WPX Executes Drilling Agreement With Red Dog Drilling Inc
Western Potash Corp. (the "Company") is pleased to announce that it has signed a drill contract agreement to commence its 2009 potash exploration drilling program within the Milestone Property, in Saskatchewan, and the Russell South Property in Manitoba.
Under the terms of the agreement, the Company has secured a telescopic-double drill rig supplied from Red Dog Drilling Inc. based out of Estevan, Saskatchewan to complete up to an 8 month term drilling program. The Company will drill three wells within the Milestone property in Saskatchewan, followed by an additional two wells within the Russell South property in Manitoba.
Saskatchewan The Milestone property comprising approx. 500 square km, is located approximately 30 km southeast of Regina, and to the southeast of the Mosaic Company's Belle Plaine KL-106-R mining lease, which hosts one of the largest producing potash solution mines in the world. The property is immediately adjacent to potash permits held by BHP-Billiton, Vale (through a recent sale by Kennecott Canada Exploration) and Potash One.
During 2008, the Company purchased, reprocessed, and interpreted 138 line-km of two-dimensional seismic data in order to map out the extent of the potash prospective beds within the property. The interpretation of the seismic data has confirmed the presence of potash prospective salt beds continuing onto the eastern portion of the property, within 15 km of the potash wells drilled by Kennecott during 2008 (subsequently sold to Vale), and covering an area of over 185 square kilometers highlighting a sizeable and attractive new exploration target area. The Company has designed an initial, three well exploratory drill program to define the extent, grade, thickness and type of potash mineralization present on the property. Geological data suggests that all three potash bearing members of the Prairie Evaporite formation are present within the target area at depths amenable to solution mining.
The first well license has been issued by the Saskatchewan Ministry of Energy and Resources, and two other well license applications are currently being processed. Drilling of these wells will commence immediately after spring vehicle load restrictions are lifted by the Province of Saskatchewan, and weather conditions permit the use of heavy equipment on the well sites. The Company has budgeted approximately $5.4 million CAD for this drill program, and will be well positioned to prepare a NI 43-101 compliant resource calculation on the Milestone property during 2009 should drilling results be positive.
Manitoba The Russell South property comprising approx. 640 square km, is located approximately 40km southeast of Potash Corp of Saskatchewan's Rocanville mine, and lies adjacent to BHP Billiton's Potash Lease and Agrium's Exploration Permits along the Manitoba-Saskatchewan border.
During 2008, the Company carried out exploration activities on its Manitoba properties that included the completion of nine exploratory wells and the acquisition of several line-km of two-dimensional seismic data. The Company is encouraged by the extent of the mineralization discovered and outlined by holes in the Russell South area, which, together with historical drilling data to the north, and the interpreted seismic data, suggests the presence of an important potash resource adjacent to the St Lazare potash resource controlled by Agrium. Further two-dimensional seismic geophysics and the completion of two additional potash wells will allow the Company to prepare a NI 43-101 compliant resource calculation on the Russell South property during late 2009. The Company has budgeted approx. $2.3 million CAD for its exploration efforts. Drilling will commence immediately upon completion of the potash wells in Saskatchewan.
Further to the Company's information circular filed on SEDAR on February 27, 2009 and the motion that was passed by shareholders at the annual general meeting ("AGM") on March 26, 2009, the Company is re-pricing 8,000,000 incentive stock options (the "Options") for Directors, Officers and employees at a price of $0.50. Of the 8,000,000 Options; 7,000,000 were originally priced at $1.10, and the remaining 1,000,000 were originally priced at $1.25. The Options expire on May 6, 2013, and May 15, 2010, respectively.
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.
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, President and CEO
This news release contains Forward Looking Statements regarding our intentions and plans. 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.