SAGE POTASH CORP. (TSX-V: SAGE) is pleased to announce its common shares have commenced trading on the TSX Venture Exchange (the “TSX-V”) under the ticker symbol “SAGE.V” effective at the open on March 20, 2023. This follows the closing of private placements totalling $5,322,350, and the acquisition of a potash land portfolio in the State of Utah consisting of over 83,000 acres of State and Private Mineral leases and BLM Prospecting Permit Applications, as well as assembling a highly experienced team adept at all aspects of solution mining, surface processing, operations and fertilizer distribution.
Historical exploration on the property includes an important discovery drill hole by a previous operator, with core samples identifying two flat potash beds featuring high potash grades with favourable commercial characteristics. Potash mineralization was first encountered in the Johnson 1 exploration well completed in 2014, returning grades between 27-29.3% K2O (36–43% KCI) in the Lower and Upper Cycle 18 horizons with combined potash zones of 12.74m (41.78 ft).
Based on historical exploration, the company has defined a Mineral Resource on the Property as follows:
- Inferred Resource for Upper Potash Bed, Cycle 18: 159.3 million metric tonnes (MMT), grading 42.67 % KCl with 0.01 % carnallite and 0.62 % insolubles
- Inferred Resource for Lower Potash Bed, Cycle 18: 120.2 MMT, grading 35.77 % KCl
The parameters used for estimating the Mineral Resource and Potential Quantity are summarized as follows:
- A radius of influence (ROI) of 0 to 2,400 m was used to bound the Inferred tonnage
- A 25 % deduction was applied for undetectable seismic anomalies
- ROIs and deductions for unknown geologic anomalies were determined by the QPs based on their experience and confidence in the geological continuity of the mineralized horizon
- A geological interval was defined based on the core to identify the mineralized contacts’ top and bottom and further refined by the assay results
- A 5 % K2O grade cut-off was used to delineate the geological boundaries (top and base) of the mineralized section of the potash bed
Geologically, the resource is situated in the Paradox Basin, known to host extensive underdeveloped world-class potash resources (approximately 2 billion tons, according to the US Geological Survey). The Paradox Basin benefits from close proximity to modern infrastructure, low-cost power and electricity, skilled workforce, regional exploration and development supplies and services.
The Company’s objectives following today’s listing will be to complete a step out geological hole that will further define the resource estimates and may double as a possible cavern development test well, to advance preliminary engineering and PEA.
Figure 1. Project Area and Paradox Basin Regional Structural Element (Modified from Williams-Stroud, 1994). (CNW Group/Sage Potash Corp.)
Sage’s CEO, Peter Hogendoorn, commented, “Given the current sanctions against Russia and Belarus (which together constitute 40% of the world’s potash supply), the US currently imports nearly all its annual potash requirements from Canada. Having its own domestic supply only makes sense for the US. Reliable and local supply chains are key to achieving national food security in this post-Covid and inflationary era. Even with what appears to be a somewhat more rational market this year over last, shipping costs from Saskatchewan and lower barge capacity due to low water levels of the Mississippi River, can still add $150 – $225/ton that would not be incurred by having local production. As we continue to add to our proven management team, together with our engineering partners, RESPEC Inc. we look forward to sharing ongoing developments as they become available.”
J. Patricio Varas, P.Geo., a Qualified Person as defined by National Instrument 43-101, has read and approved all technical and scientific information related to the Sage Plains Project contained in this news release. Mr. Varas is the Chief Operating Officer and Vice President Exploration for Sage Potash. Mr. Varas has reviewed the data disclosed in this press release but has not verified historic assay information at Sage Plains.
About Sage Potash Corp.
Sage Potash is a Canadian company vested solely in the Sage Plain Property and intends through sustainable solution mining techniques to become a prominent domestic potash producer within the Paradox Basin situated in Utah.