estimate of potash tonnage ...huge

Taking into account whats been mined at Intrepid's Moab mine for the last 40 years, the style of sedimentary deposit, grades and thickness of K2O which are believed to be consistant across the Paradox basin here is a likely estimate of the tonnage Transit will be aiming for...

93,000 acres = permit area

Firstly, just to be conservative, lets just assume only one third of the area is economic, therefore

31,000 acres equates to
48.43 square miles = 125,452,544 square meters

Multiply X 4 meters thick = 501,810,176 cubic meters

Mutiply X 1.98 density (SG)= 993,584,148 Resource tonnage

Multiply X 20 % Grade = 198,716,829 Potash tonnes

Assume 50% recoverable = 99,358,414 tonnes

Less 25 % impurities = 74,518,811 tonnes

Multiply by a very conservative US$400 per tonne

Equals US$29.8 billion in ground value! ( or a seventy year mine life at 1 million tpa )

Bear in mind thickness of deposit can be as much as 30 meters. Grade can also be as much as 32 % ( Intrepid averages 25-30 % at adjacent Moab mine )

For a JORC inferred resource each drill hole can be used for a 5 mile radius. So its possible if they already have existing data from 10 drill holes this info can be used for a resource statement. More likely an Exploration Target tonnage will be calculated first up and depending on what info is available from gamma ray logs and available seismic a few more holes may be drilled for confirmation.


Rio's Potasio Colorado mine in Argentina which just sold to Vale had a JORC resource of 1 billion tonnes at 30 %, with expected annual production of 1.6 million tonnes per annum.

So if Transit can prove up anything even half as good as calculated above it will have to be worth a few hundred million dollars at least.