Transit Holdings? (ASX: TRH) primary objective is to become a successful resource company through the development of its potash assets.
The company's Paradox Basin Potash Project covers approximately 390km2 in the Paradox Basin in south eastern Utah, USA. They have completed commitments to earn an initial 75% interest in the Project which comprises potash mineralisation in two beds of interest, Potash 13 and Potash 18, ranging in depth from approximately 1,500 to 2,000 metres below the surface. Transit Holdings kicks off drilling targeting 5Bt of potash in Paradox Basin Monday, September 19, 2011 by John Phillips Transit has now commenced the highly anticipated drilling campaign focused on potash in the Paradox Basin of Utah. Where the story gets really interesting - is the exploration target of 3.4 to 5.2 billion tonnes of sylvinite ore at 23% to 34% KCl. Transit Holdings (ASX: TRH) is moving towards delineating a JORC Resource at the company's Paradox Basin Potash Project, which is located in Utah U.S.
The highly anticipated drilling program has already commenced, with the project hosting an exploration target of 3.4 to 5.2 billion tonnes of sylvinite ore at 23% to 34% KCl.
Transit is expecting to complete the first hole to a depth of 1970 metres (6,500 feet) in around one month.
Once the first hole has been completed, Transit will then drill another three holes over coming months.
The drilling is targeted to collect core samples of the potash horizons, which the company said is likely to confirm the presence of potash which has previously been detected by gamma logging of petroleum wells.
The outcome of the drilling is the information will then be used for the estimation of the project's maiden JORC Resource.
Potash produced nearby
Boosting the prospectivity of the project, is that New York-listed Intrepid Potash Inc (IPI: NYSE) successfully produced potash from solution mining just 10 kilometres to the north of Transit?s project.
This highlights that there is room for optimism for the potential of Transit's project, due to the location in the sought after position within the basin - with other major positives such as close proximity to quality infrastructure, flat topography and flat lying potash beds.
Some history
Right-of-Way access was recently granted for the Utah project by the Bureau of Land Management to access State leasing blocks.
In June this year Transit was granted approval to commence a maiden potash focused drill campaign at the joint venture project - with the approval received within just two months of filing the application
Importantly, the company?s focus is on sylvinite, a high grade form of potash ore that is cheaper and more effective to process to a saleable form than any other form of potash ore.
The drill campaign follows a Scoping Study completed by the joint venture based on two million tonnes per annum production of KCl (potassium oxide) from solution mining of the potash deposit.
The study demonstrated the project has robust financials.
The project covers applications for 386 square kilometres of prospective potash permits, with infrastructure nearby because of surrounding gas fields
TRH Price at posting:
$1.01 Sentiment: None Disclosure: Held
