Athabasca Potash (API-T, ABHPF-O) has reported a significant boost to resources at its Burr project in Saskatchewan.
Measured and indicated resources now total 425 million tonnes grading 22.54% potassium oxide, while inferred resources come to 187 million tonnes grading 23.55% potassium oxide.
The previous estimate released in September counted 241 million tonnes grading 23% potassium oxide in the indicated category, plus 183 million inferred tonnes grading 23.2% potassium oxide, and another separate inferred resource on the Upper Patience lake sub-member area of 39 million tonnes grading 13.2% potassium oxide. Patience Lake was not separated in the latest estimate.
This time around, the company tested three additional wells, bringing the total to 17.
Athabasca Potash president and CEO Dawn Zhou said the updated resource estimate makes the Burr project look promising.
“This resource update confirms management’s assumptions and validates the potential development of the Burr project as a potential low operating cost, conventional potash mine,” she said in a statement.
Athabasca Potash is currently working on a prefeasibility study for the Burr project. The company expects that SNC-Lavalin Group (SNC-T, SNCAF-O) will have it completed by the third quarter.
An ideal site for the mill and shaft have already been identified on the east-central part of the project area.
Burr covers an area of 320 sq. km and is about 107 km east of Saskatoon. It’s about 13.5 km north of Potash Corp. of Saskatchewan’s (POT-T, POT-N) Lanigan mine headframe.
Athabasca Potash reported a net loss of $1 million in the first quarter, spending about $3.4 million on operations and investing activities, and leaving it with a cash balance of about $28 million. Athabasca says it’s currently taking a cash-conservative approach, focusing on available human resources and short-term spending for the most critical activities. The company is going ahead with environmental impact studies and tailings management and site studies for the prefeasibility study.
Athabasca Potash shares recently traded at $4.72 in a 12- month range of 75¢-$9.35. The company has 37 million shares outstanding.
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