KCL APPROVAL TO DRILL ON GREEN RIVER POTASH/LITHIUM PROJECT American Potash receives UDOGM OK for Green River wells
AMERICAN POTASH RECEIVES INITIAL APPROVALS TO DRILL EXPLORATORY WELLS ON ITS GREEN RIVER POTASH AND LITHIUM PROJECT, UTAH
American Potash Corp. 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 11 100-per-cent-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 per cent gamma-log equivalent KCl (potassium chloride) over 5.9 metres 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 project
The 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 National Instrument (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 one billion tons of sylvinite grading between 19 per cent to 29 per cent 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 known as Cycle 5. This is one of the same horizons that Intrepid Potash Inc., America's largest potash company, produces from its nearby Moab solution mine, providing strong evidence of stratigraphic continuity within this part of the Paradox basin.
The company holds a 100-per-cent interest in 11 State of Utah (SITLA) mineral and minerals salt leases covering over 7,000 acres and 128 federal lithium brine claims covering 2,650 acres; it is in the final stages of the application process for 11 federal (BLM (Bureau of Land Management)) potash exploration permits comprising approximately 25,000 acres.
Significantly, three of the state leases and a large area covered by the federal 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 United States imports more than 90 per cent 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 (U.S.) per tonne (fob Vancouver) -- Intrepid Potash, America's largest potash producer, reported receiving $734 (U.S.) per ton in Q3 2022.