Passport Potash just released their NI-43-101 compliant technical report about the amount of potash on their lands in the Holbrook basin of eastern Arizona.
According to a news release "Passport's drill hole data shows that evaporite layers containing potash range in thickness from 2.6 to 18.4 meters and range in grade from 3.2% to 9.4% K2O, with an average thickness of 6.4 meters and a weighted average grade of 5.3% K2O. The exploration potential for the total areal extent of Passport lands (554 sq. Km.) is estimated to range between 290 and 315 million metric tonnes of K2O using a grade of 2% K2O as a threshold of mineralization, which is equivalent to a range from 460 to 500 million metric tonnes of KCL."
I don`t believe they have any where near the grades to compete with Saskatchewans potash giants
ReplyDeleteThe grades are the same as Interpid mines in New mexico. One cannot compare Sask. at over 6000 foot depth to AZ/ Holbrook deposit at 1000 feet.
ReplyDeleteCosts to mine are substantially less at shallow depths and most important, the USA wants its own source of potash.
This deposit is an elephant! PPI,PGRX and HNZ are going to fast track this, they have all the locasl and state gov't support, including the Hopi.
IMO, its the Sask players that should be very worried about all this tonnage coming on stream.
Rob C. Vancouver, BC
Rob -
ReplyDeletePassport are in a federally protected national park.
This resource, however, large, is globally significant only in respect of how poor its expected grades are.
Saskatchewan mines are not at 6,000 ft depth, they range from 2,400 to 3,000 ft depth.
Passport have virtually no substantive information, and therefore this is a 43-101 'exploration potential' report rather than an Exploration Target.
Costs to mine once they are underground will be approximately equivalent at 1,000 feet versus 3,000 feet, with the exception of additional capex for depth and moving solution further through longer pipes.
This project is a joke and the Saskatchewan players will never be concerned, as it will likely never be built.
Strategic investors are not interested in projects where they have to deal with 'locals/natives'.
Clearly you are invested in these assets. These shares may go up as potash interest grows in the market, but if you are interested in potash exposure there are many other companies with real projects.
Oh, and the management team hold virtually no interest in the company, so you can bet just how long their interest is going to last if anything goes wrong or they see a chance to make a quick buck by selling out to 'go away money' or a less-than-favourable merger proposition where they get a bucket-load of shares/options in the new company.
Good luck.