Magna Resources secures first mover potash advantage with BLM approval
Potash on American soil… Magna Resources Ltd. (CNSX: MNA | OTCQX: MGRZF) President and CEO Mike Sieb achieved another major benchmark yesterday (and the company’s most significant to date) with the announcement that the US Department of the Interior’s Bureau of Land Management (BLM) has approved Magna’s Green River Potash Project in the world-renowned and geologically favorable Paradox Basin, near the town of Moab in Grand County, Utah.
The BLM completed a comprehensive Environmental Assessment — examining all environmental issues associated with the exploration plan — on Green River and arrived at a ‘Finding of No Significant Impact’. Magna can now expect the timely issuance of the Federal Prospecting Permits by the BLM, which is what is required in order for Magna to commence drilling on its property. The BLM’s positive determination is a momentous conclusion to Magna’s Prospecting Permits application process, representing the most critical milestone achieved to date on the Green River Potash Project and by Magna. “The BLM approval is only the second to be granted in Utah in the last 25 years,” explains Sieb, “reflecting on the capability and perseverance of Magna as well a providing an exceptional first-mover advantage opportunity into the extensive Paradox Basin.”
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This is very significant news for Magna because the approval grants the company (through its wholly owned subsidiary, American Potash LLC), the right to initiate exploration and advance its potash project. Magna’s exploration plan, consisting of four drill holes on federal land and four drill holes state land, is designed to provide full coverage of the project’s Cycle 5 potash horizon exploration target. Said target encompasses approximately 35,000 acres (14,150 hectares) and projected to contain between 600 million and 1 billion tonnes of sylvinite with an average grade ranging between 19% and 29% eKCl (potassium chloride) and is Magna’s main exploration target. The prefix ‘e’ in eKCl indicates that the grade was estimated utilizing the response from the gamma ray log surveys and was not measured from chemical analysis of core hole drilling.
The results garnered from the completion of the exploration plan are intended to provide drill grid spacing to sufficiently characterize the Cycle 5 potash horizon target (grade, thickness, extent, uniformity and mineralogy) in order to produce a Mineral Resource Estimate (as defined under National Instrument 43-101 guidelines) and ultimately form the basis in the determination towards the potential economic and technical viability of the project’s future development.
According to Sieb, approximately 85% of the Green River Potash Project property is under BLM (federal) jurisdiction, while the remaining 15% is State of Utah Trust Lands (11 state potash leases and 25 federal potash prospecting permits).
The Green River Potash Project, host to a sizable exploration target defined from historic oil and gas wells, resides in a company boasting a focused management team with clear-cut goals and a significant vested interest, conveys a level of confidence not normally exhibited at this stage of development. Green River is situated in the renowned Paradox Basin, which contains the stratigraphic sequence of evaporate salt layers that comprise the United States’ sole solution mining potash operation, Intrepid Potash’s Cane Creek potash mine. The Cane Creek mine is currently exploiting Potash Cycle 5, which underlies and extends throughout the Green River Project area and is Magna’s prime exploration target.
Magna is planning an initial drill program in late 2013 to test the extent, grade and thickness of Cycle 5 within its Green River Potash Project property.
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