Encanto Potash Corp. Announces Drilling Has Begun on Treaty Land Entitlement Property

Trading Symbol:  TSXV   EPO.V

VANCOUVER, Sept. 21, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) (OTCQX: ENCTF) is pleased to announce that drilling has begun on Muskowekwan First Nation's Treaty Land Entitlement Property ("TLE Property") in Saskatchewan.

The 15,500 acre TLE Property is immediately adjacent and contiguous to the 16,800 acre Muskowekwan First Nation Home Reserve ("Home Reserve") where Encanto has drilled and cored five test wells resulting in the Company issuing a NI 43-101 Report ("the Initial Report") by North Rim Exploration Ltd. ("North Rim"). The Initial Report was announced March 18, 2011. Both the Home Reserve and the TLE Property are governed by a current joint venture between Encanto and the Muskowekwan First Nation.

The locations of the two wells were chosen to maximize the area of influence of the holes for an updated Mineral Resource calculation.  An updated NI 43-101 report will be issued after the successful designation process associated with the TLE Property is completed.  A map showing the location of the wells can be found by clicking on the following URL: http://files.newswire.ca/850/SCRP11020.pdf

Encanto President and CEO Jim Walchuck comments: "We're pleased to report that the planned drilling of two wells has begun ahead of schedule. The drill is currently turning and Encanto looks forward to receiving a new expanded resource calculation which will be released as soon as North Rim has analyzed the well results and prepared an updated NI 43-101 report.  It's an exciting time for the Company and our partner, the Muskowekwan First Nation."

Drilling operations are being directed by Codeco Energy Group ("Codeco") of Calgary, Alberta.  Codeco has contracted Ensign Energy Services ("Ensign") of Calgary, Alberta to complete two (2) wells to a depth of approximately 1,250 metres with the objective of coring the potash members of the Prairie Evaporite formation.  The final depths of the wells will be approximately 60 metres below the Esterhazy Member. North Rim of Saskatoon, Saskatchewan will be on site to supervise core retrieval and shipment to their Saskatoon lab for processing.  North Rim will be responsible for calculating the updated NI 43-101 compliant Mineral Resource estimate.  North Rim has extensive experience in the resource characterization and preparation of NI 43-101 technical reports on potash resources having worked on Saskatchewan potash projects for such companies as Mosaic, Potash One and Athabasca Potash.  Encanto anticipates receiving this new resource estimate in late Q4 of 2011 or early Q1 of 2012 depending on the assay results turnaround.

Encanto is also pleased to report that the Company has been invited to participate in a Global Chinese Financial Forum September 23 and 25, 2011, in Toronto. This is the leading conference in North America that facilitates cross border business opportunities with Greater China. First day activities include business matching opportunities such as M&A, financing, joint venture partnerships and private meetings, followed by a second day primarily consisting of a Financial Expo and trade show with further networking opportunities.

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange-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

  "James Walchuck"
Per:  _____________
  James Walchuck
  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 RELEASE

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 LAW.

 

 

 

 

 

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


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