Junior miner American Potash Corp., Vancouver, on Dec. 14 announced that it has received initial approvals from the Utah Division of Oil Gas and Mining on applications for permits to drill exploratory wells on three of its eleven 100% owned Potash and Lithium State mineral leases, which form part of the Green River Potash and Lithium Project located within the Paradox Salt Basin, Utah.
Formal drill permits will be issued upon meeting reclamation bonding and any other requirements stipulated in the company’s Notice of Intent to Conduct Exploration (NOI).
The company said the permits provide for drilling to depths of up to 9,000 feet, allowing detailed information to be acquired from multiple potash and lithium (brine) horizons encountered in nearby historical oil and gas wells, including the Shell Quintana Fed 1-1 oil well, which intersected 24.3% gamma-log equivalent KCL over 5.9 meters and is located less than half a mile east of the company’s first proposed well.
The company said the project is situated within Utah’s Paradox Salt Basin, and could potentially be one of the largest sources of potash in the US. It referred to a NI 43-101 Technical Report by Agapito Associates Inc. that states it hosts an Exploration Target estimated to contain 600 million to 1 billion tons of sylvinite grading between 19% to 29% KCL.
The company said this is one of the same horizons that Intrepid Potash Inc. produces from at their nearby Moab solution mine, with the company adding that this provides strong evidence of stratigraphic continuity within this part of the Paradox Basin.
The project is located 20 miles northwest of Moab. The company said it has significant logistical advantages, including proximity to major rail hubs, airport, roads, water, towns, and labor markets.
On Aug. 29, 2022, the company changed its name to American Potash Corp. to reflect its focus on the potash and lithium project. It had previously been New Tech Minerals Corp.