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Western Potash expects maiden resource for Milestone Potash Property before year end
Shares in Western Potash (TSX-V: WPX, Frankfurt: AHE) received a boost today after the company reported further positive results from its ongoing resource definition program on the Milestone Property in southern Saskatchewan, Canada. The Milestone property, comprising 500 square kilometers, is located south-east of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines in the world.
The results emanated from Milestone 004 and 005 wells, which are part of a five well, C$8.5 million programme the company is undertaking. Highlights included a 23.35 m composite intersection of potash mineralization with a weighted average grade of 17.35 wt % K2O across three potash members in Milestone-004, while the Milestone-005 well reported a 22.25 m composite intersection of potash mineralization with a weighted average grade of 19.89 wt % K2O across three potash members.
Western Potash also noted that it recorded very little Carnallite in Milestone 005 in any of the three potash members. “The absence of Carnallite in the Milestone-005 well does suggest that in some areas of the Milestone property parts of the Esterhazy member could be of economic interest,” the company stated.
The Milestone-004 and Milestone-005 wells are located approximately 3 km south and north respectively of the Milestone-003 well, where Western Potash reported a composite thickness of 24.4m of potash mineralization with a grade of 18.2% wt K2O in a press release dated August 24, 2009.
“The Company points out that the presence, thicknesses and grade of the potash beds in these fifth and sixth wells are similar in tenor and are as encouraging as those seen in previous wells and indicate a remarkable continuity of the potash beds in the region when comparing with the results reported for the first four wells,” Western Potash highlighted. “The Company feels that the thicknesses and grades obtained by geochemical sampling and down hole gamma ray logging are consistent with those mined at the Belle Plaine solution mine and that it has now demonstrated regional continuity of all three potash members, over 18 km of strike length, between the wells drilled to date.”
Western Potash was also keen to note that temperature measurements from all the wells completed showed a minimum formation temperature of 60 to 65.5 Celsius, which is an important factor in the economics of developing the project into a mine. “The solubility of potash increases with temperature such that the higher the formation temperature, the higher the yield of potassium chloride in the brine solution to be processed for potash recovery.”
The potash exploration and development company also reported that it had completed a 2D seismic program which will be used to assist in the planning of the next round of drilling and an upcoming 3D seismic programme.
Western Potash is planning to drill three additional wells, with drilling of the first well expected to commence “immediately”.
A NI43-101 compliant inferred resource calculation based on the first four wells is also expected before the end of the year, with a indicated and inferred resource calculation based on the 2D and 3D seismic data and five wells expected in early 2010.
