Magna Resources Ltd. (Magna) (CNSX: MNA) and Confederation Minerals Ltd. (Confederation) (TSX-V: CFM) are pleased to report that American Potash LLC (American Potash), a Nevada limited liability corporation owned 50% by each of Magna and Confederation, has successfully acquired nine (9) non-contiguous Utah State trust land potash lease units in the potash-bearing Paradox Basin in Grand County, Utah.
The nine potash lease units were acquired via a competitive bid process administered by the State of Utah School and Institutional Trust Lands Administration. Each lease unit consists of one State section and covers a contiguous area of approximately one square mile (~2.8 sq km). The nine lease units total approximately 9.5 square miles (26.6 sq km) or 6, 090 acres.
The nine State potash lease units are all within or on the border of a large block of contiguous Federal Bureau of Land Management (BLM) potash prospecting permit applications held exclusively by American Potash, separated into contiguous north and south blocks by a proposed BLM Known Potash Lease Area (KPLA). Final approval and award of the BLM potash prospecting permits to American Potash is pending, but expected by year end or early next year.
Most of the BLM potash prospecting permit applications and State potash lease units fall within the 60-foot (18-m) potash thickness contour for Potash Cycle 13 as defined by R.J. Hite in 1976 USGS Open-File Report 76-755. Gordon J. Allen, Qualified Person (QP) and author of the National Instrument 43-101 compliant technical qualifying report entitled Report on the Potash Potential of the Green River Potash Project Area completed for American Potash on August 15, 2009 reviewed available pertinent historic oil and gas drill logs (specifically gamma log data) and estimated the potential potash horizons thicknesses and grades beneath the American Potash BLM potash permit application and State potash lease unit areas.
Magnas share of the acquisition cost for the State leases referenced above was approximately US$65, 000.
This announcement has been prepared under the supervision of Lawrence A Dick, Ph.D., P. Geo., who is the Qualified Person for the purposes of National Instrument 43-101 with respect to the technical information in this news release. Dr. Dick is the President of Confederation Minerals Ltd.
On behalf of MAGNA RESOURCES LTD.
“Rudy de Jonge ”
Rudy de Jonge
This press release contains forward-looking information regarding managements anticipated completion of the proposed private placement financing and its anticipated use of the proceeds. The forward-looking information contained in this press release is made based on expectations of management as of the date of this press release and, except as required by applicable law, Magna does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Magna to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. There is no assurance that Magna will be able to raise some or all of the proposed private placement financing.
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