Pacific Potash Corporation Announces Agapito Associates, Inc Opinion on Feasibiliy of Solution Mining
March 26, 2013 (Source: Newswire) Vancouver, BC — Pacific Potash Corporation (TSX-V: PP; OTCQX: PPOTF; FSE: P9P, “the Company”) is pleased to announce the completion of an opinion by Agapito Associates, Inc. (“Agapito”) on the feasibility of solution mining in the Amazon Basin. Their report discusses the known geology of the Amazon Basin including depth, grade and thickness of known potash deposits and occurrences and uses that information to develop an opinion on solution mining. Highlights from the report include the following:
- The Nova Olinda Formation contains a cyclic sequence of marine limestones, sandstones, mudstones, and evaporites of varying thickness. In the upper third of the formation, there is a potash bed that contains sylvite, the mineral mined from the deposits found in Saskatchewan.
- Potash mineralization at the Fazendinha and Ararí properties was identified by Petrobrás in the 1970s and 1980s. Grades reported at Fazendinha range from 28% to 33% potassium chloride (KCl) over thicknesses ranging from 0.98 m to 4.58 m. The depth of the potash zone ranges from 1,000 to 1,100 m. At Ararí the depth to the potash zone ranges from 995 to 1,300 m. Poorly soluble sulfate minerals were noted in the middle zone between the two sylvite horizons on these properties.
- Brazil Potash Corporation’s drilling near Autazes, west of the Company’s claims, has encountered potash in 13 wells. Potash grades ranged from 15% to 40% KCl, over thicknesses ranging from 1.35 m to 3.13 m. Two wells near Itapiranga, north of the Company’s claims, encountered potash, with grades of 23% KCl over 2.20 m and 26% KCl over 4.84 m, respectively.
- Potash could possibly extend onto the Company’s permits near Arari and Itapiranga. If so, the expected minimum depths of the potash in these areas would be approximately 1,100 m and 1,300 m, respectively.
- The ambient temperature at these depths could range from 41 degrees Celsius (°C) to 51 °C based on average crustal heat flows and the local geology. This temperature range is comparable to the temperature encountered at the Belle Plaine solution mine in Saskatchewan.
- Based on the above, the Agapito report concludes that solution mining on the Company’s permits is potentially feasible if potash is encountered during exploration drilling, provided that the true thickness of the potash bed(s) exceeds 2 m, and the grade of the potash exceeds 15% K2O (24% KCl). Solution mining of KCl is enhanced if the ambient formation temperature in the potash beds exceeds 40°C
Dean Pekeski, Director of the Company states “the report from Agapito clearly speaks to the potash solution mining potential of the Amazonas Basin. Although there has been no drilling on the Company’s permits to date, the report indicates that should we intersect potash beds of sufficient grade and thickness through our exploration drilling, they are likely to be found at depths amenable to solution mining.”
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Agapito Associates Inc. was founded in 1978 to provide expertise in mine planning, ground support, solution mining, geomechanical and resource modeling, ventilation and mine economics. With a testing facility, drilling capabilities, and experienced mining engineers, geologists and technical staff, Agapito can provide a seamless interface from sample collection and testing to design and construction management. The firm has worked with Vale, Rio Tinto, Potash One, and Western Potash Corp, garnering over 20 years of experience in developing potash solution mine plans and studies.
Pacific Potash Corporation trades on the TSX Venture Exchange under the symbol: PP, as well on the OTCQX under the symbol: PPOTF and on the Frankfurt Stock Exchange under P9P. Pacific Potash is engaged in the exploration and development of the Amazonas Basin Project and the surrounding potash claims targeting the Middle Amazonas Potash Basin, currently the host to multiple new exploration campaigns for potash. The Company also is exploring the Provost Potash Property and the surrounding potash claims targeting the prolific Prairie Evaporite Formation, which is host to multiple conventional and solution potash mines. Qualified Person Dean Pekeski, P.Geo., a Director for the company and a qualified person for the purposes of NI 43-101, has approved the preparation of the technical information in this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking information
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Pacific Potash in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Pacific Potash’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Pacific Potash disclaims any obligation to update or revise any forward-looking information or statements except as may be required.
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