TRADING SYMBOL: TSXV: EPO
VANCOUVER,
Jan. 29, 2013 /CNW/ - Encanto Potash
Corp. ("Encanto" or the "Company") (TSXV: EPO and OTCQX: ENCTF) is
pleased to announce the commencement of the environmental
assessment process for the Muskowekwan Project, a joint venture
between Encanto and the Muskowekwan First Nation and Muskowekwan
Resources Limited to develop a potash mine on Muskowekwan lands in
Saskatchewan.
The joint venture formally initiated the
environmental assessment process by submitting a Project
Description/Technical Proposal to the Canadian Environmental
Assessment Agency and the Saskatchewan Ministry of Environment on
December 7, 2012.
The purpose of the Project Description/Technical
Proposal is to enable Canada and
Saskatchewan to determine if an
environmental assessment of the Muskowekwan Project is
required. On December 13, 2012,
Saskatchewan confirmed the need
for a provincial environmental assessment pursuant to the
Saskatchewan Environmental Assessment Act. The Canadian
Environmental Assessment Agency confirmed the need for a federal
environmental assessment pursuant to the Canadian Environmental
Assessment Act, 2012 ("CEAA 2012") on January 29, 2013.
Pursuant to CEAA 2012, the Federal Minister of
Environment must decide and report if any mitigation measures are
appropriate. The Minister must make his decision no later than 365
days after the day on which the notice of the commencement of the
environmental assessment of the designated project is posted. This
time limit does not include the time required for Encanto to
prepare and submit the Environmental Impact Statement (EIS) and any
other required information. Encanto expects to file the EIS
by the summer of 2013.
The provincial environmental assessment process
does not have mandatory timelines, but is expected to be of similar
duration.
Jim Walchuck,
President and CEO commented "Reaching this stage of the permitting
process is one of the most crucial elements of a methodical
progression in advancing the project toward a producing
mine. I would like to commend the excellent work by our team
in getting us to this point".
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange
listed and OTCQX traded Canadian resource company engaged in the
development of potash properties in the Province of Saskatchewan, Canada, the largest producing
potash region in the world. Through the joint venture agreement
with Muskowekwan Resources Ltd. on our flagship property, Encanto
has been successful in adding a 3.5 fold increase to the project
land package, which now totals approximately 58,300 acres. A
Preliminary Economic Assessment (PEA), based solely on the Home
Reserve Lands (15,500 acres), was released in August of 2011 and an
updated NI 43-101 report describing the increase to the compliant
resource estimate was filed on May 10,
2012.
Encanto's Muskowekwan First Nation property has
a current NI 43-101 resource estimate dated May 9, 2012 titled "2012 Potash Resource
Assessment for the Muskowekwan First Nations Home Reserve Project
South Eastern Saskatchewan, Canada" containing Measured and
Indicated resources of 130.7MMt grading 29.6% KCl or 18.7%
K2O and Inferred resources of 234.7MMt grading 28.3% KCl
or 17.9% K2O.
The Company has a 100% interest in two
additional potash properties in Saskatchewan: the 55,000 acre
Ochapowace/Chacachas property and the 91,550 acre Spar
property.
The technical content of this news release has
been reviewed by Ross Moulton,
Vice-President of Exploration for Encanto, a qualified person as
defined by NI 43-101.
For additional information about Encanto Potash
Corp., please visit the Company's website at www.encantopotash.com
or review the Company's documents filed on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "James Walchuck"
James Walchuck
President and CEO
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
THE FOREGOING INFORMATION MAY CONTAIN
FORWARD-LOOKING INFORMATION RELATING TO THE FUTURE PERFORMANCE OF
THE COMPANY. FORWARD LOOKING INFORMATION IS SUBJECT TO A NUMBER OF
KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE ANTICIPATED IN
OUR FORWARD LOOKING STATEMENTS. SUCH RISKS AND OTHER FACTORS
INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS OF EXPLORATION
ACTIVITIES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY MARKETS,
THE RISKS OF THE MINING INDUSTRY INCLUDING, WITHOUT LIMITATION,
THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN OBTAINING
GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION
OF DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE
IN GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING
INDUSTRY, AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO
TIME IN THE COMPANY'S FILINGS WITH THE CANADIAN SECURITIES
ADMINISTRATORS (AVAILABLE AT WWW.SEDAR.COM). FORWARD-LOOKING
STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND ON
MANAGEMENT'S BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE
STATEMENTS ARE MADE. SHOULD ONE OR MORE OF THESE RISKS AND
UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE
INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED
IN THE FORWARD-LOOKING INFORMATION CONTAINED HEREIN. THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF
THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR OTHER
CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE
LAW.
SOURCE Encanto Potash Corp.
