Strata Minerals Inc. Announces Cardabia Joint Venture Agreement
February 06 2012 - 10:11PM
PR Newswire (Canada)
TORONTO, Feb. 7, 2012 /CNW/ - Strata Minerals Inc. ("Strata" or the
"Company") is pleased to announce that it has entered into a
definitive joint venture agreement (the "JV Agreement") with South
Boulder Mines Limited ("STB") on the Cardabia Phosphate Project
(the "Cardabia Project") in Western Australia. Under the
terms of the JV Agreement, Strata will acquire an 80% interest in
the Cardabia Project in consideration for a cash payment of AUD
$200,000 and the issuance of 2.5 million Strata common shares.
Strata will manage the Cardabia Project through to the completion
of a bankable feasibility study (the "BFS") and STB will have a
free-carry interest in the Cardabia Project during that
period. Upon completion of the BFS, pro-rata dilution of
ownership of the Cardabia Project will occur between Strata and STB
based on each partner's proportional contribution to the ongoing
expenditures of the Cardabia Project. The Cardabia Project is
comprised of tenement applications E08/2359, E08/2322, E08/2301,
E08/2302 and E08/2303 which cover a total area of approximately
1,600 km(2). The Cardabia Project is located within the
Ashburton Mineral Field approximately 1,000 km north of Perth with
several key logistical infrastructure solutions within close
proximity including: (1) road access from the North West Coastal
Highway immediately adjacent to the eastern tenement boundary (see
Figure 1 attached); (2) access to the Dampier to Bunbury Gas
Pipeline, which passes to the east of the tenement boundary; (3)
access to an abundant artesian water supply from the Carnarvon
Basin located below the tenement, which has a demonstrated flow
rate of 5 million litres per day. In addition, the tenement
is only 35 km from the coast to the west and 80 km from the town of
Exmouth to the north. Strata and its consultants have conducted due
diligence using open file historical geological data, as well as a
field trip to the Cardabia Project site. A significant amount
of historical data exists on the Cardabia Project from work
conducted between 1989 and 1991 by CRA Exploration Pty Ltd, a
former subsidiary of Rio Tinto Ltd. Although originally
exploring for base metals on the Cardabia Project, high grade
values of phosphate were discovered from surface sampling and
drilling. In total, 74 aircore drill holes were drilled for a
total of 4,243 metres on a roughly 7 km by 3 km grid pattern
throughout the Cardabia Project, although the grid distance was
often wider to target the N-S structures. A total of 529
drill samples were selectively sampled using gamma logging and were
tested for higher uranium values which are sometimes coincident
with phosphate. Other test work included 26 pits excavated
over the strike of the phosphate. Only the coarse grained size
fraction was tested for potential physical upgrade with average
figures of 30.3% P2O5, 4.2% SiO2 and 2.5% combined
Fe2O3/Al2O3. However, there has been insufficient historical
exploration to define a mineral resource, and it is uncertain if
further exploration will result in the target being delineated as a
mineral resource. Nigel Gellard, President & CEO of
Strata stated, "Given the Cardabia Project's encouraging historical
exploration work and its proximity to important infrastructure and
the rapidly growing markets of Southeast Asia, China and India,
this joint venture represents a significant value creation
opportunity for Strata. We are very encouraged by the results
of our preliminary data analysis, and from our observations based
on our field visit to the site. We are excited about the
potential for this project and look forward to working with STB to
bring it to fruition." Strata intends to conduct further field test
work at the Cardabia Project, particularly in drill intersections,
as gamma logging may not be a definitive tool to pick the phosphate
horizons as some phosphate deposits do not have coincident high
uranium/gamma values. In addition, metallurgical and chemical
test work, which has not previously been carried out, is planned to
test the medium and finer grained fractions for upgrade.
Field investigation will aim to test the deposit thickness and
upgrade potential of the material. The first phase of the field
work is expected to take 5 months and is scheduled to commence
immediately. The acquisition of an interest in the Cardabia Project
is subject to acceptance by the TSX Venture Exchange. "Nigel
Gellard" President, CEO About Strata Minerals Inc. Strata
Minerals Inc. is an emerging, Australasia focused, agricultural
nutrient company exploring for commercial scale phosphate rock
mineralization deposits. Armed with the objectives of
becoming a supplier to the global fertilizer industry and
generating wealth for its shareholders, Strata is currently
advancing its phosphate exploration projects in Western Australia
and Queensland and intends to broaden its focus to other
agricultural nutrients including potash and lime. For further
information, please refer to the Company's website at
www.strataminerals.com. Special Note Regarding Forward-Looking
Statements Certain statements included herein constitute
forward-looking statements. The words "expect", "intend",
"anticipate", "propose" and "may" and similar expressions identify
forward-looking statements. Forward-looking statements include,
among other things, statements regarding the Transaction, the
operation and development of Strata's mineral properties.
Forward-looking statements are necessarily based upon a number of
estimates and assumption. While such estimates and assumptions are
considered reasonable by the management teams of Strata, they are
inherently subject to significant business, economic, competitive
and regulatory uncertainties and risks and accordingly may not
occur as described herein or at all. Investors are cautioned that
forward-looking statements are not guarantees of future performance
or events and, accordingly are cautioned not to put undue reliance
on forward-looking statements due to the inherent uncertainty of
such statements. Neither the 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 news release. SOURCE Strata
Minerals Limited PDF with caption: "Figure 1". PDF available at:
http://stream1.newswire.ca/media/2012/02/07/20120207_C2010_DOC_EN_9755.pdf
Strata Minerals Limited CONTACT: Nigel Gellard, President & CEO
Tel: +61 4 0793 8630Email: n.gellard@strataminerals.comPeter
Kozicz, EVP & CFO Tel: 1 905 815-9103Email:
p.kozicz@strataminerals.com
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