June 18, 2009 / 3:49 PM / 10 years ago

UPDATE 1-Potash One says Legacy mine study results positive

* Says plans to move on to a feasibility study

* Shares up slightly in morning trade (In U.S. dollars unless noted)

TORONTO, June 18 (Reuters) - Potash One Inc KCL.TO said on Thursday it has completed a pre-feasibility study at its proposed Legacy project in Saskatchewan and plans to move on to a feasibility study, based on the favorable results it has received.

The Vancouver-based resource exploration company said the study found measured resources of 29 million tonnes and indicated resources of 222 million tonnes of potassium chloride — a key crop nutrient.

The study indicated an initial mine life of 40 years, with annual potash production of 2.5 million tonnes per year.

“The (pre-feasibility) study estimates confirm our view that the Legacy Project has the potential to become a high quality, long-life potash solution mine with robust economics,” Chief Executive Paul Matysek said in a statement.

“We believe that Potash One will develop a scalable, low-risk mining operation which could see its first production as early as Q4 2013,” he said.

The company said the estimated capital cost of mine construction would be $1.88 billion.

Shares of the company rose 2 Canadian cents to C$3.57 in morning trade on the Toronto Stock Exchange on Thursday.

$1=$1.13 Canadian Reporting by Euan Rocha; editing by Peter Galloway

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