The other company exploring for potash in Manitoba is BHP Billiton, who announced in 2007 that it would invest $15 million to explore the potential of a large potash deposit in the Russell-Binscarth area.
The deposit is owned by the province of Manitoba (49 percent) and Potamine Corporation of Canada (51 percent) as joint partners in the Manitoba Potash Corporation (MPC). MPC was created in 1986 to hold the assets of the Russell-Binscarth potash project. BHP Billiton bought out Potamine’s share in the MPC in early 2007.
Potash, or potassium chloride, is a key component in inorganic fertilizers used worldwide. Potash prices, production and worldwide demand continue to increase. New potash deposits will have to be developed within five to 10 years to meet this growing demand.
A 1987 consultant’s study indicated at that time a potash mine in the Russell-Binscarth area would probably generate more than 360 direct jobs in mining, processing and administration. There would also be additional indirect job creation in local support and service sectors.
Alix Resources Corp. and Geo Minerals Ltd. have announced that a borehole license application has been submitted with regards to the companies' recently acquired potash claims along the Manitoba-Saskatchewan border.
The potash claims, which involve 1,789 hectares, are adjacent to those held by Western Potash and 12 kilometres north of the Russell-Binscarth Potash deposit owned by Manitoba Potash Corp., and currently being explored and developed by BHP Billiton. Further to the south is the Prairie Potash Mines deposit, currently being explored and developed by Western Potash.
The potash area is on the border of Saskatchewan and is approximately 40 kilometres northeast of Potash Corp's Rocanville Mine in Saskatchewan. For reference the Town of Langenberg, Saskatchewan is 10 kilometres to the west.
There are currently are no potash mines in Manitoba but the Devonian Prairie Evaporite on the Manitoba-Saskatchewan border does host at least two known potash deposits being separately explored and developed by BHP Billiton and Westen Potash.
The potash in this area occurs as sylvite, and is 800 to 1000 metres below the ground.
A maximum three hole drill program for hole depths of a maximum 1,500 metres is proposed to be carried out. The program will test the stratigraphy in the freehold title area and will test past the target potash (sylvite) zone of 800 to 1000 metres. It is anticipated that the program will commence sometime in late July, subject to all regulatory approvals.
Alix Resources Corp. is a junior mineral exploration company focused on acquiring and developing potential world-class properties in North America.