Sage Potash Secures Permit Approvals for Exploration Program at Sage Plain Potash Project
Sage Potash Secures Permit Approvals for
Exploration Program at Sage Plain Potash
Project
VANCOUVER, BC
,
Jan. 8, 2024
/CNW/ - Sage Potash Corp. ("Sage Potash", "Sage" or the
"Company") (TSXV: SAGE) (OTCQB: SGPTF) is pleased to announce the receipt of all required
governmental approvals for two Class
V exploration wells at its Sage Plain Potash Project ("Project"
or "Property") located in
Utah's
Paradox Basin.
Sage Potash CEO & Executive Chairman,
Peter Hogendoorn
, stated, "Sage's successful drilling
permit applications represent a pivotal milestone on the Company's path to achieving pilot-scale
potash mining and processing activities. The approved exploration wells will not only allow us to
increase our understanding of the Sage Plain mineral resource, comprised in the Upper and Lower
Cycle 18 potash beds underlying the Property, but these same wells will, in future, be transitioned to
injection production and disposal wells. This is a highly significant de-risking event for the Company,
as the most consequential permit approvals for the Project have now been secured, pending
bonding."
The
State of Utah's
Division of Oil, Gas, and Mining ("UDOGM"), and Division of Water Quality
("DWQ") have issued tentative approvals for both surface (drill pads and access roads) and
underground (wells) activities. This is part of the Underground Injection Control ("UIC") Class
V
exploration injection permit application for a production and disposal well submitted by the Company
in
March 2023
. Formal drill permits will be issued once bonding is received and approved and the
Company has received written acceptance from UDOGM, as well as other applicable agencies.
The execution of the now approved exploration program represents Phase
1 of the Sage Plain
Project development effort. The two Class V wells will be designed and constructed under the
standards and specifications of a UIC Class
III "Production well" and UIC Class
I "Disposal well".
The wells will allow for determination of injection capacity and hydraulic behaviours of the potash and
potential disposal formations, as well as providing management with geological data through
examination of the drill core, as part of test cavern development for potash recovery from the Cycle
18 potash beds. Once the data from the exploration wells is gathered, the Company will apply to
convert these wells into UIC Class
I and Class
III wells for the purpose of injection, production and
disposal, allowing for potash brine fluids recovery.
Concurrently with the Class I and Class III permits conversion, the Company will submit the Large
Mine Operation ("LMO") permit for up to 150,000
TPY. In partnership with global engineering firm
RESPEC, Sage is advancing engineering and designs for a 50,000
TPY pilot-scale potash solution
mining operation, as part of its ongoing engineering studies and production permit application. Data
from this program, along with plant design and engineering details, will be included to complete the
final LMO application for permit approval.
Following receipt of the news that the Company had secured governmental approval for the Class
V
wells, Sage Potash CEO & Executive Chairman, Peter Hogendoorn, expressed renewed confidence
in the coming year, stating, "We recognize the prevailing capital market conditions for conventional
project advancement are extremely difficult. As a result, the Company and, in particular, the team in
our US subsidiary,
Sage Potash
(
USA
) Corp., have focused on permitting and engineering, whereby
value can be realized at the 'Project level'. With the developments to date, together with the highly
strategic land position of contiguous State and Private mineral leases from which up to 70 mining
units, each consisting of 320 acres, can be developed, management believes the Project has now
achieved significant milestones and, accordingly, eliminated substantial barriers to entry, which can
be value realized in terms of time and capital for strategic interests."
Hogendoorn continued, "As previously announced, the Company recently retained ACP Capital
Markets LLC ("ACP"), an internationally recognized Capital Markets Adviser and Investment Banking
firm, based in
Stamford, Connecticut
, with a proven track record in selecting and financing under-
valued projects in the AgriBusiness sector, such as the Sage Plain Potash Project. The Company is
working diligently with ACP in identifying and engaging with strategic industry partners and
institutional investors. We are confident our achievements over the past year, including recently
securing the most consequential permit approvals for the Project, will facilitate our ongoing efforts at
the Project level and with ACP and, accordingly, optimize our ability to realize and deliver significant
value to
Sage Potash
shareholders."
About Sage Potash Corp.
Sage Potash
is a Canadian company vested solely in the Sage Plain Property and intends through
sustainable solution mining techniques to become a prominent domestic potash producer within the
Paradox Basin situated in
Utah
. For further information, please refer to the Company's disclosure
record on SEDAR (
www.sedar.com
) or contact the Company by email at
.
On Behalf of the Board of Directors,
Peter Hogendoorn
CEO & Executive Chairman
Website:
www.sagepotash.com
Neither the 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.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" within
the meaning of applicable securities legislation. The forward-looking statements herein are made
as of the date of this news release only, and the Company does not assume any obligation to
update or revise them to reflect new information, estimates or opinions, future events or results or
otherwise, except as required by applicable law. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans", "expects", "is expected", "budgets",
"scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates"
or "believes" or variations (including negative variations) of such words and phrases or may be
identified by statements to the effect that certain actions "may", "could", "should", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking information in this news release includes,
but is not limited to, statements with respect to future events or future performance of Sage,
including completing a step out pilot production well that will double as a resource definition drill
hole, advancing preliminary engineering and feasibility towards a PEA, completing 3D seismic and
step-out well and new resource calculations [MA1] , and management's expectations regarding
Sage's growth. Forward-looking statements and information are subject to various known and
unknown risks and uncertainties, many of which are beyond the ability of Sage to control or
predict, that may cause Sage's actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are developed based on assumptions about
such risks, uncertainties and other factors set out herein, including, but not limited to, the risk
factors set out under the heading "Risk Factors" in the Company's final non-offering long form
prospectus dated
March 2, 2023
available for review on the Company's profile at www.sedar.com.
Such forward-looking information represents management's best judgment based on information
currently available. No forward-looking statement can be guaranteed and actual future results may
vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking
statements or information.
SOURCE
Sage Potash Corp.
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%SEDAR: 00054782E
For further information:
Peter Hogendoorn, CEO & Executive Chairman, +1(236) 836-4182,
[email protected], Website: www.sagepotash.com
CO: Sage Potash Corp.
CNW 07:00e 08-JAN-24