Encanto reports 2D seismic on First Nations lands

Vancouver-Encanto Potash Corp. said Oct. 7 that it has commenced a 2D seismic program on the Muskowekwan First Nations lands, which are located approximately 100 kilometers north of Regina, Sask. The lands consist of 43,000 acres of gently rolling plains. To date, six oil and gas wells surround the Muskowekwan Exploration Participation Agreement (EPA) lands, and have shown at least three potash beds are present in each of these wells. “We are pleased and excited to see Encanto commence potash exploration on our Muskowekwan First Nations lands,” said Muskowekwan Chief Reg Bellerose. “The economic potential and benefits resulting from a potash mine has our entire community excited. The exploration agreements the Muskowekwan have with Encanto and the planned exploration program fully respect our treaty rights and stewardship of our land. We look forward to working with Encanto and moving this project forward.” This is the seventh EPA that Encanto has signed with First Nations in Saskatchewan, totaling approximately 187,000 acres. This does not include the Spar Property that was recently purchased from Lion Energy Corp. (formerly Raytec Metals Corp.). As soon as the seismic survey is complete at the Muskowekwan lands, Encanto will begin another 2D seismic program at the nearby Daystar First Nations lands. Encanto has a fall 2009 budget of $6.5 million of flow-through money that is required to be spent by Dec. 31, 2009. These flow-through funds have been earmarked to include 2D and 3D seismic testing, as well as the drilling of several holes in the respective areas. “The Muskowekwan lands are in the heart of some of the best potash lands in the world and we are very excited to begin our 2D seismic work,” said Encanto CEO James Walchuck.