STRONG. EXPERIENCED. ESTABLISHED.
SUCCESSFUL OPERATING ADVANTAGES
PROJECTS ARE HIGHLY COMPELLING
The Paradox Basin is a large (~350 km X 150 km), deep marine sedimentary basin that formed along the subsiding SW flank of the Uncompahgre uplift during Pennsylvanian time (~ 300 my ago). During the course of long-term basin subsidence there were at least 29 cycles of ingress-egress of the shallow sea that bordered the early Uncompahgre Plateau during Pennsylvanian time.
During periods when the basin was flooded with seawater various cycles of marine sedimentation occurred, including deposition of near-shore clastic and shallow carbonate shelf sedimentary rocks.
During periods of sea regress from the basin stranded seawater gradually evaporated leaving sequences of shelf carbonates, near-shore and lagoonal clastic sediments such as siltstones and black shales, and evaporite sediments such as gypsum-anhydrite and NaCl and KCl salts. The KCl salt (mineral name of “sylvite”) layers are also known by the industrial term “potash” and are the target deposits of current potash mining operations by Intrepid Potash at their Cane Creek potash solution mine and potash exploration activities of American Potash.
The thick sequence of evaporite-carbonate-clastic sedimentary deposits comprise the Paradox Formation, which is the defining sedimentary rock Formation of the Paradox Basin.
American Potash lithium exploration/development rights in UT are held in 11 State of UT mineral leases (Lithium, K, Bromine, etc.) totaling 7,040 acres, and 308 Federal placer mining claims covering 6,160 acres, which provide exploration and development rights for Lithium and Bromine. Lithium exploration and development rights in Colorado are controlled via 608 lithium placer mining claims totaling 12,160 acres.
Subsurface brines are commonly encountered during oil and gas drilling at widespread locations in the Paradox Basin. In 2012 AMP became aware of significantly enriched lithium concentrations within subsurface brines (brine aquifers) in the Paradox Basin, hosted primarily by the clastic stratigraphic layers separating the Paradox Formation evaporite sequences. In 2016 AMP began acquisition of 308 Federal lithium claims (6160 acres) within the bounds of their Potash exploration permit application area of interest (AOI) and, in conjunction with the approximately 7,040 acres of Utah State lithium leases, now possess approximately 13,200 acres of lithium claims and leases in Utah. In late 2016 and into 2017 AMP began acquiring lithium mining claims in the Colorado portion of the Paradox Basin, focused on two areas with historic and current oil and gas exploration and production. American Potash’s Colorado lithium claim position now totals approximately 12,160 acres.
Unlike our competitors in the Paradox Basin and elsewhere, AMP control rights to potassium as well as lithium and bromine within the area of the Utah lithium mining claims and State leases due to the juxtaposition of the lithium mining claims and their potash prospection permit application AOI. This unique situation will allow AMP to take advantage of all potentially economic elements contained within the rich multi-commodity Paradox Formation brines, specifically lithium, potassium, and bromine, which are all known to occur in high concentrations in Paradox Basin brines. The multi-commodity nature of the Paradox Formation brines is unique to large marine sedimentary basins due to the original sea water source of the present day dissolved solutes/metals, unlike the South American and Nevada dry lake bed (“salar”) brines which comprise most of current world-wide lithium production.
American Potash Corp. through its wholly owned subsidiary, American Potash LLC, holds an option to acquire 100% interest in 22 federal potash Prospecting Permits under application (41, 642 acres) and holds 100% interest in 11 state potash leases totaling 2, 850 hectares (7, 050 acres) all combined to make up the Green River Potash Project (“Project”) in Utah.
The Project is situated in the renowned Paradox Basin, host to the same geological setting as the nearby currently-active longest-operating United States’ solar solution mining potash operation, Intrepid Potash’s Moab plant. There, the sedimentary evaporite bed known as Cycle 5, which underlies and extends throughout the Property, contains the principal potash mineralization that has been mined since 1964 and is the Company’s prime exploration target.
The Moab solar solution plant utilizes low-cost, energy-efficient solution mining and solar evaporation potash recovery. The area’s very arid climate, with 300+ days of sunshine per year, combined with excellent infrastructure and year-round access, provides ideal conditions and a highly attractive setting for this style of operation.
The Project is located within a geologic province known as the Paradox Salt Basin that extends approximately 160 km (100 miles) in width and 320 km (200 miles) in length in a northwest-southeast direction spanning southeastern Utah and southwestern Colorado. During middle Pennsylvanian age (310-330 Ma) subsidence, the Paradox Basin formed as a restricted shallow marine environment and was filled with 1500-1800 m (5000-6000 ft) of cyclical evaporite sequences with potash noted in 17 of the 29 evaporite cycles (Hite 1960, 1983). Intrepid’s local operation is currently extracting the potash from Cycles 5 and 9.
Paradox Basin – Project Location Map
The Project is located in Grand County, Utah, 20-30 kilometers west of Moab and 10-20 kilometers northwest of Intrepid Potash’s evaporation pond solution mining operation.
The Project area has excellent infrastructure close to townsite, rail, highway, power and water.