Potash One Inc.

Potash One Inc.

May 14, 2008 06:00 ET

Potash One Reports Historical Data on New Permits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - Potash One Inc. (the "Company" or "Potash One") (TSX VENTURE:KCL) is pleased to report the results of a preliminary review of existing historical data on the newly acquired permits KP-355, KP-356 and KP-357, (NR08-13, April 11,2008) located in southern Saskatchewan and adjacent to the largest solution potash mine in the world.

Preliminary data obtained from commercial databases and files held by the Saskatchewan Ministry of Energy and Resources indicates that previous exploratory drilling has been conducted on the newly acquired ground, and limited examination indicates that all three potash-bearing Members are present in varying thicknesses, grade and distribution within the Prairie Evaporite Basin.

Work on the newly acquired properties consisted of the collection and analysis of all available historical public data which included geophysical bore hole logs from previously drilled test holes, historical potash core analyses, geological reports where available, the preparation of structural and stratigraphic cross sections, examination of drill cores where available, a review of historical seismic maps and a preliminary investigation into solution mining amenability.

Data collected to date shows that previous exploration and analysis within the new permits has been conducted by Imperial Oil, Sohio Petroleum Co., Dillman Oil Properties Ltd. and Francana Oil and Gas Ltd. in the 1950's and 1960's.

Publicly available data pertaining to the previous drill holes indicate that the principal potash-bearing beds of the Patience Lake, Belle Plaine and Esterhazy Members are present as follows:

Depth to
Top of
Uppermost Depth to Base Thickness of
Sylvinite Bed of Lowermost Combined
in the Sylvinite Bed Patience Lake,
Patience in the Belle Plaine,
Lake Member Esterhazy and Esterhazy
Well Name Permit m (ft) Member m (ft) Members m (ft)
Imperial Lumsden
11-11-20-22 W2M 355 1,468 (4,816) 1,516 (4,973) 48 (157)
Dillman Tuxford No
1 1-3-19-26 W2M 357 1,565 (5,132) 1,618 (5,308) 53 (176)
Francana Marquis 357 1,562 (5,124) 1,615 (5,298) 53 (174)

The Imperial Lumsden 11-11 drill hole has a complete suite of borehole geophysical logs, core and chemical assays however the Dillman Tuxford and Francana Marquis drill holes only have borehole geophysical logs available for examination.

Publicly available data from two wells drilled by Sohio in the 1950's, located in Permit 356, have very limited data however they do suggest that at least two of the potash Members may be present.

In January 1964, Imperial Oil (Exxon) completed a potash resource evaluation drill program which was cored continuously from 1460.0 m to 1524.0 m with the top of the Prairie Evaporite intersected at 1460.3 m. The core diameter was 101.6 mm with four discrete zones assayed for potash content. Within the assayed zones the average assay interval was 91.0 cm over the mineralized zones and up to 213.3 cm over non-mineralized (halite-rich) zones. The core was slabbed; one half was sent for assay and the other-half retained for examination at the Subsurface Geological Laboratory in Regina, SK.

The table below shows the mineralization summary for the Imperial Lumsden 11-11 drill hole. The summary is based upon borehole geophysical logs and chemical assays of core cut through the Prairie Evaporite Formation:

Wt. Avg Wt. Avg
Top m Base m Thickness Wt. Avg Carnallite Insolubles
Member / Unit (ft) (ft) m (ft) K20% % %
Patience 1468.4 1473.6 5.2 22.48 1.10 14.90
Lake Zone (4816.3) (4833.5) (17.2)
Patience 1480.1 1482.6 2.5 16.08 0.74 7.01
Lake Zone (4854.6) (4862.9) (8.3)
Belle Plaine 1485.6 1493.8 8.2 20.29 0.78 3.53
Zone (4872.8) (4899.7) (26.9)
Esterhazy 1510.2 1516.3 6.1 34.11 0.64 4.07
Zone (4953.4) (4973.5) (20.1)

The Company plans to proceed with an exploration program, which may include the acquisition of trade seismic data, the acquisition of new seismic data and the drilling of exploratory wells as required to assist in the evaluation of the potash potential within the permit areas.

Paul F. Matysek., President and Chief Executive Officer of Potash One Inc., said: "We are very excited to add new permit areas that are contiguous to the Legacy Project and potentially amenable to solution mining. The preliminary examination of core assays and geological reports indicate presence of appreciable amounts of sylvinite and we intend to report the grades and other details once the 43-101 report on these permits is completed. The addition of new permit areas with previous exploration data creates a substantial solution mining amenable asset base bordering one of the largest producing potash solution mines in the world."

Currently there is no NI 43-101 report on these Permits, nor are there proven, indicated or inferred resources. Readers are cautioned that the presence of the Patience Lake, Belle Plaine and the Esterhazy potash Members does not guarantee the presence of economic quantities of potash.

The technical content in this news release has been read and approved by Stephen P. Halabura, a consultant to Potash One Inc. and a shareholder of the company. Mr. Halabura is Principal Geologist and Owner of North Rim Exploration Ltd., a Professional Geologist licensed in Saskatchewan and a Qualified Person as defined by National Instrument 43-101.


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

About Potash One Inc.

Potash One Inc. is a Canadian resource company engaged in the identification, acquisition, exploration and development of advanced solution mine amenable potash properties. The Company holds an option to acquire 100% interest in a 97,240 acre Potash Subsurface Exploration Permit ("the Legacy Project") and owns 100% of three other Potash Subsurface Exploration Permits covering 239,000 acres that are contiguous to the Legacy Project in Saskatchewan, Canada. The Legacy Project was previously explored by Imperial Oil Ltd. (now Exxon) and Lumsden Potash Corporation and is adjacent to one of the largest producing solution potash mines in the world. The Company has a solid balance sheet and experienced technical and corporate management to advance its current project to the next level.

Forward Looking Statement

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address further production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions such statements are not guarantees of further performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Potash One Inc.
    Paul F. Matysek, M.Sc., P.Geo.
    President and Chief Executive Officer
    (604) 331-4431
    (604) 608-4979 (FAX)
    Email: info@potash1.com