NI 43-101 Technical Report Green River Potash Project Grand County, Utah, USA
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778-01 NI 43-101 Technical Report Green River Potash Project Grand County, Utah, USA Prepared for Prepared by Leo J. Gilbride, P.E. Vanessa Santos, P.G. 10 July 2012 Effective date 27 June 2012 AGAPITO ASSOCIATES, INC. 715 Horizon Dr., Ste. 340, Grand Junction, CO 81506 970/242-4220 • FAX 970/245-9234 1726 Cole Blvd., Building 22, Suite 130, Golden, CO 80401 303/271-3750 • FAX 303/271-3891 www.agapito.com NI 43-101 Technical Report, Green River Potash Project, Grand County, Utah, USA Prepared for Magna Resources Ltd. 10 July 2012 Page i NI 43-101 TECHNICAL REPORT GREEN RIVER POTASH PROJECT GRAND COUNTY, UTAH USA Leo J. Gilbride, P.E. Vanessa Santos, P.G. Agapito Associates, Inc. 715 Horizon Drive, Suite 340 Grand Junction, Colorado 81506 USA Effective Date: 27 June 2012 Prepared For: Magna Resources Ltd. 1220 Oceanic Plaza 1066 Hastings St. Vancouver, BC V6E 3X1 CANADA Agapito Associates, Inc. NI 43-101 Technical Report, Green River Potash Project, Grand County, Utah, USA Prepared for Magna Resources Ltd. 10 July 2012 Page ii TABLE OF CONTENTS Page 1.0 SUMMARY ............................................................................................................... 1-1 1.1 Property Description ......................................................................................... 1-1 1.2 Tenure and Surface Rights ................................................................................ 1-2 1.3 Geology ............................................................................................................. 1-3 1.4 Exploration Targets ........................................................................................... 1-4 1.5 Conclusions ....................................................................................................... 1-4 1.6 Recommendations ............................................................................................. 1-6 2.0 INTRODUCTION ...................................................................................................... 2-1 2.1 Terms of Reference ........................................................................................... 2-2 2.1.1 Units ...................................................................................................... 2-3 2.1.2 Acronyms and Abbreviations ............................................................... 2-3 3.0 RELIANCE ON OTHER EXPERTS ........................................................................ 3-1 3.1 Mineral Tenure .................................................................................................. 3-1 3.2 Surface Rights, Access, Permitting, and Environmental .................................. 3-1 3.3 Seismic .............................................................................................................. 3-1 4.0 PROPERTY DESCRIPTION AND LOCATION ..................................................... 4-1 4.1 Location ............................................................................................................ 4-1 4.2 Mineral Tenure and Agreements ...................................................................... 4-1 4.2.1 State of Utah Potash and Lithium Leases ............................................. 4-1 4.2.2 Federal Potash Prospecting Permit Applications .................................. 4-5 4.2.3 Federal Placer Mining Claims .............................................................. 4-9 4.3 Environmental Liability .................................................................................... 4-9 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ......................................................... 5-1 5.1 Access ............................................................................................................... 5-1 5.2 Climate .............................................................................................................. 5-1 5.3 Local Resources and Infrastructure .................................................................. 5-1 5.4 Physiography..................................................................................................... 5-2 6.0 HISTORY .................................................................................................................. 6-1 7.0 GEOLOGIC SETTING AND MINERALIZATION ................................................ 7-1 7.1 Regional Stratigraphy ....................................................................................... 7-4 7.2 Regional Structure ............................................................................................ 7-6 7.3 Property Geology .............................................................................................. 7-8 Agapito Associates, Inc. NI 43-101 Technical Report, Green River Potash Project, Grand County, Utah, USA Prepared for Magna Resources Ltd. 10 July 2012 Page iii 7.3.1 Stratigraphy ........................................................................................... 7-8 7.3.2 Structure ................................................................................................ 7-8 7.3.3 Mineralization ..................................................................................... 7-10 8.0 DEPOSIT TYPES ..................................................................................................... 8-1 9.0 EXPLORATION ........................................................................................................ 9-1 9.1 Seismic .............................................................................................................. 9-1 10.0 DRILLING .............................................................................................................. 10-1 10.1 Electrical Logs for Potash Definition ............................................................. 10-1 10.2 Potash Picks from Electric Logs ..................................................................... 10-3 10.2.1 Cycle 5 ............................................................................................. 10-5 10.2.2 Cycle 9 ............................................................................................. 10-5 10.2.3 Cycle 13 ......................................................................................... 10-10 10.2.4 Cycle 18 ......................................................................................... 10-10 11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ................................ 11-1 12.0 DATA VERIFICATION ......................................................................................... 12-1 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................ 13-1 14.0 MINERAL RESOURCE ESTIMATES .................................................................. 14-1 14.1 Definitions and Applicable Standards ............................................................ 14-1 14.2 Base Case Mining Scenario ............................................................................ 14-2 14.3 Methodology ................................................................................................... 14-2 14.4 Exploration Target Estimates .......................................................................... 14-3 14.4.1 Potash 5 ............................................................................................ 14-3 14.4.2 Potash 18 .......................................................................................... 14-5 14.4.3 Potash 13 .......................................................................................... 14-7 14.4.4 Potash 9 ............................................................................................ 14-7 14.4.5 Potash 16 .......................................................................................... 14-7 14.4.6 Potash 6 ............................................................................................ 14-7 15.0 MINERAL RESERVE ESTIMATES ..................................................................... 15-1 16.0 MINING METHODS.............................................................................................. 16-1 17.0 RECOVERY METHODS ....................................................................................... 17-1 18.0 PROJECT INFRASTRUCTURE ............................................................................ 18-1 19.0 MARKET STUDIES AND CONTRACTS ............................................................. 19-1 Agapito Associates, Inc. NI 43-101 Technical Report, Green River Potash Project, Grand County, Utah, USA Prepared for Magna Resources Ltd. 10 July 2012 Page iv 20.0 ENVIRONMENTAL, PERMITTING AND COMMUNITY IMPACT .................. 20-1 21.0 CAPITAL AND OPERATING COSTS .................................................................. 21-1 22.0 ECONOMIC ANALYSES ....................................................................................... 22-1 23.0 ADJACENT PROPERTIES .................................................................................... 23-1 23.1 Moab Potash Mine .......................................................................................... 23-1 23.2 Reunion Potash Property ................................................................................. 23-2 24.0 OTHER RELEVANT DATA AND INFORMATION ............................................ 24-1 25.0 INTERPRETATION AND CONCLUSIONS .......................................................... 25-1 26.0 RECOMMENDATIONS ........................................................................................