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The Saskatchewan Potash Joint Venture
The Anglo Potash Ltd. ("Anglo Potash")/BHP Billiton joint venture (Saskatchewan Potash JV) covers all current and future acquired permitable potash land in Saskatchewan and is split with Anglo Potash owning 25% and BHP Billiton owning 75% and being the operator of the joint venture. To earn into its share of the joint venture, BHP Billiton is required to spend up to $40 million (USD) before the end of 2011 to complete a bankable feasibility study on the project, which is the development of a greenfield potash mine in Saskatchewan. The joint venture agreement contains an off-take agreement whereby BHP Billiton will market Anglo Potash's share of production and a tag along agreement in case Anglo Potash needs assistance with financing is share of the project.
It's significant that Anglo Potash partnered with BHP Billiton because there is no company out there that has more mining expertise then BHP Billiton. They have developed mines in every continent on earth, and they are extremely focused on developing a potash mine. In addition to providing mining expertise and capital, BHP Billiton also has a global network that is capable of getting product to market.
The following links are BHP Billiton potash presentations:
Map of Joint Venture's Current Permitable Potash Land Acres (yellow area)
The Potash Project
Anglo Potash Ltd. holds its share of the land position indirectly through its wholly owned subsidiary Prairie Potash Corp. The joint venture is one of the world's largest permitable potash landholders with 32 permits covering over 1.8 million acres (see yellow on map). The joint venture has a historic 250 plus drill hole database containing core samples and seismic information. Lots of work has been completed to date on the joint venture's project including compiling and analyzing historic drill hole data. In addition, two National Instrument 43-101 technical reports and 2D and 3D seismic work has been completed on an area approximately 20 miles east of the PCS Lanigan mine. Based on the information gathered to date, the joint venture is of the view that portions of its lands are geologically very similar to those from which potash is currently being produced.
National Instrument 43-101 Technical Reports
Below are the two National Instruments 43-101 technical reports, as filed on Sedar, which were completed on only a portion (6-7%) of the approximate 1.6 million acre joint venture land package. These two technical reports were completed approximately 20 kilometres east of the PCS Lanigan mine.
Summary of Two Technical Reports
| (million tonnes) |
Measured and Indicated |
Inferred |
Total |
| Extractable Potash Resource* |
479 |
981 |
1,460 |
| * The tonnage is net of a 25% deduction for unidentified mining-level anomalies and the application of a 40% extraction ration. The average nutrient content for the measured and indicated resource is 26.2% K2O and for the inferred resource is 24.5% K2O. |
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