Sennen Potash Corporation: Permitting Complete, New Leases Acquired & Drilling to Commence Shortly
August 26, 2014 (Source: Marketwired) — Sennen Potash Corporation (TSX VENTURE:SN) (“Sennen” or the “Company”), along with its partners, Paradox Basin Resource Corp., is pleased to provide a project update on the Monument Potash Project (“Monument”) in South East Utah and South West Colorado.
- Completion of regional 2D seismic interpretation
- Maiden Johnson 1 Well selected and surveyed
- All required approvals and permits granted
- Johnson 1 Well pad Construction and spudding to commence shortly
- Approximately 4,640 net mineral acres of additional leases acquired
SEISMIC INTERPRETATION & WELL LOCATION SELECTION COMPLETE
Following the acquisition and interpretation of 2D seismic over approximately 440 km (275 miles) of the project area, Sennen completed a review and analysis of the interpreted seismic with RPS Canada and North Rim Exploration. The interpreted seismic indicated no structural challenges and demonstrated a continuous and flat salt cycle 18 formation in the area of the proposed initial Johnson 1 potash exploration well (the “Johnson 1 Well”) being currently designed.
Seismic interpretation shows that the Paradox formation appears to have a calculated ispoach at the location of the Johnson 1 Well of approximately 860m (2,700 feet) thick with no evidence of salt dissolution or faulting in the area of interest.
The Johnson 1 Well location was selected based on seismic review and interpretation, anticipated thickness of salt cycle 18, good road access, surface terrain and use, proximity to existing wells/exploration data points and anticipation of spacing of drill holes for resource calculation purposes.
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The Johnson 1 Well is located within 2 miles of the historic Western Natural #1 Charles Redd well which shows a notable gamma kick in salt cycle 18, indicating the presence of potash mineralization within the drill hole. As logs from this well did not include a scale notation, the gamma kick observed in that well serves only as a positive indicator for potash mineralization.
Based on supportive seismic and other exploration work conducted over the past year, the Company and its partner have acquired approximately 4,640 net mineral acres of additional private potash leases, bringing the total lease holdings to 106,842 net mineral acres.
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PERMITTING & BONDING UPDATE
Engineering and geological analysis, pad planning and well design work, has been underway for several months now. The reports, applications and agreements required for the upcoming Johnson 1 Well have been completed and submitted. All required permits and approvals have been approved by the Utah State Division of Oil, Gas and Mining (“DGOM”) and School and Institutional Trust Lands Administration (“SITLA”) and the required reclamation bond of US$84,300 has been lodged with the State. These include:
- Notice of Intention to Conduct Exploration
- Exploration Plan for a potash core hole on SITLA lands
- Drilling Plan
- Road Use and Encroachment
- Division of Water Rights Permission
- Access and Surface Damage Agreement
- Cultural Resource Inventory
- Exploration Reclamation Contract
Sennen plans to start building the pad and commence drilling activities shortly. Long lead time items, including the securing of drilling, coring, fluid contractors and experienced site personnel are in the advanced stages of being finalized. The Company is pleased with the level of potash and broad mineral exploration experience available in local communities in close proximity to its substantial potash leasehold.
Ian Rozier, President and CEO of Sennen said: “With funding and the required permits and regulatory approvals in place, we are able to commence the drilling of our first well in the Paradox Basin shortly. Sennen’s team, along with our experienced professional advisers and partners, have worked hard over the past 6 months to not only plan and design the upcoming drill programme, but also to further consolidated our considerable land holding. This has positioned the Company well for future exploration and development work.”
Sennen has, together with our industry partners, assembled an experienced team of multi-disciplined professionals to focus on the exploration and responsible development of the Monument Potash Project. Monument is comprised of over 106,000 net mineral acres of highly contiguous mineral leases in South East Utah and South West Colorado and is located less than 70 miles from Intrepid Potash Corp.’s operating Cane Creek Solution Mine. Sennen is currently undertaking exploration work required to delineate the potash resource estimate.
The technical and scientific information contained in this news release has been reviewed by Ian T. Rozier, M.Sc., P.Eng, a qualified person as defined in NI 43-101, who is an officer and director of Sennen Resources Ltd.
Neither the TSX Venture Exchange (the “TSXV”) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept 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 Sennen 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 Sennen’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 Sennen with Canadian securities regulatory authorities and available at www.sedar.com. Sennen disclaims any obligation to update or revise any forward-looking information or statements except as may be required.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>