Karnalyte Resources Inc. announces second quarter 2011 results

About this update from Karnalyte Resources Inc.

[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Aug. 12, 2011 /CNW/ - Karnalyte Resources Inc. (\"Karnalyte\" or\n the \"Corporation\") (TSX: KRN) today announced its financial results and\n operational highlights for the quarter ended June 30, 2011. Karnalyte\n intends to construct a potash facility near Wynyard, Saskatchewan which\n is expected to initially produce 500,000 tonnes of potash per year and\n ultimately increase to 2 million tonnes of potash per year.\n\n\n\"This quarter, we made significant progress on the feasibility study for\n our proposed potash facility and we remain on track to have that study\n completed before year end. In addition, we completed drilling of seven\n new wells for the purpose of identifying additional resources outside\n of the current development area,\" said Robin Phinney, President and CEO\n of Karnalyte Resources Inc. \"The data gathered from these cores will be\n used to generate an updated NI 43-101 resource estimate that we expect\n to receive before the end of the third quarter.\"\n\n\nKarnalyte's Second Quarter 2011 Financial Statements and Management's\n Discussion and Analysis (MDA) are available at www.sedar.com.\n\n\nSelected Highlights\n\n\nCompleted a seven hole drilling program to further characterize its land\n holdings and potential potash resources.\n\n\nSubsequent to the end of the quarter, announced that it had selected\n Lyntek Incorporated to perform a NI 43-101 compliant pre-feasibility\n study on magnesium chloride compounds that can be produced from the\n potash feedstock for potential by-products.\n\n\nThe Company remains very well funded with current working capital of\n approximately $40.7 million as at June 30, 2011.\n\n\nOutlook\n\n\nOver the short term, the Corporation will focus on the following key\n initiatives:\n\n\nComplete the feasibility study and file the Environmental Impact\n Statement;\n\n\nFinalize the analysis and interpretation of the recent drilling program\n to produce an updated NI 43-101 resource estimate;\n\n\nContinue exploration and development of its mineral holdings through\n additional 3D seismic analysis;\n\n\nObtain independent assays of product samples recovered from the pilot\n test facility;\n\n\nComplete a pre-feasibility level study on potential production and\n marketing of magnesium compounds; and\n\n\nOptimize product quality in cooperation with machine...

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