Fractured supply chains, inflation and geopolitical instability have resulted in US National Food Security becoming a global concern.
As the US produces less than 5% of its annual potash requirements with 94% of its requirements coming from Canada, domestic production would have a $150-225/ton price advantage by eliminating rail costs.
Sage Potash (SAGE.v) is developing the largest potash deposit in the US close to pilot production that has the potential to be a Tier 1 deposit.
Consisting of over 88,000 acres of mineral leases and permit applications in Utah's Paradox Basin, SAGE's Plains Project contains 2 potash beds and an inferred resource of 279.5 MMT high-grade potash - this is larger than the Carlsbad deposit in New Mexico, a world-class potash deposit and one of the largest in the US which has produced 248MMT since 1925.
There is high confidence for initial production starting with single cavern development and pilot production within 12 months, expanding to commercial scale in 320-acre mining units thereafter. The project's substantial resource is expected to initially produce 50,000 tonnes per year followed by a scaling up to 150,000 tonnes per year for up to 25 years.
Plus, permitting plans are underway for two new exploration wells which are expected to expand the resource calculation and grade.
With a close-to-production strategy, SAGE is developing a PEA and advanced project engineering focused on the incremental production of stand-alone economic units to be expanded on cash flow and indicated demand from local distributors and partners.
Notably, this strategy de-risks the project from future commodity price troughs, lowering commissioning risks and project overruns.
SAGE has partnered with RESPEC to reinitiate engineering preparations to execute a Phase 1 Drill Hole Program, aiming to release a PEA in the second half of 2023 ahead of developing a pilot potash production facility.
RESPEC has over 50 years of working on potash and salt deposits globally, including the planning and execution for the K+S Potash solution mine and the BHP Jansen project.
By establishing a local and reliable supply chain, protecting North America from unpredictable external factors, SAGE is strongly positioned to satisfy a significant portion of US potash demands in delivering a secure line of supply with its large-scale, high-grade potash resource.
Posted on behalf of Sage Potash Corp.