The Mengo Mining Permit

The area covered by the Mengo Mining Permit is located about 15 km northeast of the Atlantic port city of Pointe-Noire, Republic of Congo (ROC).

The Mengo Mining Permit gives the holder MagMinerals Potasses Congo SA., the exclusive right to carry out exploitation (mining) activities in the area defined by the permit, to an unlimited depth and in respect of potassium salts. The Mengo Mining Permit granted on April 3, 2008 is valid for maximum 25 years and can be extended upon request by the permit holder for maximum periods of 15 years per extension.

Within the Mengo Mining Permit area of 136 km², MagMinerals' resource evaluation efforts were concentrated on an area of approximate 25 km² near the village of Mengo (the “Mengo Mine Area”). MagMinerals began its most recent exploration program in mid-2006. This work included 12 production-sized wells and 23 km of 2D seismic surveys with the intention of establishing proven reserves to support the SNC Lavalin feasibility study which considered a 25 year mine-life for the project. Due to the confidence of management in the thickness and continuity of the carnallitite deposits, the exploration wells were completed to commercial operating size in order to be able to support a rapid move to production. The following technical details are extracted from the National Instrument 43-101 report entitled "Updated Reserve and Resource Estimate for MagMinerals Kouilou Potash Project, Republic of Congo" prepared by ERCOSPLAN Ingenieurgesellschaft dated

      • Horizon 1 carnallitite, 19.0m average thickness and 63.6% Carnallite (inferred resources)

      • Horizon 2 carnallitite, 13.4m average thickness and 44.1% Carnallite

      • Horizon 3 carnallitite, 10.0m average thickness and 90.0% Carnallite

      • Horizon 4 carnallitite, 26.6m average thickness and 66.3% Carnallite

Table 1: Investigation status of available production wells

  Updated Reserve & Resource Estimate for MagMinerals Mengo Permit Area, Kouilou Region, ROC - June. 2009