Issue link: http://resourceworld.uberflip.com/i/142113
MINI NG Bay St. George, Newfoundland – an evaporite basin with potash-salt potential by Dr. Edward Schiller Potash and salt are mined from Carboniferous-aged strata from the Maritime Basin in Atlantic Canada. The three producers are potash and salt from Sussex, New Brunswick by Potash Corporation of Saskatchewan [POT-TSX, NYSE], salt from Pugwash Nova Scotia by the Canadian Salt Company Ltd., a subsidiary of Morton Salt Inc., and salt from Nappan Salt Mine, Nova Scotia by Sifto Canada Inc., a subsidiary of Compass Minerals International Inc. [CMP-NYSE] (evaporation operation). The former two operations use conventional underground cut and fill, and room and pillar methods, respectively, whereas the latter extracts salt from brines dissolved from solutions injected into salt beds at depth. The Maritime Basin extends from southwestern New Brunswick northeastward to southwestern Newfoundland and northwestward to the tip of Gaspé, Québec, and the St. Lawrence River and southeastward to northeast Nova Scotia (see map). Based on previous exploration, comprising seismic surveys and drilling, Vulcan Minerals Inc. [VUL-TSXV] acquired interest in 1,455 mineral claims in the Bay St. George Sub-Basin of southwestern Newfoundland. In drill hole Captain Cook No.1 approximately 400 metres of evaporates were intersected consisting of 240 metres of anhydrite, 160 metres of halite (salt), including about 5 gross metres of potash grading up to 20.4% of K2Cl (potassium chloride) at a depth of 287 metres. It became apparent from the drill and geophysical results that an evaporate analogue to the Moncton Sub-Basin, that hosts the potash-salt deposits of Potash Corporation of Saskatchewan, could exist in the Bay St. George Sub-Basin. Geologically, the hosting Carboniferous 32 www.resourceworld.com Windsor Group in Newfoundland showed striking similarity to the same strata in New Brunswick and for this reason the Bay St. George area became a potash target of interest. Vulcan has spunout a new company, Red Moon Potash Inc. [RMK-TSXV], whereby Vulcan owns 60% of Red Moon. In mid-May, Red Moon received the necessary exploration approvals to proceed Diamond drilling has commenced on Red Moon Potash's Bay St. George potash-salt project in western Newfoundland. Photo courtesy Red Moon Potash Inc. JULY 2013