Shares of Trigon Uranium (TSX: V.TEL, Stock Forum) doubled in value Wednesday after the company announced that Intercontinental Potash, owned 38% by Trigon, has been awarded all federal potassium prospecting permits in the State of New Mexico, which the company had applied for earlier this year. Trigon finished the day at 12 cents on volume of 369,500.
In a news release, the company said that the approved permit applications are for a 36,980-acre area and the project is referred to as the "Ochoa" project. The initial term of the permits is two years, which may be extended to four years in total if the Bureau of Land Management believes that exploration has proceeded expeditiously. The prospecting permits include approval of a detailed 16-drill hole program covering the entire acreage.
From the release:
“We are committed to the development of Polyhalite as a significant potassium and multi-nutrient fertilizer mineral. We believe that Polyhalite may be the next-generation fertilizer product. We are developing plans to support marketing Polyhalite to both the potassium sulphate and non-chloride markets, and also the broader potash markets of China, India, and Brazil.”
On the Bull Board, CLLISNOGOOD said, “…this is really, really good news. We might not get our payday today, but it certainly takes a lot of the risk out of the equation. Reading the news, it appears they will plan to do a 16-hole drill program to confirm the resource. Considering their current data of 200 drill cores is in their possession and has been analysed, I consider this program to be more confirmation - not exploration related drilling. The 200-hole data supports a large resource already....16 more is just to confirm the old data.
“Notes----
“* I find it interesting that they are the only junior in the U.S. (out of several of them) to have drilling permits granted. The two other companies they refer to are obviously Mosaic Company and Intrepid potash, two of the largest Potash Miners in the world.
“* I love the comment, "Polyhalite may be the next-generation fertilizer product"
“* "Intercontinental is well funded in respect of the initial programs of exploration and development" - Good news for any junior these days.
“* "The Company is investigating mining and agricultural industrial partnerships of various types" - I wonder who they are talking to? Potash Corp? Agrium? Mosaic? Monsanto? Intrepid?
“* It's suitable for Organic farming, slow release, and more nutrients than most fertilizers
“* They can sell it for half the price of Potash fertilizer and still make money. In today’s world, that’s huge
“* The roads, experienced workers, and mining infrastructure is right there already. This should make it cheaper to mine.”
“Wow, this is huge!” exclaimed hotstock1122. “I'm averaging my cost down today!
“It looks like they applied for BOTH the land permit and the 16 hole drill permits. As per the news and previous news, they have all the data from 200 drill holes, so I agree that this is drilling for confirmation, not exploration drilling. In other words, this is an ADVANCED EXPLORATION COMPANY, unlike almost every other Junior Potash company out there. I read on Stockhouse yesterday the interview with Kevin from Sprott Resource Corp. He says that have over 200 million in cash, are looking at deals of a lifetime and still love the agriculture fertilizer sector. They've been buying up positions in companies like crazy lately and I'll bet they take a big position here! In 3-6 months when this credit market cripe is cleaned up, we'll be $.50-$60+ cents easy! As it stands, we are the cheapest potash junior on the market, and we have the most advanced project in the U.S. outside of the producing companies ...WOW!!!!!!!!”
hotstock1122 also posted an article titled, “Lea County potash project could mean 500 jobs.”
“Associated Press - November 26, 2008
HOBBS, N.M. (AP) - A Colorado company could begin exploratory drilling next year in Lea County to verify deposits of potash.
“And its top executive says the company could begin a mine project in two years depending on what's found.
“Potash is used in fertilizer.
“Intercontinental Potash Corporation has obtained prospecting permits from the U.S. Bureau of Land Management for 16 test holes an about 37,000 acres west of Jal to verify deposits of polyhalite potash.
“That's according to the company's president and chief executive officer, Sidney Himmel. He says the potential for a project depends on what the test holes find.
“Himmel says full production could mean about 500 jobs.”
“Excellent find Hotstock!,” said CLLISNOGOOD. “Even better that it comes from ABC News. Two years to get to mining and 500 jobs created for a domestic source of Fertilizer sounds like something that will be well received and supported by both the State Democrats and the Obama administration. Obama did announce an economic stimulus package rumoured to be close to $1 trillion dollars invested by the U.S. Government with the intent to create jobs. This kind of project, which demonstrates the ability move towards U.S. self sufficiency and create 500 jobs, is exactly the type of innovation the Obama government and American people want to see. This is not a tough sell by any means. I wouldn't be surprised to see a Government partner for Intercontinental/Trigon such as the U.S. Department of Agriculture.”
“next stop 30 cents,’ predicted therivetman, adding, “wow this one is set to explode.”
But mardytrader was unconvinced. “Bought and sold 2 times today great news but this days you have to be a daytrader not a Investor 100% pop is good but it may just go down to 6c or 7c till drilling news.”
Mineralminer was also skeptical. “So, the rest of commodities are not looking good at all, nothing new but supposedly looking more grim on a news call I got from an 'investor' (whatever) buddy at lunch. How will this do for the next 6 months? I can see this sustaining value for long. It sucks but my other uranium and potash are stuck at bottom....I hate to be teased, worse than continuing to get f%ct.
Hate to be a sourpuss but what do you guys think???????”
