Plains Creek clarifies technical disclosure
VANCOUVER, Oct. 31, 2011 /PRNewswire/ – Plains Creek Phosphate Corporation
(“Plains Creek”, the “Company”) (TSX-V: PCP) announces that as a result
of a review by the British Columbia Securities Commission (the “BCSC”),
the Company is issuing the following news release to clarify our
The BCSC identified the following National Instrument 43-101 (“NI
43-101″) compliance issues in the Company’s website corporate
presentation and fact sheet.
-- On its website, corporate presentation and fact sheet, the Company disclosed resources for its Farim Phosphate Project, however, it does not on each occasion disclose the applicable resource category or each resource amount separately from the other categories without adding together with the inferred category, the effective date, source, key assumptions and parameters of the resource estimates. -- On its corporate presentation and fact sheet, the Company reports historical information without providing the information required under NI 43-101 in respect of historical estimates, and reports estimates of exploration potential without the information and cautionary language required under NI 43-101. -- On its website, corporate presentation, fact sheet, MD&A and news releases the Company do not disclose the name and relationship to the Company of the qualified person responsible for the technical information as required under NI 43-101.
While Plains Creek dedicates significant internal resources to verify
the information contained above, the disclosure to the public through
the Company’s website and delivery of certain information contained in
the corporate presentation, fact sheet, MD&A and news releases were not
in complete compliance with NI 43-101.
The Company wishes to clarify this information as follows:
-- The current NI 43-101 compliant technical report (the "Technical Report") on the Farim Phosphate Project in Guinea-Bissau, Africa is entitled, "Technical Report on the Preliminary Economic Assessment of the Farim Phosphate Project, Guinea-Bissau" dated effective February 10, 2010, which was filed on SEDAR on February 22, 2011 and was prepared for the Company by: o John S. Warwick, B.Sc. (Hons) PIMMM, C.Eng., Eur.Ing. (Mining) of IMC Group Consulting Limited; o Andre Lambert, B.Sc., MIMMM, EurGeol of IMC Group Consulting Limited; o Alex Mitchell, MIMMM, CEng of GBM Minerals Engineering Consultants Limited; and o Michael Short, FIMMM, CEng of GBM Minerals Engineering Consultants Limited,
all of whom are independent Qualified Persons as defined under NI 43-101.
-- In its corporate presentation, the presentation reports "Geological Resources" in addition to measured, indicated and inferred resources and slide 3 of the presentation states, "World class resource of 128 million tones @ 29.8% P2O5". Under NI 43-101, and for disclosure purposes different categories of resources must be listed separately and may not be combined. In the Company's fact sheet, it states, "measured and indicated resources of 84 million tones..." The Company retracts all of this disclosure and clarifies that the NI 43-101 compliant resource on the Farim Phosphate Project consists of the following:
NI 43-101 compliant resource comprised of: EXISTING RESOURCES Measured 69 million tones @ 29.9% P2O5 Indicated 15 million tones @ 30.1% P2O5 Measured & Indicated 84 million tones @ 29.9% to 30.1% P2O5 Inferred 44 million tones @ 29.6% P2O5
-- In its corporate presentation, slide 7 discloses historical estimates from drilling programs conducted by the French Bureau of Geological and Mining Research ("BRGM") in the 1980's, by Champion Resources Inc. ("Champion") from 1996 to 2003, and by GB Minerals AG ("GBM") from 2004 without providing the information concerning such historical estimates under NI 43-101. The Company retracts this disclosure as such historical estimates have not been reviewed by a Qualified Person, are not in compliance with NI 43-101 and should therefore not be relied upon. -- In the Company's fact sheet, corporate presentation and website, it is stated that the Farim Phosphate Project has an "Additional lower zone phosphate layer - 450 million tones @ 10-15% P2O5 (geological resource)." While there is an additional lower phosphate layer zone as noted in the Company's current Technical Report, the Company retracts this disclosure as such "geological resource" was not calculated or reviewed by a Qualified Person, and does not represent a current or historical resource estimate and therefore is not in compliance with NI 43-101 and should not be relied upon.
The Company retracts the prior corporate presentation, fact sheet, and
website disclosure and has provided its updated presentation and fact
sheet which are available on the Company’s updated website at www.plainscreek.com.
In those instances where the Company has retracted, revised, clarified
or updated previous disclosure, the Company advises readers not to rely
on such statements as they may continue to be found in the public
NI 43-101 Compliant Technical Report
The Company’s current technical report (the “Technical Report”) for its
Farim Phosphate Project prepared in accordance with National Instrument
43-101 (“NI 43-101″) is entitled, “Technical Report on the Preliminary
Economic Assessment of the Farim Phosphate Project, Guinea-Bissau”
dated effective February 10, 2010, and was filed under the Company’s
profile on SEDAR at www.sedar.com on February 22, 2011. The Technical Report was prepared for the
Company by John S. Warwick, B.Sc. (Hons) PIMMM, C.Eng., Eur.Ing.
(Mining) of IMC Group Consulting Limited; Andre Lambert, B.Sc., MIMMM,
EurGeol of IMC Group Consulting Limited; Alex Mitchell, MIMMM, C.Eng.
of GBM Minerals Engineering Consultants Limited; and Michael Short,
FIMMM, C.Eng. of GBM Minerals Engineering Consultants Limited, all of
whom are independent Qualified Persons as defined under NI 43-101.
About Plains Creek Phosphate Corporation
Plains Creek Phosphate Corporation is a Canadian mining and exploration
company that is focused on advancing the Farim Phosphate Project
located in Guinea-Bissau in West Africa. The project is a quality
development phosphate deposit containing National Instrument 43-101
(“NI 43-101″) compliant measured resource of 69 million tonnes at 29.9%
P(2)O(5), indicated resource of 15 million tonnes at 30.1% P(2)O(5), and inferred resource of 43.6 million tones at 29.8% P(2)O(5) with a 25 year mining plan of 68 million tonnes at 29.9% P(2)O(5), as disclosed in the Company’s NI 43-101 compliant Technical Report.
The Company is currently undertaking a Definitive Feasibility Study and
has been granted a Production License from the Government of
Guinea-Bissau to pursue a strategy towards production of 2 million
tones per annum of phosphate rock for a minimum of 25 years starting in
2013. Estimated capital costs are $300 million and operating costs are
US$60 per tonne. The Company’s shares are listed on the TSX Venture
Exchange under the trading symbol “PCP”. For additional information,
please visit us at www.plainscreek.com.
This news release has been reviewed by John S. Warwick, B.Sc. (Hons)
PIMMM, C.Eng., Eur.Ing. (Mining) of IMC Group Consulting Limited, who
is independent to the Company.
ON BEHALF OF THE BOARD
(signed) “Carson Phillips”
Vice-President, Corporate Development and Director
Statements in this release may be viewed as forward-looking statements.
Such statements involve risks and uncertainties that could cause actual
results to differ materially from those projected. There are no
assurances the Company can fulfill such forward-statements and the
Company undertakes no obligation to update statements. Such forward
looking statements are only predictions; actual events or results may
differ materially as a result of risks facing the Company, some of
which are beyond the Company’s control.
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.
SOURCE Plains Creek Phosphate Corp.