Canada’s Quia Resources seeks permit to drill at US phosphate site

02 April 2014 18:26 Source:ICIS News

HOUSTON (ICIS)--Canadian fertilizer developer Quia Resources said on Wednesday it is making progress on acquiring the permit to start drilling works at its Nevada phosphate project during the last half of 2014.

Toronto-based Quia is a mineral exploration and development company, which owns 100% of the San Lucas gold project in Colombia and has an option to earn 65% of the Murdock Mountain direct application phosphate project in Nevada.

The Murdock Mountain project is located in Elko County, Nevada and is focused on the eventual production of direct application phosphate. Quia anticipates production to begin in the fourth quarter of 2015, with the initial output estimated at 50,000 tonnes/year.

The drilling permit on the Nevada phosphate project is expected to be granted by the US Bureau of Land Management (BLM).

The drilling works should help Quia Resources determine whether the resources at the site are sufficient to allow further development of a production plan.

Quia said it expects its consultants to submit the necessary environmental studies on the Nevada project to BLM  between late spring and summer.

Meanwhile, the company has been in active discussions on the project’s potential customers, distributors and partners.

“We've had a number of encouraging discussions with potential customers and distributors and we believe there is a healthy demand for a reliable source of high quality direct application phosphate, Quia CEO Yannis Banks said.

“While this market is a niche market in the context of the overall agricultural market, primarily within organic and biodynamic farming circles, our research indicates that this market is growing significantly,” Banks said.

By Mark Milam