Sennen Potash Corporation
TSX VENTURE : SN

Sennen Potash Corporation

January 15, 2015 10:30 ET

Sennen Potash Intersects 46.1% KCl Over 6.3m in Johnson 1 Well, Utah

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 15, 2015) - Sennen Potash Corporation (TSX VENTURE:SN) ("Sennen" or the "Company") is pleased to announce that it has completed drilling of its Johnson 1 Well (the "Well") and received assay results confirming high grade potash mineralization over a thickness of 6.3 m (20.6 ft) in the Monument Potash Project ("Monument") in south-east Utah and south-west Colorado.

HIGHLIGHTS

  • High grade of 46.1% KCl (29.1% K2O) over 6.3 m (20.6 ft), the Upper bed in Cycle 18 of the Paradox Formation
  • Average ambient temperature over intersected potash zone of 68°C (154°F)
  • Good correlation to nearby historic analogue well
  • A second potash bed, previously unknown and now called the Lower bed, was encountered approximately 12m (40 ft) below the Upper bed also within Cycle 18
  • Initial estimations from Gamma Ray Equivalent Calculations ("GREC") between 2,157.3m (7077.6 ft) and 2,160.7 m (7088.8 ft) demonstrate that the Lower bed grades between 44 - 52% KCl (28 - 33% K2O) over 3.4 m (11.2 ft)
  • Well successfully drilled to a vertical depth of 2,195 m (7,200 ft)
  • 32.6 m (107 ft) of core extracted from 2,124.1 m (6,968.81 ft) to 2,156.6 m (7,075.4 ft)
  • Testing and assay sampling completed by Saskatchewan Research Council Geoanalytical Laboratories

SIGNIFICANT POTASH MINERALIZATION INTERSECTED

The Well intersected potash mineralization containing 46.1% KCl (29.1% K2O) over 6.3 m (20.6 ft) from Cycle 18 of the Paradox Formation. Over this interval, insolubles were 0.56% and magnesium oxide (MgO) was approximately 0.01%, indicating the low likelihood of carnallite mineralization. Ambient temperatures recorded over the intersected potash zone highlighted above averaged 68°C (154°F). Higher ambient temperatures are generally positive as KCl has a preferential solubility at higher temperatures and is more favourable for solution mining.

The formation depth and thickness encountered as well as the presence of high grade potash mineralization in the Well demonstrate very good correlation with the historic Western Natural #1 Charles Redd well (the "Redd Well"), drilled in 1948 and located approximately 2.18 km (1.35 miles) northwest of the Well. This correlation along with existing seismic work supports the strong continuity of the potash horizon across the Monument Property and the Cycle 18 potash horizon remains open in all directions. With the exception of the Redd Well, there has been no previous drilling in this area and no historic resource estimate has been made in this region.

Sennen believes that the consistent nature and indicated continuity of the Cycle 18 potash mineralization, as supported by drilling and seismic work, suggests that there is strong potential for step out drilling to add significantly to potential mineral resources at Monument. Exploration planning and budgeting work are currently underway.

Ian Rozier, President and CEO, commented: "We are delighted to have completed drilling of the Johnson 1 Well and to have received such positive initial results. With the combination of high correlation to the nearby historic Redd Well, high grade potash observed in GREC and confirmed by assay results, high ambient temperature and very low levels of insolubles and magnesium, these results are very encouraging. We are also very pleased to have discovered the presence of high grade potash mineralization observed in the previously unknown Lower bed within Cycle 18. Present work is focused on preparing an initial mineral resource estimate, advancing geological and engineering work, budgeting and planning work, and organizing the financing required for the next stages of exploration."

The Well was drilled vertically to a depth of approximately 2,195 m (7,200 ft) and included 32.6 m (107 ft) cored in Cycle 18. The Well is located in the northern part of Monument, an area that was previously undrilled to these depths with the exception of the Redd Well and there is significant existing 2D seismic exploration. The results of the Well suggest good continuity of stratigraphy across this part of the basin as indicated in Sennen's 2D seismic work conducted earlier in the exploration program. The area has good road access, flat terrain, existing power and communications, as well as water availability. The Well reached its planned target depth and has been temporarily shut-in pending the results of current geological and geophysical work.

As anticipated, the Well intersected its intended Cycle 18, from 2,123 m (6,965 ft) to 2,195 m (7,200 ft) below surface and encountered potash mineralization in grades consistent with prior geological estimates. Sennen achieved excellent recovery and sample quality in its coring efforts. As a result of the flat-lying nature of the potash horizons in this part of the Paradox basin, the true thickness of the potash zones are expected to be very similar to drilled thicknesses. The zones of potash mineralization are outlined in the following table:

JOHNSON 1 WELL POTASH MINERALIZATION TABLE

From To Width1 KCl% K2O% Insoluble% MgO% Temp° Zone
2,138.7m 2,144.9m 6.3m 46.1% 29.1% 0.56% 0.01% 68°C Cycle 18
7,016.6ft 7,037.2ft 20.6ft 154°F
Note 1: Drilled width

A second, unknown potash zone was encountered while drilling past the primary zone of exploration (the Upper bed) in order to accommodate the length of the geophysical wireline tools. As this zone was not present in the Redd Well, no core was taken over this intersection. Initial estimations from GREC between 2157.3 (7077.6 ft) and 2160.7 m (7088.8 ft) indicate that the zone is grading between 28 and 33% K2O (44 - 52% KCl) over 3.4 m (11.2 ft). Further investigation regarding the geological continuity of this Lower bed is currently underway.

North Rim Exploration Ltd ("North Rim") are in the process of preparing a NI 43-101 mineral resource technical report which will be filed once complete.

QUALITY CONTROL AND QUALITY ASSURANCE

Sennen and its subcontractors follow industry standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. All drill core handling was under the direct supervision of the North Rim Project Geologist and wellsite supervisor on site. Once received at the North Rim Core Facility in Saskatoon, Saskatchewan, Canada where assay sampling, depth correction, geological logging, and core photography took place, it was always under direct supervision of North Rim Qualified persons. The samples were shipped via FedEx in secured aluminum core tubes. Once the assay samples and depth corrections were reviewed by the North Rim Qualified Person (QP), the samples were delivered to Saskatchewan Geoanalytical Laboratories (SRC) where SRC's Potash Assay Analysis was completed. SRC Geoanalytical Laboratories has been certified by the Standards Council of Canada (SCC) to conform to the requirements of ISO/IEC 17025:2005 (CAN-P-4E).

ABOUT SENNEN

Sennen owns a 70% interest in the exploration and development stage Monument Potash Project. Monument is comprised of over 106,000 net mineral acres of contiguous mineral leases in south-east Utah and south-west Colorado and is located less than 70 miles from Intrepid Potash Corp.'s operating Cane Creek Solution Mine. Sennen has completed drilling of its first core well and is currently undertaking exploration work required to delineate a potash resource estimate.

The disclosure of technical and scientific information in this news release has been approved by Tabetha A. Stirrett, P. Geo., of North Rim Exploration, a consultant to the Company. Tabetha Stirrett is a Professional Geologist registered in the province of Saskatchewan, as well as professionally registered with American Institute of Professional Geologists (AIPG) and is a Qualified Person as defined by NI 43-101.

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

Caution concerning forward-looking information

This news 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 Sennen 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 Sennen'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 Sennen with Canadian securities regulatory authorities and available at www.sedar.com. Sennen disclaims any obligation to update or revise any forward-looking information or statements except as may be required.

Contact Information

  • Sennen Potash Corporation
    Ian Rozier
    Chief Executive Officer
    604-685-6851

    Sennen Potash Corporation
    Ryan Cohen
    Vice President, Operations
    604-685-6851
    info@sennenpotash.com