Highfield Resources' potash drilling finds high grade success in Spain
Potash company Highfield Resources (ASX: HFR) has received first drill results from the Sierra del Perdón potash Project in Spain and they did not disappoint with good grades and thicknesses.
Now Highfield has been something of a sharemarket star since listing and today's results - with first hole drilled at Javier Project intersecting three main seams of sylvinite mineralisation - can be seen why.
All this was not lost on EMR Capital which had invested $10 million into the company holding 40 million shares, or a 15.9% stake in the company on a fully diluted basis.
Sierra Del Perdon Potash project
Drilling from four holes have now intersected potash mineralisation with the most recent drill hole intersecting over 20 metres. Importantly the drill holes are showing strong correlation with historical data.
Positive assay results in first Sierra del Perdón Project confirmatory drill hole include:
- 7.50 metres at 14.9% K2O (23.6% KCl); including 1.50 metres at 20.2% K2O (32.0% KCl)
- 1.50 metres at 20.2% K2O (32.0% KCl)
The intersects are real widths with beds horizontal and the drill hole vertical.
Javier Potash Project
First hole drilled at the Javier Potash Project has intersected three seams of sylvinite mineralisation.
Significantly, this also correlates very well with historical data and supports the view on continuity of mineralisation.
Three main seams of sylvinite mineralisation were intersected from a depth to surface of 289 metres as follows:
- 7.50 metres from 289.30 to 296.80 metres;
- 1.50 metres from 298.60 to 300.10 metres; and
- 1.50 metres from 321.10 to 322.60 metres.
Assay results are expected be available in October 2013 providing newsflow.
An initial Javier Project JORC resource estimate is expected to be released by the end of this month for Javier.
Highlights of drilling and key advantages for Highfield:
- Very good grades, including a 90cm intersect at 25.2% K2O (39.8 KCl)
- Good thickness, including a 7.5m intersect at 14.9% K2O (23.6% KCl)
- Proven access to mineralisation via declines / ramps as opposed to shafts or solution mining
- Fantastic infrastructure, including great transport options
- In country market for potash and halite (common salt, the main by product of production)
- Positive tax regime and low geopolitical risk
- Government support
Spanish chemical engineer Victor Dotti, having most recently worked for a Spanish potash producer where he was project manager for design and procurement of the new “Project Fénix” Salt Processing Plant has joined Highfield.
The Navarra Regional government president has confirmed her support for reopening Sierra del Perdón potash mine
Assay results from the initial drill hole at Sierra del Perdõn are promising and show good levels of potash and thickness.
The initial drill hole at the Javier project was over 1 kilometre from the 10 historic drill holes on the project. Importantly for Highfield, this drill hole showed a continuity of the mineralisation recorded in historic holes and has effectively expanded the resource horizon likely translating into a longer project mine life.
With assays due from Javier and an initial resources estimate for Javier, there is newsflow ahead.
Proactive Investors expects Highfield to keep its focus on delivery and it wouldn´t surprise to see early results from project studies demonstrating unrivalled commercial viability over the coming months.
Having passed our initial share price target, we have upped our estimate to $0.65 - $0.70 within six months for Highfield.
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