Potash Ridge (PRK.TO) has entered into a MOU with SNC-Lavalin (SNC.TO) to work together to develop Potash Ridge’s large Blawn Mountain SOP project in Utah. Potash Ridge is engaging SNC to complete an updated economic study which will focus on the scalability of Blawn Mountain, as it will be easier to finance a small operation, and increase the production rate with the cash flow from the smaller stages. The original pre-feasibility study used a base case production rate of 645,000 tonnes of SOP per year, but according to Potash Ridge, the company is now investigating a scenario using approximately 200,000 tonnes as a first production rate.
This updated study should be completed by the end of October of this year and will give us a better indication of the value of Blawn Mountain and what’s needed to develop and build the mine. A relationship with SNC-Lavalin will benefit Potash Ridge, as SNC already knows the in-and-out’s of the SOP market after having completed an economic study on the Valleyfield project.
There seems to be some temporary weakness in Potash Ridge’s share price the past few days but this does seem to be unwarranted as the SOP market remains very strong. Valleyfield is currently in the permitting stage, and Potash Ridge seems to be very keen to advance the project as fast as possible as the current gap between the MOP and SOP prices is working in its advantage.
Go to Potash Ridge’s company page
The author has a long position in Potash Ridge. Potash Ridge is a sponsor of the website Please read the disclaimer
