Vancouver-based Pacific Potash (TSX:V.PP, Stock Forum) has begun drilling at its 100%-owned Amazonas Basin potash property, which runs alongside the location of a new discovery earlier in the week.
On November 11, Brazil Potash Corporation announced a potash discovery across the river from Pacific Potash’s existing claims, which has Executive Co-Chairman and Director Balbir Johal excited for the future of the play.
“Drilling to date has been extremely smooth, logistics have been on time and on budget," said Johal in a news release. "Being fully funded for several wells, we anticipate many exciting months of exploration in anticipation of a new potash discovery in this world class basin."
From the same release, “This is Pacific Potash's first well of a planned multi-well drill program on the Amazonas Potash Project aimed at making a new potash discovery. The well is expected to take approximately 60 days from the start of drilling and will be drilled to a true depth of 1400m. The target formation, Nova Olinda Cycle VII is anticipated to occur at a depth of approximately 1300m. Gamma-ray and Caliper downhole geophysics will be run in the well to identify the mineralized zone and to better correlate the stratigraphy in the area.”
The potash industry has had a rough four months, since Uralkali opted to step outside a Russian cartel, causing a price slump. Due to a trade halt, Pacific Potash’s exposure to that situation was delayed until it resumed trading in late October, presenting what some Stockhouse Bullboarders now say, at $0.07 a share, is a buying opportunity.
109 million shares are outstanding. V.PP stock rose 7.69% on Friday’s news.
Read more at www.stockhouse.com/news/natural-resources/...4mu1vXDG1qLWeZ.99
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