Mesa Uranium Acquires Utah Potash Project, Consolidates Shares
Mesa Uranium Corp. (“Mesa”) (TSX VENTURE: MZU) is pleased to announce that it has filed potash exploration permit applications with the Bureau of Land Management. The project has excellent potential for potash from both solution mining and naturally-occurring potash brines. The 25,500 acre area (40 square miles), the White Cloud potash project, is located 40 miles north of our Lisbon Valley uranium project in southeastern Utah. Access and infrastructure are considered good as the project is close to rail, interstate highway and power lines.
The White Cloud project is located in the Paradox Basin, a geologic province known to contain potash deposits and potash brine. The United States Geological Survey and Utah Geological Survey have documented these occurrences in various reports. The project is within an area categorized as a high “known mineral deposit area” for potash beds by the U.S. Bureau of Mines. Mesa plans to obtain reports and radiometric logs from historic oil drilling on the project to assess grade, thickness and depth of the potash beds and grade and flow rates for the potash brines. Sources for the information have been identified and Mesa is currently acquiring and evaluating the information to guide future exploration work.
Solution Mining Potential
The project is located 1.5 miles north of Intrepid Potash’s Cane Creek potash mine with 2007 production of 77,000 tons of potash and 109,000 tons of by-product salt. Potash is produced from the 11 foot thick potash zone #1 bed that averages 25-30% potash. Operations commenced in 1964 as an underground mine and later converted in 1970 to a system combining solution mining and solar evaporation. Water is injected into the potash bed to dissolve potash and salt creating a brine solution. This brine is then pumped to the surface and piped into solar ponds to evaporate. Once the material is dry it is collected and separated into potash and salt at an adjacent mill. Solution mining and solar evaporation is a low-cost and energy-efficient method of producing potash. The +300 days per year of sunshine, low humidity, mild winters and dry climate of the area provide excellent evaporation conditions.
The potash zone #1 bed being mined at the Cane Creek mine extends on to the White Cloud project as does potash zones #2 thru #9 as described by government agency and private reports.
Natural Potash Brine Potential
A 48 square mile artesian brine aquifer containing potash was discovered in oil exploration wells at the White Cloud project and adjacent areas in the 1960s. Initial oil exploration wells experienced high-flow blow-outs when they unexpectedly drilled into super-saturated brine within a 30 foot thick shale unit above potash zone #2. Subsequent oil wells utilized weighted drilling fluids to control brine flows and prevent blow-outs. If found to be persistent and of economic potash grade, the brine could provide sufficient production without the need for injection and production wells and pumps as used in traditional potash solution mines.
Mesa also announces that its share capital will be consolidated on a three (3) old for one (1) new basis effective at the opening of the market on September 16, 2008. The share consolidation puts Mesa in a better position to raise capital and move forward on exploration and development work on our potash and uranium projects. The post-consolidated shares of Mesa will trade under the symbol “MSA”. There are presently 28,711,134 shares issued and outstanding in the capital of Mesa and following the share consolidation, there will be 9,570,378 shares issued and outstanding. The share consolidation was approved by shareholders at the Annual and Special Meeting held July 9, 2008.
Potash (K2O potassium oxide) is a fertilizer essential to plant nutrition and is critical to modern agriculture. A growing world population is accelerating the need for higher crop yields, leading to massive growth in demand. Potash demand is reflected in the price trend, with prices increasing from $100 per ton in 2000 to over $900 per ton in 2008. The United States is the world’s largest consumer of potash and imports over 80% of its requirements (7.1 million tons in 2007).
About Mesa Uranium
Mesa is a resource development company focused on uranium and potash exploration in Utah and Arizona and is well positioned to benefit from an increasing worldwide demand for energy and food. For further information about Mesa please visit our website at www.mesauranium.com.
ON BEHALF OF THE BOARD
MESA URANIUM CORP.
Foster Wilson, President and CEO
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company’s annual filings that are available at www.sedar.com.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
Contacts: Mesa Uranium Corp. Foster Wilson President and CEO Toll Free: 1-866-699-9888 Website: www.mesauranium.com
SOURCE: Mesa Uranium Corp.