New Potash Project in the USA, But Will Solution Mining Work at Depth? | Sage Potash CEO Interview

**SPEAKER_1** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today, I'm going to see your BBQ Potash exploration and development in Utah, in the USA together with Sage Potash.
But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general, and in-personal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on Sitterplus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases, and do not consume this content if you don't agree with everything said therein. Moving on, Sage Potash is a single asset company right now. They're focused on restarting exploration at the Sage Plain Potash Project in the Paradox Basin of Southeastern Utah, and it's roughly 30 kilometers northwest of Monticello. The asset sits on a mix of state leases, private mineral rights, as well as BLM permits, covering a large land position, but its entire resource base traces back to just one core hole that was drilled by a previous operator in 2014, which of course means that I will have to ask some questions later on, because this is, it is a bit of an outlier, but it is Potash, so hopefully we'll get some more detail on that as well. That hole hit two Potash beds in cycle 18 of the Paradox formation at around 2,100 meters deep. So again, it's relatively deep, but it returned clean silvanite with grades in the mid 30s to mid 40s. We'll definitely talk about grade as well. There's a technical report on it from 2025 that converted those intercepts into a 298 million ton inferred resource, which then fed into a PEA modeling a phased solution mining operation, which obviously will be the focus of the conversation later today. Drilling on a single step out hole about a kilometer from that 2014 intercept began in early July this year, so they're working on it right now. It is going to be deep and I'll definitely make sure to ask about that as well.
That hole is now targeting the same formation, so it's a cycle 18 horizons at similar depths with continuous core recovery plan to test grade and thickness continuity before there would be a resource update and hopefully an update on the timing of the resource update is going to happen later on as well.
As a result, and again, that revised resource estimate, as far as I could tell, are expected for this year, so Q3 of this year relatively soon.
Now, for some of the numbers and a bit of the details, the Sage Potash is listed as Sage, so that's S-A-G-E on the TSX-V in Canada, where the average daily volume of the last three months has been about 300,000 units. The 52-week high is 50 cents and a 52-week low is 11.5 cents. With a little over 171 million shares outstanding and a $23 million market cap today, this is a 13.5 cent stock with a 50 and a 200 day moving average at 13.4 and 21 respectively. So the stock is now trading between those two. There are about 84 million warrants outstanding and 11 million options to get a representing about 36% of the 266 million shares outstanding on a fully diluted basis. The most recent financing they closed was this year. It was in late January, raising $13 million at 20 cents with a three-year warrant exercisable at 30 cents. How much of that money is still left? Will it be enough to get them through the years and get that resource out in Q3? And how do they plan on raising capital in the future or all questions that I'll be asking later on in the conversation. But for this to actually become a conversation though, I will have to shut up already. And Pat, I'll give you the word here. So first of all, thank you for sitting down with me.

**J. Patricio Varas** (4:08)
Thank you for having me.

**SPEAKER_1** (4:10)
Pleasure is mine because I don't typically get to do potash companies. And I don't really get to spend too much time on them. I spent a couple of hours on this today and yesterday. So it's going to be interesting to have a conversation and see if I get any wiser, though that's not going to be an easy job for you. Let's set the stage here with the business strategy though.