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Trigon's Intercontinental Potash Corp. Announces Preparation of Preliminary Economic Assessment of Ochoa Project
Tue Jul 21, 7:00 AM

http://ca.news.finance.yahoo.com/s/21072009/30/link-f-cnw-trigon-s-intercontinental-potash-corp-announces-preparation-preliminary.html

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/

TORONTO, July 21 /CNW/ - Mr. Sidney Himmel, President and CEO of Trigon Uranium Corp. ("Trigon") (TSXV: TEL.V) and of Intercontinental Potash Corp. ("ICP" or "the Company") is pleased to announce plans for completion of a National Instrument 43-101 compliant Preliminary Economic Assessment ("PEA") of its Ochoa Polyhalite Project ("Ochoa"), which is located in New Mexico. Polyhalite is a potash mineral which the Company anticipates will be developed as slow release, non-chloride, multinutrient potash fertilizer in the natural mineral, or which can be used as a potassium sulphate fertilizer after processing.

The PEA will be prepared by Chemrox Technologies ("Chemrox Technologies") of Greenwood Village, Colorado and Gustavson Associates LLC ("Gustavson) of Lakewood, Colorado. Chemrox Technologies, www.chemrox.com, offers geological services including National Instrument 43-101 reports, and Competent Person Reports, and performs due diligence evaluations and prefeasibility/feasibility studies for mining companies throughout the world. Gustavson www.gustavson.com is a global consulting firm consisting of geologists, geophysicists, engineers, economists, and financial experts specializing in natural resource evaluations and mine development.

Significant work has been completed since filings by Trigon of the prior NI-43-101 prepared by Micon on December 22, 2008 and February 4, 2009. The PEA is anticipated to include a conceptual mining and processing plan based upon inferred resource estimates, and various assumed commodity prices and product marketing strategies.

It is intended that findings and conclusions to be contained in the NI-43-101 report will be included in the information circular (the "Circular") of Trigon which is being prepared for the meeting at which shareholders of Trigon will be invited to approve the proposed acquisition of ICP by way of Reverse Takeover ("RTO"). Trigon recently issued a comprehensive news release dated June 19, 2009, announcing the proposed RTO involving an offer to purchase the common shares of ICP that it does not already own. The RTO will be governed by a Support Agreement to be entered into between Trigon and ICP, and will be subject to a number of conditions including a condition that 75% of non-Trigon shareholders of ICP tender their shares to the offer. The completion of the RTO requires that the independent shareholders of Trigon approve the RTO by way of shareholder vote at a special meeting of the shareholders.

Background Information:

Ochoa comprises 16 federal prospecting permits covering an area of 36,589 acres located about 20 miles east of Carlsbad, New Mexico. The Company has applied for additional exploration permits comprising approximately 9,000 acres. Recent investigations have confirmed the existence of polyhalite at the Ochoa property and its likely physical characteristics. The correlation of polyhalite presence with geophysical gamma logs and acoustic logs has also been confirmed. The Company has also obtained polyhalite core from the Rustler Formation from historical drilling close to the Ochoa project.

The Company performed a series of tests on polyhalite rock from the Salado Formation that is also a target horizon on the Ochoa property to determine the rock's physical and chemical characteristics. The polyhalite rock obtained from a small seam in a langbeinite mine contains minor amounts of halite. The physical removal of halite in Salado polyhalite by size fraction and solubility successfully removed the halite or salt. It was determined that upgrading the concentration of such polyhalite concentration can be accomplished by simple washing. It was also determined that the polyhalite can occur as both large crystals and as fine grained masses in the Salado Formation tested. Further the Company has determined that early dissolution of potassium and magnesium is released in a sustained water bath and that that post-bath samples indicate the presence of slower-release polyhalite fractions as well.

Based on the study of polyhalite core samples from the shallower Rustler Formation in the vicinity of Ochoa, it was confirmed that the presence of polyhalite can be determined from gamma logs and physical density logs such as those utilized on the Ochoa permit. X-ray fluorescence and X-ray diffraction of the lower part of core samples obtained from the Rustler Formation, north of Ochoa, confirmed 73% to 90% or more polyhalite by weight across several feet. The upper core samples are currently at the lab and are also undergoing analyses of textures and mineral phases by microscopy and by a scanning electron microscope (SEM) before and after the samples are exposed to moisture. This will be followed by a series of tests on fresh core to determine the affects of different extractive processes to concentrate polyhalite and potassium. Results of the latter work should be available during the summer.

Polyhalite in the Potash Markets and Recent Pricing:

ICP believes that it can develop polyhalite as direct-application multi-nutrient and non-chloride fertilizer potassium mineral. The term "potash" is commonly limited to the mineral sylvite, which is potassium chloride. However, "potash" should include all potassium fertilizers including the nitrates and sulphates. Such potassium sulphate fertilizers include the mineral Langbeinite, mined in New Mexico at locations close to Ochoa and distributed internationally, and schoenite which is extracted from sulphate-rich brines in China and the Great Salt Lake of Utah.

New Mexico is one of the Four Corner States where Trigon has been active in mineral exploration and development including the Permian Basin where polyhalite has been found. Minor polyhalite trends were also found in the Paradox Basin but these occurrences lacked the structural suitability necessary for underground mining as was found at Ochoa in New Mexico. Both The Mosaic Company and Intrepid Potash produce sylvite and langbeinite from mines in New Mexico where we understand that the occurrence of polyhalite in their mines is erratic and non-economic. The potassium sulphate fertilizer market is a proven market with current world operating capacity of approximately 8 million tonnes.

The non-chloride fertilizer products are potassium sulphate and potassium nitrates. These meet the following demands: (i) chloride sensitive crops which include most fruits, vegetables, horticultural crops; (ii) tobacco; (iii) salty and arid soils such as soils in India and North Africa; and (iv) soils where cultivation is intense and there is therefore a tendency towards chloride build-up. Salty soils reduce water uptake which is further reduced by chloride. Arid soils allow for the buildup of chloride which reduces water uptake and causes toxicity making potassium sulfate a desirable substitute.

The geological aspects of this press release were reviewed by Sean Muller, P. Geo., and a Qualified Person under NI43-101. Mr. Muller is an independent contractor who provides technical assistance to ICP in potash exploration and development.

About Trigon and ICP:

Trigon Uranium Corp. is an exploration and development company focused in the western and southwestern United States, with operations based in its Golden, Colorado office. Intercontinental Potash Corp. is a private company with 37% ownership by Trigon and is involved in the acquisition, exploration, and development of polyhalite and potash-related minerals in the United States southwest. The shares of Trigon traded on the TSX Venture Exchange under the symbol "TEL".

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Trigon and ICP, including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Trigon does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.


Contacts

please visit www.trigonuraniumcorp.com or www.intercontinentalpotash.com or contact: Trigon Uranium Corp.
Sidney Himmel
President and CEO
Toronto
Ontario
T: [phone]
[e-mail]