Asia Pacific works potash deposit

Vancouver-listed Asia Pacific Resources continues to develop the Udon Thai potash deposit near Bangkok, Thailand.

The junior holds a 75% interest in the 2,333-sq.-km concession, its partners being the Thai government (10%) and Thai Central Chemical (15%). A $3-million program calls for the drilling of 40 holes, and the 26 drilled to date indicate the existence of a high-grade seam of sylvinite (potash). The seam exists at an approximate depth of 300 metres, has an average thickness of 3 metres, and stretches across an area exceeding 20 sq. km. Asia Pacific believes the deposit, as currently defined, contains a geologic resource of 125 million tonnes of high-grade sylvinite. The potash grades from 22.3% to 30.8% K20 (potasium oxide) and compares well with other producing mines.

Previous drilling intersected an evaporite sequence in the southwestern part of the concession. Asia Pacific, upon acquiring its interest in 1992, carried out seismic surveys, mapping and an initial 7-hole program.

The deposit is well defined to the west but remains open in all other directions. Drilling, originally concentrated in a 500-metre grid, is now widened to about 1,000-metre spacings. A seismic survey of 50 line km was carried out earlier in the year.

The absence of major geological unconformities enhances the deposit, as does the fact that water has not been intersected in any of the holes. A $3-million, 50-hole program of delineation drilling is already budgeted for 1995. Asia Pacific has 33 million shares outstanding and $5.5 million in working capital.