TRADING SYMBOL: TSXV:EPO
VANCOUVER, June 3, 2013 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO and OTCQX: ENCTF) is pleased to announce that the
Muskowekwan Project resource has improved as a result of the
recalculation of the geologic data. This resource now includes the data
obtained from the latest 3D seismic program along with the results of
the previous 3D seismic program and drill holes.
The latest 3D seismic program was completed in late December, 2012 and
the data sent to RPS Boyd PetroSearch of Calgary, Alberta for seismic
interpretation. Those results were forwarded to North Rim Consulting of
Saskatoon in order to calculate the new resource.
The latest reserve/resource breakdown is as follows:
Solution Mining Resource Summary (Proven and Probable Reserves)
Reserves used in PFS
KCI Reserves (MMT)
Total Proven Reserves
Total Probable Reserves
Proven and Probable Reserves
Solution Mining Resource Summary (Measured and Indicated)
Resource used in PFS
KCI Resources (MMT)
Total Proven, Probable, Measured and Indicated
Solution Mining Resource Summary (Inferred)
Resource used in PFS
This reassessed resource continues to add technical confidence to the
Muskowekwan Project reserve/resource and the additional 3D data will
allow the mine plan to be finalized in the Feasibility Study. This
should result in more resource to be converted into Reserves upon
issuance of the Feasibility Study currently underway.
"The Muskowekwan Project's proven, probable reserves, combined with our
measured and indicated resources could support a mine life in excess of
70 years, assuming an annual production of 2.8 million tonnes per
year. The merit of putting this project into production keeps getting
stronger with each milestone" stated Encanto CEO and President, Jim
Creep and Dissolution Testing
Laboratory creep testing of sylvinite and halite was completed by two
independent laboratories as part of the previously released Preliminary
Feasibility Study. Tests were completed on the Belle Plaine and
Patience Lake Members and the salt interbeds above, between and below
the two Members at both 45 and 65O C. The test results showed favourable creep rates that may allow larger
caverns and smaller pillars, resulting in higher extraction ratios. As
a result, cavern dimensions will be further evaluated during the
Laboratory dissolution testing of core samples at 60°C and 75°C was
performed by NG Consulting of Sondershausen, Germany. The samples were
collected from the Patience Lake Member, the interbed between the
Patience Lake and Belle Plaine Members, and the Belle Plaine Member.
The results of the testing confirmed that:
Dissolution rates varied as expected between those for pure sylvinite
and pure halite and correlated well with theoretical data
Dissolution rates of the Encanto samples are equivalent to other high
grade deposits in this area
The brine composition data resulting from this work will be used as
input data for the processing plant design currently being performed by
Veolia Water Solutions & Technologies at their Research Center for HPD®
Evaporation and Crystallization technologies.
The technical content of this news release has been reviewed by Jim
Walchuck, P. Eng., a qualified person as defined by NI 43-101.
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 a joint venture
agreement with Muskowekwan Resources Ltd. ("MFN JV") on our flagship
property, Encanto has a project land package, which totals
approximately 61,000 largely contiguous acres. A PFS was released in
February 2013 confirming Proven & Probable KCI Reserves totaling 162
MMt grading 28% which supports primary and secondary mining for over 50
years at an annual rate of 2.8 million tonnes.
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.
Encanto is currently exploring domestic and international strategic
partnerships for the financing, development and sale of potash
production from its MFN JV Property.
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