Investors send Ringbolt Ventures 15% higher after it commences drilling at Lisbon Valley
Investors piled into Ringbolt Ventures on Tuesday after the company announced that it has commenced drilling on its Lisbon Valley Potash Project in Utah. By mid-day the small-cap exploration company was trading up 15% on Toronto's venture exchange on above average volumes.
The planned drilling program is to test the potash and salt horizons on one of its state leases. The state lease is located on section 36, township 29.5 south and range 25 east. The drill plan is to use reverse circulation drilling to the top of salt bed 5 at an approximate depth of 2,800 feet where there is a reported historical assay of 18.5% K2O and then core drill the potash bed. Reverse circulation drilling will continue to the top of salt bed 9 at an approximate depth of 3,770 feet where there is a reported historical assays of 31.09% K2O. This potash bed will then be core drilled.
Potash was first discovered in the Paradox Basin in an oil and gas well in 1924. In 1962, Superior Oil Company drilled the first potash at the crest of the Lisbon Valley anticline. Since 1964, potash and by product salt have been produced from the Cane Creek mine. The Cane Creek mine was first owned and operated by Texas Gulf Sulphur, and is now owned and operated by Intrepid Potash Company. Potash was originally produced by underground mining and, in 1970, the mine was converted to solution mining. Solution mining has proven to be the ideal process in the project area because of the hot summers and low humidity. The mine has produced nearly continuously since 1964, and reportedly has a future mine life of 30 years.
“The commencement of drilling at the Lisbon Valley Potash Project is the start of Ringbolt’s plan to aggressively develop the significant potential for large potash deposits, similar to the nearby Cane Creek potash mine owned and operated by Intrepid Potash. The Company has worked hard to gain the much needed support at the County, State and Federal levels for the last 3 years. We are now positioned to move this project forward in a timely and stable manner. We are looking forward to advancing the Lisbon Valley project and building shareholder value in the coming year.” says Simon Tam, President of Ringbolt.