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Sage Potash Expanding US Potash Resource in UtahBob Moriarty Few prognosticators and only a rare investor sees the enormous impact Israel’s failed war on Iran will bring. By closing the Strait of Hormuz Iran turned the tide of battle. Their actions have redrawn the borders of the Middle East. Persia (Now Iran since 1935) was the reigning power in the Middle East for 2500 years when Saudia Arabia and the rest of the GCC were herding goats and sheep. Anyone both sane and fairly sober now recognize the incredible mistake Trump and the US made getting dragged into another war of aggression on Israel’s part. The primary effect of the war has been to reestablish Iran as the dominant power in the region as Israel’s planned “Greater Israel” landed on the garbage heap of history. There are dozens of surprise knock-on effects from the war that are only beginning to be visible. While closing the Strait of Hormuz effectively won the war for Iran, it also demonstrated the danger of a single country having within its power the ability to destroy the economy of the world. Other oil export dependent countries in the area now recognize the importance of having a Plan-B for moving their products. While admittedly the ability of the west to tap the Strategic Petroleum Reserves in various countries in conjunction with China dropping its import requirements of crude oil managed to keep the retail price of fuel under control so far, it’s obvious the world needs a number of Plan Bs for all sorts of commodities that prior to the war few recognized. Uranium is going to be viewed as a more attractive source of energy not subject to the whims of countries in the Middle East. I see the demand for uranium to be used in new reactors increasing a lot. Anything related to agriculture will be viewed as an attractive alternative to supplies dependent on the Middle East. A company contacted me recently with a compelling fertilizer story. The company is named Sage Potash (SAGE-V) and has a large potash project in eastern Utah. But you need to know a little about growing plants. They need three different chemicals for ideal growth, nitrogen, phosphorus and potassium. Potash supplies the potassium. For the US Canada supplies about 81% of the needed material with Russia providing an additional 15%. The US only produces 5-10% of the potash demanded, the rest is imported. Potash costs about $300 a tonne. The USGS reports that Utah contains about 2 billion tonnes of potash. Sage shows a grade of 36-46% KCL, one of the highest grades reported in the world. Sage plans on using a solution mining technique where they pump brine into a deep well to the location of the 5.5-7.3 meter thick intercept of potash. Sage reports two beds of high-grade potash, the Upper Cycle 18 measuring 7.26 meter of 46% KCL for 179 million tonnes and Lower Cycle 18 giving 5.46 meters of 35.77% KCL for 128 million tonnes. Sage has begun a drill program designed to expand the resource in the 43-101. The current 43-101 shows an inferred resource of 298 million tonnes at 36-46% KCL. The current PEA demonstrated a NPV of $502 million with an after-tax profit of 39%. The company believes they can release an update 43-101 and results from the current drill program by September. With a current market cap of about $22 million, about 0.4% of the NPV the shares seem absurdly cheap to me. Sage is an advertiser and I have bought shares in the open market. Naturally I am biased so do your own due diligence. Their only problem is a lack of visibility. Sage Potash Corp ### Bob Moriarty 321gold Ltd |
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