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Highfield Resources just released the maiden resource estimate for its second potash project in Spain. That adds another promising property to the company’s roster and further extends its reach in Spain.
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Highfield Resources (ASX:HFR) continues to uncover great potential for potash in Spain, and further extended its reach on Tuesday when it released the maiden resource estimate for its Sierra del Perdón project.
Located less than 10 kilometers from Pamplona and within 40 kilometers of the company’s flagship Muga potash project, the results from the property show some promising numbers.
Specifically, the estimate points to an estimated indicated mineral resource of 41.8 million tonnes at 10.7 percent K2O and an estimated inferred mineral resource of 40.3 million tonnes at 10.5 percent K2O. The site was historically mined mainly for sylvinite, but also saw some carnallite mining prior to its closure in late 1996 due to low potash prices.
The total exploration target area of the site is estimated to contain between 100 and 250 million tonnes of potash in carnallite beds ranging in average grade from 9 to 13 percent K2O, and between 50 and 100 million tonnes of potash in sylvinite beds.
All in all, the Sierra del Perdón Basin covers an area of more than 104 square kilometers, and Highfield has separated it into different zones: Upper and Lower Carnallite and a Lower Sylvinite bed. The beds have been identified as the stratigraphic equivalent to the P0, PA, PB and P1 potash beds found in the Muga-Vipasca Basin area.
The company began drill work on Sierra del Perdón in 2013, when it drilled six holes and compiled historical drill data, production reports and detailed mapped profiles of the underground workings of the area to help formulate the current exploration program. Two holes that were drilled in areas not previously mined showed good intersections of carnallite and sylvinite, while others resulted in poor recovery and no recovery.
Although the maiden resource estimate is only the first step in uncovering the property’s potential and Highfield’s managing director Anthony Hall said the company is still focused primarily on Muga, Highfield is happy to add the Sierra del Perdón project to its roster.
“Whilst our focus remains on our flagship Muga Potash Project, we are in a fantastic position to have a second project that we believe is also likely to be very compelling,” Hall said in a press release.
A scoping study of the Sierra del Perdón project, which will build on relevant work completed for the Muga project’s definitive feasibility study, is near completion and should be released in the near future. Future exploration work will concentrate on drilling holes in virgin ground, stepping out from existing workings and into the deeper area of the basin, with up to five holes proposed for 2015.
Shareholders have reacted favorably to the work Highfield has been doing. The company’s share price had increased by 0.59 percent at end of day Wednesday to close at AU$1.71; year-to-date it is up an impressive 171.43 percent.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
Related reading:
Highfield’s Definitive Feasibility Study Shows High Margins, Low Capex for Muga