Vancouver-Mesa Uranium Corp. reports that it has signed a letter of intent to acquire the Pine Valley Potash Project, located in southwestern Utah. The project totals 5,227 acres, consisting of State of Utah Leases and Federal Potash Prospecting Permits. The deposit has an in-situ mineral inventory (non NI 43-101 compliant) of 82.7 million st, averaging 35.5 percent alunite (19.5 million tons indicated and 63.2 million st inferred). The commercial products from alunite are potash (as sulfate of potassium), sulfuric acid, and alumina. The resource could theoretically support an operation producing 104,000 st of SOP, 200,000 st of alumina, and 184,000 st of sulfuric acid per year for more than 25 years. The deposit is shallow and would be mined by low-cost surface mining methods. Mesa says the area is accessed by well-maintained gravel roads, supports year-round work, and is 15 miles from a main line siding of the Union Pacific Railroad. Under the letter of intent, Mesa will acquire a 100 percent interest in the project by paying the owner $25,000 upon signing a definitive agreement, $25,000 and 800,000 Mesa shares on Jan. 1, 2011, and thereafter payments of $10,000 annually. The owner will retain a 1 percent NSR royalty, of which Mesa has the option to purchase one-half for US $500,000. The closing of the transaction is expected on or before Oct. 4, 2010. The transaction is subject to completion of final due diligence by Mesa, execution of a binding definitive agreement, and regulatory approval.
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