Bob Moriarty
Archives
Oct 2, 2026
I first wrote about a new advertiser named Sage Potash last June. In that piece I wanted to make the point that having a single country potentially controlling a substantial flow of major commodities such as oil and oil related products was especially dangerous for the world economy. It doesn’t make any difference if that country is considered a friend or foe.
That’s exactly the situation Trump has dragged the US into to pay for and fight a war against a country not our enemy. But Israel controls Congress, they control the Senate, now the military and certainly own Donald J. Trump. It’s a war for Israel, not a war the US stands to gain anything. But Israel hates all their neighbors and whines on a constant basis about how they, Israel, are the victims. They are not.
Countries of the world need to be thinking seriously about a Plan B. Anything energy related needs to be considered. Having an alternative source of supply could easily mean issues of life and death. We are going to understand that better this winter when foolish energy decisions such as that of Germany allowing the US military to blow up 75% of the four Nord Stream pipelines cause Europeans to freeze and potentially starve due to the cost and availability of energy and energy products.
Fertilizer is a perfect example. Many of the inputs to fertilizer are produced as a byproduct of refining crude oil such as sulfur. Due to this incredibly stupid and pointless war, the costs of farming such as diesel fuel and urea or sulfur have shot through the roof.
A tiny company in Utah heard a knock on the door and found to their great pleasure that it was opportunity knocking. Sage Potash (SAGE-V) owns a 345 square km potash property in a basin in Utah. Based on the first drill hole they put down named Johnson 1 the company has an existing 43-101 inferred resource of 298.1 million tonnes of high-grade potash. Obviously right from the start it is going to be difficult for potential investors to understand what value the company offers so I am going to lead you through how to determine that.
With some flat lying sedimentary minerals such as coal and potash even a single hole can generate an inferred resource. The theory being that since it is a flat deposit of sedimentary material even a single hole will suggest similar material surrounding the hole. In the case of the first hole, named Johnson 1, the QP used a circle around the hole with a diameter of 2.4 km. The QP concluded the grade of the hole and thickness justified an inferred resource of 298.1 million tonnes at an average of about 40% potash.
The potash market has been relatively stable for the last couple of years because potash doesn’t come from natural gas or crude oil. The value of a tonne of potash in the markets the Utah based Sage would serve would be about $472.50. If you multiply the resource of 298.1 million tonnes by an average grade of about 40% and factor in the current price of $472.50 the theoretical value of the potash in the ground would be about $56 billion in USD.
Here is where it gets very interesting. I have looked at the capex and Opex of other potash companies and it looks to me as if the company could in theory net about $300 a tonne and produce between one and two million tonnes a year. The Capex is not cheap, it could be in the $1 to $2 billion range.
The real news beyond the excellent drill results from Hole 2, named Peterson 1 released on September 28th and promptly ignored by investors is just how it will affect the 43-101 numbers.
If you look at the chart we prepared below. The black circle reflects the 298.1 million tonnes with the resource derived from the Johnson 1 hole. And now the company has drilled the Peterson 1 hole just 1 km to the NE. That hole is surrounded by a 2.4 km diameter dashed line. If the QP shows that in the 43-101 coming in about a month, the red area in between Johnson and Peterson will almost certainly qualify as Measured and Indicated. The green quarter moons above and below the holes will almost certainly be Inferred. So it looks to me as if the resource will only grow perhaps 25% but the high-grade resource shown in red will be about 50% of the total. That’s a giant move higher in confidence and should draw the attention of majors.
The grade of the potash shown in both holes is exceptional and is among the highest grade in the world. It certainly looks to me as if this will be put into production. The US needs to control the inputs to its own agriculture industry.
Sage is an advertiser and I have bought shares in the open market. Naturally I am biased so do your own due diligence. Their only problem is a lack of visibility.
Sage Potash Corp
SAGE-V $.13 Oct 01, 2026
SGPTF-OTCQB 171 million shares
Sage Potash website
###
Bob Moriarty
President: 321gold
Archives
321gold Ltd
Source: http://www.321gold.com/editorials/moriarty/moriarty100226.html
