Sage Potash receives approvals for exploration wells at Utah project

HOUSTON (ICIS)–Canadian potash developer Sage Potash Corporation announced it has received all required governmental approvals for two Class V exploration wells at its Sage Plain Potash project located in Utah’s Paradox Basin.

The company said the Utah Division of Oil, Gas, and Mining (UDOGM) and the Division of Water Quality (DWQ) have issued tentative approvals for both surface activities for drill pads and access roads and underground activities for wells.

This clearance comes from an exploration injection permit application submitted in March 2023. Sage Potash said formal drill permits will be issued once bonding is approved and the company has received written acceptance from applicable agencies.

Peter Hogendoorn, Sage Potash CEO, said this achievement was a significant event for the company as now the most consequential approvals have now been secured, pending bonding.

“Sage’s successful drilling permit applications represent a pivotal milestone on the company’s path to achieving pilot-scale potash mining and processing activities,” said Hogendoorn.

“The approved exploration wells will not only allow us to increase our understanding of the Sage Plain mineral resource, comprised in the upper and lower cycle 18 potash beds underlying the property, but these same wells will, in future, be transitioned to injection production and disposal wells.”

Sage Potash said once well data is gathered it will apply to convert them into Class I and Class III wells which will allow for potash brine fluids recovery. Concurrently with the conversion, the company will submit the large mine operation permit for up to 150,000 tonnes/year.

Sage is also advancing engineering and design for a 50,000 tonne/year pilot-scale potash solution mining operation, as part of its ongoing studies and production application. Data from this program will be included to complete the final large mine operation application.

While acknowledging that capital market conditions for conventional project advancement are extremely difficult, Hogendoorn still expressed renewed upcoming confidence and said they have focused on permitting and engineering whereby value can be realized.

“With the developments to date, together with the highly strategic land position of contiguous state and private mineral leases from which up to 70 mining units, each consisting of 320 acres, can be developed, management believes the project has now achieved significant milestones and, accordingly, eliminated substantial barriers to entry, which can be value realized in terms of time and capital for strategic interests,” Hogendoorn said.

Sage Potash has retained ACP Capital Markets and said they have a proven history in financing under-valued projects in the agribusiness sector such as the Sage Plain project.

It is now working with ACP in identifying and engaging with strategic industry partners and institutional investors.