Monday, April 27, 2009

Drilling program proposed for Holbrook basin potash

Canadian junior mining company Passport Metals has opened offices in the Phoenix area and filed permits for 5 drill holes to confirm the extent and quality of potash in the Holbrook basin. The company has 3210 hectares of State Trust Lands under contract. [right, Passport Metals map showing State Trust Lands they hold in the Holbrook basin]

AZGS released a report last summer estimating potash resources of 682 million to 2.27 billion tons at 6% - 20% K2O. These numbers are based on exploration holes drilled in the 1960s before modern reporting requirements were in place, so are not considered confirmed. Potash is a key component of fertilizers. Prices have skyrocketed from about $50-100 per ton three years ago to $750-1000 per ton in this past year. AZGS estimates the Holbrook basin could contain as much as one-fourth of the U.S. resource base.

The Arizona State Land Dept. is working on a surface use plan which is required before the Oil and Gas Conservation Commission can issue permits for the drill holes.

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