Western Potash Corp.

Western Potash Corp.

June 15, 2009 09:00 ET

Western Potash Corp. Intersects 19.9 m of Combined Potash Mineralization Grading 17.2% K2O From the First Well at Milestone, Completes Drilling Second Well

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2009) - Western Potash Corp. (the "Company") (TSX VENTURE:WPX)(FRANKFURT:AHE) is pleased to announce that it has received results from its first potash exploration well on the Milestone property in southern Saskatchewan. The first well targeted potash prospective sequences within the Prairie Evaporite formation, and was drilled to define the extent, grade, thickness and type of potash mineralization present on the property. The well was drilled vertically to a total depth of 1,776m. Coring commenced at a depth of 1,640m, and intersected the Prairie Evaporite Formation at a depth of 1,657m. The well intersected a total of 19.9 m of potash mineralization with an average grade of 17.2 wt.% K2O across three potash bearing members. A summary of the results from this drilling are summarized in Table 1. All drill intercepts noted in this release are considered the true thickness of the mineralization, as the salt beds are relatively flat lying and the holes were drilled vertically.

Table 1: Potash thickness and weighted average grade from the
Milestone - 001 well.

Inter- Insol-
From To val K2O MgO uble
Potash Member (m) (m) (m) Wt % Wt % Wt % Best Intercept
Patience Lake 1661.5 1671.1 9.6 16.77 0.08 11.66 20.0 wt% K2O over 6.6m
Belle Plaine 1673.6 1677.9 4.3 14.42 0.09 5.45 18.5 wt% K2O over 2.7m
Esterhazy 1697 1703 6 19.96 1.2 3.57 23.46 wt% K2O over 3.9m

Note: The core recovered from this hole was logged, photographed, split, and
sampled at the Company's secure core storage facility on the property. All
samples were handled in accordance with the Company's Chain of Custody
procedures. The half-split core samples from the wells were analyzed at the
Saskatchewan Research Council (SRC) Laboratory in Saskatoon. The Laboratory
has been certified by the Standards Council of Canada (SCC) to conform to
the requirements of ISO/IEC 17025:2005 (CAN-P-4E).

The 100% owned Milestone property, comprising approx. 500 square km, is located approximately 30 km southeast of Regina, and southeast of Mosaic's Belle Plaine Mine, one of the largest producing potash solution mines in the world. The property is immediately adjacent to the Regina Potash Property held by Vale, and potash permits held by BHP-Billiton, and Potash One.

Geophysical logs from this well indicate favorable minimum formation temperatures of 62 degrees C, confirming the strong heat anomaly underlying the property. Temperature is important because higher formation temperatures improve the potash dissolution process, and reduce heat input required for the injected brines thereby significantly reducing production costs.

Two of the potash members report very low carnallite content, a critical factor in developing a solution mine, as increased amounts of carnallite decrease the efficiency of cavern dissolution and potash recovery. The carnallite content within the Esterhazy potash member is considered high for effective economic extraction. Insoluble and clay content are consistent with other potash deposits in Saskatchewan.

The Company is very encouraged by the results received to date, as the geological setting and mineralization are consistent with characteristics of other potash deposits in Saskatchewan. The high formation temperatures recorded in this part of the potash belt are considered ideal for the economic production of potash from a solution mining operation.

Seismic data, confirming the presence of potash prospective salt beds on the eastern portion of the Milestone property, highlighted a sizeable and attractive new exploration target area amenable to solution mining technologies within this property. The Milestone project was selected for staking because of the presence of a strong heat anomaly described by Holter (1969) underlying the property. The exploration area already has water, power, natural gas and rail infrastructure to serve the project, allowing the transportation of a final product to Vancouver, the Asian markets and the US Midwest.

The Company continues to explore the property, and is please to report that drilling on the second well at Milestone is now complete. Milestone-002 is located approximately 5.25km to the southeast of the first well drilled on the property. The well, drilled vertically, was drilled to a total depth of 1,786m. Coring commenced at a depth of 1,660m, and intersected the Prairie Evaporite Formation at a depth of 1,676.4m. Visual observation and down hole logging indicate the presence of the following potash members;

Member From (m) To (m) Thickness (m)
Patience Lake 1680.5 1692.75 12.25
Belle Plaine 1697.2 1704 6.8
Esterhazy 1717.45 1728.5 11.05

Visual interpretation of the core and gamma ray logs suggests strong potash grades within the Belle Plaine and Esterhazy members; however the grade within the Patience Lake member appears to be significantly reduced. While the textures and markers of the Patience Lake member are present in the core, there has been a significant increase in the amount of insolubles and clay present, resulting in significant grade reduction. This is reflected in the gamma ray logs within this member. The Company interprets that the decrease in potash tenor is due to a localized anomaly not apparent in the 2D seismic data. All potash members, in particular the Esterhazy member, visually display very low carnallite content, and very good minimum formation temperatures of approx. 65.5 degrees C were recorded.

Samples from the three potash zones will now be submitted for analysis at the SRC laboratory in Saskatoon. Results are expected to be obtained within 4-6 weeks.

The Company plans to continue the exploration program on the property, and will drill additional wells using a drill rig supplied by Red Dog Drilling Inc. The Company has budgeted approximately $5.4 million CAD for this drill program, and will be well positioned to prepare a NI 43-101 compliant resource calculation on the Milestone property during 2009 should drilling results continue to be positive.

Western Potash Corp. is a mineral exploration company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. The Company intends to define and develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.

The in-house qualified persons for the purposes of NI 43-101 guidelines are J. Patricio Varas, P. Geo and Dean Pekeski, P. Geo, both of whom have reviewed and approved the contents of this news release.

For more information on Western Potash Corp.'s projects, please visit the Company's website at: www.westernpotash.com.


J. Patricio Varas, President and CEO

This news release contains Forward Looking Statements regarding our intentions and plans. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company.

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

Contact Information

  • Western Potash Corp.
    J. Patricio Varas
    President and CEO
    (604) 689-9378
    (604) 689-8199 (FAX)