Hot junior resource stock, small cap resource stock investment tips IC potash corp ICP.TO

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IC Potash Corp. (Symbol: ICP.TO)
Company Name:	IC Potash Corp.
HQ Location:	Toronto, Ontario
Company Website:	www.icpotash.com
Shares Outstanding	59.4 Million
Closing Price (April 19, 2010)	$0.60
Market Cap:	$35.6 Million
Average Daily Volume	137,800

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IC Potash Corp. - Chart

Business Overview

IC Potash Corp. is a Canadian junior potash exploration company listed at the Toronto Venture Exchange (TSX-ICP). It is developing its Ochoa New Mexico property covering more than 36,500 acres of land with the primary purpose of using polyhalite as feedstock to produce Sulphate of Potash ("SOP")- a premium priced potash that generally sells at premiums of 40% to 50% over the price of sylvite or Muriate of Potash ("MOP").

IC Potash intends to become a primary producer of SOP by mining Polyhalite from a large mine in New Mexico and using a simple, low cost and proven technology to produce SOP from Polyhalite. The Company plans to mine Polyhalite from a large mine in New Mexico, and use it as a feedstock for SOP production. + More info

What is interesting?

One of the very few junior potash exploration companies in North America with good potential to establish a sizable resource base and become a niche producer of sulphate of potash (SOP).
The company’s flagship project is the Ochoa Project in New Mexico, U.S.A. The project is in the heart of the known potash zone that has excellent infrastructure and well known potash producers such as Intrepid Potash Inc. (NYSE: IPI) and the Mosaic Corp. (NYSE: MOS).
The company has a NI 43-101 compliant inferred reserve of 366 MM MT of Polyhalite at an 80% grade that implies significant exploration potential for the company.
IC Potash is a niche potash player with a focus on sulphate of potash (SOP) which is a specialty non-chloride based potash fertilizer and sells at 40%-50% premium to the more common variety of potash- Muriate of Potash (MOP).
Company’s projects are in South East New Mexico, USA- safe and stable mining jurisdiction with very low geo-political risks.
The company has conducted a preliminary pre-feasibility study that indicates an operating cost of $180 per metric tonne for SOP, one of the lowest in the industry.
The company has put in place a very active 10 holes phase II drill program that will begin in May 2010. It also plans to commission the pre-feasibility study with a goal to establish a substantial indicated reserve.
The demand for potash is in a secular uptrend due to the growing demand for food in the fast growing emerging countries such as India, China and Brazil. This requires more use of fertilizer such as potash to grow more food. Demand for the speciality and premium potash such as SOP is stronger and growing due to its use in growing cash crops such as vegetables, fruits and tobacco.
The company has a strong and experienced management team and board of directors at the helm.

Risks

IC Potash Corp is an early stage exploration company. The commercialization risks associated with potash exploration and development are high and its prospects for discovering economically viable potash resources are uncertain. Potash prices can fluctuate and a decline in the Potash prices could impact the share price of the company adversely. Early stage exploration companies typically needs significant amount of capital and although currently well capitalized, IC Potash may require additional financing. This could result in shareholders’ dilution.

IC Potash Corp. News

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