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September 11, 2009
Potash One Announces Purchase of Legacy
Project Plant Site Land
Vancouver, Canada - Potash
One Inc. (TSX:KCL) (the "Company" or "Potash One") is pleased
to announce that it has completed the purchase of sufficient surface
land acreage to facilitate the development of the plant site facility
for its Legacy potash solution mining project in Saskatchewan,
Canada.
Since its inception in 2005, Potash One
completed a significant exploration program over its wholly owned
KP-289 Potash Permit area (the "Legacy Project"). This
program has led the Company to favor a land position in the south
region of the permit area for its initial mining activity. The area was
selected based upon the most favorable solution mining characteristics
which include total potash thickness, KCl grade, along with formation
depth and temperature.
With its primary mining area determined,
Potash One has focused its efforts to the selection of the plant site
location. The
plant site placement is an extremely important aspect of the Legacy
Project as it affects both Environmental and Regulatory approvals, as
well as project economics.
The plant
site will support the following:
- processing facilities,
- clean salt storage
area,
- brine pond and cooling
ponds,
- maintenance and
administration buildings, and
- utility infrastructure
The site selection
was also driven by geophysical and hydrogeological characterization,
proximity to transport infrastructure and water and utility services.
Potash One
completed an airborne geophysical survey (performed by Fugro) over the
entire 97,000+ acre permit area and executed an extensive geotechnical
drilling program (comprising over 40 geotechnical and hydrogeological
holes) in and around the preferred plant site region. From
this data, an optimal plant location was selected and a land
acquisition program undertaken.
The land
acquisition program, while remaining active, has now successfully
secured over 1,920 acres (777.3 ha) which encompasses its preferred
site location. This area is sufficient to house all
intended plant site facilities for the full 40 year initial mine
life. Additional land acquisitions are being considered in
order to provide other strategic advantages and buffer space, but those
optional lands are not necessary for the Legacy Project to establish
its primary mine site and production facility.
Paul F. Matysek,
President and CEO of Potash One Inc., commented: "Purchasing
adequate surface land in the area that was identified as the ideal
plant site location represents a significant accomplishment in the
ongoing development of the Legacy Project. We now have direct
ownership of ample land acreage to ensure a flexible and efficient
plant layout and design. This along with the highly detailed geological
and solution mining data obtained to date, truly brings Potash One a
significant step closer to making Legacy a reality."
ON BEHALF OF THE
BOARD OF DIRECTORS,
Paul F. Matysek, M.Sc., P.Geo.
President and
Chief Executive Officer
About Potash One Inc.:
Potash One Inc. is a well-funded TSX-listed Canadian resource company
engaged in the exploration and development of advanced potash
properties amenable to solution mining. The Company owns a 100%
interest in the 97,240 acre Legacy Project which has an NI 43-101
Measured Resource of 29 million tonnes of KCl, Indicated Mineral
Resource of 222 million tonnes of KCl and an Inferred Mineral Resource
of 852 million tonnes of KCl. The Company has recently completed a
pre-feasibility study with SNC-Lavalin with robust economics at current
potash pricing. The Legacy Project is adjacent to the largest producing
solution potash mine in the world. The Company also owns more than
515,000 acres of Potash Subsurface Mineral Exploration Permits in
Saskatchewan, Canada.
Forward-Looking
Statements: Statements
in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors
disclosed under the heading "Risk Factors" and elsewhere in
the corporation's periodic filings with Canadian Securities Regulators.
Such information contained herein represents management's best judgment
as of the date hereof based on information currently available.
Statements in this press release other than purely historical
information, including statements relating to the company's future
plans and objectives or expected results, constitute forward-looking
statements. Forward looking statements are based on numerous
assumptions and are subject to all of the risks and uncertainties inherent
in the company's business, including risks inherent in mineral
exploration and development. The company does not assume the obligation
to update any forward-looking statement. There are numerous risks and
other factors that will influence a development decision, including
concluding resource evaluations on mineral properties, extraction and
processing design limitations, financing requirements, permitting risks
and economic factors, all of which may be beyond the control of the
company.
The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release
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