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IC Potash announces commencement of preparation of the Ochoa Project Prefeasibility Study

February 2, 2011

TORONTO, Feb. 2 /PRNewswire/ – IC Potash Corp. (“ICP” or the “Company”) (TSXV:
ICP; OTCQX: ICPTF) is pleased to announce the commencement of the Ochoa
Project Sulphate of Potash (“SOP”) Pre-feasibility Study.  Through this
study and concurrent environmental work, the Company will establish the
engineering basisfor the Ochoa Project for mining, processing, and SOP
marketing.    

This announcement complements recent operating progress including two
successful drill programs, the establishment of substantial measured
and indicated resources, and the completion of the Preliminary Economic
Assessment, which indicated that the project has a projected Net
Present Value of $1.4 billion with a discount rate of 10% and
production level of 660,000 short tons. 

Mr. Sidney Himmel, President and Chief Executive Officer of IC Potash
stated: “I am very pleased with the operational progress made to date. 
We are on plan with our primary strategic goal to be in production for
2014. To achieve that, we have assembled an excellent team of
accomplished professionals to complete this study and will now move
quickly to establish the economic engineering parameters for the
Project.”         

Pre-Feasibility Team: 

  • Lead Engineering Firm and Project Manager: The lead engineering firm will be Gustavson Associates, LLC. of Colorado
    (“Gustavson”).  Gustavson will provide the mining and processing plans,
    and initial detailed engineering.  Gustavson is a global consulting
    firm consisting of mining engineers, geologists, economists and
    geophysicists.  
  • Mineral Processing: Process optimization and confirmation will be carried out by a team of
    highly experienced potash processing chemical engineers. This highly
    experienced team has worked with numerous global corporations as
    consultants and represents some of the leading authorities on the
    processing of potassium salts.  Collectively, the team has over 100
    years of experience directly related potash salt processing. 
  • Pilot Testing:  Hazen Research, Inc.   (“Hazen”) of Golden, Colorado, will perform bench
    scale and pilot process testing, including the evaluation of prior work
    carried out by the Bureau of Mines, and prior corporate pilot plant
    testing of polyhalite to SOP processing.  The objectives will include
    the optimization of SOP recovery, including the minimization of water
    usage and required acreage for solar evaporation.  Hazen’s professional
    staff includes over 150 highly trained professionals in the fields of
    chemical and metallurgical engineering.  Hazen has internationally
    recognized expertise in pilot plants, minerals beneficiation, physical
    separations, thermal processing, and hydrometallurgy.  
  • Hydrology and Environmental Work: The hydrology work will be managed by Intera Geosciences and Engineering
    (“Intera”) of New Mexico.  Intera is highly experienced in water
    resource management related to water supply, quality, rights,
    transfers, and management.  Intera has expertise in the south-western
    United States with clients including industry and state, federal, and
    municipal agencies, and has expertise in providing models of hydrologic
    system conditions.  
  • Processing Equipment Design and Selection: This work will be carried out by FLSmidth, a leading supplier of
    equipment and services to the global minerals industry, employing more
    than 10,000 people world-wide.  Product expertise includes ore feeding,
    sizing, crushing, and milling, automation and control systems including
    mix optimization, conveyor engineering, and expertise in emissions and
    water systems. 
  • Rock Mechanics: This work will be carried out by Advanced Terra Testing of Colorado
    (“ATT”).  ATT has expertise in the provision of physical test data for
    mining engineering projects word wide, including rock mechanics and
    geosynthetics. 
  • SOP Marketing and Pricing: This work will be carried out by CRU.  CRU, formerly known as British
    Sulphur Consultants, is the leading business consultancy and publisher
    for the fertilizer and chemical industries. The company forecasts
    fertilizer markets internationally. CRU has established a worldwide
    reputation in minerals and chemicals consulting over a period of 50
    years. 

Randy Foote, Chief Operating Officer of the Company stated: “With the
team of engineering, hydrological, processing, and marketing
professionals in place, I am fully confident that we are on the right
path towards the development of a major Sulphate of Potash production
facility.  We believe that this study should be completed within
approximately 9 months.  I am very excited to be managing the
engineering planning and design with this team of professionals, with
many of whom I have worked with in the past in potash production.” 

All scientific and technical disclosures in this press release have been
prepared under the supervision of William J Crowl, a consultant to IC
Potash who is a Qualified Person within the meaning of National
Instrument 43-101. 

About IC Potash Corp. 

IC Potash intends to become a primary producer of Sulphate of Potash
(“SOP”) by mining its 100%-owned Polyhalite Ochoa property in New
Mexico
. SOP is a non-chloride based potash fertilizer that sells at a
substantial premium over the price of Muriate of Potash (“MOP”), the
most widely used fertilizer in the world. Typically SOP sells at a
premium of over 40% to MOP. ICP is focused on being the lowest cost
producer of SOP in the world. The SOP market is approximately six
million tonnes per year and SOP is a significant fertilizer in the
fruit, vegetable, tobacco, potato, and horticultural industries, and
for agriculture in saline and dry soils and soils in which there is
much agriculture with varieties of crops, such as for example in China,
India, the Mediterranean, and the United States. ICP’s Ochoa property
consists of over 100,000 acres of federal subsurface potassium
prospecting permits and State of New Mexico Potassium mining leases. 

Forward-Looking Statements 

Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond the
control of ICP, including, but not limited to, risks associated with
mineral exploration and mining activities, the impact of general
economic conditions, industry conditions, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing.
Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. 

NEITHER THE 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. 

SOURCE IC Potash Corp.


Source: newswire



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