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Western Potash Significantly Expands Measured and Indicated Potash Resource by 40% to 244 Million Tonnes

26.04.2011  |  Business Wire


Western Potash Corp. (the 'Company?) (TSX.V: WPX, FSE: AHE) is pleased
to announce the receipt of an updated NI 43-101 compliant Mineral
Resource Estimate for its Milestone property in southern Saskatchewan.
This updated resource estimate substantially increases the Milestone
extractable Potash Resource to 64 million tonnes of Measured Resource
(contained KCl), 180 million tonnes of Indicated Resource, and 701
million tonnes of Inferred Resource
. The updated resource estimate
at Milestone was prepared by Agapito Associates Inc. ('AAI?) of Grand
Junction, Colorado.


Mineral Resources for the potential solution mining intervals (Patience
Lake, Belle Plaine, and Esterhazy Members excluding interbeds) are
estimated to be as follows:


  • Measured Resource: 637 Mt in place sylvinite grading 30.47% KCl (64 Mt
    of recoverable KCl).

  • Indicated Resource: 1,857 Mt in place sylvinite grading 30.35% KCl
    (180 Mt of recoverable KCl)

  • Inferred Resource: 8,907 Mt in place sylvinite grading 30.31% KCl (701
    Mt of recoverable KCl)


Mineral Resources reported here represent significant expansions in
tonnage compared with the Mineral Resources previously reported in the
NI43-101 Technical Report filed by the Company in July 2010*. These
resource expansions are as follows;


  • Measured Resources expanded by 55%

  • Indicated Resources expanded by 34%

  • Inferred Resources expanded by 25%


* The NI43-101 Technical Report titled 'Technical Report Concerning
Mineral Resource Estimate, Subsurface Mineral Permit KP 408 and KP 409,
Saskatchewan?, dated July 12, 2010 and filed on SEDAR on July 16, 2010
(the 'Report?). The Report was prepared by Agapito Associates Inc. and
reported via news release dated June 3, 2010. The Qualified persons for
the Report were Dr. Michael P. Hardy, P.E (US), P.Eng. (SK), P.G. (US),
Dr. Douglas F. Hambley, P.E. (US), P.Eng. (SK), P.G. (US) and Dean
Pekeski, P.Geo. (SK).


Patricio Varas, CEO and President of the Company commented 'We are very
pleased with the results of this updated resource calculation, though we
are not surprised by it as extensive parts of the property surrounding
the defined resource remain to be drill tested and our seismic data
indicates substantially more potash is present, as was confirmed in our
newest drill hole M-009. We now look forward to including this updated
resource into our mine plan and feasibility process already underway?.
Varas commented further that 'the expansion of resources is another step
in the de-risking process of what management considers to be one of the
largest, most accessible, independently owned Tier 1 potash solution
deposits being developed in the world today?.


A detailed summary of the Measured, Indicated and Inferred Mineral
Resource within Crown and Leased Freehold Areas is presented in Table 1,
2 and 3 respectively.

Table 1. Measured Mineral Resource within Crown and Leased Freehold
Areas Only*

Bed

Average KCL

Grade (%)


  

In-place

Tonnage (Mt)


  

In-Place KCL

Tonnage (Mt)


  

KCL

Resource** (Mt)


Patience Lake

28.66

314.27

90.06

29.60

Belle Plaine

30.13

131.70

39.68

13.04

Esterhazy

33.71

190.71

64.28

21.13
Total31.00636.68194.0263.77


* Search Radius of 800 m used; Mt = million tonnes; K2O grade > 15%;
Density = 2.08, KCl = 1.58303 K2O.


** Resource accounts for geologic anomalies (5%), and extraction ratio
(34.6%), and 0.8- and 1.5-km buffers, respectively around towns and
plant..

Table 2. Indicated Mineral Resource within Crown and Leased Freehold
Areas Only
*

Bed
  

Average KCL

Grade (%)


  

In-place

Tonnage (Mt)


  

In-Place KCL

Tonnage (Mt)


  

KCL

Resource (Mt)**


Patience Lake

28.60

930.41

266.09

83.78

Belle Plaine

29.97

391.00

117.20

36.90

Esterhazy

33.66

536.03

180.44

59.31
Total30.791,857.45563.73179.99


* Search Radius: 1.6 km outside radius and 2.5 km inner radius (between
drill holes); Mt = million tonnes; K2O grade > 15%; Density = 2.08; KCl
= 1.58303 K2O.


** Resource accounts for geologic anomalies (9%), extraction ratio
(34.6%), and 0.8- and 1.5-km buffers, respectively around towns and
plant..

Table 3. Inferred Mineral Resource within Crown and Leased Freehold
Areas Only
*

Bed
  

Average KCL

Grade (%)


  

In-place

Tonnage (Mt)


  

In-Place KCL

Tonnage (Mt)


  

KCL

Resource (Mt)**


Patience Lake


28.68

4,349.59

1,247.56

323.74

Belle Plaine

29.88

2,030.82

606.71

157.44

Esterhazy

33.47

2,526.82

845.61

219.44
Total30.858,907.242699.89700.62


* 8.0 km radius used; Mt = million tonnes; K2O grade > 15%; Density =
2.08, KCl = 1.58303 K2O.


** Resource accounts for geologic anomalies (25%), extraction ratio
(34.6%), and 0.8- and 1.5-km buffers, respectively around towns and
plant..


AAI have made estimates of the Measured, Indicated and Inferred Mineral
Resources based on a Radius of Influence (ROI) similar to that applied
by mine operators and peer group explorers working on solution mining
properties in the region. Furthermore, the Measured, Indicated, and
Inferred Mineral Resources were arrived at by discounting the overall
calculated tonnage by Loss Factors of 5%, 9% and 25% respectively, to
account for unknown geologic anomalies. The resulting potash quantity
was further reduced using an extraction ratio factor of 34.6%, which is
the estimated potash available to be extracted for the life of an
envisioned operation leaving sufficient material to support cavern
stability. The resource estimate was prepared in accordance with the
requirements of NI 43-101 of the Canadian securities regulators. As
required by NI 43-101, a technical report supporting the resource
estimate will be filed on SEDAR within 45 days following the date of
this news release: reports on SEDAR are available to the public.


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.


In calculating the initial mineral resource AAI incorporated historical
information available from public sources as well as new resource
information obtained from exploration conducted by Western Potash
between January 2009 and March 2011. Exploration conducted during that
time included the purchasing and/or acquisition, processing and
interpretation of 474.5 line km of 2D and over 98 square kilometers of
3D seismic data, and the completion of ten exploration wells totaling
18,240 meters completed within the KLSA 008 Crown Lease area. All ten of
the wells drilled, spanning some 18 kilometers of strike length,
penetrated the potash-bearing beds and have sufficient assayed core to
allow for the calculation of potash mineralization thickness and grade.


The updated and expanded Resource Calculation will now be incorporated
into the Solution Mining Plan, part of the intergrated Feasibility
process ('PFS + FS?) currently being completed by AMEC Americas Limited
('AMEC?) as reported via press release dated January 19, 2011. The
integrated Feasibility process remains on schedule and on budget, with
an estimated 'PFS? completion date 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.

About Western Potash


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.


This news release was reviewed by Dr. Michael P. Hardy, P.E (US), P.
Eng. (SK), P.G. (US), and Dr. Douglas F. Hambley, P.E. (US), P. Eng.
(SK), P.G. (US), of Agapito Associates Inc. All individuals are
Qualified Persons under NI 43-101 Rules and Policies and are co-authors
of the updated NI 43-101 Technical Report on which this news release is
based.


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. Dean
Pekeski is also co-author of the updated NI 43-101 Technical Report on
which this news release is based.


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 that the updated resource estimate significantly upgrades the
Milestone Potash Resource, which consists of 64 million tonnes of
Measured Resource (contained KCl), 180 million tonnes of Indicated
Resource, and 701 million tonnes of Inferred Resource; that 'We are very
pleased with the results of this updated resource calculation, though,
we are not surprised by it as extensive parts of the property
surrounding the defined resource remains to be drill tested and our
seismic data indicates substantially more potash is present, as was
confirmed in our newest drill hole M-009; that the addition of this
tonnage is significant because it demonstrates over 95 years of
production resources at an annual mining rate of 2.5 million tonnes of
KCl product; that we now look forward to including this updated resource
into our mine plan and feasibility process already underway?; that 'the
expansion of resources is another step in the project de-risking process
of what management considers to be one of the largest, most accessible
and best Tier 1 potash, greenfield, independently owned solution
deposits being developed in the world today?; that the updated and
expanded Resource Calculation will now be incorporated into the Solution
Mining Plan, part of the intergrated Feasibility process ('PFS + FS?)
currently being completed by AMEC Americas Limited ('AMEC?) ; that the
integrated Feasibility process remains on schedule and on budget, with
an estimated 'PFS? completion date sometime during the fourth quarter
2011. It is the Company′s policy not to update forward-looking
statements. 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.


Western Potash Corp.

John Costigan, VP Corporate Development

604
689 9378



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