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  • Highfield Resources Defines Three Advanced Potash Projects In Spain 0 comments
    Feb 24, 2013 6:40 PM

    Emerging potash miner Highfield Resources (ASX:HFR) has re-affirmed the advanced nature of its Spanish potash projects as well as defined the development of each into three distinct deposits.

    Moreover, the advanced nature of the three projects provide Highfield with significant flexibility and options for development.

    The three projects will be developed in parallel:

    - Sierra del Perdon
    - Pintano
    - Javier

    Background

    Highfield's Navarra and Aragon potash projects sit in the Navarra sub basin of Spain's Ebro potash producing basin.

    The projects have now been divided into three distinct potash projects with each project being developed in parallel.

    The Navarra project will be known as the Sierra del Perdon potash project. The Aragon project will be split into the Javier and Pintano potash projects.

    Splitting the Aragon project into two distinct projects is consistent with the size of the evaporite under Highfield's control (some 30kms by an average width of 5kms) and the depth differential between the Javier and Pintano sub basins.

    The depth at Javier ranges from 200m to 500m, whilst the depth at Pintano ranges from 500m to over 1,000m moving east into the deeper unexplored sections of the basin.

    Sierra del Perdon

    Transposing the historic mine workings across the two mines into a 3D model is almost complete. With this information Highfield expects to be in a position to release detailed information on this project either late in the current quarter or early next quarter.

    With this information complete, a preliminary mine method hypothesis will be created with a drilling programme to be commenced in the second quarter to test this mine method hypothesis.

    Pintano Project

    Highfield's geological consultants, North Rim Exploration, are presently finalising an Exploration Target based on four historic drill holes. Highfield expects to release the Exploration Target over the coming week.

    As with Sierra del Perdon, a preliminary mine method hypothesis will be created with a drilling programme to be commenced later this Calendar Year to confirm the hypothesis and deliver a JORC Code compliant resource estimate.

    Javier Project

    Core samples from three historic drill holes are presently being re-assayed to confirm historic drill hole logs.

    With this information, North Rim Exploration has indicated a JORC Code compliant resource estimate will be possible.

    Highfield expects to be in a position to release this in the second quarter of 2013.

    As with Sierra Del Perdon and Pintano, a preliminary mine method hypothesis will be created with a drilling program to be initiated later this Calendar Year to confirm the hypothesis and increase the resource estimate.

    Analysis

    We would expect to see rapid progress to JORC compliant resources and interest in the projects from third parties given the advanced nature, geographical position of the projects in Spain near key markets and the low risk development nature of the projects.

    The definition of the Spanish potash deposits into three projects provides Highfield with development options as well as milestones and additional catalysts.

    We adhere to our opinion as to the under-valued nature of Highfield at current share price of $0.255 and expect this to increase as it reaches key milestones.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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