Sydney - Tuesday - June 7: (RWE Aust Business News) ***************************************************
OVERVIEW ********
TRANSIT HOLDINGS (ASX:TRH) is one of those finding encouragement in potash. Transit yesterday reported that it had increased its holding in the Paradox Basin potash project in Utah to 90 per cent. The increase followed confirmation from Transit's partner K2O Utah LLC that Transit has satisfied expenditure commitments. The joint venture is currently preparing the program and budget for an initial drill campaign that will include the drilling of four exploratory wells on the State lease locations as part of the project's pre-feasibility study. An exploration target of 2.3 billion tonnes of sylvinite potash ore at 20pc to 30pc KCl has been delineated within the project. The exploration target assumes a grade thickness cut-off of 20pc K2O per metre (grade by thickness), below which mineralisation is excluded from the estimate. Transit and its joint venture partner recently completed the scoping study on the project based on two million tonnes per annum production of KCl from solution mining of the potash deposit. The scoping study demonstrated that the project has robust financials and the company is proceeding to a pre-feasibility study which will include drilling of fresh exploratory wells to augment a database of historical drilling. The project covers applications for 386 sq kms of highly prospective potash permits in the Paradox Basin in southeastern Utah. 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 Paradox Basin potash project is located close to the key agricultural regions of the US and as such is ideally situated to supply fertiliser manufacturers and agricultural cooperatives in the western and southwestern US. The project also has substantial export potential given its excellent proximity to key us rail infrastructure leading to west coast ports. An exploration target of 2.3 billion tonnes of sylvinite potash ore at 32.8pc KCl content (20.7pc K2O) has been delineated within the project by independent consultant Agapito Associates Inc.
TRH Price at posting:
80.0¢ Sentiment: Hold Disclosure: Held
