InvestorIntel: Momentous Milestone Achieved, Magna Resources Advances 'Very Significant' Potash Deposit in Utah's Paradox Basin
Toronto, Ontario--(Newsfile Corp. - October 2, 2013) - Tracy Weslosky, Publisher of InvestorIntel interviews Mike Sieb, President of Magna Resources Ltd. (TSXV: MNA) (OTCQX: MGRZF) to discuss the company's most significant benchmark achieved to date; the announcement that the US Bureau of Land Management has approved Magma's 35,000-acre Green River Potash Project in Utah's world-renowned and geologically favorable Paradox Basin. With an exploration target of 600 million to 1 billion tons of potash, this is very significant news for Magna because the approval grants Magna the right to initiate exploration and advance its potash project.
Tracy Weslosky (TW) starts: Mike, we've been waiting for this news for quite some time and this is big, big news… you have just been granted approval by the Bureau of Land Management in Utah, correct?
Mike Sieb (MS): That is correct, yes. And the news is absolutely momentous and it is something that the company has been working on for the last year and a half.
TW: What exactly does this mean for the investor? Undoubtedly, it means that your share price is going to move forward.
MS: One would hope so - yes - because prior to today there was an underlying valuation on the company. Today marks the day where we have access and titlement to 35,000 acres with an exploration target of 600 million to 1 billion tons of potash.
TW: This is one of the biggest land properties in the potash sector.
MS: In the US anyways. It's located in Utah, in the renowned Paradox Basin. It's been producing potash in the region for the last 40 years, quite successfully I might add. I would like to say today that Magna Resources is only the second company that has received potash Prospecting Permits in the last 25 years.
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TW: This is momentous news. Can you tell us what you're going to do immediately to capitalize on this good news?
MS: It's a wonderful first-mover advantage because we're one of only two companies that can advance a potash project in the region. And this is a well-known potash-bearing region. We are going to aggressively move forward and raise a sufficient amount of money to drill a Phase 1 drill program, consisting of two drill holes. We're going to leapfrog from that early next year. We are going to raise a larger amount of money. We're going to complete an outstanding 6 drill holes. So that's 8 drill holes in entirety, to cover 35,000 acres - an exploration target that's upwards of 1 billion tons of potash.
TW: Mike, with regards to this really good news, for all of our investors and our audience that may not be familiar with Magna Resources, can you give us your selling points and the advantages on why they would want to invest in Magna?
MS: Potash by itself and its market is inherently robust. Currently there's a little bit of volatility in the market, but everybody is in 100% consensus that there's more mouths to feed, there is less arable land, there's greater requirement for fertilizer every year as we move forward. There are some really worthy companies that are going to work their way through this current period, and Magna Resources wants to be one of those companies. We have a compelling story, a solid asset and (over the next 18 months to 2 years), we are going to advance from basic initiation - a really low valuation - to an inferred resource, to a preliminary economic assessment. From where we are today, to 18 months to 2 years down the road, we see phenomenal growth for Magna Resources.
TW: So just talk to me about this compelling property that you have. It's 35,000 acres, is that correct?
MS: The exploration plan covers 35,000 acres but that's only part of our project. It probably represents only about 70% of our entire project area. But just that 35,000 acres has considerable potential for a very significant potash deposit.
TW: Well thank you so much for joining us today, Mike, and congratulations on your good news.
MS: Thank you very much, Tracy.
Disclaimer: Magna Resources Ltd. is an advertorial member of InvestorIntel.