Ann: TRANSIT ACHIEVES CRITICAL PERMITTING STEP FO, page-38

re: Ann: TRANSIT ACHIEVES CRITICAL PERMITTING... Wow, can't recall a time previously when a whole page of fifty posts on TRH all had the same date beside them.

This tiny Mcap company has started to generate some "ripples" in the marketplace. And so it should.

That "Critical" in the headline is a key word. Although this is only the first of several steps towards production, this was the most important. It seems hardly likely that the BLM would allow this permit, and later change it's mind, especially after taking this long to give approval. It is clear that Transit management have assembled the right people to put this together.

From the November newsletter..
"As announced in late September, we have now commissioned ProMet Engineering to undertake a scoping study on the Paradox Basin Potash Project. This scoping study is expected to be completed in the first week of December.

Transit has asked ProMet to prepare the scoping study based on a base case scenario of a two million tonnes per annum potash solution mining mining operation. The initial intent is to produce potassium cloride (KCl) with a possible salt (NaCl - domestic and industrial quality) by-product."

Depending on whether the 2 million tonnes is the potash in ground, or final product, that means (by my calculation) they are envisioning an operation between 2 and 10 times larger than the Intrepid Potash operation 15km away.

From the Intrepid website....
"The Cane Creek potash mine located about 20 miles west of Moab is unique because of the method used to extract the potash ore. The mine began as a conventional underground excavation in 1964, but was converted in 1970 to a system combining solution mining and solar evaporation.
Water from the nearby Colorado River is pumped through injection wells into the underground mine. The water dissolves the potash from layers buried approximately 3,000 feet below the surface. The mineral-laden water (brine) is then brought to the surface and piped to 400 acres of shallow ponds just southwest of the mine. There the water evaporates, aided by 300 days of sunshine and an average of 5% relative humidity, leaving potash (potassium chloride) and salt (sodium chloride) crystals in the pond. A blue dye, similar to food coloring, is added to assist with the evaporation process. If electric power were used to evaporate the brine instead, it would require burning 400,000 tons of coal each year. The solar ponds are lined with heavy vinyl to prevent valuable brine from leaking into the ground and the Colorado River. A series of holding ponds have been constructed to catch any spills and return potassium-rich brine to the ponds. There are no hazardous materials produced or used in the ponds or at the processing plant.
The crystals remaining after evaporation are scooped by giant 25-ton scraper-loaders similar to those used in road building. The blades of the scrapers are controlled by laser beams from the edges of the ponds so they do not dip too low and tear the vinyl pond linings.
The crystals from the ponds are returned to the mill where the potash is separated from the salt by flotation method. They are then dried and screened into premium grades of white potash. Both potash and salt products are processed at the plant facility.
Some 700 to 1,000 tons of potash per day are produced by the mill. Processed potash and salt is moved throughout the plant on covered conveyors keeping the potash pure and overhead costs low."

So the scoping study due any day soon will certainly help place a value on the project - a value that seems to suggest the MCap of Transit should be many multiples of it's current $14m.

Although there is no JORC, previous drilling has confirmed the presence of the potash between 2,000 and 3,000 feet down, and given clues to an estimate of between 1.2 and 3.5 billion tonnes of between 19 and 26% Potash - a "world class" deposit.

The company has about $2+ million in the bank at present, with another $3.5m due from listed and director options at end of the month. No more cap raising needed for a while.

Don't give your shares away.