Sage Potash (SGPTF SAGE.v) just achieved a major milestone with the approval for two wells on its Sage Plains Project in Utah's prolific Paradox Basin.
This is an important milestone in bringing the company one step closer to Phase 1 of the Sage Plains Project development effort as these wells will allow for the determination of injection capacity and potash formations on the property.
Additionally, Sage has partnered with Respec LLC, a global engineering firm, to assist with the development of a pilot-scale potash solution operation expected to bring in 50,000 tonnes per year.
Peter Hogendoorn, the CEO and Executive Chairman of Sage Potash, stated,
"Sage's successful drilling permit applications represent a pivotal milestone on the company's path to achieving pilot-scale potash mining and processing activities. The approved exploration wells will not only allow us to increase our understanding of the Sage Plain mineral resource . . . but these same wells will, in future, be transitioned to injection production and disposal wells."
Critical for enhancing agricultural production and boosting crop yields, potash is a basic nutrient for plants and an important ingredient in fertilizer.
The market is currently dominated by Canada, Russia and Belarus, however, supply has been majorly disrupted by the Russia-Ukraine war, the conflict in the Middle East as well as low water levels on the Mississippi River, a major transportation hub for fertilizer.
Based on its vital role in national food security, it's becoming increasingly critical for the US to establish a domestic supply of potash to cut its reliance on Canada for 94% of its potash requirements
Sage Potash & the Plains Project
Aiming to develop a domestic source of potash to reduce dependence on international supply chains, Sage is focused on its Plains Project in Utah's Paradox Basin, a permit-friendly location known to host extensive under-developed world-class potash resources.
Spanning over 88,000 acres of mineral leases and permit applications and encompassing 2 potash beds, the project boasts exceptional economic characteristics and a resource of 280 million tons.
Based on a sustainable, low-risk approach with scalable production units of 150,000 tons per year over 15 to 20 years, Sage is aiming to expedite production within 1 to 3 years with a 50,000-tonne pilot project expected to begin in mid-2024.
Posted on behalf of Sage Potash Corp.