HNZ Potash, LLC

 

The first mineral deposit to ever be found on NZ's mineral estate by drilling, was potash. It was found in Arizona southwest of the Petrified Forest National Park. It was discovered in the 1960s following unsuccessful oil exploration drilling that disclosed thick evaporative strata. A creative geologic suggestion was made to look for accompanying potash rings in this evaporative basin setting. NZ and ARKLA thus came to joint venture an exploration program in 1965. The cost of this drilling sent NZ's meager earnings into the red for the first time ever, but NZ's stock (when NZ was a publicly traded company) responded well and soared to reach nearly 40 points in that year. 

 

Over the next five years, a deposit was delineated containing 72.8 million tons with a grade of 12.5% K²O. There was good geologic potential to further expand the deposit, but the economics were destroyed with the opening of huge, high grade mines in Saskatchewan. Hundreds of feet of halite (table salt) were encountered in this drilling.

 

The following excerpt comes from the Arizona Geological Survey, Circular 30 January 2002, Arizona Has Salt! Written by: Steven L. Rauzi: 

 

"Potash is present near the top of the salt interval. The potash in the Holbrook Basin minerals include sylvite, carnallite, and polyhalite. There has been no solution mining or commercial production of potash even though exploration drilling in the 1960s and 1970s indicated a potential of as much as 285 million tons of nearly 20 percent average grade K2O."

Potash Chart: location within the Permian Basin