Elemental Minerals Commences Drilling at the Dougou Target

PERTH, Australia, July 20, 2012 /CNW/ - Elemental Minerals Ltd. (ASX, TSX: ELM) ("Elemental" or "the Company") is pleased to announce the commencement of drilling of exploration borehole ED_01 at the Dougou target. This extensive target was identified by the integration of recently acquired high resolution oil seismic data and oil borehole data.

HIGHLIGHTS

• The recently discovered high grade (>30% K₂O) Hangingwall Seam is the principal target at Dougou. Drill hole ED_01 planned to confirm sylvinite mineralisation intersected by historical borehole K-52.
  
  
• Dougou Target lies on existing planned infrastructure corridor 15km southwest of Kola and 21km from the planned Tchiboula port facility.

The Dougou target is located approximately 15km southwest of the Kola Deposit (Figure 1).  It is the second significant potash target that Elemental has identified and is based on historic drilling and an assessment of oil industry 2D seismic data. The Company previously reported the results of a review of the Dougou target.

In the wider Dougou target area, several drill holes have intersected potash mineralisation, some of them with significant sylvinite mineralisation. Like Kola, the Dougou area is interpreted to be located on a relative basement high (the Dougou Rise) and to be in a structurally favourable position for the discovery of additional high grade potash mineralisation.

Two historic drill holes, located about 9km apart, have well completion reports that indicate the presence of multiple sylvinite horizons. These included K-52 and K-38 (Figures 1 and 2). The area between K-52 and K-38 opens a significant opportunity to explore and discover further high-grade potash seams over a large area. The area is largely untested.

Elemental has recently commenced drilling its first exploration hole in the Dougou area (ED_01). The drill hole will aim to verify the sylvinite mineralisation intersected in historical drill hole K-52 as well as provide stratigraphic data to aid future exploration planning.  ED-01 is collared 15 metres from the K-52 collar.

Historic borehole K-52 intersected 3.61 metres of sylvinite between 423.56 metres to 427.17 metres amongst several other sylvinite seams in the upper part of the salt sequence. Historic borehole K-38 intersected sylvinite seams between 400 and 408 metres. No assay data is available for these boreholes.

Commenting on the start of the Dougou drilling Elemental's CEO, Iain Macpherson stated: "The commencement of drilling at Dougou is an exciting next step for the project. An intersection of sylvinite at Dougou, only 15km from Kola, would be an excellent result indicating the scalability of the high grade sylvinite seams. Should this drilling be successful in delineating high grade sylvinite mineralisation, this area has the potential to significantly increase the project mineralised footprint and increase the scale of the project."

Table 1: ED_01 coordinates*

*Handheld GPS position only.

About Elemental Minerals

Elemental Minerals Limited is an advanced mining exploration and development company that aims to grow shareholder value through its 93%-owned Sintoukola Potash Project on the Republic of Congo coastline.  Elemental Minerals is dual listed on the Australian Stock Exchange and the Toronto Stock Exchange under the symbol ELM. For more information, visit www.elementalminerals.com

Mineral Resource Summary - Kola Deposit of Sintoukola Project¹

• The Sintoukola Project's Kola deposit currently contains 959 Mt Measured and Indicated Mineral Resources and 513 Mt Inferred Mineral Resources, with an average grade of 15.11% K₂O (23.93% KCl) and 15.33% K₂O (24.27% KCl) respectively, at a 10.0% K₂O cut-off grade.
  
  
• Within such Mineral Resources, the sylvinite portion of the deposit contains 413 Mt Measured and Indicated Mineral Resources and 261 Mt Inferred Mineral Resources, grading at 20.39% K₂O (32.29% KCl) and 19.16% K₂O (30.33% KCl) respectively.
  
  
• These resources are mostly within two seams, the Upper Seam and the Lower Seam which are separated by a barren halite layer averaging 3 metres in thickness. The depth to the top of the Upper Seam is within 250 to 320 metres from surface. A small portion of the Inferred Resource is contained within the Footwall Seam which occurs approximately 45 metres below the level of the Lower Seam in certain areas of the deposit. The deposit is contained within 70 km² of the current 1,400 km² license area.
  
  
• The Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code), which is consistent with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards 2005 and hence complies with NI 43-101.

Competent Person / Qualified Person Statement:

Information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Simon Dorling and Jeff Elliott, of CSA Global Pty Ltd, the Company's geological consultants. Dr. Dorling and Mr. Elliott are members of the Australian Institute of Geoscientists (MAIG) and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Dr. Dorling and Mr. Elliott are also Qualified Persons for the purposes of Canadian National Instrument 43-101 and they consent to the inclusion in this report of the Information, in the form and context in which it appears.

Further information respecting Elemental's Sintoukola Project is contained in a technical report entitled "Updated Technical Report, Sintoukola Potash Project, Republic of Congo'' prepared by Messrs. Simon Dorling, Jeff Elliott and Andrew Scogings of CSA Global Pty Ltd. for the Company dated June 21, 2012 with an effective date of June 21, 2012 (the "Technical Report").  The Technical Report can be accessed on the Company's profile on SEDAR.

Forward-Looking Statements

This news release contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this news release regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

¹ For a full description of the resource refer to the NI 43-101 Technical Report, dated 21 June 2012 available on SEDAR, www.sedar.com 

SOURCE Elemental Minerals Limited

Image with caption: "Figure 1: Location of the Dougou Target and ED_01 within the Sintoukola Potash Permit. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120719_C9590_PHOTO_EN_16356.jpg

Image with caption: "Figure 2: Geological cross section based on historical data in the Dougou Target area. (CNW Group/Elemental Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20120719_C9590_PHOTO_EN_16357.jpg