American Potash Acquire Lithium Mining Claims in Southeast Paradox Basin, San Miguel County, Colorado, USA
Apr 03, 2017, 15:14 ET
VANCOUVER, April 3, 2017 /CNW/ - American Potash, LLC, (AMP) is pleased to announce acquisition of 608 US Federal placer mining claims, totaling approximately 12,000 acres, in the southeast extension of the Paradox Basin in San Miguel County, southwest Colorado. The new Colorado lithium claims plus previously acquired lithium claims and State leases in Utah bring the current total area of lithium claims and leases in the Paradox Basin of Utah and Colorado to approximately 25,000 acres. Approximately 1/3 of the Paradox Basin extends southeast from Utah into the State of Colorado, including thick sections of Paradox Formation evaporate (salt bed) stratigraphy. The new mining claims occur as two contiguous blocks located over part of the southeast extension of the Paradox Basin's Paradox Formation and locally underlying Leadville Limestone stratigraphy from which lithium-bearing brines have been documented in five historic oil and gas wells (ranging from 87 ppm to 1700 ppm lithium) and one historic potash exploration well (339 ppm lithium). The new Colorado claim blocks also encompass parts of the southeast extension of the Lisbon Valley Anticline, Gypsum Valley Anticline and associated fold and fault belt structures which create traps for hydrocarbons and aqueous brines. Well logs from an historic potash exploration well (Standard Oil 88-21P) located in the Lisbon Valley area near the Utah-Colorado border document incidental brine production from a Paradox Formation clastic unit containing 730 ppm lithium-oxide (339 ppm elemental lithium). This well is located approximately 5 miles northwest AMP's new Southeast Lisbon Valley claim block in Colorado.
The two new Colorado claim blocks encompass existing operating and shut-in oil and gas wells, many with reported co-produced brines. American Potash are currently in negotiations with the well-field lease owner and operator regarding procurement of an agreement allowing AMP to access and sample co-produced brines from their oil and gas production wells. Occurrence of lithium in potentially diluted co-produced oil-field brines proves existence of lithium in brines in this part of the basin, but does not necessarily represent potential levels of lithium concentrations in individual Paradox Formation hosted brine aquifers. Collection and analyses of samples from specific, discrete brine aquifers will be required to determine their actual lithium concentrations, which can potentially be accomplished via re-entry of shut-in wells and/or completion of new wells.
American Potash will continue their lithium and potash research and exploration programs on their Utah Paradox Basin lithium claims and potash lease application areas. Further, and pursuant to the February 28, 2017 AMP news release regarding an LOI agreement with Power Metals, AMP plan to drill within the next year on their Utah State lithium leases and/or Federal lithium mining claims two wells designed to collect core from potash cycle 5 and test for occurrence, quality (lithium concentration, thickness of brine aquifer) and hydrologic characteristics (flow volumes, potentiometric surface, hydrologic gradient, aquifer host rock permeability and porosity, etc.) of any brine aquifers encountered in the wells.
Kent Ausburn, PhD, PG is a qualified person within the meaning of NI 43-101. Dr. Ausburn has reviewed and is responsible for the technical details of this release.
About American Potash
American Potash is a public company focused on discovery, development and production of potassium and lithium resources in the Paradox Basin of Utah and Colorado. American Potash currently holds exclusive potassium rights to over 26,000 acres in the Utah Paradox Basin by way of US federal potash permit applications. American Potash expects transferal of the potash permit applications to potash exploration permits by early 2017. In 2016 American Potash acquired lithium mining claims and Utah State lithium leases totaling approximately 13,200 acres within their Potash prospecting permit application area in the Paradox Basin of Utah. The addition of approximately 12,000 acres of lithium mining claims in the Paradox Basin of Colorado in early 2017 brings the current total area of lithium mining claims and State leases in the Paradox Basin in Utah and Colorado to approximately 25,000 acres.
On behalf of the Board of Directors
"Rudy de Jonge"
Rudy de Jonge, CEO
Neither the OTCQX nor the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and Canadian securities laws. 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 Statements.
Key assumptions upon which the Company's forward-looking statements and information are based include: the price of potash will rise and not fall significantly; the Company's ability to secure new financing to continue its exploration and development activities; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Company's ability to obtain regulatory approvals in a timely manner; and the Company's ability to achieve its growth strategy. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.
SOURCE American Potash Corp.
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