CAJ - tsx venture - Canasia Industries - Potash

Canasia Industries Corporation TSX-V:CAJ

Potash Reed Lake Coal Jumbo Gold Clone Gold Debut Gold

Potash Quick Summary

The Eyehill Creek Potash Property is over 450,000 acres and consists of 20 Metallic and Industrial Minerals Permit (MAIM) Applications.

The property is located within east-central Alberta, along the Saskatchewan-Alberta border; close to Canada's first Potash mine in Unity. Canasia has recently been informed by Dahrouge Geological Consulting Ltd. that the potash permit applications have been processed and have received government approval. These permits encompass 453,058 acres of lands prospective for potash. A work program on this prospect will now be formulated with the goal of establishing a NI 43-101 compliant report in the near future.

Click to enlarge
Terms of the acquisition with the arms-length vendor are as follows:

Cash payment of $35,000 upon execution of the Option Agreement(paid) ;
A further cash payment of $89,998 after receipt of the MAIM Permits (paid) ;
On acceptance by the TSX Venture Exchange and receipt of the metallic and industrial minerals issuance of 500,000 common shares of the Company (issued);
One year from the date of the Agreement the issuance of 500,000 common shares of the Company;
Two years from the date of the Agreement the issuance of 500,000 common shares of the Company; and
The property is subject to a 2% NSR Royalty.

Dahrouge Geological Consulting Ltd. has been obtained to assist in the evaluation and implementation of a work program on the Eyehill Creek Potash Prospect. Jody Dahrouge P.Geol., a qualified person, has reviewed the information pertinent to the Eyehill Potash Property contained herein

Click to enlarge
Geology

The Eyehill Creek Potash Property is underlain at depth by the Prairie Evaporite Formation, the uppermost unit of the Elk Point Group. The Prairie Evaporite Formation occurs extensively across the plains region of western Canada, where individual potash beds can be up to seven meters thick.

The Potash-bearing beds of the Prairie Evaporite Formation are shown to project into the Eyehill Creek Property by Hamilton (1971), while Hamilton and Olson (1994) document a Potash Showing on the property. Most of the recorded Potash Exploration in Alberta occurred between 1965 and 1968. The Company believes that there is potential for the discovery of significant Potash occurences within the Eyehill Creek Property. Currently, there is no NI43-101 report on this property, nor are there proven, indicated or inferred resources. The Company plans to initiate a compilation of all historic exploration data for the area, and the completion of a NI43-101 report.

Potash is a general term covering several types of potassium salts, of which the most important is potassium chloride, the mineral sylvite. Potash is a nutrient essential for plant growth, and is a cornerstone of modern agricultural fertilizers. Roughly 95 per cent of world potash production goes into fertilizer, while the other five per cent is used in commercial and industrial products - everything from soap to television tubes. According to an article in the Financial Post published Wednesday, February 20, 2008, "Driving potash prices will be strong demand -- particularly from countries outside of China, which is currently negotiating contracts -- in a time of historically low inventory levels, the strategists say. North American producer inventories are 37% below the five-year historical average and about 50% lower than in 2006."

News Release

February 25, 2008 - Canasia Acquires Option on more than 450,000 Contiguous Acres of Potash Claims

March 04, 2008 - Canasia Retains Geological Consulting Group for Potash Development