- New leases encompass 40 square miles -
TORONTO, June 1 /CNW/ - IC Potash Corp. ("ICP" or the "Company") (TSXV: ICP) today announced the receipt of new potash mining leases (the "Mining Leases") for its New Mexico potash project (the "Ochoa Project").
"With these new mining leases we have now consolidated an 80 square mile, contiguous land package that contains what we believe to be the most highly prospective area within our total lease package," said Sidney Himmel, President and CEO of IC Potash Corp. "This is the completion of the area which is our drill program focus. We are now working through the Phase II - 10 hole, drill program that will further validate our geologic model and establish our indicated resource base. In terms of scale, the state land package is one of the most considerable land packages ever awarded by the State."
New Mexico, State Land Commissioner Patrick Lyons awarded the Company the Mining Leases totaling an area of 25,890 acres (40 square miles). With these leases, the Company now has a complete land package containing the target area for the completion of the exploration and development programs, to establish a Sulphate of Potash mining project in New Mexico. Total acres under the control by the Company amount to a contiguous package of 112,000 acres.
As described in the company's press release of April 29, IC Potash has commenced its 10 hole rotary and core Phase II drilling program for the Sulphate of Potash project. Confirmatory drilling and coring will be carried out on both federal and state lands. The Phase II program is following the Phase I drilling program, completed in January. That initial program validated the Company's geologic model for the Sulphate of Potash precursor mineral, Polyhalite, throughout the area of interest.
All scientific and technical disclosure in this press release has been prepared under the supervision of Marc Melker with IC Potash who is a Qualified Person within the meaning of National Instrument 43-101.
About IC Potash Corp
IC Potash intends to become a primary producer of Sulfate of Potash ("SOP") by mining its 100%-owned Polyhalite Ochoa property in New Mexico. SOP is a non-chloride based potash fertilizer that generally sells at a substantial premium over the price of Muriate of Potash ("MOP"), the most widely used fertilizer in the world. Over the past several years, SOP has traded at approximately a 50% premium to MOP in international markets. Using a simple, low cost and proven technology to produce SOP from Polyhalite, IC Potash is focused on being the lowest cost producer of SOP in the world.
The SOP market is approximately 4 million tonnes per year and is a significant alternative fertilizer for agricultural products such as fruits, vegetables, tobacco, potatoes, and horticultural plants. SOP has low "salinity" compared to MOP, and therefore is also used in various saline soils in the world, which are found for example in China, India, the Mediterranean, and the United States.
IC Potash Ochoa property now consists of federal sub-surface potassium permits granted by the Bureau of Land Management ("BLM") and State of New Mexico Potash Mining Leases, in total covering, in conjunction with outstanding federal prospecting permits, approximately 112,000 acres of land, equivalent to 175 square miles. All federal exploration reclamation plans, environmental plans, and archeological work have been approved by BLM. IC Potash carries out all activities through its wholly owned subsidiary, Intercontinental Potash Corp.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of ICP, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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SOURCE IC Potash Corp.
For further information: For further information: please visit www.intercontinentalpotash.com or contact: David Feick, Equicom Group, (403) 218-2839, firstname.lastname@example.org; or Sidney Himmel, (416) 624-3781