http://resourcesrisingstars.com.au/infopage/7693
Ten Bagger, Friday 4th December
Creasy deal sees investors home in on Goldphyre’s potash potential
Is Goldphyre Resources (ASX: GPH) the next Highfield Resources?
Readers will recall how Highfield shares soared from around 25c to as much as $1.75 on the back of the company’s emerging Spanish potash project.
With Goldphyre shares trading around 6c, and the strong outlook for the company’s WA potash project becoming increasingly clear, it is little wonder that the parallels with Highfield are emerging.
Goldphyre shares jumped by up to 25 per cent this week (though its market capitalisation still stood at just $6 million) after it unveiled a deal with legendary prospector Mark Creasy.
Creasy has agreed to give Goldphyre the potash rights on his property, which adjoins Goldphyre’s Lake Wells potash project, 500km north-east of Kalgoorlie.
This will effectively triple the size of Lake Wells to about 1500sqkm. In return, Creasy will emerge as Goldphyre’s biggest shareholder with a 19.9 per cent stake.
Importantly, Goldphyre now holds about 200sqkm of the playa lake system which hosts the previously discovered high-grade potash mineralisation at Lake Wells.
Goldphyre is already planning a seismic program on its new acreage with a view to incorporating these tenements in a maiden exploration target scheduled for release in February next year. It will then conduct a drilling program on the combined ground as part of its strategy to publish a maiden inferred resource by the middle of next year.
Lake Wells is a brine-hosted sulphate of potash (SOP) project, which is aiming to supply the Australian domestic demand for the premium-priced SOP. Australia currently imports 100 per cent of all the potash it consumes, estimated at 500,000 – 600,000tpa, including approximately 50,000tpa of SOP.
Goldphyre has reported high-grade potash from
surface to depths of over 135m, with 3 of 17 holes being effectively open-ended at this depth, meaning that the palaeovalley bedrock was not intersected.
Goldphyre executive chairman Matt Shackleton said the agreement with LWE had the potential to significantly increase the scale and potential of the Lake Wells Potash Project.
“In line with our strategy of developing the depth and grade potential of the palaeovalley running through our project area, this important ground acquisition will add significant further strike potential to the high-grade potash mineralisation we have already identified,” he said.
“As we’ve previously shown, our project has high-grade potash which has been drill-defined with very strong grades at over 135m down-hole. This means it has enormous potential to supply brines for an evaporative SOP operation. We also believe pumping brines from depth will ultimately lead to a cheaper cost of production, due to lower energy and maintenance costs compared to trenching or pumping brines over long distances.
“Goldphyre is in the fortunate and unique position of having established infrastructure to hand adjacent to and within the project, with no restrictions on access to the brine-hosting palaeovalley. This will eliminate the need for expensive or challenging drilling solutions.”
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