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FirstGrowth wins $15.6-million seismic contract

2008-06-05 06:18 MT - News Release

Mr. Gil Schneider reports

FIRSTGROWTH ANNOUNCES $15.6 MILLION SEISMIC CONTRACT WITH POTASH EXPLORATION COMPANY

FirstGrowth Exploration & Development Services Corp.'s subsidiary, Kinetex Inc., has been awarded a contract valued at over $15.6-million to provide seismic acquisition work in central Saskatchewan for a private company focused on potash exploration.

The initial contract involves the management, collection, processing and interpretation of a series of high-resolution 2-D profiles, over a number of regions with a combined area exceeding 500,000 acres. The client intends to then select certain lands to complete a Full Wave 3-D resource evaluation over targeted portions of the prospective lands upon completion of the initial interpretation of all compiled 2-D data.

"This record single contract, equal to 2007's annual gross revenues, should give shareholders strong confidence in the growth and future success of the company," stated Gil Schneider, chief executive officer of FirstGrowth. "Two thousand eight looks to be a breakout year for FirstGrowth as the mining and resource industry fully realize the inherent potential provided by Full Wave high-resolution seismic data."

The objectives of the survey are to provide a detailed subsurface map of underlying stratigraphy, while identifying the faulted and fractured horizons, or "collapse zones." These zones can be an excellent conduit for groundwater and present a significant hazard to mining operations. Mining into one of these collapse zones can result in, at best, rehabilitation cost increases to the mining operation, and in some extreme instances may even result in uncontrolled flooding and loss of the mine. Digital, high-resolution seismic data, as provided by FirstGrowth, afford the best possible geological picture with significantly greater vertical resolution than standard analog seismic data. By capturing the full waveform (full component) of reflected data, it is possible to offer a path for the analysis of density and porosity changes, which result in the highlighting and delineation of groundwater tables and subsurface reservoirs. Being able to detect and pinpoint the exact location of such disturbances is of great value to mine engineering staff and plays a critical role in mine site planning.

Strong agricultural demand has forced prices for fertilizer skyward of which potassium chloride, or potash, is a key ingredient. This is due in part to rising consumption in China, India and other developing countries in Asia, and the transition toward biofuel production in the United States and Canada. Exploration for potash has largely centred on Saskatchewan, which reserves are massive -- by conservative estimates, Saskatchewan could supply world demand at current levels for several hundred years. Saskatchewan production currently accounts for over 25 per cent of world supply.