Drilling Now Underway Targeting Open-Pit Resources at Ethiopian Potash Corp.'s Danakil Development Project
TORONTO, ONTARIO -- (Marketwire) -- 06/08/11 -- Ethiopian Potash Corp. (the "Company" or "EPC") (TSX VENTURE: FED)(TSX VENTURE: FED.WT) is pleased to announce that a 50 person field camp has now been completed and two drills are turning on the Company's Danakil concession as EPC begins its 15,000 meter drilling program, slated to confirm the existing resources in the south-west corner of the Company's property, and then proceed to test the potash resource potential in the Colluli area on the east side of the property.
In both areas, EPC will focus on its previously established shallow mineralization targeting potash horizons potentially amenable to open-pit mining scenarios.
Mr. Wahl, President and CEO stated "I am very excited that drilling has commenced, and we anticipate making good time in our development program and assay turnaround, with the help of personnel all of whom have previous drilling experience in the Danakil basin."
"Results of this initial program will confirm management's enthusiasm about the ability to move EPC's licenses quickly through resource development and economic evaluation milestones."
The objective of this initial drill program is to confirm, expand, and upgrade the 43-101 inferred resource of 128 mil tonnes grading 21% outlined by ERCOSPLAN. The drill program is designed to increase the inferred resources and upgrade the resources in the core area to indicated and measured resources. This will provide the basis for a new 43-101 resource estimation and economic studies commencing in early Q4 of this year.
Now that drilling has started the Company expects to be in a position to issue regular updates to its shareholders on the status of the on-going drilling. As the assays are received the results will be compiled for release. Given the current backlog being experienced by the assay labs, results are not expected until late July or early August. The Company is currently looking at ways to speed up the assay turn-around time.
On the Company website investors will shortly find recent pictures from the site, as well as the initial proposed drill hole location maps on the first work to be completed.
Mr. Wahl is the Qualified Person as defined by NI 43-101 and is responsible for the content of this release. In preparing this release Mr. Wahl was assisted by Mr. Bruce Cumming, COO of the Company and the person responsible for the project. This release has also been reviewed and approved by the Company's Independent Consultants ERCOSPLAN of Erfurt, Germany, the world's foremost authority on the Danakil Depression.
About Ethiopian Potash Corp.
Ethiopian Potash Corp. (TSX VENTURE: FED)(TSX VENTURE: FED.WT) is a Canadian company based in Toronto, Ontario, and Addis Ababa, Ethiopia. Ethiopian Potash controls 481 sq km of shallow mineralisation potash development concessions in the fairway of the Danakil Depression, Ethiopia. The Company has an existing 128 mil tonne resource at 21% potash and is intent on aggressively fast-tracking its properties to production.
David Wahl, President and CEO
This press release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. All statements that address future activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Forward-looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control. There can be no assurance that outcomes anticipated in the forward-looking information will occur and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligations to update publicly or otherwise revise any forward-looking information, except as may be required by law. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company's filings with the Canadian securities regulators available on www.sedar.com.
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