Dear Investor,
Grizzly Discoveries Inc. (TSXV: GZD; OTCQX: GZDIF; FRANKFURT:G6H) ("Grizzly" or the "Company") is pleased to announce that it has signed a letter of intent ("LOI") with Pacific Potash Corporation ("Pacific") to commence a multiple target exploration program on the Grizzly - Pacific 50:50 Property surrounding Pacific's 100%-owned Provost Property. Grizzly and Pacific have engaged Barlon Engineering and Taylor Land Services, both of Calgary, Alberta, to coordinate the required well licensing and site preparations for three well site locations. The LOI indicates that a minimum of one well will be drilled and that the costs will be shared equally by Grizzly and Pacific. Depending upon results, up to three wells may be drilled on the 50:50 Provost Property. Drilling on the 50% owned Provost Property is expected to commence in October. Grizzly is also making preparations for the drilling of up to 5 wells on its 100%-owned Alberta Potash Property's North and South Blocks.
Grizzly - Pacific 50:50 Jointly Owned Provost Property
In late 2010 and 2011, Grizzly and Pacific submitted 24metallic and industrial mineral ("MAIM") permit applications to the Alberta Government totaling approximately 527,000 acres on the basis of a 50:50 ownership split. The permits were granted between April and August, 2011. The analysis of all the available geophysical logs for historic oil wells on the property has revealed a high probability of potash-bearing beds underlying the Grizzly - Pacific 50:50 Property. More specifically, the Company's analysis has indicated that the east-central and southeastern areas of the property have very high potential for economic-grade potash beds. Gamma-ray responses from historic oil and gas wells suggest that the grades of potash-bearing beds underlying the property could attain grades ranging from 15% to 25% K2O across thicknesses of 1 to 5 m (Klarenbach, P.Geol., 2009). These responses all occur at a depth of about 1,300 m in the uppermost 60 m of the Prairie Evaporite Formation, which is the main host to potash deposits in Saskatchewan (Holter, 1969). The potential quantity and grade mentioned above is conceptual in nature, there has been insufficient exploration on the property to define a mineral resource and it is uncertain if further exploration will result in the target being delivered as a mineral resource.
Grizzly's 100% owned Alberta Potash Property
The Company currently has a 100% interest in just over 1.88 million acres in two major blocks, with the North block centered about the town of Lloydminster and the South block northeast of Medicine Hat (see Grizzly's web site at www.grizzlydiscoveries.com for an updated map).
RPS Boyd PetroSearch is currently completing an analysis of seismic data acquired over both the northern Lloydminster Block and southern Medicine Hat Block. The studies are nearing completion and once completed will be used to identify exploration drill targets on Grizzly's 100%-owned MAIM Alberta Potash Property permits. These targets are planned to be drilled upon completion of drilling on the 50:50 jointly owned Provost Property. It is anticipated that drilling will commence on Grizzly's 100% owned Alberta Potash Property sometime during the latter half of October.
A large portion of Grizzly's 100%-owned Alberta Potash Property permits exist in close proximity to or directly contain areas that are underlain by potash bearing beds within the uppermost portion of the Prairie Evaporite Formation. Recent analytical work by the Alberta Geological Survey (Eccles et al., 2009) on the remaining core from VCO#15 has yielded up to 18.6% K2O. The occurrence of potash minerals in VCO#15 is at a depth of approximately 1,061 m below surface and is 1.4 km from the North block of the Alberta Potash Property. Recent staking by Grizzly has led to the acquisition of lands that contain a historic oil test well, DML Medhat 6-36-19-1, that has a gamma log spike that is indicative of a potash intersection of approximately 21.6 % K2O over 1 to 2 meters. The intersection is at a depth of approximately 1,660 m below surface, which is an ideal depth for potential solution mining due to the heat of the formation. The potential quantity and grade mentioned above is conceptual in nature, there has been insufficient exploration on the property to define a mineral resource and it is uncertain if further exploration will result in the target being delivered as a mineral resource.
Grizzly is planning to license and prepare at least 5 well site locations, and plans to drill at least two potash test holes on its 100% owned Alberta Potash Project.
All Grizzly Discoveries 2011 field and office exploration programs are conducted under the supervision of Mr. Michael Dufresne, M.Sc., P.Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under National Instrument 43-101.
About Grizzly Discoveries Inc.
Grizzly trades on the TSX Venture Exchange under the symbol GZD, on the OTCQX exchange under the symbol GZDIF, and the Frankfurt Exchange under the symbol G6H, with 48,350,268 common shares issued and outstanding.
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