TRADING SYMBOL: TSXV:EPO
VANCOUVER, Sept. 27, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO) and (OTCQX: ENCTF) is pleased to release a
corporate update on the Muskowekwan potash mine project and the
scheduling of an Ochapowace property drilling program.
As released on June 28, 2012, a preferred site has been selected and
approved for the Muskowekwan mine infrastructure location and tailings
Since then, a number of key milestones have been met including:
A preliminary plant layout has been developed for the railway spur
line/loop design. This design has been developed in consultation with
the proposed rail company.
Cost estimates were obtained for the purchase and rental of rail cars.
Management, engineering consultants and the railway company
representatives visited two ports in Vancouver in September.
3D modeling of the compaction plant and load-out area has been
Fluid bed dryers, standard product cooler, conditioning drums and
railcar indexer requirements have also been drafted.
The evaporation and crystallization study has commenced.
Main process equipment requests for quotation (RFQ) have begun.
Environmental Assessment, Tailings Management Area, Surface Water
Sourcing, Site Selection Assistance studies are ongoing.
Soil and surface water studies continue.
The dissolution tests of actual bore hole cores were conducted by NG
Consulting in Germany, and have now been completed. This test-work is
used to estimate the brine grade which may be produced from the
solution mining operation and as material input into the processing
Rock mechanical tests at IfG lab in Germany and at Respec in the U.S.A,
both laboratories with considerable experience in potash core testing,
have been completed. The reports associated with these tests are
expected shortly. A compilation of these data sets will aid in cavern
and pillar/mine design, with this work being incorporated into the
preparation of the preliminary mining plan.
Design of processing plant Mechanical/Piping
The Compaction Plant and Load Out area design has been approved.
Optimization of the new plant layout continues.
3D modeling of the Evaporation/Crystallization Plant has commenced.
Building-to-building pipe rack alignment drawings, well field pipeline
layout and cluster valve house design continues.
Mine pumping methodology trade-off study completed.
Encanto CEO and President Jim Walchuck commented, "We are pleased with
the professional level of engineering work that has been carried out by
our employees and consultants to advance this project to this stage.
The time and effort invested is now being returned as results which we
believe will move this project forward in a timely manner towards our
ultimate goal of building a potash mine on the Muskowekwan First
Nation's land. "
The full capacity plant output has been increased to 2.8 Mtpa following
the review of mine design with Agapito Associates Inc. (AAI) and the
Company now looks forward to delivering a pre-feasibility study (PFS)
in Q1 2013.
New 3D Seismic Program and Assay Analysis
Encanto plans to shoot additional 3D seismic on the Muskowekwan Treaty
Land Entitlement (TLE) lands in Q4 2012. With the completion of the 3D
seismic program on the TLE lands, Encanto will be able to request North
Rim Exploration to recalculate and release an upgraded resource
estimate. Encanto is confident the previous drill holes on the TLE
area combined with the 3D seismic shot over the same area will result
in a significant movement of Inferred Resource into the Indicated
Resource category and increase the corresponding mine life associated
with Measured and Indicated Resources.
Drilling Program for Ochapowace Prospect
With the ultimate goal of developing a second resource, Encanto intends
to test the grade with one hole in Q4 2012 on its Ochapowace property .
New Shareholder Rights Plan
Encanto announces today that it has approved the adoption of a
shareholder rights plan (the "Rights Plan") subject to shareholder
approval. The Company's management considers the current market
valuation to be in contrast to the advancement of the Company and its
business at this time.
Under the Rights Plan, share purchase rights (the "Rights") are issued
to holders of shares at the rate of one Right for each share of the
Company outstanding. The Rights Plan is similar to plans adopted by
several other Canadian companies and approved by their shareholders.
Initially, the Rights attach to and trade with the common shares and
are represented by certificates representing common shares.
On the occurrence of certain triggering events, including the
acquisition by a person or group of persons of 20% or more of the votes
attached to all outstanding voting shares of the Company in a take-over
bid that fails to meet certain conditions, the Rights separate from the
common shares and will entitle holders (other than the acquiring person
or group of persons) to acquire shares of the Company at a 50% discount
to the prevailing market price of the shares.
The Rights are not triggered by purchases of voting shares made pursuant
to a "Permitted Bid" made to all holders of common shares on identical
terms. A Permitted Bid must be made by way of a take-over bid circular
prepared in compliance with applicable securities laws and must comply
with certain other conditions set out in the agreement signed to
implement the Rights Plan.
The Company is not aware of any pending take-over bid for the Company.
Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded
Canadian resource company engaged in the development of potash
properties in the Province of Saskatchewan, Canada, the largest
producing potash region in the world. Through the joint venture
agreement with Muskowekwan Resources Ltd. on our flagship property,
Encanto has been successful in adding a 3.5 fold increase to the
project land package, which now totals approximately 58,300 acres. A
Preliminary Economic Assessment (PEA), based solely on the Home Reserve
Lands (15,500 acres), was released in August of 2011 and an updated NI
43-101 report describing the increase to the compliant resource
estimate was filed on May 10, 2012.
Encanto's Muskowekwan First Nation property has a current NI 43-101
resource estimate dated May 9, 2012 titled "2012 Potash Resource Assessment for the Muskowekwan First Nations Home
Reserve Project South Eastern Saskatchewan, Canada" containing Measured and Indicated resources of 130.7MMt grading 29.6%
KCl or 18.7% K2O and Inferred resources of 234.7MMt grading 28.3% KCl or 17.9% K2O.
The Company has 100% interest in two additional potash properties in
Saskatchewan: the 55,000 acre Ochapowace/Chacachas property and the
140,000 acre Spar property.
The technical content of this news release has been reviewed by Ross
Moulton, Vice-President of Exploration for Encanto, a qualified person
as defined by NI 43-101.
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 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.
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:
President and CEO
Martin Gagel CFA, MBA
Vanguard Shareholder Solutions
Toll Free: 1-866-918-0824