In the 1970’s, a Utah geologist, Murray Godbe, began the first known systematic study of the Sevier Playa with the intention to produce valuable minerals. Godbe and his team found indications of a vast pool of brine containing potassium and other important chemicals. Supported by a Texas financier, W. D. Hayden, Godbe leased the majority of the dry lake’s surface securing land from the BLM as well as from SITLA, a Utah state land agency.
The team drilled hundreds of wells taking brine samples across the vast lake surface and from many depths. After several years of study, and shortly before the project was set to enter full development and production, W. D. Hayden suddenly died. Not long afterward, Murray Godbe died. The heirs briefly tried to market the project but ultimately gave up. After a period, the leases returned to their respective government agencies.
In 2008, Emerald Peak Minerals LLC formed to resurrect the project. After securing SITLA leases from the State of Utah, Emerald Peak Minerals partnered with Crystal Peak Minerals Inc. to secure the financing necessary to obtain the federal leases from the Bureau of Land Management. Crystal Peak Minerals Inc. raised about $30 million dollars (CAD$) and won the federal acreage needed to define the project. Through subsequent negotiations, Crystal Peak Minerals Inc. increased its holdings. Today, it directly controls almost 96,000 acres through its wholly-owned U.S. subsidiary Crystal Peak Minerals Inc. and has agreements to operate more than 28,000 additional contiguous acres.
On November 18, 2013, Crystal Peak Minerals Inc. announced the filing on SEDAR of a National Instrument 43-101 technical report entitled “NI 43-101 Technical Report Preliminary Feasibility Study of the Sevier Lake Playa Sulphate of Potash Project, Millard County, Utah” dated effective October 25, 2013 by CH2M HILL Engineers, Inc., Agapito Associates, Inc., and Norwest Corporation (the “Technical Report”). The Technical Report outlines the results of the Preliminary Feasibility Study (“PFS”) of Crystal Peak Minerals Inc. Sevier Lake Playa Sulphate of Potash Project located in southwestern Utah. Crystal Peak Minerals Inc. first reported the economic results of the PFS in a press release dated October 29, 2013. The PFS forecasts average annual SOP production of 300,000 metric tonnes (t) with an estimated Net Present Value (“NPV”) of $629 million (after tax, inflated, 8% discount rate) and an estimated Internal Rate of Return (“IRR”) of 20% (after tax, inflated). The PFS includes an updated Mineral Resource Estimate that includes 31.486 million tonnes of SOP in the Measured and Indicated categories, a 7% increase from previously published estimates. This increase is due primarily to the results of recent drilling.