Sage Potash (SAGE.V) has started its single hole drill program on its flagship Sage Plain Potash project in Utah. The hole will be drilled to a total depth of in excess of 2,000 meters where it is anticipated to reach the Cycle 18 potash horizon, which is the primary exploration target.
This single drill hole could have a very positive impact on the resource calculation at the project, and Sage Potash plans to upgrade the resource after receiving the data from this drill program. As a reminder, the current inferred resource contains just under 300 million tonnes of potash, making it one of the most intriguing undeveloped potash projects in a mining-friendly state within the USA, which imports in excess of 95% of its potash needs. We wouldn’t be surprised to see the resource update contain in excess of 500 million tonnes of mineralized material, while a portion of that tonnage could already be upgraded to the measured and indicated resource categories.
Disclosure: The author has a long position in Sage Potash. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
