Highfield Resources (ASX:HFR) has added to its potash development pipeline in Spain, defining an exploration target that abuts the flagship Muga Project.
The exploration target range for Vipasca Project, located on contiguous permits to the west of Muga is 483 million tonnes grading 11.4% K20 to 1.8 billion tonnes grading 15.2% K20.
The target was arrived at from re-interpretation of historical seismic and drill hole data.
While the Muga project is the main focus with construction on track to commence in fourth quarter of 2015, the potential endowment of potash resource near to Muga could add considerably to the development profile.
Highfield is looking to add to its low capex, high margin targets across its five projects in Spain´s potash producing Ebro Basin.
Drilling to test the exploration target will shed more light and is expected to begin in 2015.
Highfield’s managing director, Anthony Hall said about it:
“The Exploration Target defined for Vipasca provides some further insight into Highfield´s assets and our aspirations to become a significant global potash producer.
"Based on seismic reinterpretation over the Vipasca area, and on information obtained from a number of drill holes completed at Muga by Highfield, as well as a historical hole completed in the late 1970s, we believe Vipasca has the potential to be one of Highfield’s most compelling assets."
Vipasca Potash Project
The Vipasca Project encompasses the contiguous permit areas to the west of the Muga Project south of the Loiti Fault, including parts of the Goyo, Vipasca and Borneau investigation permits.
Exploration work at Vipasca is targeting three of the sylvinite seams encountered at Muga; the Capa B, Capa 1 and Capa 2 seams.
Proximity to the Muga Mine Project has exhibited good continuity of potash mineralisation especially of the Capa 1, Capa 2 and Capa B seams within the potash bearing evaporite.
Similar to at the Muga Mine Project, there remains the potential for other seams to be present.
The Vipasca exploration target has been divided into two smaller potential areas: the Rocaforte Target, which covers an area of approximately 60km2; and the Osquia Target with an area of approximately 31km2.
The Muga Mine Resource and Rocaforte Target are divided by the controlling Loiti Fault.
The Rocaforte Syncline is interpreted by independent consultants GESSAL to be one of the most continuous structures in the region based on existing geological knowledge of the area.
The depth of the exploration target has been limited to 1,500 metres below surface as it is considered to be the deepest level for economic extraction via conventional underground mining methods in the region.
This is based on mining experience at Sierra del Perdón which is less than 40 kilometres from the Vipasca Project area.
The second area identified as having strong potential for potash mineralisation, the Osquia target is a band situated immediately to the south of the Loiti fault, to the north-west of the Rocaforte Syncline.
Its proximity to the Muga Project lends strong potential to be an extension of those mineralised horizons
Based on historical drilling reports which included lithological mapping, including the Lecáun drill hole which intercepted 3 metres of potash, drilling could confirm the presence of sylvinite seams within the potash bearing evaporite.
GESSAL expects that the potash bearing evaporite unit to commence from 250 metres below surface on northern edge of the Osquia target.
The southern extent, which is limited by a controlling structure, extends to a maximum depth of approximately 1,000 metres below surface.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.