Quia Resources Inc. (
TSX: V.QIA,
Stock Forum) provided an update with respect to its Murdock Mountain phosphate project and other corporate developments.
The Murdock Mountain project, located in Nevada, is being explored and developed for a direct application phosphate, meaning that the crushed rock would be used as a direct fertilizer, rather than being processed into a liquid fertilizer.
According to the
Quia Resources press release, recent sample results include grab samples taken from within old trenches and surrounding areas along an approximate strike length of three kilometers. Highlights of the program include sample 1042045 with 26.08% phosphorus pentoxide, 1042788 with 25.79% phosphorus pentoxide and 1042799 with 25.71% phosphorus pentoxide.
"These results are very encouraging as they demonstrate that we have high-grade phosphate occurring in beds near surface over a significant strike length of more than three kilometers,” said Yannis Banks, CEO. “Furthermore, the results from the northern area of the project, where the beds appear to be close to surface and more flat lying, which is our current main area of interest, have returned among the strongest results."
Quia has completed the acquisition of an initial 10% interest in Nevagro LLC, the company that holds the accepted prospect permit application for the Murdock Mountain project by funding $102,000 towards technical work and permitting requirements including the sampling reported above.
In addition Quia and Foundation Opportunities Inc. (FOI) have revised their agreement such that Quia will acquire 2243734 Ontario Ltd, which holds the option to earn a 65% interest in Nevagro, for one dollar and no further consideration to FOI.
The company recently met with the Bureau of Land Management (BLM) in Elko, Nevada to restart the permitting process for Murdock Mountain under Nevagro's prospect permit application which will include the preparation of an environmental assessment, parts of which are already in process. The company plans to diligently advance the remaining components of the environmental assessment with a view to submitting all the required components to the BLM around the end of the second quarter of 2014. The company is also in the process of designing its subsequent exploration program based on the samples reported above.
The objective of the company is to design an initial program to define a resource sufficient to evaluate production at an annual rate of approximately 50,000 tons per year, and as such a short, focused program targeted at shallow depths is envisioned. The company's goal is to have completed its exploration program by the end of 2014 and to have outlined a sufficient resource to support the conceptual production target, and to then enter into the final permitting process to commence production in 2015. A feasibility study has not been completed and there is no certainty the proposed operation will be economically viable.
At the same time the company is continuing to evaluate other complimentary agromineral opportunities that fit within the company's view that the agricultural industry is at the early stages of a paradigm shift that recognizes the importance of soil health to long term sustainable agriculture and that fertilizers that contribute to overall soil ecosystem health and that are as or more agronomically effective as conventional fertilizers, have the potential for significant demand growth over the coming years.
In other news, Roger Dent has been appointed to the Board of Directors. Dent will replace Rick Brown, who will step down from the board but continue on with the company in the capacity of Vice-President Business Development.
Dent is currently the CEO and a director of Quinsam Capital Corp., a publicly traded merchant bank. He has been involved in the Canadian financial markets for over 25 years and has extensive experience in "small cap" evaluation and investment.
Finally, Quia intends to complete an offering for aggregate gross proceeds of up to $500,000 consisting of up to 7.14 million units at a price of $0.07 per unit (on a post 10 for one consolidation basis).
The proceeds of the offering will be used to fund permitting and exploration of Murdock Mountain, maintenance of the company's San Lucas property, and for debt repayment and working capital purposes.
Quia is a mineral exploration and development company which owns 100% of the San Lucas gold project in Colombia and has an option to earn 65% of the Murdock Mountain direct application phosphate project in Nevada.
On Wednesday, Quia soared 100% and was trading at $0.01 a share.