Passport Potash Inc. is a TSX-listed resource company engaged in the exploration and development of advanced potash properties. It trades on the OTCQX level as PPRTF.
Passport has acquired a strategic position in Arizona's Holbrook Basin and is well positioned to take advantage of potash in the basin with land holdings encompassing over 70,000 acres.
The infrastructure in place is prime, with immediate access to BHSF rail lines, Interstate 40 and a major power plant within 25 miles of the project. Holbrook Basin potash is considered shallow by industry standards, with deposits ranging at depths of between 800 and 1300 ft., which is a major advantage for Passport.
Passport Potash's experienced leadership team combined with potash rich resources sets Passport apart from all other U.S. projects. With a combined 200+ years of mining experience the Directors of Passport have set the stage for Passport to be the first ever potash producer in Arizona. Passport offers investors the opportunity to benefit not only from its entry into the U.S. and global markets, but also from the ongoing favorable trends in the potash market. As global demand for food, feed and biofuels increase concurrently with the reduction of arable land, the future for potash is bright.
 | Potash originally referred to as wood ash. Potassium carbonate, a basic chemical of pre-modern times, was extracted from it.
Today potash refers to potassium compounds and potassium-bearing materials, the most common being potassium chloride (KCl). The term "potash" comes from the practice of extracting potassium fertilizer (K2CO3) by leaching wood ashes and evaporating the solution in large iron pots.
Potash, or carbonate of potash, is the common term used for the fertilizer forms of the element potassium (K). Potassium occurs abundantly in nature, being the 7th most common element in the earth's crust. Some clay minerals which are associated with heavy soils are rich sources of potassium. Potash bearing rock deposits are derived from the minerals in ancient seas that dried up millions of years ago. Fertilizer potash is mostly derived from these potash rocks. It requires only separation from the salt and other minerals. |
A 2008 Arizona Geological Survey study confirmed historical estimates that 700 million to
2.5 billion tons of potash lies beneath the surface of the Holbrook basin.
The old and new boundaries of the Petrified Forest National Park are over approximately
50 percent of these potash deposits.
| Potash has three main uses: fertilizer, livestock feed supplements and
industrial processes. 95% of world's potash is used in fertilizers.
Potash is a key ingredient in fertilizers that enhance water retention of plants, increases crop yields and plants' disease resistance. In feed supplements, the key function of potash is to contribute to animal growth and milk production.
Potash is also used to produce glass, ceramics, soaps etc.
For an adult human being, approximately 2 grams of potassium (K) are
required per day, even though a typical person will take in 2.8-4.5 grams/day.
The rich sources of this nutrient in human diet are milk, fruit juice, root
vegetables and bananas.
There are no known substitutes for potash. |
Production & Consumption
Potash production is limited to only 12 countries around the world. The vast majority of global production comes from 3 producing nations: Canada, Russia and Belarus.
Canada is the world's largest producer with the province of Saskatchewan hosting the country's epicenter of global potash production. Encompassing three of the world's leading producers---Mosaic Co., Potash Corp., and Agrium, Saskatchewan offers the resources, infrastructure, government policies and labor force needed to flourish in the industry.
Canadian distribution is controlled by Canpotex, an export organization wholly owned by Canada's three major producers. Likewise, Belarusian and Russian distribution is controlled by the Belarusian Potash Company (BPC). Collectively, Canpotex and BPC control over 70% of global potash exports.
Production costs typically depend on the grade of the deposit, ore depth, consistency, thickness, continuity and the amount of insoluble material contained in the ore body.
Mining costs increase as the potash beds become twisted or folded.
Potash is used as a major agricultural component in 150 countries. The largest importers of potash are the heavily 
populated countries of China, India and Brazil. Asian nations produce only 3.1 million tons while consuming 23.1 million tons. The state of potash
producing infrastructure is in decline as about 85% of the world's facilities are more than 25 years old.
The current potash market is estimated at 50 million tons annually and is projected to grow at a rate of 3-4%. The United States remains one of the largest net consumers producing only
1,200,000 tons/year while consuming 5,200,000 tons/year.
The CEO of the world's largest producer (Potash Corp.) claims potash prices are fairly insignificant when compared to potential returns for farmers. A potash price increase of $100-per-ton would only add $.03 to the cost of producing a bushel of corn. Furthermore, $1 spent on fertilizer can return $3 in crop returns from increased yields.
Industry Variables
The potash market has experienced rapid growth in the last decade primarily due to an increased demand for food, fiber and feed.
This trend directly correlates to its basic fundamentals: increasing global population, increasing incomes in emerging markets,
improving diets, and decreasing arable land.
The world economy has been expanding at an average of 5% per year. However, the economies of the developing nations, especially of large countries such as India and China, have been growing at a rate of 9% - 10% annually. An expanding economy means rising wealth levels in these countries.
With increased income, people demand more protein-rich diets, significantly influencing meat consumption. Meat consumption in China, for example, tripled in the last 20 years as per capita income grew, and is expected to continue further.
The feed for animals becomes an important factor in replenishing meat supply. Maximizing yield crops serves as a key ingredient in improving the quantity and quality of feed for livestock.
Higher Oil Prices, Environmental Concerns and Drive for Alternative Fuels - New Demand for Potash
Andrew Bond, who works as part of corporate development for mining company Passport Potash, holds a core
mineral sample from test drilling in the Holbrook basin. Potash is a salt, pink in color, that contains potassium carbonate.
The world's largest potash consumers are China, the United States, Brazil and India.
MANAGEMENT TEAM Joshua Bleak President & CEO, Director
Fourth generation in a prominent mining family with a rich history in the southwestern United States. CEO of American Energy Fields (AEFI.OB), a U.S. uranium company focused on production.
Founder of North American Environmental Corp, a consulting company specializing in project management, permitting, lobbying and land tenure.
James Davidson Chairman
A founding director of Anatolia Minerals Development. Helped steward Anatolia's growth from a penny stock to its recent transformation into Alacer Gold Corporation, (ASR - Toronto) with a market cap of C$2.5 billion. Author of five books, is a graduate of the University of Maryland, and Oxford University.
Gary Zak Director
President and CEO of Bold Ventures Inc. (BOL.V). The founder of Forum Uranium Corp. Previously a Director of Beaufield Resources Inc.
Steve Butrenchuk Director
40 Years experience in Mining and mineral exploration throughout Canada, United States, Chile, and Peru.
Laara Shaffer Director
President and Director of Glen Hawk Minerals Ltd., a Director of Nordic Gold Corporation (CFO).
John Eckersley Vice President Legal and Corporate Affairs
Served as corporate counsel focusing on the preparation of SEC registration statements, limited offering exemption documents, merger, and reverse merger documents. Received his Juris Doctorate from University of Utah.
Allen Wells Advisory Board, Mining Engineer
Allen has over 18 years as a mining engineer, project manager, and construction consultant. Allen holds a Masters of Engineering in Mining from the University of Arizona, a Masters of Business Administration from the University of Phoenix, and a Bachelor of Science in Civil Engineering from the University of Arizona. Allen was formerly a Senior mine engineer with Phelps Dodge Mining Company 2003-2005, a mine operations manager for Nord Resources Corp 2007-2009 and has worked on various projects with the Army Corp of Engineers.
Timothy Henneberry Advisory Board, Professional Geologist
Timothy is a professional geoscientist with more than 28 years of experience in both exploration and production. He has been a consultant since 1985, founding his own consulting firm in 1991. Timothy has served both as a Director and as a Senior Manager and President for junior mining companies. He is currently President and CEO of Appleton Exploration Inc.
James Hasbrouck Advisory Board, Geophysicist
James has over 30 years of experience in all major surface, airborne, and borehole geophysical methods plus a strong geological background.
Dennis Ickes Advisory Board
Served as Deputy Under-Secretary of the Interior in two Cabinets, founded the Office of Indian Rights in the United States Department of Justice, served as its Director.
SRK Consulting
SRK is an independent multinational consulting firm which has, among its clients, most of the world's major and medium-sized exploration and mining companies. SRK employs over 1,000 professionals on six continents and specializes in all stages of mineral exploration and development. SRK provides focused advice and solutions to clients offering services from exploration through feasibility, mine planning and production to mine closure.
Zonge International
Zonge specializes in providing field services for geophysical investigations both nationally and worldwide.
Southwest Exp. LLC
Southwest Exp. has over 20+ years in borehole geophysics and video services. Southwest utilizes the latest in Acoustic Sonic tools (3 and 4 Receiver units) and new Gyro technology.
News
Passport Potash Inc. to Present at Dundee's Profits from Potash Conference
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2011) - Passport Potash Inc. (the "Company") (TSX VENTURE:PPI)(OTCQX:PPRTF) is pleased to announce that it has been invited to attend Dundee Capital Market's PROFITS from POTASH conference being held at the St. Andrew's Club in Toronto, Ontario on Thursday, October 27.
VP of Legal and Corporate Affairs, John Eckersley will be presenting on behalf of the company. "The conference is an opportunity for select junior potash companies to present their story to institutional investors and Passport is pleased to be attending," states John Eckersley.
On behalf of the Board of Directors of Passport Potash Inc.
Joshua Bleak, President
Passport Potash Signs LOI to Acquire 50% Ownership Interest in HNZ Potash, LLC
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2011) - Passport Potash, Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) has signed a letter of intent to enter into binding agreements under which NZ Potash, LLC will sell to Passport its 50% ownership interest in HNZ Potash, LLC. Passport and HNZ Potash will strive to jointly develop their combined potash properties in the Holbrook Basin.
When combined the properties will contain over 200,000 acres of mineral rights and will cover over 300 square miles. Following the release of Passport's NI 43-101 from SRK containing an exploration potential, the Company intends to jointly prepare an NI 43-101 resource report with HNZ Potash. Exploration activities of the combined companies that have been completed to date consist of over 50 drilled wells and over 100 lines miles of 2D seismic.
To view the combined properties, please click on the following link:http://passportpotash.com/images/map/LandStatusMap.pdf.
our southern sections and from there up to our sections on the east side. We look forward to working with HNZ Potash and believe that the synergy created by this combination, in addition to providing a more detailed delineation of the potash deposition in this area, will move the companies forward in ways that were impossible working separately."
Passport President and CEO, Joshua Bleak, commented: "We are extremely excited with the prospects which this LOI presents to the Company. The added lands are an ideal complement to our current land position. Looking at the map we now have contiguity from our lands on the west side of the basin down to
About Passport Potash, Inc.
Passport Potash Inc. is a publicly traded corporation engaged in the exploration and development of advanced potash properties with its major focus on a previously explored potash property in Arizona. Passport has acquired a strategic position in the Holbrook Basin with land holdings encompassing over 81,315 acres. For more information regarding the Holbrook Basin, please visithttp://www.azgs.az.gov/arizona_geology/Summer%2008.pdf.
Stephen B. Butrenchuk, P.Geol., Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved this news release.
On behalf of the Board of Directors of Passport Potash Inc.
Joshua Bleak, President
Recent news: 2010-04-12 14:16 ET - http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=Z-C:PPI-1707826&symbol=PPI&news_region=C
They signed a 4 year lease with an option to purchase on the Twin Butte Ranch, in the potash bearing Holbrook Basin of east-central Arizona.
Steven L. Rauzi of the Arizona Geological Survey reviewed the data and published an Open File Report in 2008 which showed the potash horizons ranged from 5 to in excess of 30 feet throughout the Basin.
He further estimated a geologic target for the entire Holbrook Basin of 682 million tonnes at 6% K2O to 2.58 billion tonnes at 20% K2O.
Based on Rauzi's geological target estimate of the entire Holbrook Basin, the 13,350 hectares now under option or lease to Passport could host 8.61% of the total geological target of the 155,000 hectares or 58.7 million tonnes at 6% K2O to 222.2 million tonnes at 20% K2O.
Petrified Forest National Park and the land around it sit on millions of tons of potash. That deposit has mining companies buying land and staking claims nearby, including on 125,000 acres that are part of a plan to more than double the park's size. Congress approved the expansion in 2004, authorizing the park to purchase land from willing sellers. The park added the first 26,000 acres in September, but that purchase didn't include the mineral rights, which are leased to a company hoping to establish a potash mine in the next two to three years.
The mining plans discussed so far involve tunnels rather than open pits, but the prospect of above-ground operations around the park concerns Traver. That includes the potential to disrupt undiscovered archaeological sites with the expanded boundary.
"Surface operations won't be a good neighbor for a national park," he said. "The further away (they) can be located, the better for us."
But the proposed mines could create hundreds of permanent jobs and boost the economy of Holbrook, a city of 5,000 about 25 miles to the west.
"We're very excited," Holbrook City Manager Ray Alley said. "This could generate the economy we need and bring in new jobs."
Traver said he is confident that there's a way to preserve the park while bringing in jobs. He's suggested locating buildings and tunnel entrances outside the park boundary to avoid disturbing the surface.
"We're not feeling as though we're raining on anyone's parade by standing up for the expanded boundaries of the park," he said. "We think that the economic development can still occur without jeopardizing the future of the park."
So far, one of the three companies planning to mine within the 125,000 acres has said it would follow that suggestion.
Petrified Forest National Park, established as a national monument in 1906 and designated a national park in 1962, was originally 93,500 acres. The 2004 expansion approved by Congress authorized the park to purchase surface and mineral rights.
But the legislation didn't initially include funds to acquire the land. In addition to the ranch purchased earlier this year, the the Bureau of Land Management has transferred another 15,000 acres.
Meanwhile, three mining companies, Passport Potash, American West Potash and HNZ Potash, have acquired rights, through purchase or lease, to some private ranches in the remaining acreage as well as in areas outside the park's boundary.
Passport Potash owns the Twin Buttes Ranch, comprised of 28,500 acres inside the eastern edge of the expanded park boundary. In all, the firm has or is in the process of acquiring mineral and surface rights to 121,000 acres within
and beyond the park's boundary.
American West Potash has lease rights to 32,000 acres straddling the park's eastern boundary, including mineral rights under the 26,000-acre ranch recently purchased by the park.
HNZ Potash owns 74,000 acres southwest of the park's boundary.
Example Potash at 450 Bucks a ton
59mm tons @ 6% would be 3,540,000 tons of potash = around 1.6 Billion dollars
222mm Tons @ 20% would be about 44 Tons = 20 Billion dollars in potash
Passport is currently applying to the Arizona Oil and Gas Commission for permits to drill an initial 10 holes on the Twin Butte property. Since the Twin Butte Ranch is private land, the permitting process is considerably expedited.
Passport anticipates receipt of the permits within 30 days. Passport plans to commence drilling upon closing of its current financing and receipt of the drilling permits.
Due to relatively shallow depths to the top of the potash layers (300-450 metres), the potash deposits of the Holbrook Basin are considered favorable for either conventional underground or in-situ solution mining. Previous drilling has indicated
that faulting and layer disruption from diapir effects common to salt deposits are minimal, thereby allowing for increased ease and decreased costs of all future exploration and development activities.
Passport plans an aggressive drill program initially focused on the southeast portion of the ranch to test the thickest areas of potash.
The Twin Butte Lease brings Passport's total land holdings within the Holbrook Basin to almost 33,000 acres (13,350 hectares). President Richard Hunter is very pleased with the agreement to lease and purchase the Twin Butte Ranch, saying: "Passport has more than tripled its landholdings in the Holbrook Basin by adding some 36 sections of private lands to the 18 sections of State lands it already had. We are now one of the largest landholders, if not the largest landholder, drilling for potash in the Holbrook Basin."
The Twin Butte Ranch comprises some 28,526 acres (11,544 hectares) of private deeded land with 76.7% or approximately 21,894 acres (8,860 hectares) overlying the potash horizons within the Holbrook Basin.
Under the terms of the agreement Passport can earn a 100% undivided interest in the deeded land and sub-surface minerals rights by making lease payments totaling US$500,000 over the next four years and, upon exercising its option to purchase, by paying US$20,000,000 for the entire Twin Butte Ranch including all sub-surface mineral rights excepting those pertaining to oil and gas, petrified wood and geothermal resources. There are no royalties associated with the sub-surface mineral rights. Based on Passport Drilling. Source: SRK, 2011
Findings in support of SRK's estimated exploration potential are that:
- Passport's drilling and sampling programs have helped confirm analytical and stratigraphic data from the twinned historic holes, improving confidence in the historic holes.
- Passport's drill results have generally verified historical accounts of thickness and grade of potash mineralization.
- Passport's digital gamma log converted equivalent K2O data generally compares with Passport's chemical assay data from core. SRK has made recommendations for the next phase of exploration, the development of a drill hole database (particularly for historical drill hole data) for use in a subsequent resource estimate and the approach to be taken for resource estimation.
Passport's President Joshua Bleak states "We are very excited by what we have read and considered. A lot of hard work and effort has been put into this report and we are pleased to see that the project merits further exploration and development. SRK has made recommendations regarding this and related matters. We look forward to completing additional drilling on lands that were not included in this initial report."
http://www.passportpotash.com/
NI 43-101 TECHNICAL REPORT HOLBROOK BASIN POTASH PROJECT http://www.passportpotash.com/upload/Holbrook%2043-101%2027-Jan-2009.pdf PPRTF Security Details
Share Structure
| Market Value1 | $29,952,461 | a/o Dec 23, 2011 |
| Shares Outstanding | 127,457,282 | a/o Aug 31, 2011 |
| Float | 93,194,431 | a/o Feb 04, 2011 |
| Authorized Shares | Unlimited | a/o Aug 31, 2011 |
| Par Value | No Par Value |
This should be a LONG term hold with a development target of 3 to 5 years.
