The Project involves developing and mining a Permian age polyhalite deposit, which is hosted in the Delaware Basin in the Carlsbad Potash District. The polyhalite is an evaporite deposit, which is overlain by series of younger evaporites and sediments.
Mineralization, in the form of polyhalite, is located in anhydrite members of the Rustler Formation, approximately 1,400 feet below surface. The deposit is generally flat lying, extensive laterally, and ranges from 2.2 to 6.0 feet thick. Anhydrite contacts above and below the deposit are gradational.
Polyhalite mineralization in the Project area is characterized as a strata-bound potash-bearing salt deposit. The polyhalite is associated with carbonate minerals and other evaporite minerals such as halite, anhydrite, gypsum, etc. Other commercially mined minerals in the region include sylvite and langbeinite.
The polyhalite in the Project area occurs in the basal anhydrite unit of the Tamarisk Member of the Rustler Formation. The mineralization occurs as a single polyhalite bed with a mean composite thickness of 5.0 feet (range of 2.2 feet to 6.6 feet) within the Project area.