American Potash Receives Initial Approvals to Drill Exploratory Wells on Its Green River Potash and Lithium Project, Utah
December 14, 2022 at 12:30 pm EST
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American Potash Corp. KCL-CSE announced that it has received initial approvals from the Utah Division of Oil Gas and Mining (UDOGM) on applications for permits to drill exploratory wells on three of its eleven 100% owned Potash and Lithium State mineral leases which form part of the Green River Potash and Lithium Project, located within the Paradox Salt Basin, Utah. Formal drill permits will be issued upon meeting reclamation bonding and any other requirements stipulated in the Company's Notice of Intent to Conduct Exploration (NOI). The permits provide for drilling to depths of up to 9,000 feet, allowing detailed information to be acquired from multiple potash and lithium (brine) horizons encountered in nearby historical oil and gas wells, including the Shell Quintana Fed 1-1 oil well, which intersected 24.3% gamma-log equivalent KCL over 5.9 meters and is located less than a half a mile east of the Company's first proposed well. The three proposed wells, referred to as Dumas Point (S2), Mineral Springs (S36), and Ten Mile (S32), are spaced widely apart, providing a large area of influence to draw upon for estimating potential potash and lithium resources within this portion of the project area. About the Green River Potash and Lithium ProjectThe Green River Potash and Lithium Project is situated within Utah's Paradox Salt Basin, and could potentially be one of the largest sources of potash in the USA. A NI 43-101 Technical Report by Agapito Associates Inc. states that the Green River Potash and Lithium Project hosts an Exploration Target estimated to contain 600 million to 1 billion tons of sylvinite grading between 19% to 29% KCL. This target was modelled utilizing gamma-log data from 33 historical oil and gas wells within and near the project area, and based on a specific stratigraphic horizon know as Cycle 5. This is one of the same horizons that Intrepid Potash Inc., America's largest potash company, produces from at their nearby Moab solution mine, providing strong evidence of stratigraphic continuity within this part of the Paradox Basin. The Company holds a 100% interest in eleven State of Utah (SITLA) mineral and minerals salt leases covering over 7,000 acres, 128 Federal lithium brine claims covering 2,650 acres, and is in the final stages of the application process for 11 Federal (BLM) Potash Exploration permits comprised of approximately 25,000 acres. Significantly, three of the State leases and a large area covered by the Federal (BLM) Potash Permit applications, lie within or border, an area designated for future potash and brine and processing, including energy efficient solar
evaporation ponds. Located only 20 miles northwest of Moab, Utah, the project has significant logistical advantages including close proximity to major rail hubs, airport, roads, water, towns and labour markets. The U.S. imports more than 90% of its annual potash requirements, and domestic producers receive a higher sales price due to proximity to market; as of December 2022, the muriate of potash price was $562.50 USD per tonne (fob Vancouver) -Intrepid Potash, America's largest potash producer, reported receiving $734 USD per ton in Third Quarter 2022. It should be noted that Exploration Targets are conceptual in nature and there has been insufficient exploration to define them as Mineral Resources, and, while reasonable potential may exist, it is uncertain whether further exploration will result in the determination of a Mineral Resource under NI 43-101. The Exploration Target stated in the Agapito Report is not being reported as part of any Mineral Resource or Mineral Reserve.
American Potash Corp. is a Canada-based exploration company. It is focused on its Green River Potash and Lithium project. Its projects are the Green River Potash and Lithium Project, and Paradox Basin Lithium and Brine Project. The Company holds 100% interest in 11 State of Utah Potash and Lithium leases, approximately 128 Federal placer claims, and 11 Federal Potash Exploration Permit applications, which combined total an area of 35,000 acres. It is located in Grand County, Utah, 20-30 kilometers (km) west of Moab and 10-20 km northwest of Intrepid Potashâs evaporation pond solution mining operation. Its Paradox Basin Lithium and Brine Project is focused on its State Leases (7050 acres) and Federal Placer Claims (2500 acres). It is located within a geologic province known as the Paradox Salt Basin that extends approximately 160 km (100 miles) in width and 320 km (200 miles) in length in a northwest-southeast direction spanning south-eastern Utah and southwestern Colorado.