Western Potash gets potash well licences in Manitoba
Western Potash Corp (C:WPX)
Shares Issued 96,689,233
Last Close 7/16/2008 $1.35
Thursday July 17 2008 - News Release
Mr. J. Patricio Varas reports
WESTERN POTASH CORP. TO COMMENCE DRILLING ON THE RUSSELL-MINIOTA POTASH PERMITS
Western Potash Corp. has received its initial potash well licences from Manitoba Science, Technology, Energy and Mines (STEM), and has mobilized a drill rig supplied by Ensign Drilling Partnership to the company's Russell-Miniota exploration permits in Manitoba. These permits comprise 555 square kilometres, are adjacent to BHP Billiton's potash lease and Agrium's exploration permits along the Manitoba border, and lie within 13 kilometres of Saskatchewan Potash Corp.'s Rocanville potash mine.
Drilling to further define the extent, grade and type of potash mineralization present on the property will commence immediately. The company plans to complete an initial five potash exploration wells, with an option to extend the program by an additional 10 wells, as results warrant. All holes will be drilled vertically targeting the Prairie Evaporite formation, which will be conventionally cored using inverted drilling fluids so as to not dissolve the salt and potash sequences. Samples will be collected from the potash sequence for observation and analysis, and each hole will be logged using industry standard downhole geophysical logging techniques. The potential for the property to host potash deposits has been indicated by seismic data purchased by Western Potash, and historic drilling which intersected potash with grades up to 20 per cent K2O over 3.7 metres (gamma ray logs).
The company is also obtaining permits and licences to complete a $1.2-million, 175-line-kilometre 2-D seismic survey on the property to assist in its interpretation of the salt and potash sequence in the area. Prospective salt beds indicated by these seismic surveys will be further tested with additional drilling as part of the continuing exploration programs. A $5-million exploration program has been approved by Western's board for this initial drilling and seismic program with a provision to expand the budget by an additional $5-million once positive results are received.
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