43-101 Resource Report Updated
Sep 27, 2012
OTC Disclosure News Service
Vancouver, BC, Canada –
PassportPotash Announces Mineral Resource Update, Adding Measured Resource With An Increasein Indicated Resource of 101.30%
VANCOUVER, BRITISH COLUMBIA–(Marketwire –September 27, 2012)……….Passport Potash Inc. (TSX-V: PPI.V – News)(OTCQX: PPRTF.PK– News) (“Passport” or the”Company”) is pleased to announce the receipt of an updated NI 43-101mineral resource estimate, effective date September 7, 2012, for its HolbrookBasin property in Northern Arizona. The report was completed by ERCOSPLANIngenieurgesellschaft Geotechnik und Bergbau mbH (“ERCOSPLAN”), a consultingand engineering firm, specialized in the potash and salt industry,headquartered in Erfurt, Germany.
The updated resource estimate includes Measured and IndicatedResources and totals 278.3 million tonnes of mineralized material with anaverage grade of 14.89% (equivalent to a Resource of 41.48 million tonnes ofKCl). For the Indicated category, 252.87 million tonnes of mineralized materialwith an average KCl grade of 14.93% (equivalent to an Indicated Resource of37.79 million tonnes of KCl) have been estimated. For the Measured category,25.43 million tonnes of mineralized material with an average KCl grade of 14.5%(equivalent to a Measured Resource of 3.69 million tonnes of KCl) have beenestimated.
The inferred resource consists of 673.84 million tonnes withan average KCl grade of 12.96% (equivalent to an Inferred Resource of 87.29million tonnes of KCl).
The updated resource report covers approximately 37% ofPassport’s land holdings.
Measured Resource occurs within a radius of 300m of aninvestigated drill hole, Indicated Resource occurs within a 1000m of aninvestigated drill hole minus any measured resource in this area, and InferredResource occurs within 2000m of an investigated drill hole minus any measuredand indicated resource in this area.
A summary of the Measured and Indicated Mineral Resource includedin the updated report are presented in Table 1. A summary of the InferredMineral Resource included in the updated report is presented in Table 2:
Theupdated resource estimates are based upon data received from 78 historical drillholes and 69 recent drill holes. Theupper and lower boundaries of the potash-bearing horizon were defined by a 5% K2Olimit.
The mineral resources reportedhere represent significant expansions in tonnage compared with the previousMineral Resource report filed in March of 2012 (“March 2012 Report”).
*Measured Resource: the March2012 Report did not include Measured Resource.
*Indicated Resource: expanded by101.30%
*Inferred Resource: expanded by14.57%
ERCOSPLAN has opined that thePassport Property contains sufficient resources to justify further expendituresof funds to expand the resource and to continue work on the forthcomingpreliminary economic assessment, as well as beginning work on feasibilitystudies.
Passport’s President and CEOJoshua Bleak commented, “This is a great report and truly shows the potentialof the potash resource in the Holbrook Basin. The updated resource estimate still covers only37% of our properties. We are excitedabout moving this project forward. We havedone a lot of exploration work to define this resource and will continue ourexploration program based on the advice of our potash experts. We remain as committed to this project as wewere when we began exploration in 2009.”
About the HolbrookPotash Project
Passport Potash Inc. isa TSX-listed resource company engaged in the exploration and development ofadvanced potash properties. Passport has acquired a strategic position in theHolbrook Basin with land holdings encompassing over 122,000 acres. For more information regarding the HolbrookBasin, please visit our website at www.passportpotash.com.
Quality Assurance andQuality Control
The standard operatingand quality assurance procedures followed by Passport Potash employees havebeen instituted to make sure that all sampling techniques and results meetinternational reporting standards. Coring starts when the first significantgypsum interval (Upper Supai Formation) is intersected. Information about thedrill holes and the on-site core descriptions are conducted according tointernational standards (depth intervals, recovery %, lithology, structure,alteration, rock type, weathered profile, sample intervals, remarks). Onsitefield geologists collect the cuttings, bag and label them and place a smallsub-sample into a chip tray for further treatment. Directly after beingretrieved the cores are measured, cleaned, filed logged, packed in plastic polysheeting and placed into sequentially numbered and labeled core boxes. Materialis temporarily stored prior to transfer to the core facility in ApacheJunction, Arizona, where significant intervals are dry cut in half. Half coresamples are then bagged and carefully packed into boxes and shipped to theSaskatchewan Research Council in Saskatoon.
Passport is utilizingSRC’s Potash ICP Analysis package designed for multi-element analysis of potashsamples. SRC includes blanks, duplicates and their internal potash 003/004standards in the analysis. SRC’s analytical procedures have been more fullydetailed in the NI 43-101 Technical Report, dated 30 March 2012, prepared forPassport Potash by ERCOSPLAN Ingenieurgesellschaft Geotechnik un Bergbau mbH.SRC is an ISO/IEC 17025:2005 certified facility.
Tim Henneberry, P.Geo.,Advisor, and a Qualified Person as defined in National Instrument 43-101, hasreviewed and approved the technical content of this news release.
Dr. Henry Rauche and Dr.Sebastiaan van der Klauw serve as the Principal Author and Co-Author of theUpdated Technical Report and as the Qualified Persons for the updated estimate.
On behalf of the Boardof Directors
PASSPORT POTASH INC.
Joshua Bleak, President
This news releaseincludes certain statements that may be deemed “forward-lookingstatements”. All statements in this release, other than statements ofhistorical facts, including the likelihood of commercial mining and possiblefuture financings are forward-looking statements. Although the Company believesthe expectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of futureperformance and actual results or developments may differ materially from thosein the forward-looking statements. Factors that could cause actual results todiffer materially from those in forward-looking statements include unsuccessfulexploration results, changes in metals prices, changes in the availability offunding for mineral exploration, unanticipated changes in key managementpersonnel and general economic conditions. Mining is an inherently riskybusiness. Accordingly the actual events may differ materially from thoseprojected in the forward-looking statements. For more information on theCompany and the risks and challenges of its business, investors should reviewthe Company’s annual filings that are available at www.sedar.com.
Neither TSX Venture Exchangenor its Regulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release.
Passport Potash Inc.
Peter J. Kletas
Passport Potash Inc.
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.