EDMONTON, ALBERTA--(Marketwire - April 25, 2011) - Grizzly Discoveries Inc. (TSX VENTURE:GZD) (OTCQX:GZDIF) (FRANKFURT:G6H) ("Grizzly" or the "Company") is pleased to provide the following update for its Alberta Potash Project.
Brian Testo, President and Chief Executive Officer of Grizzly, states that "exploration work is underway on our Alberta Potash Project. We are aggressively pursuing the development of this project given our belief that agricultural products and foodstuffs could experience significant inflation over the next several years. We are excited and encouraged that the Alberta Potash Project has the potential for economic concentrations of potash in an industry-friendly province such as Alberta where the tax regime and royalty structure is favorable. This economic environment, combined with the immense size of the project and indications of historic potash mineralization at depths favorable for solution mining, bode very well for the future results of our exploration."
Alberta Potash Land Holdings Confirmed to be 2.34 Million Acres
The Company currently has a 100% interest in approximately 1.88 million acres in two major blocks, with the North block centered about the towns of Lloydminster and Provost and the South block Northeast of Medicine Hat (see Grizzly's web site at www.grizzlydiscoveries.com for an illustrative map). In addition, Grizzly holds a 50% interest in an additional 458,000 acres in 21 metallic and industrial mineral ("MAIM") permits centered on the town of Provost along the Alberta-Saskatchewan border. These permits, which were previously in application (see Grizzly news release dated January 20, 2011) have now been officially granted by the Government of Alberta. Grizzly's total land holdings for potash are now confirmed at more than 2.34 million acres. The Company's entire potash land holding is underlain by the potash-bearing Prairie Evaporite Formation. The property is road accessible and can be explored year-round.
Seismic Work to Commence with Drilling to Follow
APEX Geoscience Ltd. of Edmonton, Alberta has recommended that the Company conduct an aggressive Stage 1 seismic data acquisition and drilling program in order to identify the most prospective areas of potash on the property. Over the next month the Company will engage a seismic data expert and will begin to acquire and interpret seismic data. Once seismic data is available and interpreted a series of drill collars will be selected leading to the commencement of land use applications for drilling. The Company will then engage a drilling contractor with the intent to commence drilling in September or October of 2011. Once the areas that are considered most prospective for economic concentrations of potash are identified, the Company will proceed to Stage 2 resource-type drilling, which is anticipated to commence in 2012.
Government Data Indicates Potash Occurrences on 100% Owned Permits
A large portion of Grizzly's 100% owned MAIM permits exist in close proximity to, or directly contain, areas that are underlain by potash-bearing beds within the uppermost portion of the Prairie Evaporite Formation. The presence of potash-bearing beds within the upper portion of the Prairie Evaporite in east-central Alberta near and along the Saskatchewan border is indicated by geological maps produced by agencies of the governments of Alberta and Saskatchewan, specifically Alberta Research Council ("ARC") Bulletin 29 (Hamilton, 1971) and Saskatchewan Geological Survey Report 181 (Fuzesy, 1982). A number of Grizzly's permits exist in close proximity to a reported occurrence of potash minerals in a deep well (VCO #15) in the Vermilion area of east-central Alberta. The ARC author reporting the occurrence suggests that the potash mineral "sylvite exists in substantial quantities … throughout the first 50 feet of the Prairie Evaporite" (Golden, B.Sc., 1965). The author also suggests the potash minerals "are of the same composition and depositional sequence and depth as the potash at Unity and Saskatoon, Saskatchewan", currently the location of a number of potash mines. Recent analytical work by the Alberta Geological Survey (Eccles et al., 2009) on what is left of the drill core from VCO #15 has yielded potassium oxide (K2O) grades of up to 18.6% and confirms the observations of Golden (1965). The reported occurrence of potash minerals is at a depth of approximately 1,061 metres below surface.
Data Analysis Reveals Potential for Economic Potash on 50% Owned Permits
In late December, 2010, Grizzly and Pacific Canada Potash Ltd. submitted 21 MAIM permit applications in the Provost area to the Government of Alberta totaling approximately 458,000 acres on a tenants-in-common basis, constituting the Provost Potash Property. The analysis of available geophysical logs for historic oil wells on the property has revealed a high probability of potash-bearing beds underlying the Provost Potash Property. More specifically, it appears the east-central and southeastern areas of the property have very high potential for economic-grade potash-bearing beds. Gamma-ray responses from historic oil and gas wells suggest that the grades of potash-bearing beds underlying the Provost Potash Property could attain K2O grades ranging from 15% to 25% across thicknesses of 1 to 5 metres (Klarenbach, P.Geol., 2009). These responses all occur at a depth of about 1,300 metres in the uppermost 60 metres of the Prairie Evaporite Formation, which is the main host to potash deposits in Saskatchewan (Holter, 1969).
Grizzly Issues Stock Options
The Board of Directors has authorized a grant of 200,000 incentive stock options ("Options") to Jeremy Strautman pursuant to his appointment as Interim Chief Financial Officer of the Company on March 31, 2011. The Options entitle Mr. Strautman to acquire up to 200,000 common shares of the Company at an exercise price of $0.55, expiring April 21, 2016 or earlier in accordance with the Company' stock option plan. Mr. Strautman's appointment and the grant of the Options are subject to acceptance by the TSX Venture Exchange.
About Grizzly Discoveries Inc.
Grizzly trades on the TSX Venture Exchange under the symbol GZD, on the OTCQX exchange under the symbol GZDIF, and the Frankfurt Exchange under the symbol G6H, with 47,982,492 common shares issued and outstanding.
Grizzly is an aggressive Canadian exploration company focused on: exploring for potash in Alberta; world class gold and base metal deposits in British Columbia; and diamonds in Alberta. Grizzly holds, or has an interest in, metallic and industrial mineral permits for potash totaling more than 2.34 million acres along the Alberta-Saskatchewan border. Grizzly currently has four precious-base metal properties in British Columbia totaling over 235,000 acres. Grizzly also currently holds more than 600,000 acres in diamond properties which host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta.
All 2011 exploration programs are conducted under the supervision of Mr. Michael Dufresne, M.Sc., P.Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under National Instrument 43-101.
On behalf of the Board
Grizzly Discoveries Inc.
Brian Testo, President
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 Grizzly 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 Grizzly'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. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
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.