IC POTASH ANNOUNCES SUCCESSFUL COMPLETION OF PHASE II DRILL PROGRAM
/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH US NEWSWIRE SERVICES/
TORONTO, Sept. 23 /CNW/ - IC Potash Corp. ("ICP" or the "Company") (TSXV: ICP) is pleased to announce the successful completion of the Phase II drill program. The data continues to show excellent thicknesses of polyhalite and very high grades of polyhalite. The average thickness of the polyhalite bed from seven Phase II drill cores was 5.7 feet and the average grade was 84% polyhalite. The results continue to confirm the uniformity of the bed throughout our area of interest both for bed thickness and polyhalite grade. As predicted from the geological model, the polyhalite bed continues to be found between thin anhydrite layers which are located within the salt bed of the Rustler formation of the Permian Delaware basin in New Mexico. Grades were determined using quantitative analysis by combined X-Ray diffraction ("XRD") and X-Ray Fluorescence ("XRF").
Summary results for the seven-hole Phase-2 program and hole locations are as follows:
1. ICP 7 - Section 13 - Township 23S, 32 E - 5.8 feet of 84%
polyhalite
2. ICP 8 - Section 23 - Township 23 S, 32 E - 5.7 feet of 85%
polyhalite
3. ICP 9 - Section 3 - Township 23 S, 32 E - 5.5 feet of 77%
polyhalite
4. ICP 10 - Section 1 - Township 24 S, 33 E - 5.7 feet of 84%
polyhalite
5. ICP 11 - Section 3 - Township 24 S, 33 E - 4.2 feet of 80%
polyhalite
6. ICP 12 - Section 8 - Township 24 S, 33 E - 6.7 feet of 89%
polyhalite
7. ICP 13 - Section 29 - Township 23 S, 33 E - 6.2 feet of 88%
polyhalite
These results are entirely consistent with the Phase I results which were announced on February 10, 2010, and shown directly below:
8. IPC 1 - Section 4 - Township 23 S, 33 E - 6.0 feet of 85%
polyhalite
9. ICP 2 - Section 8 - Township 23 S, 32 E - 5.3 feet of 81%
polyhalite
10. ICP 3 - Section 14 - Township 23 S, 33 E - 5.0 feet of 79%
polyhalite
11. ICP 4 - Section 6 - Township 23 S, 32 E - 5.4 feet of 70%
polyhalite
12. ICP 5 - Section 29 - Township 22 S, 32 E - 6.3 feet of 86%
polyhalite
13. ICP 6 - Section 1 - Township 23 S, 32 E - 5.7 feet of 89%
polyhalite
"These positive results reveal that the grade and thickness of the core continues to be consistent with geophysical log analysis from historical rotary drill holes, and from prior core drilling. The original geophysical data formed the basis for our business and geological models, and these continue to be confirmed," said Sidney Himmel, President and CEO of IC Potash Corp. "The data now obtained from the drill programs will be used to fine tune the geological model and update the categorization of the mineral resource estimates. We expect that the substantial portion of the current inferred mineral resource will be upgraded to the indicated category. With the current program, the continued strong market for Sulphate of Potash ("SOP"), and recent metallurgical modeling and analysis, we continue to be well positioned to be a leading SOP producer."
The Company intends to commence the preparation of an updated mineral resource estimate within several weeks. The Company has contracted for the production of a new Preliminary Economic Assessment (the 2010 "Preliminary Economic Assessment", or "2010 PEA"). This work will be carried out by Gustavson Associates, LLC ("Gustavson"). The data resulting from the 2010 PEA, and additional information being obtained regarding process optimization, hydrology and marketing, will then be utilized in the production of a Pre-Feasibility Study, which should be completed by the middle of the third quarter of 2011. Gustavson is a global consulting firm consisting of geologists, geophysicists, engineers, land and contracts managers as well as economists and financial valuators, who work on all aspects of natural resource evaluations.
The Phase-2 drill program was performed in accordance with the program description contained in the NI 43-101 Compliant Report: "Polyhalite Resources and a Preliminary Economic Assessment of the Ochoa project Lea County, Southeast New Mexico" which was prepared as at August 19, 2009. NI 43-101 compliant QA/QC measures were employed in the field and laboratories to ensure defensibility of the data through a validation process using blanks, standards and replicates. The standards used are a combination of in-house prepared and commercially obtained materials of polyhalite and other related minerals. Retained core splits were carefully preserved against moisture degradation and placed in secure climate controlled storage areas to enable any future confirmation audits of the core. Sealed analytical splits are packaged in hard plastic thermal containers for shipment for sample preparation and analysis. All cores were photographed and reference samples were collected and photographed for all rock units encountered during drilling for future reference. XRD and XRF analysis has been carried out by H and M Analytical Services Inc., of Allentown, New Jersey.
Stock Options:
ICP also announces that it has granted 1,222,245 options to acquire common shares of the Company (the "Options") pursuant to the stock option plan of the Company and subject to regulatory approval. The Options were granted to officers and directors of the Company as well as consultants of the Company. The Options expire on September 19, 2015 and have exercise prices ranging from $0.40 to $0.50. The Options fully vest immediately.
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 sub-surface potassium prospecting permits and State of New Mexico Potassium mining leases.
Forward-Looking Statements
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: please visit www.icpotash.com or contact: Sidney Himmel, 416-624-3781
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