/NOT FOR DISTRIBUTION IN THE UNITED STATES/
TORONTO, Oct. 19 /CNW/ - IC Potash Corp. ("ICP" or the "Company") (TSXV:ICP) is pleased to announce the commencement of work to provide an NI-43-101 compliant updated resource estimate, and the commencement of all work to provide the "updated" NI 43-101 compliant preliminary economic assessment ("the 2010 Preliminary Economic Assessment or "2010 PEA"). The expected publication date for these reports is December 2010. The reports will be for the Ochoa Sulphate of Potash Project in Lea County, New Mexico. The 2010 PEA will include an updated resource estimate based on data from two recently completed core drilling programs.
The results of the 2010 PEA, which should be completed within two months, together with additional information to be obtained regarding process optimization, hydrology, and marketing will be utilized in the production of a Pre-Feasibility Study (the "Pre-Feasibility Study"), scheduled for completion by no later than during the third quarter of 2011. The 2010 PEA is being prepared primarily by Gustavson Associates, LLC. of Denver, with significant contributions from Intera Geosciences and Engineering of Albuquerque ( Hydrology), Feltchem Engineering of Carlsbad (Mineral Processing), Lyntek Incorporated, Global Mining and Mineral Processing of Lakewood (Mineral Processing), Advanced Terra Testing of Lakewood (Rock Mechanics), and British Sulphur, a division of CRU (Sulphate of Potash Marketing).
Mr. Sidney Himmel, President and Chief Executive Officer of IC Potash Corp stated: "We are all very pleased with the operating progress made on the project this year, and with the completion of the recent private placement financing (Press Release Sep 23, 2010) which will provide funding for the 2010 PEA, and the Pre-feasibility Study, and as well for the balance of the definition drill programs, permitting, and for the Bankable Project Feasibility Study which is expected to begin the last half of 2011."
The successful completion of phase II drilling program has confirmed previous drill results and indicates excellent Polyhalite bed thickness and grade (Press Release Aug 25, 2010). Polyhalite is the feedstock material to produce Sulphate of Potash. The recently completed detailed metallurgical design ("Metallurgical Study" - not NI 43-101 compliant, Press Release June 23, 2010), recommended to management that the planned metallurgical process to convert polyhalite to Sulphate of Potash is robust and should be considered as the primary processing alternative.
In the opinion of management of the Company, the aforementioned items are material to the company's valuation, and therefore NI 43-101 compliant updates of project resources and economics are required. The 2010 PEA will be updated to incorporate land status reports, updated resource estimates, hydrological information, permitting requirements primarily related to the National Environmental Policy Act 40 CRF Part 1500, mine plan studies including mining thicknesses and dilution, processing plans, and capital and operating cost estimates, SOP price forecasts, and a new cash flow model.
All scientific and technical disclosures in this press release have been prepared under the supervision of William J Crowl, a consultant to 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 Sulphate of Potash ("SOP") by mining its 100%-owned Polyhalite Ochoa property in New Mexico. SOP is a non-chloride based potash fertilizer that sells at a substantial premium over the price of Muriate of Potash ("MOP"), the most widely used fertilizer in the world. Typically SOP sells at a premium of over 40% to MOP. ICP is focused on being the lowest cost producer of SOP in the world. The SOP market is over five million tonnes per year and is a significant fertilizer in the fruit, vegetable, tobacco, potato, and horticultural industries, and for agriculture in saline and dry soils and soils in which there is much agriculture with varieties of crops, such as for example in China, India, the Mediterranean, and the United States. ICP's Ochoa property consists of over 100,000 acres of federal subsurface potassium prospecting permits and State of New Mexico Potassium mining leases.
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.
NEITHER THE 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.
For further information: For further information:
please visit www.icpotash.com or contact: Sidney Himmel, 1-416-624-3781