NewsWestern Potash Corp. Commences the FeasibilityStudy Process at MilestoneVANCOUVER, British Columbia, Jan 19, 2011 (BUSINESS WIRE) --
WESTERNPOTASH CORP., (the "Company") (TSX Venture: WPX) is pleased toannounce that AMEC Americas Limited ("AMEC") has been engaged asthe Lead Engineering Consultant for the Feasibility Study Processon the Company's Milestone Potash Project ("Milestone"). Thisprocess begins with the commencement of a Prefeasibility Study (the"PFS").
The Company, AMEC, as well as, other consultants, willeach contribute expertise to specific elements of the PFS. Thisincludes all the facilities required for the development of a newpotash solution mining operation. The PFS scope incorporatesprefeasibility level engineering for all facets of the projectrequired in order to reach the target plant capacity. The exactplant capacity for the feasibility study is not yet established,but, will be reflective of the most profitable throughputpossible for a plant with two optimized trains of evaporation andcrystallization. Both primary and secondary cavern production willbe included in the solution mining methodology. The PFS will alsoprovide for the mitigation of environmental impact and for ultimateclosure. Specific elements of the PFS include:
An updatedNI 43-101 Resource Calculation and Technical Report to becompleted by Agapito Associates Inc. ("AAI"), and will incorporateadditional Crown and private mineral rights acquired by the Company.This Updated Resource Estimate will be the Resource AMEC willuse to complete the PFS; Tradeoff studiesare a critical focus of the Milestone PFS, and include,energy, water supply options and demand, evaporation processtechnology, marketing, multi-level solution mining, as well as, saltbackfilling options analysis; Drillingprogram and well field development, including clusters andpads, piping, pumping, and storage; SolutionMining methodology to be completed by Agapito Associates Inc.("AAI"), including, cavern design and subsidence modeling;Rock mechanics and dissolution laboratory testing;Evaporation and crystallization processes;Product drying, compaction and glazing selection;Product storage, load out and rail loading for transportation,including weighing, application of de-dusting oil and amines,screening and reject recovery; Port options;Infrastructure, facilities required to support afully functioning operation, including buildings, rail and roadaccess, gas and power supply and distribution, boiler plant,water treatment, waste handling; Salt storagearea; Water supply facilities;Utilities negotiation (energy, water); CAPEXestimate, OPEX estimate, and economic analysis; and,Marketing studies.
Patricio Varas, CEO and Presidentcommented: "We are pleased to get the feasibility processunderway and we are confident that this process will continue tode-risk what management believes to be one of the largest andbest Tier 1 potash, greenfield, solution deposits, still availablein the world today". Varas also noted that: "at management's electionand in conjunction with contributions from one of a number oftargeted mine development partners the feasibility study processcan be accelerated". Furthermore, "work necessary to file forenvironmental and other permits is underway" commented Varas.
AMECis a leading engineering firm that currently manages multiplepotash expansion projects in Saskatchewan with a capital value ofseveral billion dollars. AMEC was selected because of their technicalexpertise as engineers and EPCM contractors, as well as theirexperience in potash mine construction, potash processing andtheir expertise in producing potash feasibility studies.
AMECpreviously completed the Milestone Potash Project Scoping Study(the "Study") as reported via press release dated September 20,2010. The Study confirmed that the Milestone resource shows significantpositive economics, and that the asset is of sufficient size andgrade to support solution mining for more than forty years at aproduction rate of 2.5Mt/yr.
Work by AAI will update thecurrent NI 43-101 Technical Report titled "Updated TechnicalReport Concerning Mineral Resource Estimates Subsurface MineralPermits KP 408 and KP 409, Saskatchewan", dated July 12, 2010 andfiled on SEDAR on July 16, 2010 (the "Report"). AAI hasextensive experience in solution mining, resource characterization andpreparation of 43-101 Technical Reports on Potash Resources. AAI'sexperience includes work for Intrepid Potash Inc. in the US, RioTinto and Vale at the PRC project in Argentina, and for severalprospective potash projects located in Saskatchewan.
GolderAssociates Ltd. of Saskatoon, Saskatchewan continues to assistthe Company with environmental baseline studies and the preparation ofan Environmental Impact Statement ("EIS") for the Milestoneproject. This work remains on schedule and on budget, with ananticipated EIS submission date of Q3 2012.
AMEC willinclude the work of all consultants in the final report. Initialschedules indicate that the PFS will be completed sometime duringthe fourth quarter 2011.
The 100% owned Milestone property,comprising 500 square kilometers, is located 30 kilometersSoutheast of Regina, and Southeast of Mosaic's Belle Plaine Mine,one of the largest producing potash solution mines in the world.
Western Potash Corp. is a mineral exploration company engaged inthe evaluation, exploration and development of potash mineralproperties in Western Canada. The Company intends to define anddevelop a world-class potash deposit in an ecologicallysustainable, economically efficient, and socially responsiblemanner.
The in-house qualified persons for the purposes of NI43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski,P. Geo, both of whom have reviewed and approved the contents ofthis news release.
For more information on Western Potash Corp.'s projects, please visit the Company's website at: www.westernpotash.com
ON BEHALF OF THE BOARD OF DIRECTORS
"J. Patricio Varas"