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Encanto was created to work with First Nations Peoples in Saskatchewan to assist them in developing potash resources on their lands. Encanto is focused on exploring for potash in five southeastern Saskatchewan prospects, working with the Chacachas, Day Star, Muskowekwan, Muscowpetung and Ochapowace First Nations.
Encanto Potash, along with its partners the Muskowekwan First Nations, is rapidly moving towards an initial resource calculation on its Muskowekwan project in Saskatchewan, Canada. Initial assays returned values greater than 25% K2O or 40% KCl over mineable widths in two separate potash beds. The company plans to drill four to six infill holes at Muskowekwan for its initial resources calculation due in Q3/Q4 2010. Seismic results from an extensive 3D program at Muskowekwan are due in May/June 2010.
Encanto is developing these properties with the full community support of First Nations. Both groups are excited about this new relationship and its economic potential. Encanto Potash has 100% potash mineral title to all of the properties and the First Nations have a 3% GORR (Gross Over Riding Royalty) upon production. So all stakeholders interests are aligned. Potash is a highly profitable commodity, and both investors and First Nations are poised to benefit greatly from an economic discovery.
Encanto's Spar property has a NI43-101 compliant resource calculation compiled by Agapito Associates, Inc. of an indicated resource of 12.49 million tonnes of K2O and an Inferred resource of 12.24 million tonnes of K2O. This resource estimate was determined based on the two holes drilled by Canadian Exploration Ltd. in 1969. The holes are located approximately 3.2 kilometres apart in the southwest corner of the Spar property. The resource covers approximately 17% of the property.
The Saskatchewan potash beds are normally very consistent over tens of kilometers. As a result, only a few widely spaced drill holes are required to create a large potash resource.
Potash is a key source of potassium, which is a natural component of fertilizer that increases crop yields. The world's population is growing by 75 million people per year. The only known way to feed this growing population is to increase crop yields with fertilizer - and potassium obtained from potash is one of the key components.
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