Western Potash Corp (TSX.V: WPX) announced that the fourth well on the Milestone property has intersected strong potash mineralization over a thicker package of potash members in a combined mineralized width of over 25 meters.
These results further indicate that the extent of the mineralized potash beds spans at least 12.5 kilometres south from the first well, Milestone-001, reported previously. Western Potash is now increasing the current exploration budget in order to expand the drill program.
The company’s wholly-owned Milestone property in southern Saskatchewan, comprising 500 square km in area, is located approximately 30 kilometres southeast of Regina, and is close to Mosaic's (NYSE: MOS) Belle Plaine Mine, one of the largest producing potash solution mines in the world with a rated capacity of 2.2 million tonnes per annum.
Coring of the Milestone - 004 well intersected the Prairie Evaporite Formation at a vertical depth of 1,707.5 metres. Visual geological evaluation of the core in conjunction with down-hole gamma ray logs indicate strong potash grades, very low carnallite content, and very promising minimum formation temperatures of 61 degrees Centigrade.
The well presently reported is located approximately 12.5 kilometres and 7.5 kilometres to the southeast of wells 001 and 002 respectively, which were reported previously.
Western Potash believes that the thicknesses and grades obtained by geochemical sampling and down-hole gamma ray logging in this fourth well are consistent with those mined at the Belle Plaine solution mine and that it has now demonstrated regional continuity of all three potash members, spanning a strike length of over 12.5 kilometres, between the first and fourth wells.
Minimum temperature readings of 61 degrees C were recorded from this well, indicating favorable conditions for an envisioned solution mining and recovery process. These results combined with temperature readings from the previous wells, ranging between 61 and 65.5 degrees, have confirmed the presence of the heat anomaly that attracted the company to this project area.
The samples extracted from the three potash members will now be submitted for analysis at the SRC laboratory in Saskatoon. Results are expected to be obtained within 4 to 6 weeks.
After a review of the encouraging results from the first phase of drilling on the Milestone property, the board of Western Potash has approved an increase in the current exploration budget in order to expand the drill program and subsequently begin an initial resource calculation.
The aim of the extended exploration program will be to further define the grade, and size of the potash deposit on the property. The next phase of exploration will include an additional 4 well drill program and additional 2D and 3D seismic surveys.
The budget for this work is estimated at C$8.5 million. It is expected that the completion of this second phase will allow the company to commission an independent 43-101 resource estimate on the Milestone property. Drilling on the Milestone property will recommence as soon as all the permits are in place which is expected prior to the end of August.
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