website. The Company also retracts any economic analysis based upon the foregoing historical estimate that was contained in the Old Bounty Technical Report, including estimates of potential annual production, total production or life of mine, as pursuant to National Instrument 43-101, economic analyses cannot be based on historical resource estimates. The Company anticipates that the Updated Bounty Technical Report will be filed on SEDAR on or before April 29, 2013.
The Company's website and corporate presentation also referenced the gross value per barrel of lithium Brine in respect of the Green Energy Lithium Project, contrary to NI 43-101 requirements, which prohibit the disclosure of the gross value of metal or mineral in a deposit. The Company retracts all disclosure regarding the gross value of in-situ minerals, and these statements have been deleted from the Company's website and corporate presentation. The Company cautions that any disclosure of the gross in-situ value of a mineral deposit is meaningless and may be misleading, because it fails to take into consideration operating and capital costs, recoveries and other factors relating to the potential extraction and recovery of minerals.
The Company's website and corporate presentation disclosed grades from the Green Energy lithium project which selective in nature, as they disclosed the highest tested grades and did not represent the total grades tested on the Green Energy lithium project. The foregoing selective disclosures have been removed from the Company's website and corporate presentation.
The projects section of the Company's website and corporate presentation included comparisons of geological similarities between the Bounty Potash deposit and the Wendover potash mine. These statements have been deleted from the Company's website as they are not in compliance with applicable disclosure requirements, and the Company clarifies that the Bounty potash project is at an early stage of development and should not be compared with an operating potash mine.
The Company's corporate presentation, the projects section of the Company's website, the Company's corporate presentation, the Research Reports, and several of the Company's past news releases referred to the Moonshine Spring Project being "adjacent to a 4 million pound U308 deposit owned by Denison Mines". The Company retracts the statement that the property held by Denison Mines Corp. ("Denison") adjacent to the Company's Moonshine Spring Project has a 4 million pound U308 deposit. The Company clarifies that a qualified person acting on behalf of the Company has been unable to verify the U308 deposit on Denison's property and that any deposit on Dennison's adjacent property is not necessarily indicative of mineralization on the Company's Moonshine Springs Project. Furthermore, the Company's Moonshine Springs Project, which is in an early stage of exploration, should not be compared to the deposit owned by Denison Mines Corp.
The Bounty potash project section of the Company's website disclosed that auger sampling is sufficient to "generate an updated ore reserve calculation" and that the Bounty potash project has a "historic resource estimate open for expansion". These statements have been deleted from the Company's website, and the Company clarifies that it has not demonstrated economic the economic viability of the Bounty project.
Dana Durgin, AIPG Certified Professional Geologist #10364, is a qualified person within the meaning of National Instrument 43-101, and has reviewed the contents of this news release.
About Mesa Exploration Corp.
Mesa is developing and exploring a portfolio of mineral properties in the United States where it controls significant land holdings in proven mining districts with excellent access and infrastructure. Mesa currently has 14.8 million shares issued and outstanding, 50% of the shares are controlled by insiders and institutions. For further information please visit our website at www.MesaExploration.com.
ON BEHALF OF THE BOARD
MESA EXPLORATION CORP.
Foster Wilson, President and CEO
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com.
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.
Mesa Exploration Corp.
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