Investor interest in Goldphyre Resources (GPH) is heating up as...

Investor interest in Goldphyre Resources (GPH) is heating up as the company prepares to reveal a host of key information about the size of its potentially world-class WA potash project.

Broker Hartleys has put a buy recommendation and 11c price target on the stock - almost double its current price – ahead of a series of pivotal announcements expected over coming weeks.

With Goldphyre already providing strong evidence that its Lake Wells potash project, 500km north-east of Kalgoorlie, will enjoy critical mass, some investors are now asking whether Goldphyre is the next Highfield Resources.

And given that Highfield shares soared from around 25c to as much as $1.75 on the back of the company’s emerging Spanish potash project, the appetite to find the next hot potash stock is understandable.

Based on Goldphyre’s commentary, the results of the second half of its extensive seismic survey at Lake Wells could be expected any day.

These results are eagerly awaited because they will show whether the all-important palaeovalley which hosts the potash at Lake Wells extends over the tenement boundary to the neighbouring ground held by legendary prospector Mark Creasy.

Goldphyre announced late last year that Creasy had agreed to give it the potash rights on his property. This effectively tripled the size of the Lake Wells project to about 1500sqkm. In return, Creasy will emerge as Goldphyre’s biggest shareholder with a 19.9 per cent stake.

If the palaeovalley is shown to extend into the Creasy ground, Goldphyre could be sitting on a huge potash resource.

Goldphyre has already reported high-grade potash in the palaeovalley on its ground from surface to depths of over 135m. So the potential value of the palaeovalley extending into the Creasy ground is immense

Goldphyre will also use the results of the seismic survey to identify the deepest parts of the palaeovalley for drilling. This is important because these are the areas which are expected to host the porous sands underlying the clay.

By pumping the potash brine from the deep sands, Goldphyre is looking to recover the potash brine from the overlying burden as well. This is because water flows downwards, recharging the sands.

The combination of the previous sampling results and the seismic survey will enable Goldphyre to calculate an exploration target for Lake Wells within a few weeks or so.

It will then conduct an extensive drilling program with the aim of publishing a maiden resource estimate by the middle of this year.

With this strong newsflow impending, Hartleys says the Creasy deal could “greatly increase the exploration target and ultimately the resource potential”.

Goldphyre Executive Chairman Matt Shackleton says this newsflow will generate several share price catalysts as the company establishes the extent of the potash resource at Lake Wells.

“Over coming weeks, we will establish the length and depth of the palaeovalley which hosts the potash,” Mr Shackleton said.

“We will use this information to calculate an exploration target and then we will conduct an extensive drilling campaign to establish a maiden resource estimate.

“The upshot of this is that the size and value of the Lake Wells Potash Project will become very clear, very quickly.”