The Mengo Mining Permit

 

The area covered by the Mengo Mining Permit is located about 15 km northeast of the Atlantic port city of Pointe-Noire, Republic of Congo (ROC).

 

The Mengo Mining Permit gives the holder MagMinerals Potasses Congo SA., the exclusive right to carry out exploitation (mining) activities in the area defined by the permit, to an unlimited depth and in respect of potassium salts. The Mengo Mining Permit granted on April 3, 2008 is valid for maximum 25 years and can be extended upon request by the permit holder for maximum periods of 15 years per extension.

 

Within the Mengo Mining Permit area of 136 km², MagMinerals' resource evaluation efforts were concentrated on an area of approximate 25 km² near the village of Mengo (the “Mengo Mine Area”). MagMinerals began its most recent exploration program in mid-2006. This work included 12 production-sized wells and 23 km of 2D seismic surveys with the intention of establishing proven reserves to support the SNC Lavalin feasibility study which considered a 25 year mine-life for the project. Due to the confidence of management in the thickness and continuity of the carnallitite deposits, the exploration wells were completed to commercial operating size in order to be able to support a rapid move to production. The following technical details are extracted from the National Instrument 43-101 report entitled "Updated Reserve and Resource Estimate for MagMinerals Kouilou Potash Project, Republic of Congo" prepared by ERCOSPLAN Ingenieurgesellschaft dated

June 10, 2009.

 

Four carnallitite horizons are considered to have economic potential for solution mining of carnallitite. The average thickness and the weighted average Carnallite grade, for the 12 recent drill holes for the Horizons 1, 2, 3 and 4 are as follows:

 

      • Horizon 1 carnallitite, 19.0m average thickness and 63.6% Carnallite (inferred resources)

      • Horizon 2 carnallitite, 13.4m average thickness and 44.1% Carnallite

      • Horizon 3 carnallitite, 10.0m average thickness and 90.0% Carnallite

      • Horizon 4 carnallitite, 26.6m average thickness and 66.3% Carnallite

 

Table 1: Investigation status of available production wells

 

 

Production well Completed Mud log Geophysical logs Detailed lithological log Chemical analysis of core material

K3 [1]

1960

-

-

no detail

-

Mengo 1[2]

1998

available

partial

available

partial

Mengo 2B 

Jul-06

available

available

available

available

Mengo 3

Aug-06

available

available

available

no samples taken

Mengo 5B

Oct-06

available

available

available

available

Mengo 6

Feb-07

available

available

available

available

Mengo 7

Dec-06

available

available

-

available

Mengo 8B

Jan-07

available

available

available

available

Mengo 9

Mar-07

available

available

available

available

Mengo 10

Apr-07

available

available

available

available

Mengo 11

May-07

available

available

available

available

Mengo 12

Jun-07

available

available

available

available

Mengo 13

Jul-07

available

available

available

available

Mengo 15

Sep-07

available 

available

available 

available 

[1] This was a reference well used for oil exploration.
[2] Exploratory well completed in 1998 as a slim hole.

  Updated Reserve & Resource Estimate for MagMinerals Mengo Permit Area, Kouilou Region, ROC - June. 2009