Sirius Minerals Plc (SRUXY: OTC Link) | SM2 Update and Site Visit

SM2 Update and Site Visit

Jan 11, 2012

OTC Disclosure News Service

London, United Kingdom –

 

11 January 2012

Sirius Minerals Plc

(“Sirius” or the “Company”)

SM2 Update and Site Visit

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to provide the following update on the drilling of SM2 and to give an overview of today’s institutional investor and analyst site visit.

SM2 Update

Since the last update provided on 16 December 2011 Sirius has encountered two fluid loss zones that it believes to be at the base of the final casing at a depth of 1,159m. Two cement jobs have been conducted on this loss zone and drilling has advanced beyond this point to a depth of 1,390m on 10 January 2012. SM2 is expected to encounter polyhalite, including the massive polyhalite beds, below a depth of approximately 1,470m.

Transition to coring of the polyhalite is expected to occur within the next few days and Sirius remains confident of successfully completing coring of the polyhalite beds within a week of commencing coring.

To reduce the risk of further fluid losses and delays occurring, and to mitigate costs Sirius and its consultants have elected to open-hole drill from the base of the casing straight to the polyhalite level rather than coring the sequences in between. Future holes are planned to be cored through the entire evaporate sequence (including the Sneaton and Boulby seams), as was done successfully with SM1.

Sirius’ drilling contractors are currently commissioning a second new coring rig with a view to it being deployed in February to speed up the completion of the exploration programme.

Site Visit

Today Sirius is hosting approximately 30 institutional investors, research analysts, and brokers on a site visit to the York Potash Project. A copy of the presentation for this visit will be available on the Sirius website from approximately 10am today.

Chris Fraser, Managing Director and CEO of Sirius said:

“The ongoing delays in coring the polyhalite at SM2 have been very frustrating, but are unfortunately sometimes a feature of this type of drilling. We remain confident of successfully completing coring to the bottom of the polyhalite sequence and of delivering a positive result from this and future holes in the York Potash drilling programme.”

 

 

For further information, please contact:

About Sirius Minerals Plc

Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland and Western Australia).

The Company is additionally progressing ongoing innovation initiatives into the secondary uses of salt and potash beds for energy storage and carbon dioxide sequestration.

Incorporated in 2003, Sirius Minerals’ shares are traded on the London Stock Exchange’s AIM market. Its shares are also traded in the United States on the OTCQX through the use of a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.

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.

Article source: http://www.otcmarkets.com/stock/SRUXY/news?id=40936

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