VANCOUVER, BC / ACCESSWIRE / May 21, 2014 / Strata Minerals Inc. (TSXV: SMP) ("Strata" or the "Company") is pleased to announce the appointment of technical consultants, exploration drilling contractors and the Company’s 2014 exploration program at the Diamond Mountain Phosphate Project (“Diamond Mountain Project”) located in Vernal, Utah, USA.
Appointment of Consultants and Contractors at Diamond Mountain
Norwest Corporation (“Norwest”) has been appointed as technical consultants to the Company’s Diamond Mountain Project in Vernal, Utah. Norwest is an internationally recognized leader in providing consulting expertise to the energy, mining, and natural resources industries. Norwest’s scope of work on the Diamond Mountain Project includes advising Strata on the exploration program, supervision of exploration drilling, mineral resource estimation and completion of a NI43-101 compliant technical report.
Major Drilling America Inc. (“Major Drilling”) has been appointed as the exploration drilling contractor for the first drilling campaign at the Diamond Mountain Project. Major Drilling, established in 1980, is one of the world’s largest metals and minerals contract drilling companies.
Diamond Mountain Project - 2014 Exploration Program
Strata is planning to drill a total of 20 diamond core exploration holes totalling approximately 2,000 metres. Drilling is scheduled to commence during the first week of June 2014 and is expected to take approximately 40 days to complete. Following completion of the exploration drilling campaign, Norwest will complete a resource estimate to NI43-101 standards. Strata is targeting the completion of a NI43-101 compliant Technical Report on the Diamond Mountain Project by the 4th quarter of 2014.
The key targets for the 2014 Diamond Mountain Project exploration program include:
- Confirmation of the non NI43-101 compliant historic resource on the Diamond Mountain mineral tenements, as defined by US Steel Corporation in 1974, to a NI43-101 compliant resource estimate.
- Delineation of potential NI43-101 compliant resources in other areas of the Diamond Mountain Project mineral tenements with a focus on targeting resources that may be amenable to open pit mining.
In 1974, US Steel Corporation published the document “Report on Diamond Mountain Phosphate Deposit, Uintah County, Utah, Raw Materials Geological Investigations” – Western, United States Steel Resource Development, March 1974 (“US Steel Report”).
As documented in the US Steel Report, US Steel Corporation conducted extensive exploration and feasibility work on what is now the Diamond Mountain Project mineral tenements including diamond core drilling, beneficiation testwork and feasibility evaluation. US Steel estimated that there is approximately 53 million tons of phosphate mineralisation with an average grade of approximately 20% P2O5 on the Diamond Mountain Project mineral tenements. (See Note 1 below).
“We are pleased to be working with two very well respected Utah based companies for our initial drilling program at Diamond Mountain. Both Norwest and Major Drilling have previously worked on Utah phosphate projects and we look forward to benefiting from their expertise” noted Jason Bahnsen, Strata’s President and CEO.
About Diamond Mountain
Diamond Mountain is an advanced exploration stage property consisting of approximately 4,000 hectares located in the State of Utah. Previous phosphate exploration work on the lands was conducted in the 1960-70’s by US Steel Corp which outlined phosphate mineralization in two gently dipping seams of phosphate containing rock totalling approximately 5 metres in thickness. The mineralized material sub-crops to the north and gently dips to the south. The project is adjoining to the west by Simplot Corporation’s Vernal phosphate mine and beneficiation complex which reportedly produces at a rate of approximately 1 million tons per annum of concentrated phosrock grading an average of 30% P2O5.
Under the terms of the Diamond Mountain Project Option Agreement, closed on March 20, 2014, Strata has paid cash consideration of US$75,000 and Unit consideration of C$100,000 (consisting of 833,333 common shares and 416,667 commons share purchase warrants). Strata can earn a 51% interest in the Diamond Mountain Project by incurring expenditures of US$1,000,000 in exploration and development on the Diamond Mountain project on or before a target date of December 15, 2014.
Strata can earn a further 29% interest to hold an aggregate share of 80% of the Diamond Mountain project by incurring a further US$1.5 million in exploration and development expenditures on the project on or before a target date of December 15, 2015 and paying a further US$100,000 of cash consideration and issuing C$100,000 in shares.
Forward Looking Statements
This news release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual events or results could differ materially from the Company's expectations and projections. Investors are cautioned that forward-looking statements involve risks and uncertainties. Accordingly, readers should not place undue reliance on forward-looking statements. When used herein, words such as "anticipate", "will", "intend" and similar expressions are intended to identify forward-looking statements. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Strata's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.strataminerals.com.
Note 1: The resource estimates contained in the US Steel Report are not in compliance with NI43-101 and may not be reliable. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and Strata is not treating the historical estimate as a current resource estimate for the Diamond Mountain Project. The historic resource represents an exploration target and will require significant exploration work and analysis by a qualified person prior to verifying the historic estimate as current mineral resources under NI43-101.
For further information, please contact:
Jason Bahnsen, President and CEO
Tel: +1 647 986 7542
Investor Relations Contact:
Arrowhead Business and Investment Decisions, LLC
Daniel Renaud or Thomas Renaud
Tel: +1 212 619 6889
Company profile: www.abid.co/TSXV.SMP
About Strata Minerals Inc. Strata Minerals Inc. is an emerging, phosphate focused, agricultural nutrient company exploring for commercial-scale phosphate rock mineralization deposits. Armed with the objectives of becoming a supplier to the US and global fertilizer industry and generating wealth for its shareholders, Strata is currently advancing its phosphate exploration projects in Utah, USA and in Western Australia, Australia. All references to the Company in this release include the Company’s wholly owned Australian subsidiary, Strata Minerals Pty Ltd. For further information, please refer to the Company's website at http://www.strataminerals.com/. Additional disclosure of the Company’s financial statements, technical reports, material change reports, news releases and other information can be obtained on SEDAR at http://www.sedar.com/.
Source: Strata Minerals Inc.