Sage Potash Confirms Multiple Water Bearing Zones at Sage Plain Project - Advancing Development Strategy

Sage Potash confirms two saline water sources for future solution mining at Sage Plain Project.

What the company is saying

Sage Potash Corp. is emphasizing the successful identification of two saline, non-potable water-bearing zones at the Peterson 1 well within its Sage Plain Potash Project in southeast Utah. The company frames these results as a critical step in de-risking the project, highlighting that the water sources align with its existing water rights, which authorize up to 185,000 cubic meters of brackish groundwater annually for processing and solution mining. CEO J. Patricio Varas states that water is a critical component for solution mining and that these findings support the project's development. The company details the technical process, including three Drill Stem Tests (DSTs) conducted by Northstar Drillstem Testers Inc., and presents comprehensive water chemistry data from ACZ Laboratories, Inc. Sage Potash also notes that the results will be incorporated into ongoing engineering studies and an updated NI 43-101 resource estimate. The tone is confident and factual, with technical validation provided by Greg Vogelsang, P.Geo., P.Eng., Vice President, Project Development, and review of DST data by RESPEC LLC.

What the data suggests

The hydrogeological testing at Peterson 1 confirms two distinct saline water-bearing zones: DST 1 in the Cutler Formation (1,033–1,071 m) with a preliminary yield estimate of 7 m³/h (75 gpm) and DST 3 in the Lower Cutler/Rico Formation (1,295–1,334 m) with a yield of 4.5 m³/h (20 gpm). Both zones produced non-potable, sodium-chloride type water with dissolved solids of 32,400 mg/L (DST 1) and 79,600 mg/L (DST 3), suitable for solution mining but not for potable or agricultural use. The company's water right allows for up to 185,000 cubic meters of brackish groundwater withdrawal annually, and the tested intervals match the permitted depths. An additional high-permeability zone was identified in the Honaker Trail Formation, with 12.7 cubic meters of drilling fluid lost and ongoing losses of 1.6 cubic meters per hour, suggesting further water sourcing potential. All technical results are preliminary and will be integrated into future engineering and resource studies. No financial metrics, production forecasts, or economic assessments are disclosed, and all operational data remains at the technical evaluation stage.

Analysis

The announcement provides detailed, specific technical results from hydrogeological testing, including intervals, yields, pressures, and water chemistry, as well as confirmation of regulatory water rights. The tone is positive, but the language remains proportionate to the evidence: most claims are factual and realised, with only a minority of statements projecting future use of the water for solution mining or referencing incorporation into future engineering studies. The forward-looking claims are reasonable next steps rather than exaggerated promises. However, the project remains in a pre-production, long-term development phase, and the benefits of these results (i.e., actual mining or revenue) are not imminent. The capital intensity flag is set because advancing to solution mining will require significant investment, but no immediate earnings impact is expected. There is no narrative inflation or overstatement; the technical disclosure is credible and measured.

Risk flags

• ●The project remains in a pre-production, technical evaluation phase, with no immediate pathway to cash flow or revenue; all disclosed results are preliminary and require further engineering and economic validation.
• ●Water yield estimates are based on short-duration DSTs, which may not reflect long-term sustainable production rates; additional testing is required to confirm actual water availability for solution mining.
• ●The capital intensity of advancing to solution mining is high, and no information is provided on project financing, cost estimates, or funding sources, leaving uncertainty about the company's ability to move from technical validation to development.
• ●There is operational risk in scaling up from these initial hydrogeological results to full project implementation, including permitting, engineering, and potential environmental or community challenges.
• ●No resource or economic assessment figures are provided in this update, so the overall economic viability of the Sage Plain Potash Project remains unquantified at this stage.

Bottom line

Sage Potash has confirmed two saline water-bearing zones at its Sage Plain Project, with preliminary yields of 7 m³/h and 4.5 m³/h and dissolved solids levels of 32,400 mg/L and 79,600 mg/L, respectively. These results align with the company's existing water rights and provide a technical foundation for future solution mining operations, but all findings are preliminary and require further validation through engineering studies and resource updates. No financial, production, or economic data are disclosed, and the project remains at a long-term, pre-revenue stage. The announcement demonstrates technical progress but does not alter the project's risk profile or provide near-term catalysts. Investors should watch for future updates on engineering, resource estimates, and financing to gauge the project's advancement toward commercial viability. The key takeaway is that Sage Potash has de-risked a critical input for solution mining, but the path to production and cash flow remains long and capital-intensive.

Announcement summary

(TSXV:SAGE, OTCQB:SGPTF) Sage Potash Corp. announced positive hydrogeological testing results from the Peterson 1 well at its flagship Sage Plain Potash Project in southeast Utah. Two saline, non-potable water-bearing zones were confirmed within the project area, with preliminary results supporting their potential use as future process water for solution mining operations. The identified zones occur at depths consistent with the Company's existing water right, which authorizes up to 185,000 cubic meters of brackish groundwater annually for processing and solution mining. Northstar Drillstem Testers Inc. conducted three inflate-straddle Drill Stem Tests (DSTs) over 38-meter intervals of the 8¾ inch hole between July 17 and July 19, 2026. DST 1 (Cutler Formation, 1,033 - 1,071 m; 3,390 - 3,515 feet) recovered 663 m (2,175 feet) of formation water, with shut-in pressures of 1,068 psig and 1,061 psig, and a preliminary yield estimate of 7 m³/h (75 gpm). DST 2 (Lower Cutler/Rico Formation, 1,250 - 1,288 m; 4,100 - 4,225 feet) recorded a shut-in pressure of 1,345 psig but produced negligible inflow. DST 3 (Lower Cutler/Rico Formation, 1,295 - 1,334 m; 4,250 - 4,375 feet) recovered 610 m (2,000 feet) of formation water, with shut-in pressures of 1,434 psig and 1,419 psig, and a preliminary yield estimate of 4.5 m³/h (20 gpm). Fluid samples from DST 1 and DST 3 were analyzed by ACZ Laboratories, Inc.; DST 1 had a calculated dissolved solids content of 32,400 mg/L and DST 3 had 79,600 mg/L, both sodium-chloride type waters and non-potable. The Utah Division of Water Rights approved the Company's 20-year Fixed-Time Application (Water Right 09-2684, Application F83735) in July 2023, authorizing withdrawal of up to 150 acre-feet annually of brackish water from an underground aquifer at approximately 1,200 meters (3,950 feet) depth. An additional high permeability zone was identified in the Honaker Trail Formation between 1,408 and 1,445 m (4,620 and 4,740 feet), with approximately 12.7 cubic meters (80 barrels) of drilling fluid lost and continued losses of 1.6 cubic meters (10 barrels) per hour to 1,509 m (4,950 feet), indicating a highly permeable, high-transmissivity horizon. The hydrogeological results will be incorporated into ongoing and future engineering studies and the updated NI 43-101 resource estimate. The scientific and technical information was reviewed and approved by Greg Vogelsang, P.Geo., P.Eng., Vice President, Project Development for Sage Potash. J. Patricio Varas is CEO and Director of Sage Potash.

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