Rocky Mountain Announces Phosphate and Vanadium Project at Paris, Idaho
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 3, 2008) – ROCKY MOUNTAIN RESOURCES CORP. (TSX VENTURE:RKY) is pleased to announce that it has acquired an extensive land position in the Montpelier mining district, Bear Lake County, Idaho, which hosts historic phosphate and vanadium resources of world class size (the Paris Hills project).
Paris Hills is located in southeastern Idaho approximately two miles west of the towns of Paris and Bloomington and approximately 45 miles south of the active Soda Springs phosphate mining district. In the 1970s Earth Sciences, Inc. (ESI) controlled a land package that totaled 4,100 acres extending from Bloomington Creek on the south through Paris and Sleight Canyons on the north. ESI conducted an extensive program of exploration on the southern portion of the property near Bloomington Canyon (the ESI Locations). The program evaluated both the phosphate and vanadium occurrences and involved drilling, tunneling, engineering, metallurgical testing, and environmental studies. In reports dated 1976 and 1977, ESI projected a total resource of 304 million tons of phosphate rock averaging 26.8% P2O5 and 44 million tons of vanadium mineralization on the 3,300 acres of the property underlain by the Meade Peak member of the Phosphoria Formation. The vanadium mineralization included 6.7 million tons of proven and probable resource grading 0.88% V2O5. (See Note 1) A qualified person has not done sufficient work to classify these historical resources as current mineral resources or mineral reserves under CIM best practices, Rocky Mountain is not treating these historical estimates as current mineral resources or mineral reserves, and the historical estimates should not be relied upon.
The property package that Rocky Mountain has assembled includes a total of approximately 2,100 contiguous acres lying between Bloomington Canyon on the south and Paris Canyon on the north. It currently does not extend as far north as the package held by ESI in the 1970s, but does encompass essentially all of the southern area actually explored by ESI, including substantially all of the ESI Locations. The property holding is a complex mixture of private, state, and federal mineral leases and exploration permits, and pending applications involving private land and federal phosphate reserve. The geological horizon of interest is within the Phosphoria Formation; the upper Meade Peak phosphate shale member underlying the middle Rex Chert member contains the three units of interest. At the bottom of the Meade Peak is a lower phosphate bed ranging in thickness from 6.5 to 23 feet. Approximately 170 feet of waste shale separate the lower phosphate bed from the vanadium rich bed. The vanadium rich bed is approximately 11 feet thick. Immediately above the vanadium rich bed lays the upper phosphate bed, which is approximately 15 feet thick. The phosphate beds and the vanadium bed outcrop on the east, south, and west. The close proximity of the two phosphate beds and the vanadium bed mean that all three would likely be accessed by common underground development.
Mining activity on the property dates back to the 1910′s and 1920′s when phosphate was mined by underground methods from both Paris Canyon and Bloomington Canyon. Activity resumed during World War II when Wyodak Coal, working in conjunction with USGS, USBM, and Metal Reserve Company, focused work on the vanadium rich beds.
In the historic ESI exploration work from the 1970s, reference is made to 47 drill holes, and results for 34 have thus far been located. Also, ESI conducted test mining in 1974, driving 900 ft of tunnel within the vanadium rich beds, and in 1975, driving 2,700 ft of tunnel in the upper phosphate bed. The historic resources estimates were based on the results of drilling, sampling, test mining, metallurgical testing, and engineering.
Rocky Mountain Resources Corp. has begun a thorough review of the existing data obtained from ESI, has scheduled a rig to begin drilling up to 12 confirmatory holes totaling up to 7,000 feet to begin on September 15, and will update the geological model and database with the objective of developing a CIM compliant resource and issuing a 43-101 technical report before the end of 2008.
Tom DeMull, President and CEO of Rocky Mountain Resources, stated: “We are very excited to add the Paris Hills property to our portfolio. Paris is a world class opportunity for Rocky Mountain with the potential to produce two commodities in high demand: phosphate rock and vanadium. We are aggressively moving toward development of the Paris Hills project.”
Rocky Mountain Resources is an industrial metal and minerals exploration and development company focused on development and production. Vanadium is a metal used to strengthen steel and has shown significant increases in demand and pricing. Phosphate rock is an essential component of fertilizer manufacture that is in high demand around the world to supply the global agricultural boom. Information on the company and the projects is found at www.rkyresources.com.
This release has been reviewed and approved by Thomas J. DeMull, President of Rocky Mountain Resources Corp., (PE Mining NV and AZ), a “qualified person” as that term is defined in National Instrument 43-101.
ON BEHALF OF THE BOARD
Thomas J. DeMull, President
Note 1: ESI reported the following data in the reports of 1976 and 1977:
——————————————————————– —— ____________________________________ Measured &__________________ Measured, ______________ Measured, Indicated,__ Indicated________________Indicated & Phosphate Bed____ Mtons______Mtons________Mtons__ % P2O5__ Inferred, Mtons ——————————————————————– —— Upper________________30________ 22__________ 52____ 25.2______________ 194 ——————————————————————– —— Lower________________15________ 10__________ 25____ 30.4______________ 110 ——————————————————————– —— Total________________45________ 32__________ 77____ 26.8______________ 304 ——————————————————————– —— ——————————————————————– —— ______________________________________ Proven &____________________ Proven, ________________ Proven,__Probable,____Probable,________________Probable & Vanadium Bed______Mtons______Mtons________Mtons__ % V2O5__ Possible, Mtons ——————————————————————– —— Coaly Bed__________ 6.2________0.5__________6.7____ 0.88______________44.2 ——————————————————————– ——
For phosphate, measured resources are within 1,320 feet of a drill hole, indicated resources are more than 1,320 feet but less than 2,640 feet from a drill hole, inferred is everywhere else on the property underlain by the Meade Peak member (3,300 acres of the 4,100 acre property). For vanadium, proven is that material occurring within 1,000 feet horizontally of a sample point, probable is contained in the vertical limb of the syncline more than 1,000 feet horizontally from a sample point, and possible is that occurring elsewhere within the property more than 1,000 feet from a sample point. No average grade was calculated for the possible vanadium material. Rocky Mountain believes that these historic resources are a conceptual indication of the overall exploration potential of the district, but is not treating these as current mineral resources or mineral reserves. More recently, in their 10- KSB filing for 2003, ESI reported 53 million tons of mineralized material with grade of the upper bed being 25% P2O5 over a thickness of 9 feet and the grade of the lower bed, 30% P2O5 over a thickness of 6 feet. Rocky Mountain does not consider these as current mineral resources or mineral reserves under CIM best practices.
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