North American Potash Developments Inc. Intersects Up to 24.5% of K2O in Lisbon Valley Potash Project
Dec 09, 2011
OTC Disclosure News Service
Vancouver, BC, Canada –
North American Potash Developments Inc. Intersects Up to 24.5% ofK2O in Lisbon Valley Potash Project
December 9, 2011, Vancouver, BC, Canada – NorthAmerican Potash Developments Inc. (the “Company” or “NAPDI”), (TSX-V: NPD -FRANKFURT:3OZ – OTCQX: RNGTF) is pleased to announce all assay results from its recent 3,449 foot rotary drill and core hole on its Lisbon Valley Potash Project in Utah .NAPDI has received, reviewed and analyzed the assay results which show thatexploration targets K-6 and K-9 total 15 feet in thickness, at an average K2Oconcentration of 10.4% (equivalent to 16.4% KCl). A total of sixty-three (63) one-foot composite core samples fromdrill hole RBV-11-36A-1 were sent to SGS Minerals Services analyticallaboratory in Lakefield for XRD analysis and Water Leach analysis.
“These initial resultsfrom the Lisbon Valley drill program are a validation of the hard work theNAPDI team has committed to on the Lisbon Valley potash project. The Potashmineralization in the Lisbon Valley has been documented for decades, We knewthat we had the potential for a very large system here, based on our projectbeing in what has been defined as a KPLA (Known Potash Leasing Area) theseresults strongly suggest that the Project area is a viable exploration targetfor potash solution mining, and that further rotary drillingand coring are justified to develop JORC- or NI 43-101-compliant estimates ofpotash resources and reserves for the Project area. We have only just begun totest the potential of these huge target areas.” comments Mr. Simon Tam, President of NorthAmerican Potash Developments.
The drill program intersected and cored two distinct potash beds:bed 6 (K-6) from 2656 feet to 2675 feet (19ft) and bed 9 (K-9) from3398.2-3412.2 (24ft). K-9 had thegreater average potash concentration, with 5 feet of 13.5% K2O(21.3% KCl) located from 3,398 to 3,403 feet, and with a maximum K2Oconcentration of 24.5% (38.7% KCl). K-6had a net 10 feet of significant potash across the 2,661 to 2,675 feet depthinterval, which averaged 8.9% K2O (14.0% KCl). The summary results are shown in the tablebelow.
These K2O and KCl concentrations are within or justbelow the range reported by Transit Holdings for its Paradox Basin PotashProject. The Transit Project is locatedimmediately west of the Lisbon Valley area, and liesgenerally between Lisbon Valley and Intrepid’s Moab mine.
Transit reports average KCl concentrations ranging from 16% to 30%(10% K2O to 19% K2O equivalent) for potash beds 13 and18, based on a study conducted by Agapito Associates. Agapito used a cumulative grade by thicknesscutoff of 20% K2O -m in defining JORC-compliant potash explorationtargets for Transit. The entries in therightmost column in the table above demonstrate that both K-6 and K-9 meet thatcutoff criterion.
In mid-October 2011, American West Potash (AWP) released a NI43-101 report on its Holbrook Basin properties in Arizona, which wasprepared by North Rim Exploration (NR). NR used a grade by thickness cutoff of 12.2% K2O-m in defining “Geological Resource”, and “whenpossible an overall geological interval grade cut off of 8% K2O.” In the table above, boththe Average K2O values and the grade by thickness values exceedthose used by NR for the AWP report.
Core and Assay Result Details
In potash bed 9 (K-9), from 3398 to 3412.2 feet depth (24ft), thepotash ranged from granular, massive to and yellowish gray in colour at the topof the bed to laminated gray at the bottom of the bed. The table below illustrates select values of K2O% from the potash bed.
Potash from bed six (K-6) is granular and medium dark grayinterbedded with sylvite and the top of the interval and light browninterbedded with halite and the bottom the section. The table below illustratesselect values of K2O % from the potash bed.
Potash was first discovered in the Paradox Basin in an oil and gas well in 1924. In1962, Superior Oil Company drilled the first potash at the crest of the Lisbon Valleyanticline. Since 1964, potash and by product salt have been produced from theCane Creek mine. The Cane Creek mine was first owned and operated by Texas GulfSulphur, and is now owned and operated by Intrepid Potash Company. Potash wasoriginally produced by underground mining and, in 1970, the mine was convertedto solution mining. Solution mining has proven to be the ideal process in theproject area because of the hot summers and low humidity. The mine has producednearly continuously since 1964, and reportedly has a future mine life of 30years.
About North American Potash Developments Inc.
North American Potash Developments Inc. Lisbon Valley project consists of nine state mineral leases totalling 6,421 acres andapplications for potash prospecting permits, totalling 24,640 acres. Theproject is located in San Juan County, Utah, within the Paradox Basin, a large sedimentary basincontaining rocks of Pennsylvanian to Cretaceous age. The salt and potash bedsare in the Pennsylvanian Paradox formation that is over 4,000 feet thick, with29 separate cycles of salt, potash and clastic sediments. The potash beds arelocated near the top of the evaporate sequence and occur at depths of 3,000 to4,800 feet in the project area.
Technical information inthis news release has been reviewed by Stuart Havenstrite, P.Geo a qualified person asdefined in NI 43-101.
North American PotashDevelopments Inc. – please visit www.napotash.com or contact InvestorRelations Toll Free at (1-866-944-8674).
On behalfof the Board of Directors
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