HFR announce (subject to shareholder approval) moving into Espanol.
ACQUISITION OF SIGNIFICANT ASSET IN POTASH PRODUCING BASIN
http://www.asx.com.au/asxpdf/20120627/pdf/42722tydbhtrhr.pdf
HIGHLIGHTS
• Agreement (subject to due diligence, ASX and shareholder approval) to purchase 100% of the Navarra Potash Project located in Northern Spain.
• Granted tenements comprise 430kms2 of highly prospective ground within a potash producing basin and include a former operating mine.
• All necessary infrastructure in place for potentially globally competitive potash extraction.
• Existing experienced in country management team.
• Distinguished industry professional, Derek Carter, to join Highfield’s Board.
• 100% scrip transaction with no cash payment and performance shares linked to value adding milestones.
The tenements in the Navarra Sub-basin cover the Subiza Mine which was a significant potash producer in Spain between 1977 and 1996. In its latter years of operation the mine was producing around 200,000 tonnes of potash per annum. The mine was closed in 1997 when potash prices were US$110 per tonne. Potash prices are presently around US$470 per tonne.
McLarty Potash Project
Key project is the Company’s McLarty Potash Project located in the Kimberley region of Western Australia.
The Company has a farm in agreement to secure up to 80% of the McLarty Potash Project.
Positive Signs from Previous Exploration
*Tenement package is ~70km x 35km and covers 1,900 km².
*Fruitcake 1 intersected low levels of potash (25m at 1.83% K20).
*McLarty 1 intersected values of over 200ppm Br indicating potash precipitation occurred.
*Both Fruitcake 1 and McLarty 1 intersected undeformed thick (>500m) salt layer.
Targets identified ready for drill testing
*Target 1: Near sub-basin margin Top of Salt: ~700m Planned Depth: 1,400m.
*Target 2: Follow up of Fruitcake 1 in more favourable structural setting – less faulted Top of Salt: ~600m Planned depth: 1,100m.
Completing access arrangements and finalising drilling contractors
•Access route to the targets have been identified along existing tracks.
•Initial discussions with the Traditional Owners of the country have been positive.
•Experienced drilling contractor identified and briefed.
•Drilling anticipated to commence in Q3 2012.
•Initial results likely in Q4 2012.
With 44m shares on issue and MC of $11m, this is one worth keeping an eye on IMO.
