The Corporation has commenced a strategic review of its nickel assets located on the Langmuir Property. The various options being considered is the possibility of restarting the Langmuir No.1 underground mine on the basis of a substantially better defined resource model. That is now possible as a result of an extensive drill program that has been conducted on the Langmuir No.1 deposit since the Corporation gained control of the Langmuir Property in 2004. Certain higher grade resource blocks were excluded from the Micon Report and the Langmuir No.1 resource estimate due to these resource blocks falling outside the optimal open pit shell.
In June, 2012, the Corporation acquired 1,250,000 common shares ("Potash Shares") (or 20% of the issued and outstanding securities) in the capital of Potash Dragon Inc. ("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.
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 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 (Saez 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 evapotranspiration rates.
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