- Published: 03 June 2010
- Written by Editor
Western Potash Corp. Upgrades Measured and Indicated Potash Resource to 174 Million Tonnes
Western Potash Corp. (the "Company") (TSX.V: WPX, FSE: AHE) is pleased to announce the receipt of an NI 43-101 compliant Mineral Resource Estimate for its Milestone property in southern Saskatchewan. This updated resource estimate significantly upgrades the Milestone potash resource, which consists of 41 million tonnes of Measured Resource (contained KCl), 133 million tonnes of Indicated Resource, and 560 million tonnes of Inferred Resource. The resource estimate at Milestone was prepared by Agapito Associates Inc. ("AAI") of Grand Junction, Colorado.
AAI has extensive experience in solution mining, resource characterization and preparation of 43-101 Technical Reports on Potash Resources. AAI's experience includes work for Intrepid Potash Inc in the US, Rio Tinto and Vale at the PRC project in Argentina and for several prospective potash projects located in Saskatchewan.
Mineral resources for the potential solution mining intervals (Patience Lake, Belle Plaine, and Esterhazy Members excluding interbeds) are estimated to be as follows:
-- Measured Resource: 409 Mt in place sylvinite grading 31.0% KCl, or 19.6% K2O (41 Mt of recoverable KCl, or 26 Mt recoverable K2O)
-- Indicated Resource: 1,382 Mt in place sylvinite grading 30.8% KCl, or 19.45% K2O (133 Mt of recoverable KCl, or 84 Mt recoverable K2O)
-- Inferred Resource: 7,034 Mt in place sylvinite grading 30.9% KCl, or 19.5% K2O (560 Mt of recoverable KCl, or 354 Mt recoverable K2O)
A detailed summary of the Measured, Indicated and Inferred Mineral Resource is presented in Table 1, 2 and 3 respectively.
Patricio Varas, CEO and President of the Company commented, "We are very pleased with the results of this report which demonstrates that our resource can support an annual potash production rate of 3 million tonnes for well over 40 years. We are now awaiting the delivery of our Scoping Study towards the end of July. The directors expect that the report will confirm that our Milestone Solution Mining project is indeed a world class asset."
Table 1. Measured Mineral Resource*
Bed A I I K
verage KCL n-place n-Place KCL CL
Grade (%) Tonnage (Mt) Tonnage (Mt) Resource** (Mt)
------------- ---------- ------------ ------------ ---------------
Patience Lake 28.81 215.95 62.21 20.45
------------- ---------- ------------ ------------ ---------------
Belle Plaine 29.13 91.71 26.72 8.78
------------- ---------- ------------ ------------ ---------------
Esterhazy 36.15 100.84 36.45 11.98
------------- ---------- ------------ ------------ ---------------
Total 31.00 408.51 125.38 41.21
------------- ---------- ------------ ------------ ---------------
* Search Radius of 800 m used; Mt = million tonnes; Patience Lake thickness > 1.1 m, Belle Plaine K2O grade > 15%, Esterhazy Carnallite < 6%, Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (5%), and extraction ratio (34.6%).
Table 2. Indicated Mineral Resource *
Bed Average KCL I In-Place KCL KCL
Grade (%) n-place Tonnage (Mt) Resource (Mt)**
Tonnage (Mt)
------------- ----------- ------------ ------------ ---------------
Patience Lake 28.72 726.14 208.58 65.67
------------- ----------- ------------ ------------ ---------------
Belle Plaine 29.21 303.42 88.63 27.91
------------- ----------- ------------ ------------ ---------------
Esterhazy 35.57 352.76 125.47 39.51
------------- ----------- ------------ ------------ ---------------
Total 30.79 1,382.32 422.69 133.09
------------- ----------- ------------ ------------ ---------------
* Search Radius: 1.6 km outside radius and 2.5 km inner radius (between drill holes); Mt = million tonnes; Patience Lake thickness > 1.1 m, Belle Plaine K2O grade > 15%, Esterhazy Carnallite < 6%, Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (9%), extraction ratio (34.6%).
Table 3. Inferred Mineral Resource*
Bed Average KCL I In-Place KCL KCL
Grade (%) n-place Tonnage (Mt) Resource (Mt)**
Tonnage (Mt)
------------- ----------- ------------ ------------ ---------------
Patience Lake 28.84 3,534.64 1,019.35 264.52
------------- ----------- ------------ ------------ ---------------
Belle Plaine 28.84 1,683.71 485.59 126.01
------------- ----------- ------------ ------------ ---------------
Esterhazy 36.07 1815.21 654.72 169.90
------------- ----------- ------------ ------------ ---------------
Total 30.85 7,033.55 2,159.67 560.43
------------- ----------- ------------ ------------ ---------------
* 8.0 km radius used; Mt = million tonnes; Patience Lake thickness > 1.1 m, Belle Plaine K2O grade > 15%, Esterhazy Carnallite < 6%, Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (9%), extraction ratio (34.6%).
AAI have made estimates of the Measured, Indicated and Inferred Mineral Resources based on a Radius of Influence (ROI) similar to that applied by mine operators and peer group explorers working on solution mining properties in the region. Furthermore, the Measured, Indicated, and Inferred Mineral Resources were arrived at by discounting the overall calculated tonnage by Loss Factors of 5%, 9% and 25% respectively, to account for unknown geologic anomalies. The resulting potash quantity was further reduced using an extraction ratio factor of 34.6%, which is the estimated potash available to be extracted for the life of an envisioned operation leaving sufficient material to support cavern stability. The resource estimate was prepared in accordance with the requirements of NI 43-101 of the Canadian securities regulators. As required by NI 43-101, a technical report supporting the resource estimate will be filed on SEDAR and be publicly available within 45 days following the date of this news release.
In calculating the initial mineral resource AAI incorporated historical information available from public sources as well as new resource information obtained from exploration conducted by Western Potash between January 2009 and May 2010.
Figure 1. Measured, Indicated and Inferred Mineral Resource Areas.
Click here to see Figure 1.
The 100% owned Milestone property, comprising 500 square kilometers, is located 30 kilometers southeast of Regina, and southeast of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines in the world.
About Western Potash
Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. The Company intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.
This news release was reviewed by Dr. Michael Hardy P.E., and Douglas Hambley P.E. and P. Geo., of Agapito Associates Inc. Both individuals are Qualified Persons under NI 43-101 Rules and Policies and are co-authors of the updated NI 43-101 Technical Report on which this news release is based.
The in-house qualified persons for the purposes of NI 43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski, P. Geo, both of whom have reviewed and approved the contents of this news release. Dean Pekeski is also co-author of the updated NI 43-101 Technical Report on which this news release is based.
For more information on Western Potash Corp.'s projects, please visit the Company's website at: www.westernpotash.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"J. Patricio Varas" J. Patricio Varas President and CEO
This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include; Milestone deposit can support an annual potash production rate of 3 million tonnes for well over 40 years. We are now awaiting the delivery of our Scoping Study towards the end of July. The directors expect that the report will confirm that our Milestone Solution Mining project is indeed a world class asset." that Agapito Associates Inc. of Golden, Colorado has also been engaged to complete an NI-43-101 compliant indicated and inferred resource calculation based on the results of the expanded definition drill and seismic program; that this report is expected to be complete during the second quarter of 2010. It is the Company's policy not to update forward looking statements. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6314578&lang=en
Western Potash Corp. J. Patricio Varas, 604-689-9378 President and CEO
