Potash Ridge (TSX:PRK,OTCQX:POTRF) announced that it has received comprehensive reports from Serecon Management Consulting Inc. and a consultant with respect to the markets for sulphate of potash from its Blawn Mountain Project. The report confirms excellent market potential for SOP.
As quoted in the press release:
The analyses confirm the excellent market potential for SOP. Many of the primary markets for growth in consumption are regions that grow large volumes of crops better suited to SOP (including fruits, nuts, vegetables, etc. that are already known to be sensitive to chloride in MOP), but are currently limited by the availability of SOP. These regions include the United States, Central and South America and Asia. The report concluded that the market potential for SOP in these regions vastly exceeds the Project’s projected production and, subject to proposed market research and due diligence, that the Corporation should be able to sell its production of SOP without significantly affecting current average premiums over MOP. The studies also examined other potential markets and concluded that SOP would be expected to command a premium over MOP even if SOP were sold as undifferentiated commodity fertilizer, due to its sulphur content.
Further to its Project Update press release of July 3, 2013, the Corporation has now completed initiatives to optimize the preferred processing options and has concluded its evaluation on other improvement initiatives. These initiatives included working with major equipment vendors to finalize key operating parameters, economic evaluation of the most favorable process and infrastructure options and selection of the most favorable combination for inclusion in the upcoming PFS. A number of modifications have been made to the process and infrastructure configuration contemplated in the Preliminary Economic Assessment (“PEA”). While not fundamental changes, these modifications optimize the historical flowsheet to maximize SOP production.