Resource World Magazine

22 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 7 Recent mining law reforms are bringing bright prospects for Vatic Ventures Corp.'s [VCV.H-TSXV; V8V-FSE] potash discover- ies in Thailand and for Southern Arc Minerals Inc.'s [SA-TSXV; SOACF-OTC] gold, silver and copper exploration in Japan and investment properties for Indonesia. National and local partner- ships are paramount to these two mining companies in order to overcome challenges and spread the benefits to the local commu- nities as they seek to capture domestic and export markets. Vatic executives have deep experiences in Thailand's Korat Plateau for potash resources as does Southern Arc Minerals for their island gold prospecting in Japan. Vatic Ventures' Saksrithai potash proj- ect is located in Thailand's northeast corner province of Nakhon Ratchasima which is the largest province in Thailand with a pop- ulation of 2.7 million and located 270 km from Bangkok. In 1973, the Department of Mineral Resources of Thailand along with the United States Geological Survey evaluated the potash potential and conducted drill programs that indicated the extent of the evaporate deposits underlying the Khorat Plateau. Thailand expected to rapidly develop a potash industry and several companies applied for concessions, but most did not con- clude agreements. Among them were: Duval Corporation, CRA/ Rio Tinto Exploration Ltd., BHP-UTAH, Placer Dome and Agrico Chemical Corporation. The only two projects that survived these early potash challenges were the Asean Project at Bamnet Narong and Asia Pacific's Udon Thani Project, where the Canadian com- pany replaced Agrico in the Thai Agrico Concession Agreement and found a joint venture with Metro Company, Thailand. Dr. Gerald D. Wright, CEO and Director, described in a recent interview with Resource World that the Udon Thani and Bamnet Narong projects were at the bankable feasibility stage by around 2000, but the licensing of the projects became protracted and progress stalled. "There has been much opposition to major mining projects in the country and much care and patience has been exercised in addressing environmental issues and the public consultation pro- cess," he said. However, the economic benefit to the Thai government resulted in strong support to the potash industry's development. In 2014, the Thai Ministry of Industry set up a special steering committee to promote the development of the country's potash resources. Recently, mining licenses approved for two projects were: Thai Kali Co. and Asean Potash Mining Co. which are under construction and a license is pending for a third: the former Asia Pacific Project. Additionally, the government granted a limited number of potash exploration licenses (SPAs), including those acquired by Saksrithai Development Co. Ltd., but it is uncertain whether any further licenses will be granted in the foreseeable future, accord- ing to Dr. Wright. In January 2017, Vatic acquired 80% of the issued and out- standing shares of Saksrithai Development Co. Ltd., a Thai company which holds two contiguous Special Prospecting Licenses (SPLs) covering an area of 32 km 2 for the exploration of potash. Saksrithai is a private company incorporated under the laws of the Kingdom of Thailand and the licenses are located in the province of Nakhon Ratchasima. Vatic's Saksrithai Project area is located in the southwestern part of the Plateau, adjacent to the Thai Kali Company's Don Khun Thod Project and in close proxim- ity to the Bamnet Narong Project, both under construction. In February 2017, Vatic commenced the first phase of the exploration program. The information from the seismic survey is now being assessed and this will form the major input in plan- ning the initial drilling program. Dr. Wright explained that "Vatic commenced a community information program in the project area and is commencing an environmental baseline study with other programs to include: a regional geological review and survey, satellite data interpretation, area mapping and preliminary trans- portation and marketing studies." Dr. Wright was co-founder of the Crew Group of Companies and has over 30 years of experience in the minerals exploration and development industry in Asia, North America, Europe and Africa. "I have significant experience and knowledge of the global pot- ash industry and in particular, the potash resources underlying Thailand's Khorat Plateau. I served as Chief Executive Officer of Asia Pacific Resources Ltd. for 12 years and was directly respon- sible for the acquisition, financing and development of that company's Udon Thani Project, Asia's most significant commercial potash discovery to date. In addition, Nasim Tyab, President and Director, was a member of the corporate development team for the Udon Thani Project. Vatic is the only Canadian-listed com- pany now involved in the Thai potash industry. Vatic is partnering with the local community and other stake- holders, especially in light of recent government initiatives. A Bangkok Post article on June 13 th stated that the Mineral Resources Management and Policy Commission appointed a num- ber of sub-committees to draw up plans to regulate and manage use of mineral resources and make sure that use and develop- Local partnerships essential for mining in Asia by Robert L. Wallack

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