Two mining juniors poised to challenge Canada's potash producing cartel
by Marc Davis
The dominance of Canada’s high-powered cartel of three major potash producers may come to an end if a couple of small but well-financed potash exploration upstarts continue their winning ways.
Both Western Potash Corp. (TSX.V: WPX) and Potash One Inc. (TSX: KCL) have made impressive headway recently in their quest to muscle-in on Canada’s highly lucrative potash mining business.
Earlier this week, Vancouver-based Western Potash received a major shot in the arm by way of impressive drilling results from its Milestone Property in southern Saskatchewan. Notably, the project is located in close proximity to one of the largest solution-extraction (low-cost) potash mines in the world – Mosaic’s multi-billion-dollar Belle Plaine Mine – which has been mined for over 40 years and is still going strong.
Western Potash’s flagship property also borders the Regina Potash Property, which is being aggressively developed by Brazil-based Vale Inco, the second largest mining company in the world. Vale Inco hasn’t publicized its drill results but they are rumoured to be very impressive.
This is particularly encouraging for Western Potash, which believes it now has evidence of comparable results on its own adjoining property. All of which suggests that an expansive, potentially word-class solution-extraction deposit may be in the making – one that straddles both properties.
Western Potash’s president, Patricio Varas, points out that his company’s first drill hole (known as a ‘well’ due to its extremely wide bore) at the Milestone Property intersected 24.5 metres of potash mineralization.
“Visual interpretation of gamma ray logs from this zone suggests a moderate to strong potash grade within this zone,” he added in a May 26 news release.
Click to download a PDF copy.