FOX ISLAND, Wash., March 28, 2011 /PRNewswire/ -- Universal Potash Corporation (the "Company") (Pink Sheets: UPCO) announces the immediate start-up of our Potash Exploration Program focused on our interests in the Paradox Basin of Utah. Universal Potash Corp's newest venture is located less than 1,000 yards west of the BLM's designated KPLA (Known Potash Leasing Area) reserve. The UPCO property interests encompass nearly 2,000 acres of the School and Institutional Trust Lands Administration (SITLA) subsurface potassium rights near the Lisbon Valley KPLA and indicates multiple potash depths due to their proximity to the flank of the Lisbon anticline. "Our timing couldn't be better. Financing is available in the markets and Universal Potash is positioned to take advantage of this timing with our proposed first 2 site development on the three square mile lease interests adjacent to Lisbon Valley, Utah," stated Kevin M. Murphy, CEO of Universal Potash Corp.
"We favor Potash....." stated Goldman Sachs Spokesman
"We favor potash among the three nutrients (nitrogen, potash and phosphate), given more robust demand prospects and a continued tight supply backdrop in the intermediate term," said Goldman Sachs in its statement. The stocks of potash producers are predicted to outshine those of more nitrogen focused companies, due to what brokerage firm Goldman Sachs calls "peaking corn prices." In a statement issued this past Monday, Goldman Sachs noted that the current corn price of $6 to $7 per bushel is unsustainable. "Increasing global corn supplies, falling demand for feed and diminished political enthusiasm for ethanol in the U.S. will combine to lower corn prices by 2012," said Goldman. The price of nitrogen has a closer connection, compared to potash, to the price of corn; therefore, Goldman Sachs announced that it favored fertilizer producers tied to potash, rather than nitrogen.
UPCO Phase1 Drill Site And Access Recon
Harrison Land Services has been engaged by UPCO to carry out an extensive evaluation that will target the best drill sites and access to the 3 newly acquired Potash exploration lease blocks immediately west of Lisbon Valley anticline of the Paradox Basin. Analysis of our target drill sites will be based on a combination of criteria that will result in the least disturbance area to the environment by the drill pad locations, access to sites that best fit geologic favorability for Potash discovery and avoidance of cultural, paleo and biological resources.
HLS will attempt to avoid, as much possible, the need for a federal right of way, which will eliminate extensive turnaround times, save on permitting and 3rd party survey costs. HLS will stake centerline of the access corridor as well as drill site center peg with photos, which we will post on the UPCO Website at www.UniversalPotash.com
UPCO Phase2 Exploration Plan & NOI / ROW submission
Research and implementation of our second phase will commence simultaneously with the preparation of our exploration plan. UPCO's plan will include exploration maps, pad, pits and access dimensions, disturbance area calculations, proposed action document, pad diagrams, hole diagrams and operations list, generation of the Notice Of Intent (NOI) application and submit these generated items to SITLA or Bureau of Land Management (BLM) if a federal Right Of Way (ROW) is required. As part of the exploration planning, HLS will find sources for water, drill fluid disposal and county road encroachment and pay necessary filing fees.
About Universal Potash Corp:
Universal Potash Corp. is an acquisition driven exploration company, dedicated to increasing shareholder value. The Management of Universal Potash's principal focus is the acquisition of premium leaseholds and the future development of these properties and business interests on a global basis. Management efforts are channeled into building Universal Potash Corp. into an international enterprise and meeting the growing challenge of feeding the world.
"Safe Harbor" Statement: Under The Private Securities Litigation Reform Act of 1995: The statements in all press releases that relate to the company's expectations, with regard to the future impact on the company's results from new projects in development, are forward-looking statements. A complete disclosure of our "SAFE HARBOR "statement is posted on our website at www.UniversalPotash.com under the heading "NEWS." The quotes attributed to and by Goldman Sachs are not to be considered and endorsement of, or recommendation to buy Universal Potash Corp.
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SOURCE Universal Potash Corporation