Potash Minerals to reaffirm size and quality of its Utah JV resource
Published 03-FEB-2014 14:17 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Changes in potash reporting requirements and some big moves by the industry’s main players have prompted Potash Minerals Ltd (ASX: POK) to reevaluate the resources at its Hatch Point joint venture in Utah.
Potash is a vital ingredient in fertilisers used for food production and has been identified by many analysts, including Goldman Sachs, as an influential commodity as the world’s population and demand for food increases.
JORC resource reaffirmed
POK has a 90% stake in a potash project in Utah containing 405km2 of exploration prospects with an exploration target of up to 5.2BN tonnes of sylvinite – a key ingredient in potash production – with an average purity between 23% and 34%.
To comply with the requirements of JORC 2012, POK engaged an independent consulting company to reaffirm its previous mineral estimates at the Hatch Point Potash Project.
The company’s report supported original estimates, showing a resource of 902.4Mt with 20% KCI average grade. Samples were taken from less than 20% of the total resource area.
Review of Scoping Study in the works
POK also says it will conduct an in-house review of the 2010 Scoping Study it commissioned for the Hatch Point Potash Project. The original document supported estimates for a 2Mtpa mine at the project with a 25 year mine life and cash costs of around $100 a tonne.
POK says the 2010 Scoping Study needs updating because of recent announcements by the dominant global players in the multi-billion dollar potash industry.
For example, Canpotex, the offshore sales arm of three major US potash producers, has signed a deal with Bangladesh to supply $60M worth of the crop nutrient.
POK says an updated Scoping Study will further reaffirm its resource at Hatch Point and allow it to pursue its development with a stronger case for investors and customers.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
