TRADING SYMBOL: TSXV: EPO
VANCOUVER, Jan. 29, 2013 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO and OTCQX: ENCTF) is pleased to announce the
commencement of the environmental assessment process for the
Muskowekwan Project, a joint venture between Encanto and the
Muskowekwan First Nation and Muskowekwan Resources Limited to develop a
potash mine on Muskowekwan lands in Saskatchewan.
The joint venture formally initiated the environmental assessment
process by submitting a Project Description/Technical Proposal to the
Canadian Environmental Assessment Agency and the Saskatchewan Ministry
of Environment on December 7, 2012.
The purpose of the Project Description/Technical Proposal is to enable
Canada and Saskatchewan to determine if an environmental assessment of
the Muskowekwan Project is required. On December 13, 2012,
Saskatchewan confirmed the need for a provincial environmental
assessment pursuant to the Saskatchewan Environmental Assessment Act.
The Canadian Environmental Assessment Agency confirmed the need for a
federal environmental assessment pursuant to the Canadian Environmental
Assessment Act, 2012 ("CEAA 2012") on January 29, 2013.
Pursuant to CEAA 2012, the Federal Minister of Environment must decide
and report if any mitigation measures are appropriate. The Minister
must make his decision no later than 365 days after the day on which
the notice of the commencement of the environmental assessment of the
designated project is posted. This time limit does not include the time
required for Encanto to prepare and submit the Environmental Impact
Statement (EIS) and any other required information. Encanto expects to
file the EIS by the summer of 2013.
The provincial environmental assessment process does not have mandatory
timelines, but is expected to be of similar duration.
Jim Walchuck, President and CEO commented "Reaching this stage of the
permitting process is one of the most crucial elements of a methodical
progression in advancing the project toward a producing mine. I would
like to commend the excellent work by our team in getting us to this
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 a 100% interest in two additional potash properties in
Saskatchewan: the 55,000 acre Ochapowace/Chacachas property and the
91,550 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
Per: "James Walchuck"
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