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Mesa Uranium Adds More Potash to Its Growing Portfolio



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Mesa Uranium Adds More Potash to Its Growing Portfolio

The World Economic Forum says global investment in clean energy projects grew at an average rate of 47.5% per year since 2004.

Thats very strong growth. The clean energy revolution, however, has a problem.

The rapid growth is actually soaking up supplies of essential minerals faster they can be produced.

From the necessity for higher crop yields to support biofuel production to the lithium required by the millions of battery-powered cars expected to hit the roads to the dozens of nuclear power plants slated to come online in the next few years one thing is clear, theyre going to need a lot of certain natural resources.

And many companies are positioning themselves to provide the building blocks to the clean energy revolution. One of those companies is Mesa Uranium (TSX-V:MSA) which has lithium, potash and uranium exploration projects in development. And thanks to a recent announcement, it is has picked up a new asset, the Pine Valley Potash Project to add to its growing portfolio of projects.

Exploring for Increasingly Essential Minerals

Mesa Uranium is a company in a very unique position. It has acquired exploration properties focused on three resources getting a lot of attention: lithium, potash and uranium.

Pine Valley Potash Project

The lid is off the potash "story" once again. The hostile takeover bid of the Potash Corp of Saskatchewan (NYSE:POT) has put potash front and center in the financial community. And Mesa has acquired the rights to a high-grade potash project.

Mesa recently announced the signing of a Letter of Intent to acquire the Pine Valley Potash project in western Utah. The Pine Valley deposit consists of 82.7 million tons of ore containing 35.5% of the mineral alunite which contains potassium, the chief constituent of potash. The timing of this acquisition couldnt be better with the recent increased attention in the potash sector.

The processed products would be the fertilizer ingredients sulphate of potassium and ammonium sulphate and the metal aluminum. The alunite would be extracted by low-cost surface mining methods.

The potash bed was drilled and delineated in the 1970s by Earth Sciences Corp. The area is accessed by well maintained gravel roads and is 15 miles from a siding of the Union Pacific Railroads main line.

Mesa is currently designing a work program that will include drilling, metallurgical testing and base-line engineering and permitting studies.

Green Energy Lithium Project

The Green Energy Lithium project is one of the highest potential lithium projects in the United States. Its technically a lithium brine project located in Utah near the potash operations of Intrepid Potash (NYSE:IPI).

The project was initially discovered in the 1950s by explorers looking for oil. The initial exploration wells resulted in "blowouts" of a lithium brine solution. The blowouts sent brine gushing to the surface at a rate that reached as high as 1,000 gallons per minute.

Although this caused problems for oil explorers in the 50s, nearly five decades later it has become an asset. The brine doesnt need to be pumped to the surface like many other lithium brine projects.

On top of that, the brine is rich with other minerals as well. The brine solution contains 40% dissolved solids. Those solids include such high-value, industrial minerals as lithium, magnesium chloride, potassium, boric acid and bromine.

The project is also big. Historical exploration work shows the brine occurs across a 48 square mile area. And its open for expansion in all directions.

Moonshine Springs Uranium Project

The Moonshine Springs uranium project is Mesas 100% owned exploration-stage uranium property in Arizona located adjacent to a uranium deposit estimated to contain 4 million pounds owned by Denison Mines (TSX:DML).

Denisons deposit was initially discovered and explored by Exxon Minerals in the 1970s. It had an estimated potential development of 4 to 8 million pounds of uranium according to Exxon Minerals historic exploration results and studies.

Mesa has already proven the project contains uranium. The company has drilled 2 exploration holes containing uranium mineralization of:

Hole M-1: 7.5 feet grading 0.21% U3O8
Hole M-2: 4.0 feet grading 0.47% U3O8

But now Mesa is about to take its exploration efforts on Moonshine another step further.

Mesa has recently completed a radon soil survey to generate drilling targets. It has planned 9,800 of feet of conventional core drilling. And on June 21, 2010 the company announced it has received permits to get its exploration program underway.

Surviving to Thriving

Mesa has a couple big projects in two sectors with a lot of potential. But one of the most interesting aspects of it is that it is one of the few to survive the uranium boom and bust of the last decade.

As you might expect, it has been a volatile ride through all of that. Mesa shares have traded as high as $2 and as low as 3 cents in the last three years.

Whether its the large insider ownership (insiders own 34.7% of all outstanding shares), the ongoing development of its diverse portfolio of assets, $2.6 million market cap, or the very tight share structure, Mesa shares are back on the uptrend.

Share Structure:

Shares outstanding: 10,945,376
Fully-diluted shares outstanding: 12,467,210
Market cap (at 28 cents per share): $3.1 million
Insider Ownership: 34.7%

Taking the Lead

Clearly, Mesa Uranium has a lot going on. It has multiple projects in the works at the same time. And its going to take an experienced team to do it all successfully.

Take a look at who is leading Mesa:

Foster Wilson - President & CEO, Director - 25 years experience in exploration, development projects from reconnaissance to ore reserve estimation, permitting and feasibility studies for Placer Dome, Echo Bay, and Junior companies.

Joe Chan - Chief Financial Officer - Professional accountant with over 25 years of accounting, administration and system experience in the mining industry.

Brian Kirwin - Director, Non-Executive Chairman - is President and CEO of American Bonanza Gold Corp. and is an accomplished mining executive and explorationist at both Senior and Junior mining companies having leadership positions in various capacities from CEO to VP Exploration.

Giulio Bonifacio - Director - is President and CEO of Nevada Copper Corp. with over 25 years of experience with an in-depth knowledge of financial, regulatory and acquisition-related matters, and has been involved in or led several equity and debt financings.

Joe Guiffre - Director - is an attorney with over eighteen years of combined experience in business and legal matters, corporate finance, securities, mining, corporate structuring, project finance, mergers and acquisitions.

Bill Thompson - Exploration Manager - 12 years experience in western US. Mr. Thompson worked for Union Carbide Corporation and Atlas Corporation in the Uravan, Grants, White Canyon, Lisbon Valley Uranium belts.

Greg French - Technical Advisor - 25 years experience in the western US and Canada. Mr. French worked 15 years for Atlas Corporation, a major historic uranium producer in the Lisbon Valley Mining District.

The Bottom Line

In the end, the entire situation is a very straightforward one.

Clean energy is a rapidly growing industry. Its future, despite economic setbacks and the need for technological breakthroughs, is still exceptionally bright.

But the growth of clean energy has shown that supplies for some key minerals havent kept up. And its a safe bet clean energy will never come anywhere close to reaching its full potential without those critical natural resource building blocks.

Like we said early, clean energy has a problem. But all problems have a solution. And many companies are looking to develop the solutions to those problems.

Mesa Uranium has positioned itself as a developer of those solutions. Its assets could be very in demand for years to come. And the Mesa proven track record, management team, and assets could make the company into a genuine success.

Follow Mesa Uraniums development at

Click here for contact information

Sources:

Mesa Uranium Corporate Presentation
Dave Forest - Why Uranium Will Make Someone Rich
Lithium Consumption Growth - Credit Suisse
World Economic Forum - Green Investing

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