Potash One Inc.
TSX : KCL

Potash One Inc.

December 09, 2009 11:40 ET

Potash One Inc.: Progress Update of the Legacy Project Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2009) - In August 2009, Potash One Inc. (the "Company" or "Potash One") (TSX:KCL), following the encouraging results of a Pre-Feasibility Study, initiated the Legacy Project Feasibility Study (the "Feasibility Study"). The goal was to create a study incorporating capital and operating costs with a target level of accuracy of +/- 15%.

The Feasibility Study is being executed by SNC-Lavalin Inc. ("SNC-Lavalin") of Montreal, Quebec, Whiting Equipment Canada Inc. ("Whiting") of Welland, Ontario, Agapito Associates Inc. ("Agapito") of Grand Junction, Colorado, Golder Associates of Saskatoon, Saskatchewan, NG Consulting of Sondershausen, Germany and other specialized consultants.

The engineering scope of the Feasibility Study includes the design of a solution mining wellfield and processing facility designed to produce an estimated 2.86 million metric tons per year of standard grade potash. Initial production is planned for the 4th quarter 2013, subject to financing and various environmental approvals.

The plant design currently includes two parallel trains of evaporators and crystallizers, designed by Whiting. Potash One reports the following progress on the Feasibility Study:

  • Initiated overall plant layout drawing (SNC-Lavalin) and wellfield layout drawings (Agapito)

  • Initiated heat and material balance and flowsheets for mine and processing plant (SNC-Lavalin)

  • Initiated design specifications for major processing equipment (SNC-Lavalin)

  • Completed solution mining dissolution bench tests (NG Consulting)

  • Completed rock mechanics tests and long term subsidence modeling (Agapito)

  • Completed mine planning to support a proven and probable reserve estimate (Agapito)

  • Completed a port and rail logistics scoping study (SNC-Lavalin)

  • Issued packages for equipment quotations to support the Feasibility Study cost estimate (SNC-Lavalin)

  • Initiated basic engineering work for mechanical, civil, concrete, structural, architectural and piping (SNC-Lavalin)

  • Initiated evaporator and crystallizer vessel and piping design (Whiting)
  • Commenced 3D modeling of the processing plant (SNC-Lavalin)

Potash One is forecasting to complete the Feasibility Study, including the basic engineering work, by Mid-2010 as initially planned.

Paul F. Matysek, President and Chief Executive Officer of Potash One, stated, "I am very encouraged by the growing expressions of interest in our Legacy project by various strategic partners and investors. The Potash One team has progressed diligently on the Feasibility Study and is confident that it will meet its milestones, as planned. I also am very pleased with the overall development of the Legacy Project and we remain committed to our schedule to initiate construction in late 2010 and begin production in late 2013."

ON BEHALF OF THE BOARD OF DIRECTORS,

Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer

About Potash One Inc.:

Potash One Inc. is a well-funded TSX-listed Canadian resource Company engaged in the exploration and development of advanced potash properties amenable to solution mining. The Company owns a 100% interest in the 97,240 acre Legacy Project which has an NI 43-101 compliant Measured Resource of 29 million tonnes of recoverable KCl, Indicated Mineral Resource of 222 million tonnes of KCl and an Inferred Mineral Resource of 852 million tonnes of KCl. The Company has recently completed a pre-feasibility study with SNC-Lavalin, Whiting Equipment Canada Inc, Agapito Associated Inc., Golder Associates and North Rim Exploration LTD. The Legacy Project is adjacent to the largest producing solution potash mine in the world. The Company also owns more than 515,000 acres of Potash Subsurface Exploration Permits in Saskatchewan, Canada.

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. The Company does not assume the obligation to update any forward-looking statement. There are numerous risks and other factors that will influence a development decision, including concluding resource evaluations on mineral properties, extraction and processing design limitations, financing requirements, permitting risks and economic factors, all of which may be beyond the control of the Company.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information