Vancouver, British Columbia, November 12, 2009: Confederation Minerals Ltd. (TSXV:CFM) (“Confederation”) and Magna Resources Ltd, (CNSX:MNA) (“Magna”) are pleased to report that American Potash LLC (“American Potash”) a Nevada limited liability corporation owned 50% by each of Confederation and Magna, has successfully acquired nine (9) non-contiguous Utah State trust land potash lease units in the potash-bearing Paradox Basin in Grand County, Utah.
The nine potash lease units were acquired via a competitive bid process administered by the State of Utah School and Institutional Trust Lands Administration, and officially awarded to American Potash on October 26, 2009. Each lease unit consists of one State section and covers a contiguous area of approximately one square mile (~2.8 sq km). The nine lease units total approximately 9.5 square miles (26.6 sq km) or 6,090 acres.
The nine State potash lease units are all within or on the border of a large block of contiguous Federal Bureau of Land Management (BLM) potash prospecting permit applications held exclusively by American Potash, separated into contiguous north and south blocks by a proposed BLM Known Potash Lease Area (KPLA). Final approval and award of the BLM potash prospecting permits to American Potash is pending, but expected by year end or early next year.
Most of the BLM potash prospecting permit applications and State potash lease units fall within the 60-foot (18-m) potash thickness contour for Potash Cycle 13 as defined by R.J. Hite in 1976 USGS Open-File Report 76-755. Gordon J. Allen, Qualified Person (QP) and author of the National Instrument 43-101 compliant technical qualifying report entitled “Report on the Potash Potential of the Green River Potash Project Area” completed for American Potash on August 15, 2009, reviewed available pertinent historic oil and gas drill logs (specifically gamma log data) and estimated the potential potash horizons thicknesses and grades beneath the American Potash BLM potash permit application and State potash lease unit areas.
Confederation’s share of the acquisition costs for the State Leases was approximately US$ 65,000.
This announcement has been prepared under the supervision of Lawrence A.Dick, Ph.D., P.Geo., who is the Qualified Person for the purposes of National Instrument 43-101 with respect to the technical information in this news release. Dr. Dick is the President of Confederation Minerals Ltd.
On behalf of the Board of Confederation Minerals Ltd.
Lawrence A.Dick, Ph.D., P.Geo