Potash One gives drilling update

Vancouver-Potash One Inc. said Sept. 12 that Nabors Canada has initiated the drilling of the first well of Potash One’s resource expansion and confirmation drilling program at its Legacy Solution Mining Project in southern Saskatchewan. 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 favorable 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 three to five 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 seven to nine 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 mt/y. A 3-dimensional (3D) seismic survey covering an area of approximately 25.6 square kilometers at the project has also been completed. 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. 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. “We are pleased that we are on track with our development plan,” said Paul Matysek, Potash One president and CEO. “The company is well funded and in a good position to deliver a pre-feasibility study within six to nine months. Work on solution mining and processing studies to support the pre-feasibility study has commenced.”