THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, Sept. 13, 2012 /CNW/ - Magna Resources Ltd. (the "Company") is pleased to announce that American Potash LLC ("American Potash"), a wholly owned subsidiary, has received final approval from the
State of Utah to commence drilling on three of its State leases which
form part of the 100% owned Green River Potash Project (the "Property") in Utah's renowned Paradox Basin.
Key highlights include:
To date, 3 drill permits granted on State leases;
Proposed drill holes in vicinity of historic 24.3% eKCl* over 5.9m and
26.4% eKCl over 3.4m intercepts;
Exploration Plan submitted to BLM initiates review process towards the
granting of prospecting permits on Federal Lands;
Property contains a 600 million - 1 billion tonne potash NI 43-101
Exploration Target** with Cycle 5, the main target, known to host
potash at a nearby producing mine; and
Drilling is planned for early 2013 on the State Leases to test the
extent, grade and thickness of Cycle 5 within the Property.
State Lease Drill Permits
Stratigraphic test wells have been designed to test the Cycle 5 potash
evaporite horizon in the northwest portion of the Green River Potash
Project on select Utah State leases. To date, three drill permits have
The first drill hole to receive final approval (as announced in Company
press release dated March 28, 2012) is "Duma Point" targeting the Cycle
5 potash zone proximal to the historic Shell Quintana Fed 1-1 well that
intercepted 5.9 m (19.4 feet) of potash mineralization grading 24.3%
eKCl* (*the prefix 'e' in eKCl indicates that the grade was estimated
utilizing the response from the gamma ray log surveys and was not
measured from chemical analysis of the core).
The other two drill holes to receive final approval are "Ten Mile" and
"Mineral Springs", situated 5 kms (3 miles) to the SW and 8 kms (5
miles) to the South respectively from "Duma Point", that straddle the
historic Federal 1-26 well that intercepted 3.4 m (11.2 feet) of potash
mineralization grading 26.4% eKCl.
The Company plans to commence drilling on the State Leases in early 2013
to test the extent, grade and thickness of Cycle 5 within the Property.
As stated in the Company's May 26, 2011 press release, a Memorandum of
Understanding was executed with the Bureau of Land Management ("BLM") to expedite drilling on Federal Lands administered by the BLM. The
Company has formally initiated the review process towards the granting
of prospecting permits on Federal Lands by recently submitting an
Exploration Plan. The Exploration Plan calls for drilling 4
exploration holes on Federal Lands in addition to the 4 holes proposed
on State Leases.
The exploration Plan is currently under review and the Company is
focussed on facilitating a timely completion to the Prospecting Permit
Green River Potash Project
The Property is situated in the renowned Paradox Basin, which contains
the stratigraphic sequence of evaporite/salt layers that comprise the
United States' sole solution mining potash operation, the Cane Creek
potash mine. The Cane Creek mine is currently exploiting Potash Cycle
5, which underlies and extends throughout the Green River Project area
and is the Company's prime exploration target.
Preliminary analysis of down-hole electric log ("elog") data from 33 local and regional oil and gas wells suggests that
Potash Cycle 5 is a regionally extensive sylvite-sylvinite bed in the
northern Paradox Basin demonstrating continuous thicknesses and
improving in thickness and grade across the Property to the northwest.
The most prospective zone of mineralization appears to be located
beneath the central and northwest portion of the Property where
potash-bearing Cycle 5 is inferred to range from about 3 to 6 m thick
and grades from 22 to 25% eKCl.
The Company's technical report on the Green River Potash Project (the "Report") classifies Cycle 5 as a NI 43-101 exploration target (the "Exploration Target") projected to contain between 600 million and 1 billion tonnes of
sylvinite with an average grade ranging between 19 and 29% eKCl,
assuming a bed thickness cut-off of 2.0 m and a composite grade cut-off
of 15.8% eKCl. Cycle 5 ranges between 1,200 and 1,900 m depth on the
Table 1: Summary of the Cycle 5 Exploration Target**
Average grade (% eKCl)
19 - 29
Average thickness (m)
2.5 - 5.0
600 - 1,000
Target cut-offs: 15.8% eKCl bed composite grade and 2.0 m bed thickness.
**It should be noted that Exploration Targets are conceptual in nature
and there has been insufficient exploration to define them as Mineral
Resources, and, while reasonable potential may exist, it is uncertain
whether further exploration will result in the determination of a
Mineral Resource under NI 43-101. The Exploration Target stated in the
Report is not being reported as part of any Mineral Resource or Mineral
The Report was prepared by Vanessa Santos, Chief Geologist with Agapito
and a Licensed Professional Geologist in the State of South Carolina,
and Registered Member of the Society for Mining, Metallurgy, and
Exploration, and Leo Gilbride, Senior Consultant with Agapito and a
licensed Professional Engineer in the State of Colorado, each of which
are qualified persons as defined by and independent of the Company for
the purposes of National Instrument 43-101; and have reviewed the
related scientific and technical information in this press release.
The specific data referred to in the Report was obtained from historical
sources believed to be reliable but which have not and cannot be
verified. For additional details regarding the Property, the Report
and the Exploration Target, refer to the Company's press release dated
May 30, 2012.
The Report is available under the Company's profile on the System for
Electronic Document Analysis and Retrieval (SEDAR).
About the Company
Magna Resources Ltd. is dedicated to the acquisition and development of
potash mineral deposits in the USA and elsewhere, and trades on the
Canadian National Stock Exchange under the symbol MNA. American
Potash, a Nevada limited liability corporation, is a wholly owned
subsidiary of Magna Resources Ltd., which holds certain potash leases
and an option in respect of certain potash lease applications in the
State of Utah that constitute the Green River Potash Project.
Neither the Canadian National Stock Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Canadian
National Stock Exchange) accepts responsibility for the adequacy or
accuracy of this release. Statements in this press release other than
purely historical information, historical estimates should not be
relied upon, including statements relating to the Company's future
plans and objectives or expected results, are forward-looking
statements. News release contains certain "Forward-Looking Statements"
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended. Forward-looking statements are based
on numerous assumptions and are subject to all of the risks and
uncertainties inherent in the Company's business, including risks
inherent in resource exploration and development. As a result, actual
results may vary materially from those described in the forward-looking
SOURCE: Magna Resources Ltd.
For further information: