Bounty Potash Project Acquired by Mesa Exploration

Mesa Exploration Corp. (TSXV:MSA) has acquired the 104 square mile Bounty potash project in the western Utah, 15 miles north of Intrepid Potash’s Wendover operation, a potash mine which is chemically and physically analogous to the deposit at the Bounty project. The Wendover mine has been in production for 75 years utilizing a system of potash brine collection ditches and solar evaporation ponds, with potash and salt being processed in a simple flotation mill. The Bounty project consists of 90 square miles of potash prospecting permit applications from the Bureau of Land Management (BLM) and 14 square miles of Potash Leases from the State of Utah.

As quoted in the press release:

The Bounty project area is a remnant of a regional Pleistocene lake which deposited a salt flat underlain by a potash brine aquifer at depths of 2 to 6 feet. The aquifer is contained in a bed of sand, silt and clay. Several potash brine mines in the area are operating on similar lake remnants, producing muriate of potassium (MOP) and sulphate of potassium (SOP), at operating costs of $180 per ton. MOP sells for $500 per ton and SOP for $650 per ton.

Historic exploration work was conducted in 1966 at the project and adjacent areas by Quintana Petroleum. Quintana drilled 35 auger holes resulting in the definition of 5.1 million tons of potash (MOP) grading 6.8 grams/liter. Quintana limited the estimation of the resource to the top 10 feet of the brine aquifer, the depth limits of the auger drilling equipment. Mesa controls 80% of the resource, including sites for a mill and evaporation ponds. The Quintana resource is historical in nature and was calculated using a polygonal contour estimation method, the industry standard prior to NI 43-101 standards, thus it is not NI 43-101 compliant and should not be considered as a current resource.

Mesa Exploration President and CEO, Foster Wilson, said:

“The Bounty project is a very attractive asset. With confirmation and infill drilling success, the existing resource has good potential to be confirmed, upgraded and enlarged. Shallow brine mines have historically demonstrated multiple benefits over conventional underground and open pit mines. Benefits include easier access for development, enhanced operator safety, lower capital investment and operating costs and significantly lower exploration costs. Bounty is located in a mine-friendly area, close to an interstate highway, a railroad and the town of Wendover.”

Click here to read the Mesa Exploration Corp. (TSXV:MSA) press release

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