Canadian Miner Sage Potash Creates New U.S. Subsidiary, Sage Lithium
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Sage Potash has formed a U.S. subsidiary, Sage Lithium Corp. Due to multi-commodity brines with high Li-K-Br analyses reported from historic oil and gas wells in the area, the company is encouraged to explore additional potential revenue sources known to occur within the Paradox Basin.
The primary objective of Sage Lithium will be to conduct testing for lithium and other soluble saline minerals within the existing brine hosting strata covered by Sage Potash’s private mineral lease portfolio. Sage Lithium will be operating in conjunction with its parent company, Sage Potash, which is in the process of applying for class V authorization by rule to drill two exploration wells that are planned to function as an initial pilot production well and a brine disposal well. Concurrently, Sage Lithium will sample, test, and analyze strata that are amenable to brine extraction for lithium, bromine and other soluble saline minerals.
This strategic decision is grounded in the company’s assessment of historical records derived from oil, gas and potash wells drilled in the Paradox Formation. The company believes these records indicate a strong possibility of intersecting super-saturated brines (composed of up to 40 percent minerals and 60 percent water) containing a diverse range of valuable minerals, including lithium, bromine, and potassium, in the Paradox Formation. Sage Potash holds private mineral leases located in the Paradox Basin that grant the company exclusive rights to extract potash, lithium, and other saline minerals and resources.
Sage Lithium will operate as a standalone subsidiary exploring the mineral leases for lithium and other soluble saline minerals on 17,277 acres of private mineral and surface leases owned by its parent company, Sage Potash.
“When we included saline mineral rights in our initial private mineral leases, we didn’t realize at the time how much lithium interest would develop in the Paradox Basin/Lisbon Valley,” said Sage Potash CEO, Peter Hogendoorn.
“Using SQM (Sociedad Quimica y Minera de Chile S.A.) as a model, which can be considered either the world’s lowest cost lithium producer or potash producer, management believes there is a significant opportunity to leverage both the geology and its lease rights to add considerable shareholder value for multiple complementary mineral development streams, or as an eventual company spin-off,” added Hogendoorn.
The Paradox Formation is host to brine-bearing strata that has been the focus of numerous lithium exploration companies, including Anson Resources which has reported on its plans to develop its 530 MT indicated resource grading 123 ppm Li and 3,474 ppm Br, in the northern part of the Paradox Basin.
Sage Potash is a Canadian company vested solely in the Sage Plain Property and intends through sustainable solution mining techniques to become a prominent domestic potash producer within the Paradox Basin situated in Utah.
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