SAGE POTASH CORP. IDENTIFIES LARGE-SCALE, HIGH-GRADE, US-BASED POTASH RESOURCE AND COMMENCES TRADING ON THE TSX-V UNDER THE SYMBOL "SAGE"
VANCOUVER, BC, March 20, 2023 /CNW/ - SAGE POTASH CORP. ("Sage Potash" or the "Company") (TSXV: SAGE) is pleased to announce its common shares have commenced trading on the TSX Venture Exchange (the "TSX-V") under the ticker symbol "SAGE.V" effective at the open on March 20, 2023. This follows the closing of private placements totalling $5,322,350, and the acquisition of a potash land portfolio in the State of Utah consisting of over 83,000 acres of State and Private Mineral leases and BLM Prospecting Permit Applications, as well as assembling a highly experienced team adept at all aspects of solution mining, surface processing, operations and fertilizer distribution.
Historical exploration on the property includes an important discovery drill hole by a previous operator, with core samples identifying two flat potash beds featuring high potash grades with favourable commercial characteristics. Potash mineralization was first encountered in the Johnson 1 exploration well completed in 2014, returning grades between 27-29.3% K2O (36–43% KCI) in the Lower and Upper Cycle 18 horizons with combined potash zones of 12.74m (41.78 ft).
Based on historical exploration, the company has defined a Mineral Resource on the Property as follows:
- Inferred Resource for Upper Potash Bed, Cycle 18: 159.3 million metric tonnes (MMT), grading 42.67 % KCl with 0.01 % carnallite and 0.62 % insolubles
- Inferred Resource for Lower Potash Bed, Cycle 18: 120.2 MMT, grading 35.77 % KCl
The parameters used for estimating the Mineral Resource and Potential Quantity are summarized as follows:
- A radius of influence (ROI) of 0 to 2,400 m was used to bound the Inferred tonnage
- A 25 % deduction was applied for undetectable seismic anomalies
- ROIs and deductions for unknown geologic anomalies were determined by the QPs based on their experience and confidence in the geological continuity of the mineralized horizon
- A geological interval was defined based on the core to identify the mineralized contacts' top and bottom and further refined by the assay results
- A 5 % K2O grade cut-off was used to delineate the geological boundaries (top and base) of the mineralized section of the potash bed
Geologically, the resource is situated in the Paradox Basin, known to host extensive underdeveloped world-class potash resources (approximately 2 billion tons, according to the US Geological Survey). The Paradox Basin benefits from close proximity to modern infrastructure, low-cost power and electricity, skilled workforce, regional exploration and development supplies and services.
The Company's objectives following today's listing will be to complete a step out geological hole that will further define the resource estimates and may double as a possible cavern development test well, to advance preliminary engineering and PEA.
Sage's CEO, Peter Hogendoorn, commented, "Given the current sanctions against Russia and Belarus (which together constitute 40% of the world's potash supply), the US currently imports nearly all its annual potash requirements from Canada. Having its own domestic supply only makes sense for the US. Reliable and local supply chains are key to achieving national food security in this post-Covid and inflationary era. Even with what appears to be a somewhat more rational market this year over last, shipping costs from Saskatchewan and lower barge capacity due to low water levels of the Mississippi River, can still add $150 - $225/ton that would not be incurred by having local production. As we continue to add to our proven management team, together with our engineering partners, RESPEC Inc. we look forward to sharing ongoing developments as they become available."
J. Patricio Varas, P.Geo., a Qualified Person as defined by National Instrument 43-101, has read and approved all technical and scientific information related to the Sage Plains Project contained in this news release. Mr. Varas is the Chief Operating Officer and Vice President Exploration for Sage Potash. Mr. Varas has reviewed the data disclosed in this press release but has not verified historic assay information at Sage Plains.
Sage Potash is a Canadian company vested solely in the Sage Plain Property and intends through sustainable solution mining techniques to become a prominent domestic potash producer within the Paradox Basin situated in Utah. For further information, please refer to the Company's disclosure record on SEDAR (www.sedar.com) or contact the Company by email at [email protected].
RESPEC was founded in Rapid City, South Dakota in 1969 and operates in 14 states and two Canadian provinces. RESPEC's projects and products have been completed for clients in seven continents and 50 countries. Underground. Aboveground. Natural. Technical. Digital. Inside. Outside. On-Site. No matter the market, RESPEC integrates solutions tailored to clients' and communities' needs. RESPEC unites engineering and applied sciences with technology, professional, and creative services so that everyone gets cutting-edge outcomes. RESPEC finds answers that work for the needs at hand. RESPEC's diversified team can handle projects ranging from early-stage exploration to multi-disciplinary feasibility studies.
On Behalf of the Board of Directors,
Peter Hogendoorn
CEO & Executive Chairman
Website: www.sagepotash.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this news release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this news release includes, but is not limited to, statements with respect to future events or future performance of Sage, including completing a step out pilot production well that will double as a resource definition drill hole, advancing preliminary engineering and feasibility towards a PEA, completing 3D seismic and step-out well and new resource calculations [MA1] , and management's expectations regarding Sage's growth. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Sage to control or predict, that may cause Sage's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set out under the heading "Risk Factors" in the Company's final non-offering long form prospectus dated March 2, 2023 available for review on the Company's profile at www.sedar.com. Such forward-looking information represents management's best judgement based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE Sage Potash Corp.
Peter Hogendoorn, CEO & Executive Chairman, +1(236) 836-4182, [email protected], Website: www.sagepotash.com
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