Mesa Exploration Sells Green Energy Mineral Brine Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 18, 2016) - Mesa Exploration Corp. (TSX VENTURE:MSA)(OTC PINK:MSAJF) is pleased to announce that it has agreed to sell the Utah Green Energy mineral brine project to Prima Diamond Corp. (TSX VENTURE:PMD). Terms of the agreement are $10,000 upon signing, 1,500,000 shares of Prima issuable within 5 days of TSX Venture Exchange approval and 1,500,000 shares one year after approval. The issued shares will be post consolidation: 1 new for 5 old Prima shares, pending Prima shareholder approval.
Green Energy Lithium Property
The Green Energy Lithium Property encompasses 4,160 acres and is located 15km west of the city of Moab. The Property exists over an extensive area with historic fluid analysis assays ranging from 81-1,700 mg/l lithium in saturated brines. The brine was discovered in the 1960's when over pressurized oil exploration wells encountered blow-outs upon drilling. Approximately 20 wells have been drilled on the Green Energy Property. Of these, 5 have analytical data for lithium.
Historic exploration of the property was conducted by Fidelity Exploration and Production Co., U.S Borax, King Oil Co. and Amerada Co. since the 1960's. In March 2011, Mesa Exploration completed a NI 43-101 technical report which reviewed the geology and historic work performed on the property. This review concluded that there exists a historic resource estimate of 15 million barrels of brine containing 96,000 tons of sodium, 158,000 tons of potassium (302,400 tons of KCl), 5,750 tons of lithium (30,535 tons of Li2CO3), 157,000 tons of calcium and 147,000 tons of magnesium (576,450 tons of MgCl2) (Gwynn, 2008).
All of the lithium, magnesium, sodium, potassium and calcium drill results and estimates are of historic resources. The Company is not treating the historical estimates as current mineral resources or reserves. The Company has not undertaken any independent investigation of the drill results or resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources. The Company is not treating the historical estimate as a current mineral resource or mineral reserves. The Company believes that these historical drill results and estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration.
Lithium occurs at the project in an over saturated brine (40% minerals, 60% water) and was discovered during oil exploration when drill wells intercepted Bed #31 of the Paradox Formation. Bed #31 is approximately 6,000 feet deep and consists of 30 feet of shale, anhydrite and dolomite; the bed is not part of any oil reservoir. Engineering reports from the 1960s conclude that the brine reservoir is extensive (over 10 square miles) and is recharged from fresh in-flows as indicated by well pressure measurements, drawdown tests and oxygen-deuterium isotopes.
Prima Diamond Corp. intends to conduct a review of recent and historic well logs, along with chemical analysis in the area and reprocessing of seismic data focusing on mineral brine. Evaluation of reservoir potential will be done in preparation for the re-entry of shut in wells.
NI 43-101 Disclosure
Dana Durgin (P.Geo), a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Mesa Exploration
Mesa is exploring a portfolio potash, gold and silver mineral properties in the United States where it controls significant land holdings in proven mining districts with excellent access and infrastructure. Mesa currently has 16.7 million shares issued and outstanding, 50% of the shares are controlled by insiders and institutions. For further information please visit our website at www.MesaExploration.com.
ON BEHALF OF THE BOARD
MESA EXPLORATION CORP.
Foster Wilson, President and CEO
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
Contact
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