The Utah Division of Oil, Gas, and Mining (UDOGM) has given initial approval to American Potash Corp.’s applications for permits to drill exploratory wells on three of its eleven 100%-owned potash and lithium state mineral leases that are a part of the Green River Potash and Lithium Project, which is situated in Utah’s Paradox Salt Basin.
Formal drill permits will only be granted once reclamation bonding requirements and any other requirements outlined in the company’s Notice of Intent to Conduct Exploration (NOI) have been satisfied.
The permits allow for drilling up to 9,000 feet in depth, enabling in-depth information to be gathered from various potash and lithium (brine) horizons found in nearby historic oil and gas wells, such as the Shell Quintana Fed 1-1 oil well, which intersected 24.3% gamma-log equivalent KCL over 5.9 m and is situated less than half a mile east of the Company’s first proposed well.
As a result of the distance between the three proposed wells, Dumas Point (S2), Mineral Springs (S36), and Ten Mile (S32), it is possible to estimate potential potash and lithium resources in this area of the project area.
About the Green River Potash and Lithium Project
The Green River Potash and Lithium Project, which is located in the Paradox Salt Basin of Utah, has the potential to be one of the country’s main sources of potash.
According to Agapito Associates Inc.’s NI 43-101 Technical Report, the Green River Potash and Lithium Project has an Exploration Target that is thought to hold 600 million to one billion tons of sylvinite grading between 19% and 29% KCL.
Gamma-log data from 33 historic oil and gas wells in and around the project area were used to model this target, which was built on the Cycle 5 stratigraphic horizon.
Strong evidence of stratigraphic continuity in this area of the Paradox Basin is provided by the fact that Intrepid Potash Inc., the largest potash company in the United States, mines from one of the same horizons at their nearby Moab solution mine.
The company owns 100% of eleven State of Utah (SITLA) mineral and minerals salt leases totaling over 7,000 acres, 128 Federal lithium brine claims totaling 2,650 acres, and is in the final stages of applying for 11 Federal (BLM) Potash Exploration permits totaling approximately 25,000 acres.
An area designated for future potash, brine, and processing, including energy-efficient solar evaporation ponds, is located within or borders three of the State leases, and a sizable portion of the area is covered by the Federal (BLM) Potash Permit applications.
The project, which is only 20 miles from Moab, Utah, has many logistical advantages, including being close to important rail hubs, airports, roads, water, towns, and labor markets.
Since domestic producers are closer to the market and can sell their products at a higher price, the U.S. imports more than 90% of its annual potash needs. As of December 2022, the muriate of potash price was USD 562.50 per ton (fob Vancouver). Intrepid Potash, the country’s largest potash producer, reported earning USD 734 per ton in Q3 2022.