Confederation Receives Arizona Holbrook Basin Potash Mineral Exploration Permits
July 21 2009 - 8:25AM
Marketwired Canada
Confederation Minerals Ltd. ("Confederation") (TSX VENTURE:CFM) is pleased to
report that American Potash LLC ("American Potash"), a Nevada limited liability
corporation owned 50% by Confederation, and 50% by Magna Resources Ltd.
("Magna") has received from the Arizona State Land Department the approval of
five mineral exploration permits totaling 3,200 acres and the request for plan
of operations for eight additional mineral exploration permits totaling 3,222.93
acres. These, together with the pending Bureau of Land Management ("BLM")
potassium prospecting permits total 9,690 acres of land available to American
Potash for drill testing in Arizona. Relative to the BLM potassium prospecting
permits, American Potash has received a letter of request from the BLM for
exploration program proposals, the precursor to final permit approval.
American Potash's exploration permits are located 30 kilometers southeast of
Holbrook, Arizona, in the SW portion of the Holbrook Basin. Land status consists
of checkerboard Arizona State land and BLM lands. American Potash permits cover
both Arizona State lands and BLM lands where the Arizona Geologic Survey
indicates potash thicknesses of 3 to 6 meters.
The Holbrook Basin is a sedimentary basin located in east-central Arizona
comprised of extensive salt deposits localized in the Permian-aged Supai
formation. Potash underlies approximately 1,500 square kilometers of the Basin.
Previous drilling by Arkla Exploration Company, Duval Corporation, and others
drilled a total of 135 potash exploration holes in the 1960's and 1970's. They
reported the presence of potassium minerals in the main potash "pay zone", with
grades of 6% to 20% potash at depths of 300 to 440 meters. Thus, Potash deposits
of the Holbrook basin may be favorable to conventional underground or solution
mining as faulting and layer disruption from diapir affects common to salt
deposits are minimal. Conventional mining at depths of 300 to 450 meters may be
profitable at current potash prices. The potential grades are conceptual in
nature, there has been insufficient exploration to define a mineral resource and
it is uncertain if further exploration will result in the target being
delineated as a mineral resource. Confirmation for remaining permits for Arizona
State and BLM acreage is expected soon.
American Potash also has 31 BLM potassium prospecting permit applications
covering approximately 63,000 acres (25,500 hectares) of BLM land within the
Paradox Sedimentary Basin in southeast Utah, USA. The potash prospects are
located approximately 30 miles (48 km) west of Moab, Utah and 20 miles (32 km)
from Intrepid Resources' Cane Creek solution potash mine. The BLM potassium
prospecting permits, if and when granted, will provide American Potash with
exclusive rights to explore potash deposits within the permit area. A detailed
description of the Utah potash prospects are provided in Confederation's June 3,
2009 news release.
With the exception of permits already issued in Arizona, all references to the
Utah and Arizona permits are references only to permits that have been applied
for but are yet to be issued. There is no assurance that Arizona State Land
mineral exploration permits and BLM potassium prospecting permits will be issued
or that those issued will be contiguous. All interest in the permits and
applications held by American Potash are subject to further obligations under
the option agreement described in the June 3, 2009 news release.
This announcement has been prepared under the supervision of Lawrence A Dick,
Ph.D., P.Geo., the Qualified Person for the purposes of NI 43-101 with respect
to the technical information in this news release.
On behalf of the Board of Confederation Minerals Ltd.
Lawrence A. Dick, Ph.D., P.Geo., President and CEO
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