It would be great to find a small but growing company that has potash fertilizer for food and lithium for batteries. For example, global leading potash and lithium producer Sociedad Quimica y Minera de Chile S.A (NYSE: SQM) now has a market cap of US$22.3 billion.
Today’s company has a potash resource and lithium potential, two of the most important materials in the modern world. Potash (plant or wood ash) is a critically important form of fertilizer used for global food production, and lithium has become the key green metal for the global energy transition.
Sage Potash Corp.
Sage Potash Corp. (TSXV: SAGE | OTCQB: SGPTF) (“Sage Potash”) is a Canadian company primarily focused on potash, but recently also turned their attention to lithium. Sage Potash holds private mineral leases located in the Paradox Basin in Utah, USA, that grant the Company exclusive rights to extract potash, lithium, and other saline minerals and resources. The Paradox Basin is known to host extensive undeveloped world class potash resources. Sage Potash’s new subsidiary is Sage Lithium Corp.
Sage Potash Corp’s portfolio of mineral leases within the southern part of the Paradox Basin in Southeast Utah, USA (small green, blue and brown shading)
Source: Sage Potash Corp. website
Sage Lithium Corp. (100% owned subsidiary of Sage Potash)
As announced on June 26, 2023, Sage Potash has formed a standalone 100% owned US subsidiary called Sage Lithium Corp. (“Sage Lithium”) for the purpose of exploring Sage Potash’s mineral leases for lithium and other soluble saline minerals. The announcement stated:
“Due to multi-commodity brines with high Li-K-Br analyses reported from historic oil and gas wells in the area, the Company is encouraged to explore additional potential revenue sources known to occur within the Paradox Basin. The primary objective of Sage Lithium will be to conduct testing for lithium and other soluble saline minerals within the existing brine hosting strata covered by Sage Potash’s private mineral lease portfolio. Sage Lithium will be operating in conjunction with its parent company, Sage Potash…….This strategic decision is grounded in the Company’s assessment of historical records derived from oil, gas and potash wells drilled in the Paradox Formation. The Company believes these records indicate a strong possibility of intersecting super-saturated brines (composed of up to 40% minerals and 60% water) containing a diverse range of valuable minerals, including lithium, bromine and potassium, in the Paradox Formation.”
The goal is to prove up a lithium (“Li”) and boron (“Br”) resource similar to nearby Anson Resources Limited (ASX: ASN | OTCQB: ANSNF) (530 MT indicated resource grading 123 ppm Li and 3,474 ppm Br) in the northern part of the Paradox Basin.
Sage Lithium intends to drill two exploration wells and concurrently sample, test, and analyze strata that are amenable to brine extraction for lithium, bromine and other soluble saline minerals.
Sage Potash’s land portfolio (potash resource and lithium potential)
Sage Potash’s land portfolio consists of nearly 90,000 acres of State and Private Mineral leases and BLM Prospecting Permit Applications. The portfolio lies within the Paradox Basin of Southeast Utah, USA.
Sage Potash already has a good sized resource on their property for their potash project (Sage Plain Project).
The Sage Plain Project Mineral Resource is:
- Inferred Resource for Upper Potash Bed, Cycle 18: 159.3 MMT, grading 26.96 % K2O/42.67 % KCl
- Inferred Resource for Lower Potash Bed, Cycle 18: 120.2 MMT, grading 22.60 % K2O/35.77% KCl
The next steps for Sage Potash with regards to their potash resource include preliminary engineering towards releasing a PEA, Feasibility Study, and pilot production.
Closing remarks
Sage Potash is still at the early stage with a lot of work ahead to develop their potash resource and explore for lithium and boron at their mineral leases located in the Paradox Basin, Utah, USA. If they can replicate the success of Anson Resources (market cap A$196 million) or even some of the success of SQM (market cap US$22.3 billion) investors will potentially be well rewarded. The usual mining risks apply, including exploration risk, funding and permitting risk in the USA. The Company is currently looking to raise C$1.5 million which should potentially be an easy ask given the potash, lithium, and boron potential; as well as the recent OTC listing.
Sage Potash Corp. trades on a market cap of only C$18 million. Exciting times for the Company and one to watch in 2023.
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