Kola is part of the firm's Sintoukola high grade project in the Republic and the company said the update meant it was now confident of bringing the "world-class" project to fruition within the next three years.

It added that considerable exploration potential remained at the project.

The tonnage of the combined higher categories of measured and indicated now stands at 959 million tonnes and comes after only 60 per cent of a phase 2 drilling programme has been completed.

Within that, there was an average grade of 15.11 per cent potassium oxide and 23.93 per cent of KCI or sylvite -  which is a vital component in the manufacture of potash.

The sylvinite mineral resources within the measured and indicated categories now stands at 413 million tonnes with 20.39 per cent potassium oxide and 32.29 per cent silvite.

Chief executive Iain Macpherson highlighted that this large sylvinite resource now provided a "significant competitive advantage" and would underpin the project's "new feasibility economics".

"What is particularly pleasing is the high conversion rate to measured and indicated mineral resource categories which was a key objective of the phase 2 exploration programme while the new resource is also within our phase 2 target range," he said

"The increased tonnage and strategic nature reinforces our confidence that this project will be built."

In February, the company had said the Sintoukola project would start producing in 2015, ramping up to full capacity of nearly two-million tons yearly by 2017.

Sylvinite is a vital ore used in the production of potash and is a mixture of KCI, or sylvite, and sodium chloride.

Sirius Minerals (LON:SXX) this morning released “strong” assay results from the second borehole at its York potash project, which confirmed two high grade seams of polyhalite.

The assay results from the SM2 hole reported today showed a 32.6 metre section grading 83.1 percent polyhalite within the shelf seam and a 34.3 metre interval grading 78.3 percent polyhalite including 6.8 metres at 99.2 percent within the basin seam.

Total polyhalite zones across the shelf and basin seams consist of 90.2 metres of 74.6 percent polyhalite.

“The assay results of the second new hole in the York potash project have continued the strong results obtained from the drilling programme,” said Sirius chief executive Chris Fraser.

“These important results have confirmed the visual interpretation of the cores, the geological model and the world-class nature of the project.”

The polyhalite grade and thickness found in SM1 and SM2 have both exceeded the assumptions used to determine the exploration target of between 3.3 and six billion tonnes at grades of 67 to 94 percent.

The company told investors that due to the better than expected scale and quality of the deposit and drilling delays it now expects to take until the end of April to complete the detailed scoping study for the project.

In the meantime, Sirius said the drilling of the SM3 borehole remains on schedule with preliminary results expected within the next few weeks.

Shares in Sirius rose one percent to 24.25 pence on the news this morning, valuing the group at £324.7 million. 

Prior to joining Western Potash, Lock worked as project director for BHP/Rio Tinto's joint venture Resolution copper mining project in Superior, Arizona, where he was responsible for the development of the multi-billion dollar project, including pre-feasibility studies and associated on-site activities for exploration and future development.

Resolution hosts the third largest copper ore body in the world, and is expected to produce 25 percent of the U.S. copper supply, while creating 3,700 jobs and generating USD $61 billion in economic growth.

Lock started his career in the mining industry some 24 years ago, with De Beers-Anglo American in South Africa. He later joined Rio Tinto's (NYSE:RIO) Diavik Diamonds Project (Diavik) at Lac de Gras in Canada’s Northwest Territories, where he took the project from the evaluation stage to production.

Western Potash president and CEO, Patricio Varas, commented: "We are delighted to have Richard join our project development team.

"This appointment to the Milestone Project sends a clear signal that the company is effectively assembling a world class team, dedicated to bringing a world class Potash project to production.

"Those of our management team that have worked with Richard at Diavik and Resolution relish the opportunity to work together to deliver the newest independent potash mine in Saskatchewan."

Late last year, Western Potash announced several operational updates, including an updated resource estimate for the Milestone property.

The company said the updated resource estimate slightly increased the Milestone recoverable potash resource to 66.6 million tonnes in the measured category, 186.9 million tonnes of indicated resource, and 708.2 million inferred tonnes.

In October 2011, the junior miner said an independent prefeasibility study (PFS) confirmed its 100 percent-owned Milestone potash property showed "significant positive economics".

The study, carried out by AMEC Americas, showed that the asset was of sufficient size and grade to support mining for more than forty years at a production rate of 2.8 million tonnes per year. The annual production rate can also be expanded through a higher level of capital expenditure.

An assessment of project economics, assuming a discount rate of 10 percent, showed the resulting project net present value is C$4.14 billion, while the internal rate of return is 22.7 percent.

The initial capital expenditure estimate for the plant is $2.76 billion, including allowances for port infrastructure, a water supply pipeline, and off site railway. Unit operating costs were estimated to be $62.35 per tonne at full production capacity.

The environmental impact study (EIS) for the project remains on schedule and on budget, with an anticipated submission date in the third quarter of 2012.

The Milestone property, comprising 500 square kilometres, is located 30 kilometres southeast of Regina, and southeast of Mosaic’s Belle Plaine Mine, one of the largest producing potash solution mines in the world.

Sirius Minerals (LON:SXX) this morning told investors that it has made good progress drilling the latest hole on the York potash project.

The third hole, SM3, has not encountered delays that hampered the previous well, the company explained. SM3 is now being prepared for coring.

"We are delighted with the progress on SM3,” said chief executive Chris Fraser.

“This has helped us to claw back some of the time and budget we had to put aside after the experience at SM2.  

“Our experienced and professional team is continually adapting its approach to help ensure the drilling work is delivered as quickly and as efficiently as possible."

Sirius also revealed that a second coring rig has now been commissioned and it is expected to arrive on site in early March.

This second rig will help speed up the drilling programme, Sirius said.

Additionally it said that assay results from SM2 are expected by March 7.

Sirius Minerals (LON:SXX) is to raise £50 million from shareholders to take its York potash project through to a definitive feasibility study (DFS).

Chairman Russell Scrimshaw will subscribe £3.4 million, with the remainder of the money to come from institutions.

Sirius decided to raise the cash after a second bore hole at the project indicated it would be possible to develop York with a lower cost shaft, which encouraged the company to move the timetable forward.

Chief executive Chris Fraser added that the market uncertainty had also convinced it to raise all of the funding necessary now.

“This will allow us to fast-track the project development without any funding constraints so that the project can be brought into production as soon as possible," he added.

Sirius will spend the proceeds on drilling up to 8 additional bore holes at York.

The group added the money will also enable it to complete a detailed scoping study in March 2012;  announce a maiden resource in April 2012; complete all of the necessary testwork and pilot plant programmes: complete the DFS; and secure land rights and cover ancillary costs.

The placing will be a book-building process carried out by Macquarie and Liberum Capital.

On Monday, Sirius said the second bore hole, SM2, had intersected 67 metres of total massive polyhalite mineralisation.

Of that, 33 metres was in the materially shallower Shelf bed that is currently being mined at the Boulby mine nearby.

Fraser said the results threw up the possibility of sinking the mine shafts only to the shallower Shelf seam, which would potentially lower the shafts' construction costs and shorten the construction time.

At a depth from surface of approximately 1,420 metres for the Shelf seam, the potential to reduce the costs of the shafts and reduce the construction timeframes of the project “are significant,” he added.

The technical report includes an updated resource estimate, and a summary of the company’s pre-feasibility study announced in late October.

The company said the updated resource estimate slightly increases the Milestone recoverable potash resource to 66.6 million tonnes in the measured category, 186.9 million tonnes of indicated resource, and 708.2 million inferred tonnes.

The inferred resource around the Milestone project plant site land and associated infrastructure have been removed from the estimate, Western Potash added.

In October, the junior miner said an independent prefeasibility study (PFS) confirmed its 100 percent-owned Milestone potash property showed "significant positive economics".

The study, carried out by AMEC Americas, showed that the asset was of sufficient size and grade to support mining for more than forty years at a production rate of 2.8 million tonnes per year. The annual production rate can also be expanded through a higher level of capital expenditure, the company said.

An assessment of project economics, aassuming a discount rate of 10 percent, showed the resulting project net present value is C$4.14 billion, while the internal rate of return is 22.7 percent.

The initial capital expenditure estimate for the plant is $2.76 billion, including allowances for port infrastructure, a water supply pipeline, and off site railway. An allowance of $300 million for port infrastructure was excluded from the company’s scoping study completed in 2010. Unit operating costs were estimated to be $62.35 per tonne at full production capacity.

The company also reported Friday that environmental baseline data required for the preparation of the environmental impact study (EIS) for the project has been collected.

The EIS remains on schedule and on budget, with an anticipated submission date of the third quarter of 2012.

The Milestone property, comprising 500 square kilometres, is located 30 kilometres southeast of Regina, and southeast of Mosaic’s Belle Plaine Mine, one of the largest producing potash solution mines in the world.

In other news, Western Potash said it signed an agreement with Amarillo Gold Corp (CVE:AGC) to acquire potash mineral rights in Brazil.

Amarillo, through its Brazilian subsidiary, submitted applications on behalf of the company for 113 potash permits totaling 982,962 hectares within potash prospective portions of the Brazilian Amazon Basin, with permits having now been granted.

The study, carried out by AMEC Americas, showed that the asset was of sufficient size and grade to support mining for more than forty years at a production rate of 2.8 million tonnes per year. The annual production rate can also be expanded through a higher level of capital expenditure, the company said.

Western Potash chief executive and president, Patricio Varas, said: "The PFS confirms the compelling opportunity that the Milestone project represents for the company and the province of Saskatchewan to develop a world class potash mining operation."

"In addition to the 40 year scope of mining contemplated in the PFS, the known resource is sufficient to support ongoing mining for an additional 40 years and beyond."

The company said it will file an updated NI 43-101 report within the next 45 days.

Western Potash said the Milestone project remains economically very strong, with no known limitations that may prevent a successful and profitable project outcome. An assessment of project economics, aassuming a discount rate of 10 percent, showed the resulting project net present value is C$4.14 billion, while the internal rate of return is 22.7 percent.

The initial capital expenditure estimate for the plant is $2.76 billion, including allowances for port infrastructure, a water supply pipeline, and off site railway. . An allowance of $300 million for port infrastructure was excluded from the company’s scoping study completed in 2010. Unit operating costs were estimated to be $62.35 per tonne at full production capacity.

The study gave a time frame of three years for construction, six years to full secondary production and a payback period of five years. AMEC's report also recommended immediate commencement of a feasibility study.

In June, Western Potash defined NI 43-101-compliant resources at Milestone that consisted of a measured potash resource of 64 million tonnes, 180 million tonnes of indicated resource and 701 million tonnes of inferred resource.

Milestone is located approximately 30 kilometres southeast of Regina and 80 kilometres southeast of Mosaic's (NYSE:MOS) Belle Plaine Mining Lease, home to one of the largest producing potash solution mines in the world.

This morning the group revealed that it has now successfully cored all three potash seams at the York potash project, and all three confirmed what Sirius described as ‘exceptional thicknesses’.

According to Sirius this validates the world-class status of the York project. 

"Although preliminary, these are fantastic results for Sirius,” said managing director and chief executive Chris Fraser.

In the first hole Sirius cut 81.8 metres (true thickness) of total potash mineralisation, across all three seams, and the hole was terminated while it was still in potassium sulphate mineralisation (polyhalite).

Of that 65 metres of potassium sulphate mineralisation was cut in the ‘Fordon evaporites’, this included two zones containing a total of a 19 metres of what’s described as massive higher grade polyhalite.

Sirius also cut 7.8 metres of the Boulby potassium chloride seam and 9 metres of the Sneaton potassium chloride seam.

The company is currently carrying out a two rig drill programme on the project, which is spans an area between Whitby and Scarborough in North Yorkshire.  First a smaller rig is used first to drill the upper part of the hole, before a larger rig moves in to complete the hole to a depth of around 1,700 metres.

“We are all looking forward to the completion of the chemical assays to confirm the grade of these potash zones,” Fraser added.

“Of particular excitement is the 19 metre thickness of massive polyhalite.  This compares very favourably to the 5 metre thickness assumption used in the previously announced Exploration Target.

He emphasised: "The first hole we have drilled in the York Potash Project has delivered one of the world's single thickest potash intersections ever reported."

At 9:08 on AIM Sirius Minerals shares were up 1.75p each, 14.6 per cent, changing hands at 13.75p each.

We will be hearing from the management of Saskatchewan-focused Western Potash (TSE:WPX), which is focused on its advanced Milestone Property, which extends over 500 square kilometres, and is located southeast of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines globally. The property is also directly adjacent to the potash permits held by mining giants BHP Billiton, Vale and Potash One.  The company is expected to release a pre-feasibility study on Milestone shortly.

Timmins, Ontario gold producer St. Andrew’s Goldfields (SAS Goldfields) (TSE:SAS) will be updating us on its twin strategy of building production and discovering new ore bodies from its projects in the Timmins Mining District, which lies within the world famous Abitibi greenstone belt. SAS is currently operating the Holt, Holloway and Hislop gold mines in the Timmins Mining District and are ramping up to achieve annualized gold production of approximately 100,000 ounces in 2012. The Company is also actively exploring a number of targets along its 120km long land package, which includes an advanced stage exploration project, the Taylor Project, which is being advanced through to the prefeasibility stage and a number of key targets around the existing operations which are currently being drilled from surface.

Last but not least, Otis Gold (CVE:OOO) will be elaborating on its exploration efforts in Idaho & Nevada. The Company is currently focused on exploring its flagship Kilgore Gold Project, located in Clark County Idaho, approximately 60 miles north of Idaho Falls.  Last week, the company unveiled "groundbreaking" drilling results at Kilgore, where it encountered new ore-grade intercepts in excess of 100-metres thick, some of the thickest and shallowest intercepts drilled to date.

Please remember presentations will start at 5:00pm and finish at 6:30pm. After the presentations are complete, directors will also be available to take questions during a free canapé and wine reception.

We'd be delighted if you could attend!

Potash development group Sirius Minerals (LON:SXX) reported today that it has completed its ‘Compressed Air Energy Storage’ (CAES) project in North Dakota.

The purpose of the project – which was conducted in collaboration with Schlumberger Water Services and the US Electric Power Research Institute – was to investigate the benefits of directly-integrated energy storage from wind generation. The project found that there was adequate salt thickness in North Dakota to support a CAES project, CAES could be of significant economic benefit to North Dakota and it is potentially a viable option for several of Sirius’s potash projects – both current and under construction.

CAES is an energy storage technology similar to a rechargeable battery, according to the firm. It has the ability to store excess energy when the supply of energy is greater than demand and release the energy when the demand rises above the supply.

Sirius added that it works particularly well in conjunction with solar and wind renewable energy generation, resulting in continuous access to steady power regardless of the environmental conditions. It also provides a cost effective option for utilities looking to improve the stability of their energy supply when handling spikes in demand.

“The completion of our North Dakota CAES Project is an excellent step in the advancement of our overall research and development portfolio within Sirius Minerals,” said Chris Fraser, Sirius’s cheif executive officer. “This study has allowed us to gauge and measure the feasibility of Compressed Air Energy Storage as a way of reducing energy costs in our potash mining operations. It has shown that CAES is possible at the depths and in the rock conditions that are found in our US and Australian projects, and could be viable for several other projects currently under consideration.”

Broker Northland Capital Partners commented: “This is interesting news from a company that thinks outside the box, and has potential to generate revenue not only in North Dakota but could also be considered for Sirius’s other projects in the UK and Australia.”

Potash miner Sirius Minerals (LON:SXX) said it had begun drilling this weekend at its York Potash project.

The first hole is expected to take up to 60 days to complete. Following completion of each hole in the drilling programme, it is estimated that approximately three weeks will pass before Sirius receives the assay results from that hole.

The firm said that two rigs will be used for each hole in the York Potash drilling programme to improve efficiency and reduce impact. The first, smaller ‘top-hole’ rig will sink each hole to approximately 750 metres before a larger ‘coring’ rig is brought onto the hole to core the entire ‘evaporite’ (sedimentary deposit) sequence.

Each hole is expected to intersect the two potassium chloride targets that the firm is targeting – the Sneaton and Boulby seams – as well as the potassium sulphate target: the Fordon polyhalite seam. While coring is occurring at one hole, the top-hole rig will move onto the next hole and the procedure repeated.

PR Marriott Drilling has been appointed to undertake the drilling programme. The firm has more than 60 years experience in providing drilling services to the oil, gas and geothermal industries and is the largest onshore drilling contractor based in the UK.

“The commencement of drilling in North Yorkshire is a major milestone for the York Potash project,” said Chris Fraser, Sirius’s chief executive officer. “These will be the first new surface boreholes drilled for potash in North Yorkshire for almost 35 years and the first ever surface boreholes focused on the important polyhalite seam.  The drilling programme will help us define the parameters of a world-class potash project and to advance the preparation of detailed proposals and designs.”

As well as the York Potash project, Sirius holds potash assets in the US and Australia.

Beginning Tuesday, July 12, Western Potash will issue 160,945,183 common shares of the company, with the remaining 27,089,110 shares reserved for issuance, it said.

The Vancouver, BC-based potash development company, which is currently completing a feasibility study at its Milestone project in Saskatchewan, has been listed on the more junior TSX Venture Exchange, under the symbol 'WPX', since May 2008.

Upon its listing on the TSX, the company's common shares will be delisted from the TSX Venture Exchange.

Western Potash's Milestone property has measured resources of 64 million tonnes of potash grading 30.47%, indicated resources of 180 million tonnes of potash grading 30.35%, and inferred resources of 701 million tonnes of potash, grading 30.31%, as of April 2011.

Sirius Minerals (LON:SXX) took a step towards its aim of defining a world-class potash project as it announced it has obtained further mineral rights in the UK containing significant historical intersections.

The rights are held under option by the company for its York Potash project.

The firm has identified five historical holes on the rights in the north east of England, which demonstrated significant potash mineralisation.

The rights were obtained within the firm's project focus area covering around 1,300 hectares (13km2) between the towns of Whitby and Scarborough.

"The addition of 1,300 hectares represents a significant increase in our onshore mineral rights position.The outstanding potash intersections within our contracted mineral rights area gives us further confidence in defining a significant, world-class potash project," said managing director Chris Fraser.

"These holes demonstrate the quality of the potassium chloride seam lying above our potentially massive polyhalite target, which remains our principal focus."

The firm has identified five historical boreholes and has so far acquired the core data and exploration logs for four of them. Inititial examination indicates the presence of significant potash mineralisation, it said.

All three boreholes for which core and assay data has been obtained intersected the Boulby Potash seam, but were not drilled deep enough to intersect the polyhalite seam, it added.

Borehole A intersected a thickness of 11.5m (from depth of 1,335m) with 51.30 percent KCI, Borhole B showed a thickness of 7.6m (from depth of 1,231m) with 44.40percent KCI and hole C showed a thickness of 3.1m (from depth 1,393m) with 36.0 percent KCI.

A fourth borehole, for which no core or assay data are available, intersected 15.5 metres of the Boulby Potash seam from 1,422 metres depth and 24 metres of mineralisation believed to be polyhalite from 1,562 metres depth.

The fifth borehole is also expected to have been drilled to a depth sufficient to pass through the polyhalite seam, but no data is currently available.

Sirius now holds options over a total mineral rights portfolio of approximately 621 sq km km2 for the project.

Sirius Exploration's major interest is in the recent acquisition of Dakota Salts. Dakota Salts has some 5,000 acres of exploration leases in the Williston Basin in North Dakota covering known potash and salt deposits.

Shares in Sirius were up 3.81 percent this afternoon - changing hands at 10.77 pence.