American Potash Corp. Announces Revised Drill Plan and Objectives for the Green River Potash Project, Utah
(the Company or American Potash) is pleased to announce that recent activity south-east of its Green River Potash Project (the Project) in the Paradox Basin, Utah, has led to a re-evaluation of the Companys exploration drilling plans. The Company now believes that with two drill holes it has reasonable prospects to delineate a Mineral Resource sufficient to justify a Preliminary Economic Assessment (PEA).
The Project contains an Exploration Target of 600 million to 1 billion tonnes of sylvinite with an average grade ranging between 19 and 29% eKCl, assuming a bed thickness cut-off of 2.0m and a composite grade cut-off of 16% eKCl according to the Companys NI 43-101 technical report1 prepared by Agapito Associates Inc., an internationally respected mining engineering consulting firm with recognized potash expertise.
The new plan is to twin one historic oil & gas well with core drilling to confirm mineralogy and validate the accuracy of down-hole electric logs (elogs) from local oil and gas wells for use with Mineral Resource definition. The second core hole will be situated sufficiently offset from the first and other historic wells with the objective of providing a breadth of coverage for greater confidence in the characterization of the target potash horizon and anticipated estimation of a maiden Mineral Resource.
The area of influence for these two core holes is projected to contain on the order of 250 to 500 Mt of sylvinite with a projected average grade ranging between 19 and 29% KCl representing part of the 600 million to 1 billion tonnes Exploration Target. American Potash plans to evaluate the Projects economic potential for solution mining via a PEA in the event that drilling can delineate a Mineral Resource of this scale and quality.
Readers should note that Exploration Targets are conceptual in nature and there has been insufficient exploration to define them as Mineral Resources, and, while reasonable potential may exist, it is uncertain whether further exploration will result in the determination of a Mineral Resource or support a PEA report under NI 43-101. The Potash Exploration Targets are not being reported as part of any Mineral Resource or Mineral Reserve.
The Exploration Target was derived through modeling of 33 regional historic oil and gas wells to determine the average estimated grade, thickness and mineralogy in conjunction with Project-wide seismic surveys that demonstrate the non-faulted strong lateral continuity of the targeted potash horizon.
The drill program is specifically designed to optimize the combined new and historic drill coverage to provide the Company with the potential ability to initiate a PEA that will supply critical guidance to the Company and its investors.
The scientific and technical information presented in this press release is based upon information prepared by or under the supervision of the authors of the Companys NI 43-101 technical report1, by Agapito Associates Inc., both of whom have reviewed and approved the scientific and technical disclosure in this press release.
For additional details regarding the Company and the Green River Potash Project please visit the Companys website at www.americanpotashcorp.com.
1 The Companys technical report entitled, NI 43-101 Technical Report on the Green River Potash Project, Grand County, Utah, USA and dated October 10, 2012 with an effective date of June 27, 2012 may be found on SEDAR. It was prepared by Vanessa Santos, Chief Geologist with Agapito Associates Inc. and a Licensed Professional Geologist in the States of South Carolina and Georgia, and Leo J. Gilbride, Vice President of Agapito Associates Inc. and a licensed Professional Engineer in the State of Colorado. Each are Registered Members of the Society for Mining, Metallurgy, and Exploration and qualified persons as defined by and independent of the Company for the purposes of National Instrument 43-101.
The prefix e in eKCl signifies an estimated potassium chloride (KCl) grade estimated from a combination of gamma-ray and caliper (hole diameter) response and drilling mud weight in down-hole electric logs versus grade measured by chemical analysis of core.
About the Company
American Potash Corp., through a wholly owned subsidiary, American Potash LLC, a Nevada limited liability corporation, holds in the state of Utah 11 State potash leases, 2 Federal Potash Prospecting Permits and an option to acquire 100% interest in 12 Federal potash Prospecting Permits that comprise 14, 826 hectares (36, 636 acres) and encompass the 600 million to 1 billion tonnes Exploration Target. In addition the Company holds 11 adjoining federal Potash Prospecting Permit applications comprising 5, 791 hectares (14, 311 acres) for a combined Project area totalling 20, 617 hectares (50, 947 acres) that constitutes the Green River Potash Project.
On behalf of the Board of Directors
“Mike Sieb” Rudy De Jonge
Mike Sieb, President Rudy De Jonge, CEO
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information, including statements relating to the Companys future plans and objectives or expected results, are “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and Canadian securities laws. Forward Looking Statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Companys business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the Forward Looking Statements.
Key assumptions upon which the Companys forward-looking statements and information are based include: the price of potash will rise and not fall significantly; the Companys ability to secure new financing to continue its exploration and development activities; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Companys ability to obtain regulatory approvals in a timely manner; and the Companys ability to achieve its growth strategy. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.