TORONTO – (Marketwire) – October 4, 2012 – IC Potash Corp. (“ICP”) (TSX: ICP; OTCQX: ICPTF) today announced that SNC-Lavalin Inc. (“SNC-Lavalin”) has been awarded the definitive contract by ICP to develop several key sections of the Feasibility Study of ICP’s Ochoa Sulphate of Potash (“SOP”) Project in Lea County, New Mexico. Work on the Feasibility Study is already underway and is expected to be completed by August 2013.
The technical scope of the Feasibility Study includes the recovery methods, project infrastructure, processing facility, loadout and ancillary services to produce SOP and Sulphate of Potash Magnesia (“SOPM”) from ICP’s Polyhalite deposit located in the southeastern region of New Mexico. The overall project will include the process design and optimization of the SOP and SOPM process, along with material handling, granulation and loadout of the finished products. SNC-Lavalin will also develop the cost estimate and assist ICP in the economic analysis of the Ochoa Project with input from other key consultants contracted by ICP. SOP and SOPM are premium fertilizer products and SNC-Lavalin brings significant knowledge and experience with this type of processing facility.
“We are very pleased to support ICP on this exciting project,” stated Dale Clarke, Executive Vice President, Global Mining and Metallurgy, SNC-Lavalin, “This award builds on our potash expertise and knowledge, and affirms our position as a leading engineering contractor in the potash fertilizer industry.”
Sidney Himmel, President and CEO of ICP, added, “To ensure we fully optimize our Polyhalite asset, we team with only the best in the industry. SNC-Lavalin is an international leader in consulting, designing, engineering and construction of processing and infrastructure facilities for the global mining industry, having completed more than 350 major projects worldwide. Our goals to become the lowest cost producer of SOP and SOPM and to effectively address the underserved global market for these in-demand premium fertilizers were the basis for our decision to award this key contract to SNC-Lavalin. ICP looks forward to completing our Feasibility Study on time and on budget.”
Concurrent with the Feasibility Study, ICP’s environmental and development work being done by ICP and its other consultants continues along planned timelines.
About SNC-Lavalin Group Inc. (TSX: SNC)
SNC-Lavalin Group Inc. is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin Group Inc. has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com.
About IC Potash Corp.
ICP intends to become a primary producer of Sulphate of Potash ("SOP") and Sulphate of Potash Magnesia ("SOPM") by mining its 100%-owned Polyhalite Ochoa property in New Mexico, a highly advanced mineral deposit containing proven and probable reserves of more than 340 million tons of ore within the proposed mine plan. SOP is a non-chloride based potash fertilizer that sells at a substantial premium over the price of regular potash known as Muriate of Potash ("MOP"). MOP contains chloride and is therefore not the optimal potash for numerous crops and in situations where there is high soil salinity. ICP is focused on becoming the lowest cost producer of SOP in the world. The SOP market is towards six million tonnes per year. SOP is a significant fertilizer in the fruit, vegetable, tobacco, potato, and horticultural industries. SOP is also applicable in soils where there is substantial agricultural activity with varieties of crops and therefore where the salinity of the soil has increased, and in areas where soils are dry. SOPM is a highly desirable potash product for soils with magnesium deficiency, including those found in Europe and Southeast Asia and has a total global market size of over one million tonnes. ICP's Ochoa property consists of over 100,000 acres of federal subsurface potassium prospecting permits and State of New Mexico Potassium mining leases. For more information, please visit www.icpotash.com.
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.