Fertilizer and agricultural prices surged to new heights in 2022 with food price increases have been felt worldwide, straining the global food chain and emphasizing the need for varied and additional sources of vital ingredients.
(Source: https://investingnews.com/agriculture-forecast/)
One such ingredient is potash, a potassium-rich compound that is a vital component in fertilizer and, consequently, in ensuring our food supply in the growing agricultural industry due to its ability to boost crop yields and balance crop productivity.
The potash market got hit with a huge shock with the EU's sanctions on Russia and Belarus, who together produce 40% of the world's potash supply.
While the world's single biggest supplier of potash is Canada, record low Mississippi River levels are disrupting the supply chain, especially in America as US currently imports 94% of its potash requirements.
With the market expected to experience significant growth as demand continues to outpace 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.
Focused on ensuring accessible, efficient and domestic US potash production, SAGE is working to eliminate costly shipping fees, import charges and food security risks that come with outsourcing potash.
With 2 potash beds and an inferred resource of 279.5 MMT high-grade potash, SAGE's Plains Project has the potential to be a Tier 1 deposit.
Consisting of over 88,000 acres of mineral leases and permit application in Utah's Paradox Basin, known to host extensive underdeveloped world-class potash resources, this represents the largest potash deposit in the US that is close to pilot production (approx. 1-2 years)
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.
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
With a PEA expected in the second half of 2023, SAGE has partnered with RESPEC to reinitiate engineering preparations to execute a Phase 1 Drill Hole Program, aiming to develop a pilot potash production facility.
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 this video from SAGE CEO: https://www.youtube.com/watch?v=t-hQfr6-Tig&ab_channel=SagePotashCorp.
Posted on behalf of Sage Potash Corp.