Activities to Date
Western Potash Overview
WPX Initiates Drill Program
Completes Initial Public Offering
Acquires and Reprocesses 315 km of Sinclair
Files Sinclair Property Applications
Completes Additional 360km Russell 2D Seismic
Completes NI 43 – 101 Technical Report
Files Saskatchewan Property Applications
Acquires Initial 2d Russell Seismic Lines 73 km
WPX Formed – Acquires Manitoba Property
Rotary Drill Rig
Aggressive Plan to Develop Resource
PHASE ONE – BY Q3 2008
Drill program (5000m) $ 5.0m
Seismic Data Acquisition (540km2) $ 0.3m
Interpretation & Processing, Data Acq. $ 0.1m
Total $ 5.7m
PHASE TWO – BY Q2 2009
Drilling program (10 holes) $ 10.0m
3D Seismic Surveys $ 2.0m
2D Seismic Surveys $ 0.5m
Sampling of Initial 5 Drill Cores $ 0.4m
Mechanical Test Work $ 0.1m
Contingency 10% $ 1.2m
Total $ 14.2m
WPX applications exceed 860,000 acres.
China, India and Brazil are the three fastest growing consumers of Potash globally.
Potash has NO Commercial Substitute
Potassium (potash) is one of three nutrients
essential for plant growth.
95% of all production used in agricultural
Potash fertilizer increases crop yields and
disease / pest resistance.
Potassium Fertilization is essential to maintain soil
productivity and fertility.
The farming of soils for decades , crop after crop, and
more recently with the intensive use of high yielding
seeds and modern agrotechnologies has depleted soils
of their potassium content.
Harvests remove large amounts of potassium form the
soils and if potassium is not sufficiently replaced by
fertilization, soils become deficient in potassium.
Potash Improves Yields and Crop Quality
Potash is known as the “Quality Nutrient”
Balanced fertilizer application will sustain improved yields.
Potash improves disease resistance
Potash strengthens cell walls
Potash prices will continue to rise.
Potash Production is limited on a global scale.
Global demand for crop nutrients today is growing at double the rate of the last 10 years. Forecasts released by the
International Fertilizer Association in May 2008 indicate that demand is growing at a compound annual rate of 4.2%
since 2006. This rate is more than double the rate of 1.7% from 1995 through 2005.
Global grain and oilseed stocks remain at low levels despite record crops in 2007 and 2008. The latest USDA
statistics released on July 11, 2008 show that inventories of the sixteen leading grain and oilseed crops will increase
a mere 4.4 million tonnes this year and stocks, as a percentage of use, will decline to the lowest level since the early
1970's. The supply response to high agricultural commodity prices during the last two growing seasons was good, but
clearly not good enough to reverse the unsustainable trend in global grain and oilseed stocks.
Increasing yields is a key to meeting the world's accelerating demands for food and fuel. Yields today are growing at
the slowest rates in 35 years. For example, from 1970 to 1990, the average world wheat yield grew at a compound
annual rate of 2.6 percent. This rate slowed to 1.1 percent during the 1990's and has slowed further to 0.7 percent
during this decade. The trends are similar for corn, rice and soybeans. The proper use of crop nutrients can boost
yields per acre by as much as a third. Yet, many essential crop nutrients have not been utilized adequately,
particularly in developing countries. Improved application rates in these regions could boost production.
The world adds 74 million people per year. China and India combined account for 45% of the
population. The FAO predicts that by 2050 there will be 9 billion people on this earth.
How Potash Was Formed
Geological records tell us that approximately 400 million years ago a large sea covered most of Saskatchewan,
Alberta, Montana, North Dakota and a little bit of what we know as the Northwest Territories.
In the years that followed a reef was formed across the northern part of this sea and blocked the ocean inflow
from the North. This prevented any water from entering the sea. Over time, the warm, dry climate caused the sea to
evaporate. Eventually all that was left was a bed of mineral salts.
Today these salt beds lie about 1000 meters below the ground and are known as the Prairie Evaporite.
Prairie Potash aka KCl (Potassium Chloride)
Potash is Salt
Prairie Potash KCI
That rock that is mined in Saskatchewan
contains crystals of two common salt material.
KCl (potassium chloride ) and NaCl (table
salt). There are other mineral impurities like
sand, clay and red-colored iron oxides
present in the ore. The deposits in
Saskatchewan are considered to be the best
in the world and very economical.
The Devonian Elk Point Basin was formed in an inland sea.
Water flow in this sea was restricted by the Presquíle Reef,
causing evaporation and formation of the Prairie Evaporite.
The potash is part of the evaporite sequence
Extent of Prairie
Prairies - Centrally Located Jurisdiction
Major markets easily serviced
Asia (via Vancouver / rail)
U.S. Heartland (via rail)
Europe (via Churchill deep water port)
Rail connections (3) to US market
Excellent Local Infrastructure:
540 line Km 2D seismic acquired.
Ongoing processing and
Historic Oil & Gas
Seismic Data allows us to locate underground potash
CEO Pat Varas shows off first Potash
1988 Wildoats (68) Seismic Profile identifies Potash bed