Potash One Initiates Two-Phased Drill Program at Its Legacy Solution Mining Project
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2008) - Potash One Inc. (the "Company" or "Potash One") (TSX:KCL) is pleased to announce that Nabors Canada has initiated drilling the first well of Potash One's resource expansion and confirmation drilling program at its Legacy Solution Mining Project in southern Saskatchewan (the "Legacy Project").
Based upon initial seismic surveys, Potash One has identified two promising solution mining development areas within the 97,240 acres of the Legacy Project. Both of the areas identified have the potential to support long term solution mining operations. Resource expansion drilling plus additional seismic surveys will be utilized to select the most favourable solution mining area to be developed based upon the potash zone temperature, thickness, average grade, continuity, and quality. The first phase of the drilling program will consist of 3 to 5 wells.
Upon the selection of the solution mining development area, the second phase of the drill program will consist of resource definition by drilling an additional 7 to 9 wells. The planned infill drilling and a 3D seismic survey of the area will be conducted to support the preparation of a revised National Instrument 43-101 compliant resource estimate with the goal of supporting a minimum of 25 years of mining at the production rate of 2 million tonnes of potash per year.
Artisan Consultants has been contracted to supervise the drilling operations and North Rim Exploration Limited has been contracted to coordinate and supervise the permitting, planning, coring, geological and wireline logging, core chain of custody, sample preparation, and QA/QC for the chemical composition of the cores. It is planned that continuous cores spanning the mid-Dawson Bay to the base of the Esterhazy Member will be taken from each well.
The Company also reports that Boyd Petrosearch has completed a 3-dimensional (3D) seismic survey covering an area of approximately 25.6 square kilometers at the Company's Legacy Project in Saskatchewan. The objective of the program was to determine the extent and distribution of the potash-bearing Prairie Evaporite Formation and provide subsurface information that facilitates the assessment of geological conditions adjacent to the historic solution pilot test area of the Legacy Project.
Results from the survey indicate that the Prairie Evaporite Formation ranges in thickness from 80 m to 200 m over the survey area. The structure of the Second Red Beds shows elevation change ranging from very steep to marginal. Since the Second Red Bed is in close proximity to the mining level, its structure suggests that future mining operations will experience minimal topography provided that collapses are avoided.
The survey has verified the extent of collapse anomalies present within the 3D seismic survey area. Experience with similar collapse anomalies in other Saskatchewan potash mines shows that mining in close proximity to these features may lead to unstable mining conditions in the immediate vicinity. A key driver for the acquisition of 3D seismic information is to delineate areas of collapse so that a mine plan can be designed to avoid these features.
Paul F. Matysek, President and Chief Executive Officer of Potash One Inc., said: "We are pleased that we are on track with our development plan. The Company is well funded and in a good position to deliver a pre-feasibility study within 6 to 9 months. Work on solution mining and processing studies to support the pre-feasibility study has commenced."
Max Ramey, PE., a qualified person as defined by National Instrument 43-101, has reviewed this news release and is responsible for its content.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer
About Potash One Inc.
Potash One Inc. is a Toronto Stock Exchange (TSX) listed Canadian resource company engaged in the identification, acquisition, exploration and development of advanced solution mining amenable potash properties. The Company owns 100% of a 97,240 acre Potash Subsurface Exploration Permit in Saskatchewan, Canada (the "Legacy Project"). The Legacy Project was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation and is adjacent to the largest producing solution potash mine in the world. In addition, the Company owns 100% of three other Potash Subsurface Exploration Permits comprising over 200,000 acres that are contiguous to the Legacy Project. The Company has a NI 43-101 resource, a solid balance sheet, and experienced technical and corporate management to advance the Legacy Project to the next stage.
FOR FURTHER INFORMATION PLEASE CONTACT:
Potash One Inc.
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
(604) 331-4431
(604) 408-4799 (FAX)
Email: info@potash1.com
Website: www.potash1.com
