Athabasca Potash Inc.
TSX : API
January 19, 2009 08:30 ET
Athabasca Potash Inc. Has Engaged SNC-Lavalin to Provide Pre-feasibility Study Services on the Burr Project
SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 19, 2009) - Athabasca Potash Inc. ("Athabasca" or the "Company") (TSX:API) is pleased to announce that it has engaged SNC-Lavalin Inc. to provide pre-feasibility study services on the Burr Project adjacent to the PCS Lanigan Mine located 107 kilometers east of Saskatoon, Saskatchewan.
SNC-Lavalin, other consultants and Athabasca will each address specific elements of the scope of the Pre-feasibility Study (the "Study"). SNC-Lavalin's services will address the surface processing plant and infrastructure. Other consultants and Athabasca are responsible for the environmental and other aspects of the Study to include geology, process technology, underground mine development, resource assessment, shaft, tailings management facilities and transportation. Based on this work SNC-Lavalin will develop capital and operating cost estimates with an intended accuracy of ±25% and a preliminary project execution schedule. Athabasca also intends to file a new National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report in connection with the Study. The Study is scheduled for completion in the third quarter of 2009.
"We are delighted that SNC-Lavalin is working with Athabasca on this important milestone. SNC-Lavalin has been involved in the potash industry for a very long time and has previously provided services to many potash mines in Saskatchewan" said Dawn Zhou, the Company's President and CEO.
On September 29, 2008, the Company announced an updated potash resource estimate for the Burr Project prepared by AMEC Americas Limited ("AMEC"). The Lower Patience Lake Sub-Member ("LPL") contains Indicated Mineral Resources of 241,200,000 tonnes with a grade of 23.3% K2O and an Inferred Mineral Resource of 183,100,000 tonnes with a grade of 23.2% K2O. There is an additional Inferred Mineral Resource of 39,300,000 tonnes, with a grade of 13.2% K2O in the Upper Patience Lake Sub-Member ("UPL"). The Indicated Mineral Resource contains 89,000,000 tonnes of KCl and the Inferred Mineral Resources contains 76,000,000 tonnes of KCl respectively (multiplied K2O tonnes by 1.596 KCl tonnes).
The September 29, 2008 press release (the "Press Release") and the NI 43-101 technical report (the "Technical Report") supporting the updated potash resource estimate are available at www.sedar.com or www.athabascapotash.ca. Susan Lomas, P.Geo. of Lions Gate Geological Consulting Inc, is the Qualified Person (as defined by NI 43-101) for having prepared the mineral resource estimates, and scientific and technical information in the Technical Report and the Press Release.
Athabasca Potash Inc. is a Canadian based corporation and was founded with a goal of establishing itself as a pre-eminent Canadian public company engaged solely in potash exploration and development with focus on the Company's wholly owned Burr Project, and to provide its shareholders with a unique investment opportunity focused entirely on potash.
Caution Regarding Forward-Looking Statements
Certain of the statements made and information contained herein is "forward-looking information" within the meaning of certain securities laws. This includes statements concerning Athabasca's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Athabasca, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, exploration risks, lack of historic drill hole documentation, challenges or impairments to title, the negotiation of access to certain potash mineralization, permit requirements, governmental regulations, aboriginal land use, environmental risks and competition in attracting and retaining personnel. In addition, forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, Athabasca undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.