POTASH EXPLORATION: Good grades from two projects

SASKATCHEWAN — If there is a bright spot in commodity markets, it would appear to be potash. Prices are up significantly in 2008 compared to 2007, and despite an expected short-term credit crunch, the long-term outlook is for growing demand.

The positive outlook has two companies testing new projects for potential production.

Vancouver-based Potash One reports that its first confirmation well intersected a total of 39.6 metres of mineralization with an average grade of 18.3% K₂O. The company's Legacy project is located near Regina, north of the Belle Plaine solution mine belonging to the Mosaic Company. Potash One is planning a dual-well solution mining method at Legacy. More information is available at www.Potash1.ca.

Western Potash, also headquartered in Vancouver, is testing its Russell-Miniota potash property on the Manitoba border. The sixth and seventh exploration wells returned 21.1% K₂O over 3.3 metres and 26.0% over 3.0 metres from a depth of approximately 1,000 metres. Both wells intersected the Esterhazy member, the potash formation being exploited at Potash Corp. of Saskatchewan's Rocanville mine, 30 km to the northeast. A location map including the Russell-Miniota leases is posted at www.WesternPotash.com.