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IR update: Passport has been following up with prospective investors prepared to provide the funds required to drill the SE corner of the TBR. The prospects are promising.
Talk of IR saying new developments in the works... expect news soon..others are saying news within two weeks.
In time PPI is worth only one half of of what Encanto is now valued at, which now has a market cap of $30 Million, we'd be looking at a 7-fold increase in our market cap. And if PPI were at some point in time worth one half of what Athabasce sold out to BHP for at $340 Million, we'd be looking at a 85-fold increase in our market cap.
http://www.stockhouse.com/bullboards/MessageDetail.aspx?s=ppi&t=LIST&m=28185816&l=0&pd=2&r=0
MMMMMmmmm .055r's added to my stash.. more please
APOLOGY
The post I have just made was my first. My apology for not being able to insert the map referenced and for symbols not always appearing as they should. I have to get used to formatting posts on this board.
mossie
TONNAGES AND VALUES
Passport has potash (K2O). It also has rock salt (halite or NaCl). The questions are: How much of each? What is it worth in the ground (in situ)? What is it worth when mined, assuming a mine is justified?
Estimates Confined to TBR
My estimated tonnages and values are confined to the Twin Buttes Ranch (TBR).
Overview of TBR
The TBR is Passport’s prize property. It is private land. Some 21,894 acres (approximately 34 sections) lie within the historically known potash bearing area of the Holbrook Basin.
Here is a map showing the TBR (coloured green) overlaid on the isopach map used by Rauzi for his report estimating the potential potash resource for 155,000 hectares in the Holbrook Basin:
[UNABLE TO INSERT MAP]
There are 2 solid blocks of land on the TBR: one, comprised of 10 sections, in the SE corner; and the other, comprised of 21 sections (more or less), in the SW corner trending N and NE. I have disregarded the 11th section directly N of the SE corner as it is contiguous to the other 10 only at its SW corner and cannot be mined unless the section of land which lies immediately to its S is acquired. If that intervening section is acquired then, of course, the solid block in the SE corner would increase from 10 to 12 sections of land.
It will be noted that there are intervening sections of land between the SE and SW corners. If any one of those intervening sections is acquired, then the 21 sections in the SW corner would increase to 23 and there would be a single solid block of land on the TBR for exploration/mining purposes. The likelihood of acquiring one of the intervening sections is, in my opinion, better than average; but my estimate will exclude that prospect.
Note, when you look at the underlying isopach map, that the potash thickness increases from NW to SE across the TBR. The potash thickness appears to be over 20 feet on 5 of the sections of land in the SE corner, where Passport plans an aggressive drill program.
Estimated Potash Tonnages on TBR
Calculation formula used
There is no 43-101 compliant indicated or inferred potash resource on Passport’s properties. The potential tonnages and grades estimated below are conceptual in nature and are provided for illustration purposes only.
Rauzi (2008) reviewed all available data and estimated a geologic target for the entire north-central area (155,000 hectares) in the Holbrook Basin of 682 million tons at 6% K2O to 2.58 billion tons at 20% K2O over 1.2 to 1.5 metres (4 to 5 feet). Arkla (1960s) estimated 285.4 million tons at 19.76% K2O underlying 19,059 acres in two areas in close proximity to Passport’s properties, with some holes having been drilled on the TBR and some on State Lease Lands.
The difficulty with Rauzi’s estimate is that it in encompasses the entire geologic target of 155,000 hectares: in other words it is not specific to particular areas within the Holbrook Basin. Arkla’s estimate seems to focus on an area which includes all, or a portion of, the TBR but it also cannot be used as the known Arkla drill hole results are confined to the SW corner of the ranch.
It is better to use Rauzi’s isopach map, as well as historic drill results, and to employ this accepted formula for calculating the potential K2O tonnage underlying each section of land:
2,590,000 square metres (1 section)
x 1 metre (assumed potash ore thickness)
2,590,000 cubic metres (potash ore)
x 1.98 (sylvinite specific gravity/density)
5,128,200 (tonnes of sylvinite)
x 14% (assumed K2O grade)
717,948 (tonnes of K2O)
- 143,590 (less 20% allowance for non-extractable K2O)
574,358 (tonnes of extractable K2O per section)
Note that a 40% allowance is used in Saskatchewan to cover off such matters as collapsing caverns, unknown anomalies and loss of potash in transportation. I will use a 20% allowance as the potash resource in the Holbrook Basin lies closer to the surface, the prospect of collapsing caverns is far lower (having regard to potash thicknesses that are not nearly as great), the absence of any significant anomalies according to the Arkla report and the use of solution mining (as opposed to conventional underground mining) resulting in the recovery of greater potash tonnage and obviating the need to have large support pillars of potash ore as when conventional underground mining is employed.
Assumed Average Potash Thickness and Grade
I have considered this information to decide what average potash thicknesses and grades should be used to estimate the potential potash tonnage underlying the TBR:
? The entire Holbrook Basin averages 1.2 metres (4’) in potash thickness with an average grade of 15% K2O (NI 43-101 Technical Report, 2009)
? The potash horizon ranges from 0.3cm to 12 metres (1-40’) (Rauzi, 2008)
? The No. 1 potash bed ranges from 0 to 2.4 metres (0-8’) and contains up to 12% potash as sylvite over a 1.5 metres (5’) thickness (NI 43-101 Technical Report, 2009)
? The No. 2 or lower potash bed ranges from 0 to 2.7 metres (0-9’) in thickness with up to 17% K2O as sylvite over a 1.5 metres (5’) thickness (NI 43-101 Technical Report, 2009)
? In some areas drilled by Arkla, the K2O content reached 48% for 1’ and 30-35% K2O for 1’ was not uncommon (Arkla Report, 1966)
? Wide variances were regularly seen in potash content (grade) between cores that were relatively close. 5-foot averages were found to differ by as much as 45% though cores were only a few feet apart (Arkla Report, 1966)
? 9 drill holes on Passport’s State Lease Lands resulted in potash thicknesses ranging from 1.2 to 1.5 metres (4-5’) and grades ranging from 11.13%-14.74% K2O (NI 43-101 Technical Report, 2009)
? Arkla drilled 6 holes in the SW corner of the TBR and reported 4 assay results which ranged from 7.05%-14.50% K2O over 4’ (1.2 metres). Arkla did not assay all the holes as it relied on gamma ray logs to determine the presence of potassium (K) and hence potash (K2O) in the drill holes. The gamma ray logs showed the potash horizon ranged in thickness from 4-10’ (1.2-3 metres) (NR dated October 14, 2009)
? An isopach map used by Rauzi is drawn in contour intervals of 10’ and shows that the potash thickens across the TBR from NW to SE as well as that some sections in the SE corner could host potash thicknesses greater than 20’ (6m)
? An isopercent map was used by Arkla to consider only that acreage with an indicated grade of 15% K2O or more at least 5’ (1.5m) thick and it was concluded that “19,059 acres may be underlain by deposits in two areas grading 19.76% K2O on average” (Arkla Report, 1966)
Based on that information, particularly the apparent increase in potash thickness across the TBR from NW to SE, I am of the view that the 10 sections in the SE corner could host an average of 8’ (2.4384m) of 15% K2O. If that proves up, then the extractable potash tonnage for that area would be:
2,590,000 square metres (1 section)
x 2.4384 metres (potash ore thickness)
6,315,456 cubic metres (potash ore)
x 1.98 (sylvinite specific gravity/density)
12,504,602.88 (tonnes of sylvinite)
x 15% (K2O grade)
1,875,690.4320 (tonnes of K2O)
- 375,138.0864 (20% allowance for non-extractable K2O)
1,500,552.3456 (tonnes of extractable K2O per section)
10 sections in SE corner x 1,500,552.3456 = 15,005,523.456 tonnes of extractable K2O. This tonnage alone would result in an economically viable mine (see Potash Mine below).
My view, based on the information listed and considered, is that the 21 sections of land (more or less) starting in the SW corner and trending N/NE could host an average of 4’ (1.2192m) of 12% K2O. If that proves up, then the extractable potash tonnage for that area would be:
2,590,000 square metres (1 section)
x 1.2192 metres (potash ore thickness)
3,157,728 cubic metres (potash ore)
x 1.98 (sylvinte specific gravity/density)
6,252,301.44 (tonnes of sylvinite)
x 12% (K2O grade)
750,276.17280 (tonnes of K2O)
- 150,055.23456 (20% allowance for non-extractable K2O)
600,220.94364 (tonnes of extractable K2O per section)
21 sections in the SW corner trending N/NE x 600,220.94364 = 12,604,639.81844 tonnes of extractable K2O.
The total estimated extractable K2O underlying the TBR would, therefore, be some 27,610,163 million tonnes if my numbers prove up.
Keep in mind that the total estimated tonnage of 27,610,163 will increase if Passport acquires the intervening sections of land required to increase the SE corner from 10 to 12 sections (all in a solid block) and to link the SE and SW corners (thereby increasing the SW/N/NE area from 21 to 23 sections). The increase would be around 4,201,545 tonnes taking the overall total up to approximately 31,800,000 tonnes.
Value of Potash in the Ground (in situ valuation)
An article entitled “Anglo Potash … in Partnership with BHP Billiton” sets forth this Table taken, it seems, from an NI 43-101 Technical Report prepared for Anglo Potash:
Measured & Indicated Inferred Total
Extractable Potash Ore* 479 981 1460
Nutrient Tonnes (K2O = 26.2%) 125 257 382
Product Tonnes (KCl = 61% K2O) 206 421 627
Anglo’s Share 51 105 157
Product Price ($/tonne)** $285 $285 $285
Est. Total In Situ Value*** $14,659 $30,021 $44,680
*Net of a 25% deduction for unidentified mine-level anomalies and the application of a 40% extraction ratio
**Average FOB Vancouver standard potash price 2007-2020
***More work is needed to qualify this resource as mineable; therefore, the
estimated total in situ value of the resource is purely speculative at this
time
The “Estimated Total In Situ Value” is Anglo’s share of “Nutrient”/”Product” tonnes, ie, 157,000,000 x $285 = $44,745,000,000 ($44.745 billion).
Note that $285 (“Average FOB Vancouver standard potash price 2007-2020”) is lower than 2009 “spot” prices for potash negotiated in sales to China, India and Japan ($400-600 per tonne) and the price projected by 2024 ($1500 settling back to $1000 per tonne). The “market” value of Anglo’s “nutrient”/”product” would, therefore, be as high as almost 4x the “in situ” value, ie, as high as $178.980 billion
Based on Anglo’s estimate, the estimated total in situ value of Passport’s potential “nutrient”/”product” tonnage would be:
27 million tonnes (rounded down from 27,610,163 million tonnes) x $285 = $7.695 billion
Note, again, that the “market” value of Passport’s “nutrient”/””product” would be as high as almost 4x the “in situ” value based on the projected $1000 per tonne for potash.
Potash Mine
Due to relatively shallow depths to the top of the potash layers, the potash deposits are considered favorable for either conventional underground or in situ solution mining. My information is that solution mining would be employed to extract the potash and produce the nutrient product.
Solution mining is cost effective, far more so than conventional underground mining. Previous drilling has also indicated that faulting and layer disruption from diaper effects common to salt deposits are minimal, thereby allowing for increased ease and decreased costs of all future exploration and development activities.
The ideal mine life appears to be 30 years. Passport’s annual potash production tonnage, if my estimate of 27 million tonnes proves up, would be 900,000 tonnes a year.
My information and assumptions used to calculate net pre-tax/royalties revenue are these (all amounts in USD):
200 million shares (includes future issues to raise capital)
30 years mine life
$2 billion (capital cost including allowances for contingency/risk/escalation)
$2.5 billion (interest on $2 billion loan at 6.5% amortized over 30 years)
20% for cost of production
27 million tonnes of K2O nutrient product
900,000 tonnes/year of K2O nutrient product
$750 per tonne for K2O nutrient product sold
Based on that information and those assumptions, the net pre-tax revenue/royalties would be:
$20,250,000,000 (gross sales)
- 2,000,000,000 (capital cost)
18,250,000,000
- 2,500,000,000 (cost of loan)
15,750,000,000
- 4,050,000,000 (cost of production)
$11,700,000,000 (net pre-tax revenue/royalties)
Assuming 35% corporate tax + 5% royalties rates, the after-tax revenue would be US $7,020,000,000. Divide by 200,000,000 shares = US $35.10 per share which compares favorably to Intrepid’s share price of US $26.77 as at April 26, 2010.
Halite (rock salt)
Potash and salt (halite/rock salt) are like brother and sister. Where there is potash there is salt.
The Arkla Report (1966) says this about halite (rock salt) in the Holbrook Basin, at least in the areas drilled by Arkla:
"5-B" Salt (Halite) Phase Normally this unit is about 100 feet thick, but one or both of the upper two salt beds have been found missing. In such cases the phase is 65-80 feet thick. The "5-B" is comprised of six halite beds with intervening zones of intermixed clay and halite. Potash minerals have been identified in each of the halite beds, and in some of the clay zones containing halite. The second halite bed from the top thus far exhibits the only persistent potash mineralization and was termed "Zone 4" in the earliest identification. Use of the term has persisted even though it breaches upper limit of the "5-B" phase. Lower restriction of the phase is based on difference between neutron log response to the halite beds noted above and to those underlying. There is a definitive increase in response within the "5-B" phase, easily recognized on mechanical logs.
The NI 43-101 Technical Report speaks of aggregate thicknesses of “salt” (halite) in the Corduroy Member of the Supai Formation ranging up to 530’ (161 metres). It also speaks of aggregate thicknesses of “salt”” (halite) in the Big A Butte Member of the Supai Formation ranging up to 151’ (46 metres).
Rock salt (halite) is used for commercial purposes (pulp and paper/setting dyes in textiles and fabrics/soap and detergents/de-icing roads etc). It is mined in Saskatchewan in conjunction with potash and some 500,000 tonnes are sold annually at $40 a ton.
Passport’s properties could host a significant tonnage of halite (rock salt). We know, from the assay results, that it is there just as we know that Passport’s properties also host potash. The question is: “What is the potential tonnage of the halite?”
I have done a halite (rock salt) resource estimate, assuming only 30’ in thickness (9 metres rounded down from 9.144 metres) and an average grade of 40% (notwithstanding that the average grade is likely to be around 70%). Here is the estimate for the TBR per section of land:
2,590,000 square metres (section of land)
x 9 metres (halite thickness)
23,310,000 (cubic metres)
x 2.17 (halite specific gravity/density)
50,582,700 (tonnes of halite)
x 40%(halite grade)
20,233,080 (tonnes of halite @ 40% grade)
- 4,046,616 (20% allowance for non-extractable halite)
16,186,464 (tonnes of extractable halite per section)
31 sections of land x 16,186,464 = 501,780,384 extractable tonnes of halite.
Sales of only 1 million tonnes of rock salt a year (assuming there is a market for that tonnage) would generate $40,000,000 annually (1 million x $40) = $1,200,000,000 ($1.2 billion) over a mine life of 30 years.
mossie
They do but doesn't stay often..I always check here: http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=Z-C%3APPI-1707826&symbol=PPI®ion=C
was checking yahoo finance.. i guess they don't post them there??
Last PR was on 2010-04-12 14:16..read the board~
company been quiet since Oct pr? talk to them lately?
http://www.land.state.az.us/programs/natural/mineral_leasing.htm
Mineral Exploration Permits
A non-refundable filing fee of $500.00 is required for each application.
An environmental disclosure questionnaire must accompany each application.
Applications must be typed or printed in ink. Applications that are incomplete or illegible will be returned.
A maximum 640 acres or 1 whole section is permitted per application.
An exploration permit is valid for one (1) year, renewable up to five (5) years.
Lease boundaries, access routes, mine workings, roads, water sources, residences, utilities, etc. must be plotted separately on a USGS Topographic Map included with the application.
The application must be signed by the applicant(s) or an authorized agent. If an agent is filing for the applicant, a notarized Power of Attorney must be filled with the Department. The filing fee for a Power of Attorney is $50.00.
The processing of an Exploration Permit takes a minimum of sixty (60) days.
Application is reviewed by the ASLD Minerals Section and if necessary, other ASLD divisions, outside agencies and any interested parties.
Rent is $2.00 per acre for first year which includes the second year and $1.00 per acre per year for years three thru five.
An Exploration Plan of Operation must be submitted annually and approved by the ASLD prior to startup of exploration activities.
If any surface disturbance is planned as part on the exploration activities, Archaeological and Biological surveys as well as any other applicable permits must be submitted for ASLD review (three (3) copies of each and an electronic copy in pdf format).
A bond is established based on the proposed exploration activities. Typically a $3,000.00 bond is required for a single permit or a blanket bond of $15,000.00 for five or more permits held by an individual or company.
Minimum work expenditure requirements are: - $10 per acre per year for years 1-2; and
- $20 per acre per year for years 3-5
- Proof of work expenditures must be submitted to the ASLD Minerals Section each year in the form of invoices and paid receipts. If no work was completed on-site, the applicant can pay the equal amount to the department.
An exploration permit is NOT a right to mine.
If discovery of a valuable mineral deposit is made, the permitee must apply for a mineral lease before actual mining activities can begin.
http://www.land.state.az.us/news/2009/pdfs/ASLDNewSiteRelease.pdf
Janice K. Brewer
Governor
Maria Baier
State Land Commissioner
For Immediate Release For More Information:
November 4, 2009 602-542-3996
Arizona State Land Department Unveils New Website
PHOENIX – The Arizona State Land Department has unveiled its new website. The Department website may be found at http://www.land.az.state.us The new site has improved interactive features, increased lines of communication with Arizonans and is meant to be more easily navigated.
“The Department continues to move forward in its efforts to both inform the public about permissible activities on State Trust lands and market exceptional real estate opportunities that benefit the Trust,” noted State Land Commissioner Maria Baier, “our new website components include a state mapping application and other interactive features.”
The Department also has launched a Facebook page and Twitter feed. This allows social media users to become educated with regard to the Department and its initiatives. “Social media enables the Department to reach a wider audience and better communicate about projects, real estate opportunities, auctions and land closures,” Commissioner Baier said.
Interested persons can receive Department tweets at http://twitter.com/azstateland. Both sites may be accessed from the Arizona State Land Department website.
The Arizona State Land Department manages 9.3 million acres of State land held in trust for 13 beneficiaries, primarily k-12 education.
-30-
....and we're right there from the start..nice and cheap still~
hmmmm, looks like the are ready to start ramping up with work and news....
From stockhouse: Check www.americanenergyfields.com for info on Bleak. Also check the NR on that website dated April 9, 2010 which mentions Bleak as having been President of Southwest Exploration and, in that capacity, having optioned potash lands to PPI. Those lands were the initial 13 State Lease Lands optioned by PPI from Southwest Exploration.
Note that the geo, Steve, now appointed president of PPI wrote the NI 43-101 Technical Report for PPI. His report is on PPI's website and a summary of the report was put out in a NR.
Things are beginning to make sense and seem to be coming together.
buntu
Today's news maybe an indicator that drilling isn't too far off:
Passport Potash Inc. is appointing Steve Butrenchuk, PGeol, to the board of directors. Mr. Butrenchuk has over 40 years of experience in mining and mineral exploration throughout Canada, United States, Chile and Peru. He has substantial experience with industrial minerals, and has authored several publications with respect to various commodities while on contract to the B.C. government. He is presently a consulting geologist and a director of Mega Copper Corp. Mr. Butrenchuk will be appointed president of Passport to replace Dr. Richard Hunter, who has stepped down as president of the company, but will remain a director of the company.
The company is also appointing Joshua Bleak as a director of the company. Mr. Bleak is experienced in the mining and exploration industry, as well as being the fourth generation in a family with a rich mining and exploration background. He currently serves as president and chief executive officer of American Energy Fields Inc. As a part of North American Environmental Corp., Mr. Bleak was responsible for the permitting and overseeing of Passport's initial round of drilling at the Holbrook Basin potash project. He has worked with numerous exploration companies to indentify and explore mining prospects located within the southwestern United States. R. Timothy Henneberry, PGeo, has resigned, effective immediately. The board wishes to thank Mr. Henneberry for the assistance and technical expertise he provided over the last few years. Mr. Henneberry will be appointed to the company's advisory board.
Nice DD by Rigatoni: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48924396
Passport names Butrenchuk, Bleak to board
2010-04-12 14:16 ET - News Release
Ms. Laara Shaffer reports
BOARD APPOINTMENTS
Passport Potash Inc. is appointing Steve Butrenchuk, PGeol, to the board of directors. Mr. Butrenchuk has over 40 years of experience in mining and mineral exploration throughout Canada, United States, Chile and Peru. He has substantial experience with industrial minerals, and has authored several publications with respect to various commodities while on contract to the B.C. government. He is presently a consulting geologist and a director of Mega Copper Corp. Mr. Butrenchuk will be appointed president of Passport to replace Dr. Richard Hunter, who has stepped down as president of the company, but will remain a director of the company.
The company is also appointing Joshua Bleak as a director of the company. Mr. Bleak is experienced in the mining and exploration industry, as well as being the fourth generation in a family with a rich mining and exploration background. He currently serves as president and chief executive officer of American Energy Fields Inc. As a part of North American Environmental Corp., Mr. Bleak was responsible for the permitting and overseeing of Passport's initial round of drilling at the Holbrook Basin potash project. He has worked with numerous exploration companies to indentify and explore mining prospects located within the southwestern United States. R. Timothy Henneberry, PGeo, has resigned, effective immediately. The board wishes to thank Mr. Henneberry for the assistance and technical expertise he provided over the last few years. Mr. Henneberry will be appointed to the company's advisory board.
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.
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.
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.”
Passport plans an aggressive drill program initially focused on the southeast portion of the ranch to test the thickest areas of potash.
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.
anyone else notice they changed their name to passport potash??
http://finance.yahoo.com/q?s=ppi.v
up almost 30percent
Passport Metals Inc.: Arizona Potash Property Acquisition, Lease with Option to Purchase
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2009) -
Passport Metals Inc. (TSX VENTURE:PPI) has 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. 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.
The central 1,500 square kilometres or 155,000 hectares of the Holbrook Basin was found to be underlain by potash as a result of exploration in the 1960's and 1970's by Arkla Exploration Company and Duval Corporation among others. 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.
According to the isopach map with Rauzi's report, the potash horizon underlying the Twin Butte Ranch property appears to thicken from 10 feet to in excess of 20 feet from northwest to southeast across the ranch property.
Nine of the Arkla Exploration Company holes lie within the current boundaries of the Twin Butte Ranch property. Two of the holes were outside of the limits of the potash. Six of the remaining seven holes were concentrated in the southwest area of the ranch including the four with assay results, which were 7.05% K2O to 14.50% K2O over 4 feet (1.2 metres). Arkla did not assay all of the holes as they relied on gamma ray logs to determine the presence of potassium, and hence potash in the drill holes. The gamma ray logs show the potash horizon ranges in width from 4 to 10 feet (1.2 to 3.0 metres). The depth to the top of the potash horizon ranges from 990 to 1440 feet (301.8 to 438.9 metres).
The location of these seven holes, along with the remaining Arkla drill holes and the four holes completed by Passport earlier this year within the entire Passport Holbrook Basin holdings is shown in the following map. The map can also be found on the Company's website at http://www.passportmetals.net/Holbrook%20Basin%20Holdings%2010-Oct-2009.jpg.
The Arkla drilling tested only 6 of the 36 sections of land comprising the Twin Butte Ranch property, concentrating largely in the southwest part of the ranch. 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."
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.
There are no current 43-101 mineral reserves or mineral resources on the Passport Metals Inc. Holbrook Basin Potash Project holdings. The reader is cautioned that the potential quantity and grade indicated above is conceptual in nature. It has been provided only for illustration purposes. At this time, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the discovery of these mineral resources.
Passport will immediately apply to the Arizona Oil and Gas Commission for permits to commence drilling on the Twin Butte Ranch property. Since Passport will be exploring on private land, the permitting process is considerably expedited in comparison to state or federal lands. All sites will be reclaimed to the standard required by the Arizona Land Commission for State Exploration 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.
R. Tim Henneberry, P.Geo., a Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
PASSPORT METALS INC.
Laara Shaffer, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
http://www.marketwire.com/press-release/Passport-Metals-Inc-TSX-VENTURE-PPI-1059629.html
Could see an easy double from here in the short term imo
Kiwi
My broker/MM told me they are evenly liquid because he routs all my US orders through to the Canadian MM house..so to illustrate..if on the Canadian side 10M has traded and on the US side only 10K ..and I want to sell a 100K (and I have done this in the past on similar stocks) my broker gets the liquidity from the Canadian side. A lot of these Canadian little plays don't have American MM's on it and are considered clearing symbols..best to ask your own broker for more details (ask the senior ones)..good luck~
Whats the benefit between the two - Would the CNDX more liquid?
Kiwi
spark is right, but it may depend on your broker, some don't allow canadian stocks, while others (scottrade) allow you to buy the TSX stocks, but make you call it in
You can do either~
Q. Do you buy this as PPIMF:OTO or PPI.V - CDNX Canadian Venture Exchange.
Thanks,
Kiwi
Thanks..great job!~
Talked to PPIMF today... Highlights include:
-All drilling is completed... expect results soon
-Unrelated news coming sooner than that...don't know what the news will be regarding, just something to look forward to.
-Multiple updates of progress in the next 30-60 days
-Ni43-101 report is on the horizon
HUGE potential!...
Information found on PPI's website:
Previous exploration on the current property holdings consisted of 9 drill holes in the potash
completed by Arkla Exploration Corporation in the 1960's. This drilling confirmed the presence
of potash. The potash was intersected at depths from 280.4 to 321.6 metres (920 to 1055 feet).
The potash horizon ranged in thickness from 1 to 1.5 metres (4 to 5 feet) and graded from
11.13% K2O to 14.74% K2O. The entire Holbrook Basin averages 1.2 metres in thickness
with an average grade of 15.05% K2O.
Note the last two sentences. I will refer to them again when analyzing PPI's results for its Holes 1 and 2 released on August 4th.
Potash thicknesses
PPI's Hole 1 was twinnwd to Arkla's Hole 99, bothe drilled on the same section of land. I do not know what the distance was between the 2 holes and will ask PPI.
Here are the comparable potash thicknesses:
Arkla Hole 99 PPI Hole 1
4 feet (1.22 metres) 4.5 feet (1.38 metres)
PPI's Hole 2 was twinned to Arkla's Hole 14, both on the same section of land. Again, I do not know the distance between the 2 holes and will ask PPI.
Here are the comparable potash thicknesses:
Arkla Hole 14 PPI Hole 2
4 feet (1.22 metres) 4 feet (1.22 metres)
The extract set forth at the beginning of this post states that the potash horizon on PPI's current properties, drilled by Arkla, ranged in thickness from 4 to 4.5 feet (1 to 1.5 metres) and that the entire Holbrook Basin averages 1.2 metres in thickness. Let's not quibble about the differences in conversion from feet to metres as between my calculations (based on PPI's reported drill intervals at which potash was found) and those set forth in the extract referenced. What is important, is that PPI's reported potash thicknesses are roughly consistent with those reported by Arkla and with the average for the entire Holbrook Basin.
Potash grades
PPI's Hole 1 was, as I have said, twinned to Arkla's Hole 99. Here are the comparable potash grades:
Arkla Hole 99 PPI Hole 1
14% K2O 14.64% K2O
PPI's Hole 2 was, as I have said, twinned to Arkla's Hole 14. Here are the comparable potash grades:
Arkla Hole 14 PPI Hole 2
11.05% K2O 11.6% K2O
You will have noted that PPI's potash grades are slightly higher than those reported by Arkla.
The extract found at the beginning of this post states that the potash grades on PPI's current properties, drilled by Arkla, ranged from 11.13% K2O to 14.74% K2O and that the entire Holbrook basin averaged 15.05% K2O. PPI's reported grade for Hole 1 is close to the Holbrook Basin's average and that reported for Hole 2 is 3,45% lower. The combined average grade for Holes 1 and 2 is 13.12% K2O which is only 1.93% lower that the 15.05% average for the entire Holbrook basin.
Now here is the important part (Arkla's comparable data not known). The 4.5 feet of 14.64% K2O cored from PPI's Hole 1 included 3 feet of potash that averaged 18,75% K2O (one interval as high as 33.50% K2O and another at 20.20% K2O). The 4 feet of 11.6% K2O cored from PPI's Hole 2 included 2,5 feet of potash that averaged 15,98% K2O (one interval as high as 27.20% K2O and another at 26.50% K2O). Put another way, almost three-quarters of the potash thickness in Hole 1 averaged 18.75% K2O and more than one-half of the potash thickness in Hole 2 averaged 15.98% K2O. Those 18.75% K2O and 15.98% K2O averages are both higher than the Holbrook Basin's 15.05% K2O average.
Potash/sylvite and K2O/KCl
The term "potash" is a colloquial term that is a contraction of "muriate of potash", which is expressed by the chemical formula "K2O" or "potassium oxide". The terms "muriate of potash" and the contraction "K2O" are commonly used in the Saskatchewan potash industry to refer to the sales product (ie, potassium oxide resulting from the mining and milling of sylvite-bearing rock or "sylvinite"). "Sylvite" refers to the potassium mineral "sylvite" or potassium chloride ("KCl"). The product mined and sold is KCl. A ton of KCl contains an equivalent of 0.63 tons of K2O. The conversion factor is KCl = 1.5830 times K2O.
Release of August 4th says that "The main interval in each of the holes [Holes 1 and 2] shows relatively low magnesium content, suggesting the potash mineral is likely sylvinite as opposed to carnallite". I am, for varios reasons, confident that the potash mineral found is predominantly sylvinite and soluble, but will ask PPi to confirm that.
If I am right, then Hole 1 has approximately 22% KCl (including an interval of 3 feet averaging about 28.13% KCl) and Hole 2 has approximately 16.4% KCl (including an interval of 2.5 feet averaging about 23.92% KCl). The combined average for Holes 1 and 2 is approximately 19.20% KCl (including intervals averaging about 26% KCl).
http://www.stockhouse.com/bullboards/MessageDetail.aspx?p=0&m=27391414&l=0&r=0&s=PPI&t=LIST
thanks I'm liking these Jr. miners these days.
nice pickup...this one will have a nice payoff imo.....
This one looks nice ---I got a little starter today
would like to pick up some more before the fall.
nice find T R
Potash. Growing food shortages will drive up demand again along with price per tonne.
Passport Metals Inc.: Holbrook Drilling Results
Press Release
Source: Passport Metals Inc.
On Tuesday August 4, 2009, 9:00 am EDT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 08/04/09) - Passport Metals Inc. (TSX-V:PPI - News) has received the assay results from the first two holes of the summer 2009 drilling program at the Holbrook Basin Potash Project. PP DDH 01-09 returned a value of 14.64% K2O from 895 feet to 899.5 feet (272.79 to 274.17 metres), which included a value of 18.75% K2O from 895.5 feet to 898.5 feet (272.95 to 273.86 metres). PP DDH 02-09 returned a value of 11.6% K2O from 992 feet to 996 feet (302.36 to 303.58 metres), which included a value of 15.98% K2O from 992 feet to 994.5 feet (302.36 to 303.12 metres). The main interval in each of the holes shows relatively low magnesium content, suggesting the potash mineral is likely sylvinite as opposed to carnallite. The main interval in each of the holes also shows relatively low total insolubles suggesting minimal clay content.
Complete details for the potash intervals for PP DDH 01-09 and PP DDH 02-09 is as follows:
�
----------------------------------------------------------------------------
Hole Number Feet from Feet to % K2 O % MgO % Insolubles
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PP DDH 01-09 895.0 895.5 7.68 0.01 0.03
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PP DDH 01-09 895.5 896.0 33.50 0.02 0.09
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PP DDH 01-09 896.0 896.5 20.20 0.05 0.16
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PP DDH 01-09 896.5 897.0 7.32 0.26 0.07
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PP DDH 01-09 897.0 897.5 18.75 1.36 0.07
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PP DDH 01-09 897.5 898.0 16.40 1.64 0.09
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PP DDH 01-09 898.0 898.5 16.35 0.58 0.07
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PP DDH 01-09 898.5 899.0 1.74 0.07 0.07
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PP DDH 01-09 899.0 899.5 9.78 0.41 0.10
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PP DDH 02-09 992.0 992.5 7.64 0.11 0.19
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PP DDH 02-09 992.5 993.0 10.50 0.03 0.06
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PP DDH 02-09 993.0 993.5 26.50 0.02 0.04
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PP DDH 02-09 993.5 994.0 27.20 0.03 0.05
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PP DDH 02-09 994.0 994.5 8.07 0.05 0.04
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PP DDH 02-09 994.5 995.0 5.98 0.06 0.06
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PP DDH 02-09 995.0 995.5 2.13 0.09 0.13
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PP DDH 02-09 995.5 996.0 4.86 0.08 0.05
----------------------------------------------------------------------------
Passport management is very encouraged with the assay results as they confirm both the presence of potash within the evaporite sequence in the Holbrook Basin and confirm the grades obtained by Arkla Exploration Company during the historic 1960's drill programs.
The initial assay results strongly suggest the objective of this phase of the Holbrook Basin exploration program, correlating the historic well data with modern coring and down hole geophysical surveying to verify the historical data and allow Passport to combine the historical data with the data from the 2009 programs to define a NI43-101 potash mineral resource for Passport's Holbrook Basin holdings, is on the way to being met.
Passport is also pleased to announce completion of the third and fourth holes, PP DDH 03-09 and PP DDH 04-09, at its Holbrook Basin potash project. These holes continued the twinning program of the previous holes drilled in the 1960's. Passport has begun the reclamation process on the sites of holes 1 through 4 and has initiated the permitting process for the next series of holes. The Arizona Land Commission has commenced issuing permits to other companies exploring for potash in the Holbrook Basin, so Passport expects to receive the permits for the next phase of drilling in 60 to 90 days.
PP DDH 03-09 was rotary drilled to a depth of 829 feet (252.7 metres) and cored from that point through the complete potash horizons to a final depth of 1040 feet (317.0 metres). PP DDH 04-09 was rotary drilled to a depth of 849 feet (258.8 metres) and cored from that point through the complete potash horizons to a final depth of 1100 feet (335.3 metres). Initial geophysical down hole testing by electrical gamma rays (an industry standard) indicated the presence of potash in both PP DDH 03-09 and PP DDH 04-09. The entire core horizon has been sealed in plastic to prevent desiccation and the entire potassium rich section as indicated by the gamma ray survey has been shipped to ALS Chemex Laboratory in Reno, Nevada for each of the two holes.
All sample processing is being handled by ALS Chemex in Reno, Nevada. The analyses are being completed at the ALS Chemex Laboratory in North Vancouver, British Columbia. ALS Chemex is an internationally renowned analytical laboratory with an ISO 9001:2000 accreditation. QA/QC protocols consisting of standards and blanks were inserted into the sample stream by ALS Chemex. The drilling program was supervised by Mr. Clive Bailey, CPG.
R. Tim Henneberry, P.Geo., a Director of Passport, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
The Company also wishes to announce that it has granted 773,000 incentive stock options to directors, employees and consultants at a price of $0.18 for a 5 year term.
Investors are invited to visit the Passport Metals IR Hub at http://agoracom.com/ir/PassportMetals where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to PPI@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
On behalf of the Board of Directors
PASSPORT METALS INC.
Laara Shaffer, Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Passport Metals Inc.
Laara Shaffer
Director
(604) 687-0300
(604) 687-0151 (FAX)
www.passportmetals.net
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PASSPORT POTASH INC!
PPRTF (pinks)/ PPI (TSX} Passport Potash Inc.
Shares Outstanding: 24.73 million
Fully Diluted: 29.73 million
Cash on Hand: $1.3 million
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.
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.
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
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