TORONTO, ONTARIO--(Marketwired - Dec. 1, 2015) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") has completed an initial review of geological data relating to extensive off-shore sedimentary phosphate deposits within the Greenflash Project area in South Africa. The Greenflash Project is the second phosphate asset being advanced with funding partner Ovation Capital ("Ovation") in South Africa. Ovation has committed to expenditures of roughly CDN $2.7 million to acquire a 10% interest in Montero's Duyker Eiland project. At the Greenflash Project, Ovation has agreed to co-fund due diligence with Montero, where, upon receiving a positive review, may elect to provide Montero 100% of the funding to outline a resource for equity participation in the project (see press release September 10, 2015). The Greenflash Project could potentially provide additional feedstock to a Fertilizer Plant envisaged to be developed in Saldanha Bay by Montero and Ovation.
Montero and Ovation have until March 10, 2016, to complete the due diligence on the Greenflash Project after which the parties may elect to immediately earn a 49% interest by committing to complete a resource estimate which may then increase to a 75% interest by completing a feasibility study.
|Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "The Greenflash Project area is located 30km from Saldanha Bay port where prior drilling was completed to investigate its diamond potential, and covers ~10% of the Greenflash project area. Our initial review of data confirms that an extensive area of phosphate-rich sediment has been outlined and warrants further investigation. The acquisition fits with Montero and Ovations strategy of developing multiple phosphate rock assets to support a fertilizer plant in the Saldanha Bay area."|
The Greenflash Project area contains extensive phosphorite-rich sediment accumulation located on the sea bed of the continental shelf off the western coastline of South Africa. At its nearest point the project area is 30km from Saldanha Bay and Montero's Duyker Eiland phosphate project (now fully funded by Ovation to Pre-feasibility stage). Within the Greenflash licence area (Figure 1), concentrations of phosphorite occur over an area of about 200km2 off the coast of Saldanha Bay on the continental shelf at depths of between 100m to 400m below sea level. Phosphorite rock is the principal resource for phosphate (P2O5). The phosphorite is concentrated with glauconite in sediments that are referred to as greensands.
The phosphorite deposits have been concentrated over many millions of years by repeated cycles of deposition and reworking on the middle to outer continental shelf. Although greensand deposits occur over much of the outer continental shelf, the highest concentrations of greensand occur 50 km off-shore of Cape Columbine (just north of Saldana Bay) between 200m and 260m water depth and form a sedimentary layer on the sea bed between 2m and 4m thick.
Exploration in the Greenflash Project area started in the 1980's for off-shore diamonds. A major drilling program was carried out in the 1990's in a 200km2 target area located 50km from Saldanha Bay. In this target area a total of 412 diamond drillholes were drilled of which 359 returned core lengths of greater than 1m (locations shown in Figure 2). The drill core was given to the University of Cape Town ("UCT") for research purposes. Various research studies on the off-shore geology and drill core samples were advanced by South Africa's Council for Geoscience and UCT's Marine Geoscience Group. An extensive area of phosphorite-rich sediment has been identified in these studies and this forms the principal evaluation target in Montero's investigation.
Montero is assessing the core and existing geological information to better understand the phosphate potential of the Greenflash Project. This information will then be reviewed with Ovation in order to determine if Ovation will fund a phosphate resource study.
To view detailed maps associated with this release (Fig 1. Location of the Greenflash Licence area and phosphorite concentrations >5P2O5 and Fig 2. Location of the off shore drillhole collars in the Greenflash Licence area and Duyker Eiland) click here: https://monteromining.com/downloads/Greenflash-Maps.pdf.
Qualified Person's Statement
Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero has prepared, reviewed and approved the scientific and technical disclosure in this news release.
About Montero Mining & Exploration
Montero Mining and Exploration Ltd. is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties. These include phosphates in South Africa and rare earth elements (REE) in Tanzania. Montero has entered into agreement to develop its portfolio of phosphate properties with Ovation Capital in South Africa. Montero remains focused on attracting a strategic investor for the further development of the Wigu Hill Rare Earth Element Project in Tanzania. Montero trades on the TSX Venture Exchange under the symbol MON.
Signed. Dr. Tony Harwood - President and CEO
CAUTIONARY STATEMENT: Neither 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. This News Release includes certain "forward-looking statements". These statements are based on information currently available to Montero and Montero provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements with respect to Montero's future plans, objectives or goals, including words to the effect that Montero or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of Montero's mineral properties, and Montero's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Montero's activities; the ability to complete a resource estimation and to complete a feasibility study which recommends a production decision; capital and operating costs vary significantly from estimates, and other matters discussed in this News Release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Montero's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Montero's forward-looking statements. Montero does not undertake to update any forward-looking statement that may be made from time to time by Montero or on its behalf, except in accordance with applicable securities laws.
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