Highfield Resources – Muga-Vipasca potash project, near Pamplona, Spain - March 2015
Neil Adshead visited Highfield Resources’ (HFR on the ASX) Muga-Vipasca potash project in NE Spain in mid-March 2015. Highfield has mineral tenure over ~400 km2 of the Ebro Basin, an evaporite-bearing sequence of early Tertiary-aged sedimentary rocks in the low foothills of the Pyrenees, including an area with two former mines where potash was extracted from underground. Highfield confirmed and refined the distribution of the potentially economic potash-bearing units through widely-spaced diamond drilling programs. Several centres of potash deposition have been identified and Highfield has advanced each one at a different pace. The most advanced, Muga, has been through a feasibility study (published in late-March 2015) and a scoping study on the Sierra del Perdón project, around the site of the historic potash mining, was completed in April 2015. Both studies demonstrate that Highfield could become a profitable, mid-tier potash producer in the coming years. Highfield’s development plan benefits from the relatively shallow depth to the payable potash-bearing beds and the extensive external infrastructure in the region, such as a modern road and rail network, open access ports with capacity on the Bay of Biscay, power, water and a skilled labour force. The next steps on the route to becoming a new potash producer in Europe are permitting the underground mines and securing development financing.
The foregoing discussions are a result of site visits and are not to be construed as a recommendation, an endorsement or as investment advice. Sprott Asset Management USA, entities that it controls, family, friends, employees, associates, and others may hold positions in these securities, may recommend them to clients, and may sell the same at any time.