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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 20, 2011) – Pacific Potash Corporation (TSX VENTURE:PP) (“Pacific Potash” or the “Company”) is pleased to announce that it has signed a letter of intent (“LOI”) with Grizzly Discoveries Inc. (“Grizzly”) to commence a multiple drill hole exploration program on the Pacific Potash – Grizzly 50:50 owned Property surrounding Pacific’s 100%-owned Provost Property. Pacific Potash and Grizzly have engaged Barlon Engineering and Taylor Land Services, both of Calgary, Alberta, to coordinate the required well licensing and site preparations for three well-site locations. The LOI indicates that a minimum of one well will be drilled and that the costs will be shared equally by Pacific Potash and Grizzly. Depending upon results, up to three wells may be drilled on the 50:50 Property. Drilling on the 50% Property is expected to commence in October.
Pacific Potash – Grizzly 50:50 Jointly Owned Property
In late 2010 and 2011, Pacific Potash and Grizzly submitted 24 metallic and industrial mineral (“MAIM”) permit applications to the Alberta Government totaling approximately 527,000 acres on the basis of a 50:50 ownership split. The permits were granted between April and August, 2011. The analysis of all the available geophysical logs for historic oil wells on the property has revealed a high probability of potash-bearing beds underlying the Pacific Potash – Grizzly Property. More specifically, it appears the east-central and southeastern areas of the property have very high potential for economic-grade potash beds. Gamma-ray responses from historic oil and gas wells suggest that the grades of potash-bearing beds underlying the property could attain grades ranging from 15% to 25% K2O across thicknesses of 1 to 5 m (Klarenbach, P.Geol., 2009). These responses all occur at a depth of about 1,300 m in the uppermost 60 m of the Prairie Evaporite Formation, which is the main host to potash deposits in Saskatchewan (Holter, 1969). The potential quantity and grade mentioned above is conceptual in nature, there has been insufficient exploration on the property to define a mineral resource and it is uncertain if further exploration will result in the target being delivered as a mineral resource.
Pacific Potash 100% owned Alberta Provost Potash Property
The company currently has a 100% interest in the Provost Potash Property (PPP) which consists of two permits, encompassing 43,938 acres approximately 250 km southeast of Edmonton, Alberta and only 45 km east of Western Canada’s first potash mine at Unity, SK. Taylor Land Services and Barlon engineering have initiated site selection, negotiations with surface rights owners, and well licensing. 2D seismic and an airborne survey have been completed on the property, along with Gama Ray testing of Historic oil and gas wells. Klarenbach (2009) suggested that gamma ray response from historic oil and gas wells drilled on Pacific’s Provost Potash Property may indicate one- to five-meter thick potash beds with grades ranging from 15% to 25% K2O The 2D seismic showed the Prairie Evaporite Formation was very uniform in thickness on the property with no thinning (Willott and Edgecombe, 2009). Adjacent to the PPP, near the Saskatchewan border the Prairie Evaporite Formation (PEF) could be 3 m to 6 m thick (Saskatchewan Ministry of Energy and Resources, open file 2009-24). The potential quantity and grade mentioned above is conceptual in nature, there has been insufficient exploration on the property to define a mineral resource and it is uncertain if further exploration will result in the target being delivered as a mineral resource.
Drilling on the 100% owned Provost Potash Property is expected to begin in late September, 2011 with the first of up to four deep (~1400m) test holes into the Patience Lake member of the Prairie Evaporite Formation.
To view the map accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/pp919m.pdf
Pacific Potash Corporation
Pacific Potash trades on the TSX Venture Exchange under the symbol PP. Pacific Potash currently has 34,300,396 common shares issued and outstanding.
Pacific Potash is engaged in the exploration and development of the Provost Potash Property and the surrounding potash claims located in the prolific Prairie Evaporite Formation, which is host to multiple conventional and solution potash mines. The company is also actively looking to acquire other prospective potash assets in North America.
On behalf of the Board,
Pacific Potash Corporation
Steven Khan, MBA, CFA, Director & CEO
Caution concerning forward-looking information
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Pacific Potash in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Pacific Potash’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. Pacific Potash disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
Jody Dahrouge, P.Geo., the Senior Vice-President, Exploration of the Company and a “Qualified Person” for the purposes of NI 43-101 approved the preparation of the technical information in this news release.
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.
