Highfield Resources (ASX:HFR) whose share price almost quadrupled since we initially mentioned the company here, is continuing to make good progress on its Muga project in Spain. It has announced an exploration target for the north western extention of its flagship Muga mine and it now expects the new zone to contain 127-255 million tonnes of sylvinite at an average grade of 12-16% K2O.

Investors should be aware this target covers just two of the five seams within the total project area, so the eventual exploration target and resource expansion might be much more impressive than these preliminary numbers.

As expected, Highfield’s share price has been trending down a bit but the Muga potash project is becoming increasingly attractive and if any prospective resource could be added to the mine plan, Highfield’s Net Present Value will very likely receive a nice boost.

> Click here to go to Highfield’s website

Disclosure: The author holds no position in Highfield Resources but could initiate one any time. Please see our disclaimer for current positions.

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