WPX Completes Redirectional Drilling on Second Well, Intersects Over Twenty Metres of Potash Mineralization

Western Potash Corp. (the “Company”) (TSX.V: WPX, FSE: AHE) is pleased to announce that it has intersected further significant potash mineralization in its drill program on the Milestone property in southern Saskatchewan. The Company’s wholly-owned Milestone property, comprising 500 square km in area, is located approximately 30 km southeast of Regina, and is southeast of Mosaic’s Belle Plaine Mine, one of the largest producing potash solution mines in the world.

The well presently reported is the third well drilled on the Milestone property and the second well drilled from this particular setup.  This redirected well (Milestone - 002A) intersected the potash beds 800 m to the north of the original vertical well (Milestone - 002, located approximately 5.25 km to the southeast of the first well) using directional drilling. The Company decided to drill this directional hole to test the theory that the clay disturbed Patience Lake member, with lower grade potash mineralization, is only a local anomaly.  The geological details are described in the news release dated June 15th, where the results for well Milestone - 002 are reported.

 

 

 

The Company is pleased to report that the theory of a locally-disturbed potash bed is correct.  The new well has hit good potash mineralization in all three potash members.   Coring of the Milestone - 002A well commenced at a true vertical depth of 1,656 m, and intersected the Prairie Evaporite Formation at a true vertical depth of 1,662 m. Visual geological evaluation of the core in conjunction with down-hole gamma ray logs indicate strong potash grades (below a well-developed salt back), very low carnallite content, and very promising minimum formation temperatures of 62° C within the two upper members, with some carnallite present in the Esterhazy member.   The following potash member thicknesses are indicated by the down-hole gamma ray logs:

 

 

Member

 

 

From (m)

 

 

To (m)

 

 

Thickness (m)

 

 

PatienceLake

 

 

1674

 

 

1683

 

 

9

 

 

Belle Plaine

 

 

1686.7

 

 

1691.8

 

 

5.1

 

 

Esterhazy

 

 

1709.5

 

 

1716

 

 

6.5

 

 

 

 

All drill intercepts noted in this release are considered the true thickness of the mineralization, as the salt beds are relatively flat-lying and down-hole directional surveys indicate the hole was essentially vertical upon intersecting the salt and potash sequences.  The Company utilized directional drilling technology to complete this S-shaped well, one of very few such potash exploration wells ever completed in the province.

 

 

The company sees the presence and indicated grade of the potash beds in this third well as a very encouraging result when taken in conjunction with the results reported for the Milestone - 001 well (reported in the June 15th news release).  In that well, drilled on the northern part of the property, all three potash members: the Patience Lake, Belle Plaine and the Esterhazy were intersected with thicknesses and grades consistent with those mined at the Belle Plaine solution mine.  The Company is confident that it has confirmed that the anomaly encountered in the original vertical well, Milestone - 002, is truly localized and small, and that it has now demonstrated regional continuity of all three potash members between the first and second wells.

 

 

A comparison of the gamma ray responses from Milestone - 001 and Milestone - 002A suggest that the mineralized sections observed for each of the three potash members are very consistent and will have very similar tenor in grade and thickness.  The current reporting utilizes the gamma log data that has shown an improved correlation with assay data indicating threshold potash mineralization.  This reporting is more representative of anticipated mineralized intervals over the initial reporting of visually-logged potash members for Milestone - 001 and Milestone - 002 using marker beds to delineate thicknesses.  The observed thicknesses for the mineralized portion of the members from visual logging and gamma ray logging from all holes compares as follows:

 

 

Prairie Evaporite Member

 

 

Milestone - 001

 

 

Milestone - 002A*

 

 

Milestone - 002*

 

 

Visual Marker Logging

 

 

Gamma Ray Logging

 

 

Assay Results

 

 

Visual Marker Logging

 

 

Gamma Ray Logging

 

 

Visual Marker Logging

 

 

Gamma Ray Logging

 

 

 

Interval (m)

 

 

Interval (m)

 

 

Interval (m)

 

 

Interval (m)

 

 

Interval (m)

 

 

Interval (m)

 

 

Interval (m)

 

 

Patience Lake

 

 

12

 

 

11

 

 

9.6

 

 

10.25

 

 

9

 

 

12.25

 

 

1

 

 

Belle Plaine

 

 

5

 

 

3.5

 

 

4.3

 

 

7.3

 

 

5.1

 

 

6.8

 

 

4.5

 

 

Esterhazy

 

 

7.5

 

 

6.1

 

 

6

 

 

9.25

 

 

6.5

 

 

11.05

 

 

6.5

 

 

* Assays are pending for these holes.

 

 

 

 

 

 

 

It is also very important to note that information from the drilling to date confirms the presence of the heat anomaly that helped attract the Company to the project area. Temperature measurements from all the wells show minimum formation temperatures ranging from 62° C to 65.5° C.  Temperature will be an important component of the economics of future mining on the property.  The solubility of potash increases with temperature such that the higher the formation temperature, the higher the yield of potassium chloride in the brine solution to be processed for potash recovery.  A solution mine, accessing a higher formation temperature resource, will produce more potassium chloride in solution than an operation tapping an equivalent resource at lower formation temperatures. The Company views formation temperature as a key parameter in solution mining economics, offering advantages in solution mass-balance and savings in capital, energy and processing costs.

 

 

The samples extracted from the three potash members will now be submitted for analysis at the SRC laboratory in Saskatoon.  Results are expected to be obtained within 4 to 6 weeks. Results from the second well (vertical and redirected, i.e. Milestone - 002 and Milestone - 002A) will be reported together once received.

 

 

Testing of potash mineralization on the Milestone property will now continue with an additional well located approximately 7.25 km south-southeast of the second well site.  The Company has budgeted approximately $5.4 million CAD for this three-well drill program but expects to expand the programs based on continuing positive results, enabling the Company to select an initial area for more detailed potash mineralization definition.  The Company expects to be well positioned to prepare an NI 43-101 compliant resource calculation on the Milestone property during 2009.

 

 

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.

 

 

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.

 

 

 

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 that the presence and indicated grade of the potash beds in this third well as a very encouraging result; that the Company has confirmed that the anomaly encountered in the original vertical well -002 was truly localized and small; that the mineralized sections observed for each of the potash members is very consistent and will have very similar tenor in grades and width; that formation temperature will be a key parameter in solution mining economics, offering advantages in solution mass-balance and savings in capital, energy and processing costs; that testing of potash mineralization on the Milestone property will now continue; that the Company will spend approximately $5.4 million CAD for this drill program but expects to expand the programs based on continuing positive results; and that the Company expects to be well positioned to prepare an NI 43-101 compliant resource calculation on the Milestone property during 2009. 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.

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