American Potash receives initial drilling approval at Utah potash and lithium project

HOUSTON (ICIS)–Fertilizer developer American Potash announced that it has received initial approvals to drill exploratory wells at the Green River Potash and Lithium project in Utah.

The company received the clearance from the Utah Division of Oil Gas and Mining (UDOGM) on applications to undertake wells on three of its 11 potash and lithium state mineral leases at the project site.

Formal drill permits will be issued upon meeting reclamation bonding and any other requirements stipulated in the company’s notice of intent to conduct exploration.

The permits provide for drilling to depths of up to 9,000 feet, allowing detailed information to be acquired from multiple potash and lithium horizons encountered in nearby historical oil and gas wells.

The three proposed wells are spaced widely apart providing a large area to draw upon for estimating potential potash and lithium resources  at the project which Utah’s Paradox Salt Basin and the company said it could potentially be one of the largest sources of potash in the country.

Located slightly northwest of Moab, Utah, the project has significant logistical advantages and the company said including close proximity to major rail hubs, airport, roads, water, towns and labour markets.

A technical report by Agapito Associates stated that the project hosts an exploration target estimated to contain 600m to 1bn short tons of sylvinite with a grade between 19%-29%.

The company holds 11 Utah mineral and minerals salt leases covering over 7,000 acres, 128 federal lithium brine claims covering 2,650 acres, and is in the final stages of the application process for 11 federal potash exploration permits comprised of approximately 25,000 acres.