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the company has embraced a modern method of potash mining that has significantly less impact on the environment than historical methods of mining the mineral.
The company’s flagship project, Sage Plain Potash Property, is located in the Paradox Basin, potentially containing roughly two billion tons of potash. Utah is a mining-friendly jurisdiction with a steady supply of talented workers.
POTASH – An underrated mineral crucial to the world’s food production and its supply, is largely controlled by just four countries, Russia, Belarus, China and Canada. Without potash, the industrial-scale agriculture that feeds billions of people around the world will fail. It’s the world’s principal source of potassium, one of the key ingredients in most fertilizers, and skyrocketing costs of fertilizers is threatening global food security while pushing rising food prices even higher. The soaring costs have forced some European production plants to halt or curtail production altogether. The situation could get worse before it gets better.
Sage Potash Corp.
Sage Plain Potash Property
The Sage Plain Potash Property located about 56 miles south of the Cane Creek mine and in the heart of the Paradox Basin, the Sage Plain Potash Property has the potential to be a major domestic supplier of high-grade potash.
Exploration on the property includes a very important discovery drill hole. The samples taken identified two viable potash layers with high quality deposits.
Why The Paradox Basin?
• Paradox Basin known to host extensive undeveloped world class potash resources.
• 2 Billion tons *USGS
• Cycle 18 Potash Beds have attractive thicknesses and high grades for solution mining.
• Access to mining and processing knowledge.
• Regional exploration and development supplies/services.
• Local engaged, skilled workforce.
Potash Mining – The Modern Approach
Solution Mining is a proven and well-known technique where Potassium Chloride(KCl), commonly referred to as Potash, is dissolved by salt saturated brine injected into sylvinite layers to form caverns. The potassium-bearing solution is pumped to the surface for recrystallization and final processing. Surface processing is initiated either by evaporation ponds or mechanical evaporation. Where water is plentiful, evaporation ponds may be ideal. In arid or semi-arid agricultural zones, mechanical evaporation may be preferable as this process requires far less water and can utilize brines which are not included in water rights but are included in existing mineral rights.
Cavern Development Techniques
- Drill one combined ejection and production well to produce 250,000 tonnes of potash annually
- Inject salt saturated brine to dissolve potash in underground cavern
- Pump saturated brine from underground onto solar evaporation ponds at the surface
- Solar evaporation allows potash to recrystallize as water evaporates
- Harvest precipitated potash and salt from evaporation ponds
PILOT PRODUCTION: 15,000 TPY
Single Well Solution Mining
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- Sump development
- Cavern control
- Cavern growth
- Primary Mining
COMMERCIAL PRODUCTION:
50,000-150,000 TPY
Dual Well Solution Mining
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- Well connection
- Cavern control
- Cavern growth
- Primary mining
- Secondary mining
WELL FIELD DEVELOPMENT:
200,000-500,000 TPY
Multi-Cavern, Single or Dual Well
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- Directionally drilled from the central drill pad
- Minimize surface disturbance to ease access and minimize land use
- Centralize operations for controls, pumping, and piping
Recent Developments
March 27, 2023 - Sage Potash Corp. Partners With Leading Global Engineering Firm Respec Llc. To Advance Sage Plains Potash Project In Southern Utah
Figure 1. Proposed Water and Disposal Well Locations (with caverns) (CNW Group/Sage Potash Corp.)
Beginning in January 2022, RESPEC was engaged by Sage Potash to reinitiate engineering preparations to include the planning, design and execution of a Phase 1 Drill Hole Program and the preparation of a Preliminary Economic Assessment (PEA) toward the development of a pilot potash production facility. RESPEC will also be completing the corresponding permit applications for the Sage Plains project.
RESPEC Phase One Program consists of a step-out geological hole, the Sage 1 Well, located 700m from the Johnson 1 Well, that could double as a cavern development test well. A water brine supply well and a disposal well will be completed as part of the program. With these results, RESPEC will continue with the preparation of a PEA technical report for the Sage Plain Potash project (the “project”) located near the town of Monticello, Utah in the Paradox Basin – potentially the largest undeveloped potash deposit in the United States.
Sage Plain’s Optimal Formation for Solution Mining:
Potash is extracted using either traditional underground mining or solution mining methods. Solution mining utilizes water or brine (solvent) to dissolve soluble minerals such as potash, magnesium or other salts. Wells are drilled down to the salt deposits, and the solvent is injected into the ore body to dissolve it. The solution is then pumped to the surface, and the minerals are recovered through evaporation and recrystallization of the potash salts (KCL). When viable, solution mining is an attractive extraction method as it offers many advantages, including lower CAPEX, less surface and environmental impacts, scalability and more rapid development of the deposit.
The Sage Plain deposit is well-suited for solution mining due to its optimal formation temperature of 68°C (154°F) and high purity. At this temperature, KCL is readily soluble, boosting energy efficiency and lowering operating costs.
“We continue to foster a great working relationship with the RESPEC team as a trusted partner in the planning of our pilot-scaled potash production test,” commented Sage’s CEO Peter Hogendoorn. “RESPEC has done a terrific job for Sage and have demonstrated valuable expertise in project management and development, engineering design work, geoscience and integrated technology solutions for our industry.”
The Sage Plain Potash project comprises over 83,000 acres of State and Private Mineral Leases and BLM Prospecting Permits in San Juan County, Utah, USA.
March 20, 2023 - Sage Potash Corp. Identifies Large-scale, High-grade, Us-based Potash Resource And Commences Trading On The TSX-V Under The Symbol "Sage"
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).
Figure 1. Project Area and Paradox Basin Regional Structural Element (Modified from Williams-Stroud, 1994). (CNW Group/Sage Potash Corp.)
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.
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.
March 16, 2023 - Sage Potash Announces Exchange Listing
The listing of the Company’s common shares follows the filing and receipt of its final non-offering prospectus (the “Prospectus“). The Prospectus was filed with the securities regulatory authorities in the Provinces of British Columbia and Alberta.
