RE: up .025 on half mil tradedHinterland applies for N.S. potash exploration licence
2008-06-18 09:20 ET - News Release
Mr. Mark Fekete reports
HINTERLAND APPLIES FOR POTASH DEPOSITS IN CAPE BRETON, NOVA SCOTIA
Hinterland Metals Inc. has submitted an application for a 17,783-hectarespecial exploration licence for salt and potash in the Malagawatch area of CapeBreton, Nova Scotia. The special licence is underlain primarily by rocksbelonging to the Windsor group. Potash salts are currently being mined from thelower Windsor Group near Sussex, N.B., by Potash Corp. Previous exploration hasidentified the Malagawatch and Orangedale salt deposits within the area of thespecial licence. Descriptions of these two deposits can be found on-line in thetargeted geoscience initiative, a joint venture between N.S. Natural Resourcesand Natural Resources Canada.
The Malagawatch deposit is the more important of the two for potash and wasdiscovered in an oil well drilled by Chevron Standard Ltd. and Irving OilCompany Ltd. in 1978. Ten deep wells and numerous diamond drill holes roughlydefine the deposit. Potash occurs at two distinct stratified layers. The Apotash layer occurs up to nine metres thick within a thick salt succession thatcompletes the first major cycle of sedimentation within the lower Windsor group.The thinner B potash layer occurs higher up within the middle Windsor group.Although only limited drilling has been completed at the Orangedale deposit, itis stratigraphically similar to Malagawatch located 20 kilometres to thesoutheast. Both the A and B potash layers have been intersected at Orangedalebut they are not as wide or as consistent as at Malagawatch.
Special exploration licences are granted in Nova Scotia according toministerial discretion. Once the licence is granted it is valid for one yearfrom the date it is issued, and may be renewed for four additional years.Applications must be submitted with a five-year work proposal. Hinterland'sproposal includes detailed compilation and 3-D modelling of previous drill holedata followed by confirmation drilling in the first year.
We seek Safe Harbor.