SOURCE: Universal Potash Corp
February 22, 2011 06:13 ET
Universal Potash Acquisition Targets 2 Billion Ton Paradox Basin Resources
FOX ISLAND, WA--(Marketwire - February 22, 2011) - Universal Potash Corporation (the "Company") (PINKSHEETS: UPCO) is pleased to announce technical planning will commence supported by the previous research completed by the US Geological Service. UPCO will include the evaluation of the Gamma/Neutron logs available to UPCO from oil well previously drilled on the majority acquisition interest in the potash rights to three square miles of prospective ground in the Paradox Basin of Utah. Universal Potash Corp.'s newest venture is located less the 1000 yards west of the BLM's designated KPLA (Known Potash Leasing Area) reserve. The UPCO acquisition encompasses nearly 2,000 acres of the School and Institutional Trust Lands Administration (SITLA) subsurface potassium rights.
According to the U.S. Geological Survey, January 2011 Mineral Commodity Summaries, estimated domestic potash resources total about 7 billion tons. Most of these lie in the Paradox Basin in Utah which contains resources of about 2 billion tons, mostly at depths of more than 1,200 meters and a 3,110-square-kilometer area of Montana and North Dakota as an extension of the Williston Basin deposits in Saskatchewan, Canada. The Holbrook Basin of Arizona contains resources of about 1 billion tons. The U.S. reserve figure includes a large potash resource under central Michigan. Estimated world resources total about 250 billion tons.
"There are no substitutes for potassium as an essential plant nutrient"
Substitutes: There are no substitutes for potassium as an essential plant nutrient and an essential nutritional requirement for animals and humans. Manure and glauconite (greensand) are low-potassium-content sources that can be profitably transported only short distances to the crop fields.
Worldwide Plans: International expansion targets are in place to increase world production capacity by 28%, from 42.9 million tons in 2010 to 54.7 million tons in 2014.
Quoting Potash Corporation of Saskatchewan: "... its 2011 shipments could be in the range of 9.5 million and 10 million tonnes, leading to a gross margin of between $2.5 billion and $2.8 billion." And its CEO Bill Doyle stated, "By the end of 2011 the price of potash for international spot market buyers will climb to at least $500 a tonne delivered."
About Universal Potash Corp.: Universal Potash Corp. is an acquisition driven exploration company dedicated to increasing shareholder value. The Management of Universal Potash's principal focus is the acquisition of premium leaseholds and the future development of these properties and business interests on a global basis. Management efforts are channeled into building Universal Potash Corp. into an international enterprise and meeting the growing challenge of feeding the world.
"Safe Harbor" Statement: Under The Private Securities Litigation Reform Act of 1995: The statements in all press releases that relate to the company's expectations, with regard to the future impact on the company's results from new projects in development, are forward-looking statements. A complete disclosure of our "SAFE HARBOR" statement is posted on our website at www.UniversalPotashCorp.com under the heading "NEWS."