Issue link: http://resourceworld.uberflip.com/i/134727
MINING POTASH RIDGE RECEIVES UTAH MINING LEASE Toronto-based Potash Ridge Corp. [PRKTSX; POTRF-OTCQX] reports receiving confirmation from the State of Utah School and Institutional Trust Land Administration (SITLA) that it may proceed with exercising its option under the exploration and option agreement with SITLA. This option allows Potash Ridge to convert its exclusive exploration right on its 100%-owned Blawn Mountain Project, 31 miles northeast of Milford, Utah, into a mineral lease. The lease establishes the terms for mining and operating the project for producing sulphate of potash (SOP) and other minerals, including alunite, a bauxite-like mineral which is used to make alumina, a source of aluminum. The company has until March 31, 2014 to exercise its option, at which time it is required to pay SITLA US $1,020,000. The Blawn Mountain Project consists of four areas of surface mineable alunite min- JUNE 2013 eralization covering approximately 11,550 acres of state-owned land. Extensive development was completed in the 1970s including a mine plan, feasibility study and 3-year pilot plant operation. Although the company is working towards completing a NI 43-101 compliant prefeasibility study in the near future, an earlier non-compliant preliminary economic assessment stated the following production estimates: • Annual production of sulphate of potash – 680,000 tonnes • Sulphuric acid – 1.6 million tonnes • Initial mine plan – 30 years • Capital cost– $1.075 billion • Cash cost of production - $101 per tonne • NPV @10% (after tax) - $1,331 million • Unlevered IRR (after tax) 21.3% These figures do not include any revenue from the bauxite-like minerals, which will be included in the forthcoming prefeasibility study. It is expected that the company will receive approval of the water rights application later this year. Air monitoring systems have been in place, close to the project site, for several months with the objective of completing a baseline study in fall 2013, after which time Potash Ridge will submit the air permit application. The target date for the receipt of all the construction and operating permits is mid-2014. The company has completed three phases of drilling that comprised confirmation and infill drilling as well as the upgrading of resources from the inferred to the measured and indicated categories. For Areas 1 and 2, total measured and indicated resources stand at 620,726 million tons grading 35.8% alunite and 35,710 million tons of SOP at 15.9%, plus inferred resources. Historical measured and indicated resources in Areas 3 and 4 are 63,300 million tons of 37.9% alunite and 4,654 million tons SOP grading 19.4%, plus inferred resources. The 30-year mine plan does not include resources from Areas 3 and 4. Pilot plant-scale testing recently began at the rate of one tonne per day. n www.resourceworld.com 41