Fertilizer and agricultural prices surged to new heights in 2022, following a trend that began in 2021 and are expected to continue doing so due to production and supply disruptions.
This is significant as potash is a potassium-rich compound that is a vital component in fertilizer needed to fertilize basic crops and, consequently, in ensuring our food supply in the growing agricultural industry due to its ability to boost crop yields and balance crop productivity.
Sharp food and fertilizer price increases have been felt worldwide, straining the global food chain and emphasizing the need for varied and additional sources of potash.
To provide an idea of the opportunity here, the market got hit with a huge shock following the EU's sanctions on Russia and Belarus, who together produce 40% of the world's potash supply.
Additionally, Canada is the worlds single biggest supplier of potash and the US currently relies on Canada for 94% of its potash requirements, however, record low Mississippi River levels are disrupting the US supply chain even further.
With the market expected to experience significant growth as demand outpaces supply, it's critical for the US to develop its own domestic supply of potash to ensure food security and Sage Potash (SAGE.v) is one company that is on track to take advantage of this opportunity.
SAGE is focused on ensuring accessible, efficient and domestic US potash production to eliminate costly shipping fees, import charges and food security risks that come with outsourcing potash.
Consisting of over 88,000 acres of mineral leases and permit applications, SAGE's Sage Plains Project represents the largest potash deposit in the US that is close to pilot production in 1-2 years.
Located in Utah's Paradox Basin which known to host extensive underdeveloped world-class potash resources, 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 20 years.
Plus, the project is suitable for solution mining which involves the "circulation of a salt saturated water solution through an injection and recovery well to access potash rich reserves" and requires lower upfront costs while allowing for extraction from far greater depths.
With the end goal to develop a pilot potash production facility, SAGE has partnered with RESPEC to reinitiate engineering preparations to execute a Phase 1 Drill Hole Program alongside preparation work for the PEA at its potash project which is expected in the second half of 2023.
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.
For more information, check out Investor Intel's Deep Dive on SAGE: https://investorintel.com/critical-minerals-rare-earths/sage-potash-seeks-to-address-supply-chain-security-and-sustainability-with-domestic-us-production/
Posted on behalf of Sage Potash Corp.