HOLBROOK BASIN PROJECT

The Holbrook Basin project is located 7 miles east of Holbrook, Arizona.  The project sits atop a large salt basin that is known as the Holbrook Salt Basin.  In the 1960’s and 1970’s Arkla Exploration Company and Duval Corporation drilled more than 100 holes exploring for potash in the Holbrook Basin.  Arkla and Duval reported the presence of the potassium minerals sylvite (KCl), carnallite (KMgCl3), and polyhalite (K2Ca2Mg(SO4)4*2H2O).  In August 2008 the Arizona Geological Survey published an open file report (OFR 08-07), based on its review of the historic drilling data, which suggested the potential for further potash exploration in the Holbrook Basin.

Project Holdings

The AZGS report shows the potash zone in the Holbrook Basin covering approximately 600 square miles.  Passport currently controls over 81,000 acres of land in the Holbrook basin, or approximately 126 square miles.  The AZGS report also showed that the depths of the potash deposits are shallow by industry standards, occurring between 800 and 1200 ft.

Infrastructure

The proximity to key infrastructure adds great potential to the Holbrook Basin Project. The project situates near rail, interstate, and power for utilities. The BNSF rail yard is located in Holbrook less the 7 miles away, with the rail line running along Passport’s land holdings. Interstate 40, formerly known as Route 66, runs adjacent to the project and is a major artery connecting California with the rest of the United States. Power is readily available as a major power generation station, the Coronado facility, is located within 25 miles. 

Current Passport Program

Passport is utilizing the historic records combined with its own drilling program and seismic testing to substantiate the potash grade and quantity on its properties.  A total of 30 new holes have been drilled on Passport’s holdings since 2009, as well as 100 line miles of seismic survey.  On November 1, 2011 Passport received a NI 43-101 Technical Report from SRK Consulting, which identified an exploration potential for Passport’s holdings in the Holbrook Basin estimated to range between 460 million to 500 million metric tonnes KCL.*

* The potential quantity and grade is conceptual in nature.  There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.