Western Potash Corp. Commences the Feasibility Study Process at Milestone
WESTERN POTASH CORP., (the 'Company?) (TSX Venture: WPX) is
pleased to announce that AMEC Americas Limited ('AMEC?) has been
engaged as the Lead Engineering Consultant for the Feasibility Study
Process on the Company′s Milestone Potash Project ('Milestone?). This
process begins with the commencement of a Prefeasibility Study (the
'PFS?).
The Company, AMEC, as well as, other consultants, will each contribute
expertise to specific elements of the PFS. This includes all the
facilities required for the development of a new potash solution mining
operation. The PFS scope incorporates prefeasibility level engineering
for all facets of the project required in order to reach the target
plant capacity. The exact plant capacity for the feasibility study is
not yet established, but, will be reflective of the most profitable
throughput possible for a plant with two optimized trains of evaporation
and crystallization. Both primary and secondary cavern production will
be included in the solution mining methodology. The PFS will also
provide for the mitigation of environmental impact and for ultimate
closure. Specific elements of the PFS include:
An updated NI 43-101 Resource Calculation and Technical Report to be
completed by Agapito Associates Inc. ('AAI?), and will incorporate
additional Crown and private mineral rights acquired by the Company.
This Updated Resource Estimate will be the Resource AMEC will use to
complete the PFS;
Tradeoff studies are a critical focus of the Milestone PFS, and
include, energy, water supply options and demand, evaporation process
technology, marketing, multi-level solution mining, as well as, salt
backfilling options analysis;
Drilling program and well field development, including clusters and
pads, piping, pumping, and storage;
Solution Mining methodology to be completed by Agapito Associates Inc.
('AAI?), including, cavern design and subsidence modeling;
Rock mechanics and dissolution laboratory testing;
Evaporation and crystallization processes;
Product drying, compaction and glazing selection;
Product storage, load out and rail loading for transportation,
including weighing, application of de-dusting oil and amines,
screening and reject recovery;
Port options;
Infrastructure, facilities required to support a fully functioning
operation, including buildings, rail and road access, gas and power
supply and distribution, boiler plant, water treatment, waste handling;
Salt storage area;
Water supply facilities;
Utilities negotiation (energy, water);
CAPEX estimate, OPEX estimate, and economic analysis; and,
Marketing studies.
Patricio Varas, CEO and President commented: 'We are pleased to get the
feasibility process underway and we are confident that this process will
continue to de-risk what management believes to be one of the largest
and best Tier 1 potash, greenfield, solution deposits, still available
in the world today?. Varas also noted that: 'at management′s election
and in conjunction with contributions from one of a number of targeted
mine development partners the feasibility study process can be
accelerated?. Furthermore, 'work necessary to file for environmental and
other permits is underway? commented Varas.
AMEC is a leading engineering firm that currently manages multiple
potash expansion projects in Saskatchewan with a capital value of
several billion dollars. AMEC was selected because of their technical
expertise as engineers and EPCM contractors, as well as their experience
in potash mine construction, potash processing and their expertise in
producing potash feasibility studies.
AMEC previously completed the Milestone Potash Project Scoping Study
(the 'Study?) as reported via press release dated September 20,
2010. The Study confirmed that the Milestone resource shows significant
positive economics, and that the asset is of sufficient size and grade
to support solution mining for more than forty years at a production
rate of 2.5Mt/yr.
Work by AAI will update the current NI 43-101 Technical Report titled
'Updated Technical Report Concerning Mineral Resource Estimates
Subsurface Mineral Permits KP 408 and KP 409, Saskatchewan?, dated July
12, 2010 and filed on SEDAR on July 16, 2010 (the 'Report?). AAI has
extensive experience in solution mining, resource characterization and
preparation of 43-101 Technical Reports on Potash Resources. AAI′s
experience includes work for Intrepid Potash Inc. in the US, Rio Tinto
and Vale at the PRC project in Argentina, and for several prospective
potash projects located in Saskatchewan.
Golder Associates Ltd. of Saskatoon, Saskatchewan continues to assist
the Company with environmental baseline studies and the preparation of
an Environmental Impact Statement ('EIS?) for the Milestone project.
This work remains on schedule and on budget, with an anticipated EIS
submission date of Q3 2012.
AMEC will include the work of all consultants in the final report.
Initial schedules indicate that the PFS will be completed sometime
during the fourth quarter 2011.
The 100% owned Milestone property, comprising 500 square kilometers, is
located 30 kilometers Southeast of Regina, and Southeast of Mosaic′s
Belle Plaine Mine, one of the largest producing potash solution mines in
the world.
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?
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 the proposed prefeasibility study (the 'PFS?) and readers are
cautioned that: mineral resources that are not mineral reserves do not
have demonstrated economic viability until they are upgraded; that
management is studying the possibility of consolidating the pre and
final feasibility processes, and producing and publishing only a final
feasibility suitable for reaching a production decision and for
attracting project debt finance; that Patricio Varas, CEO and President
commented: 'that this process will continue to de-risk what management
believes to be one of the largest and best Tier 1 potash, greenfield,
solution deposits, still available in the world today?; that the Company
would like to note that at management′s election and in conjunction with
decisions from a number of targeted mine development partners that the
feasibility study process could be accelerated; that work necessary to
file for environmental and other permits is well underway; that
management will be making future recommendations to the board as to the
scope of the PFS yet to be completed and that such recommendations may
change over time; that any analysis is based on a cash flow estimate, it
should be expected that actual financial results would vary from these
predictions; that an accuracy assessment of the cost estimates will
completed as part of this study; 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. It is the Company′s policy not to update
forward-looking statements other than as required by applicable
securities laws and regulations.
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.
Western Potash Corp.
Patricio Varas, 604-689-9378