Trading Symbol: TSXV EPO.V
VANCOUVER, Sept. 30, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV:EPO) (OTCQX:ENCTF) is pleased to report that the first
of two (2) planned wells to be drilled in order to expand the resource
to the northeast on the Muskowekwan Treaty Land Entitlement lands has
been completed. North Rim Exploration Ltd., of Saskatoon is overseeing
the drill program and handling of the core. The first hole was drilled
to a depth of 1,245 metres and successfully intersected each of the
Patience Lake, Belle Plaine, and Esterhazy Members. The core will be
assayed and will also have engineering studies completed to determine
certain cavern design and production parameters. The additional
studies are necessary for the planned solution mine development.
Drilling of the second test well will commence within days and is
expected to be completed over the next several weeks.
Based on the results of these two holes, and previous 2D and 3D seismic
work, an updated NI 43-101 compliant resource estimate is scheduled to
be released in Q4 2011 or early Q1 2012 depending on assay turnaround
Encanto and the Muskowekwan First Nation ("MFN") also report that the
treaty land designation vote has been rescheduled due to heavy
caseloads within the respective Federal agencies having responsibility
for this process. The agencies have now finalized the process and MFN
has been advised the new voting date is Saturday November 26, 2011.
"The rescheduling of the vote is a purely procedural issue and certainly
not contentious," states Encanto President and CEO Jim Walchuck. The
information campaign to the MFN stakeholders was completed successfully
and we remain extremely confident that we have gained the support and
the trust of the MFN through this entire process." The MFN continues to
keep their membership updated both on and off the MFN Home Reserve.
Encanto is confident that the results of the vote will be favourable as
indicated by the continued support of Chief Bellerose who was recently
re-elected on a pro potash platform.
The Company and MFN look forward to the completion of the drilling
program, TLE designation vote and release of a significantly expanded
resource estimate over the coming weeks as the Company continues its
development of the MFN Property.
Encanto Potash Corp. is a TSX Venture Exchange and OTCQX listed Canadian
resource company engaged in the exploration and development of potash
properties in the Province of Saskatchewan, Canada, the largest
producing region for potash in the world.
For additional information about Encanto Potash Corp., please visit the
Company's website at www.encantopotash.com or review the Company's documents filed on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
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 NEWS
THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION
RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY. FORWARD LOOKING
INFORMATION IS SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE ANTICIPATED IN OUR FORWARD LOOKING STATEMENTS.
SUCH RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS
OF EXPLORATION ACTIVITIES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY
MARKETS, THE RISKS OF THE MINING INDUSTRY INCLUDING, WITHOUT
LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN OBTAINING
GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION OF
DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE IN
GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING INDUSTRY,
AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE
COMPANY'S FILINGS WITH THE CANADIAN SECURITIES ADMINISTRATORS
(AVAILABLE AT WWW.SEDAR.COM). FORWARD-LOOKING STATEMENTS ARE MADE BASED
ON VARIOUS ASSUMPTIONS AND ON MANAGEMENT'S BELIEFS, ESTIMATES AND
OPINIONS ON THE DATE THE STATEMENTS ARE MADE. SHOULD ONE OR MORE OF
THESE RISKS AND UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING
ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM
THOSE DESCRIBED IN THE FORWARD-LOOKING INFORMATION CONTAINED HEREIN.
THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING
STATEMENTS IF THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR
OTHER CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE
SOURCE Encanto Potash Corp.
For further information:
| James Walchuck || Brian Martin |
| President and CEO || Vanguard Shareholder Solutions |
| Tel: 604-683-2402 || Tel: 604-608-0824 |
| || Toll Free: 1-866-918-0824 |