Sage Potash Corp. (TSXV: SAGE) (OTCQB: SGPTF) announced positive hydrogeological results from the Peterson 1 well at its flagship Sage Plain Potash Project in southeast Utah, confirming two saline, non-potable water-bearing zones that could serve as process water sources for future solution mining operations. The company states the results align with its existing Utah water right, which authorises up to 185,000 cubic metres of brackish groundwater annually. Investors may be watching how these findings support Sage Potash's broader development and engineering pathway for the project.

Key Points

  • Sage Potash Corp. (TSXV: SAGE) (OTCQB: SGPTF) operates the Sage Plain Potash Project in Utah's Paradox Basin
  • Two saline, non-potable water-bearing zones confirmed at the Peterson 1 well via Drill Stem Tests conducted between July 17 and July 19, 2026
  • DST 1 (Cutler Formation) yielded a preliminary estimate of 7 m³/h; DST 3 (Lower Cutler/Rico Formation) yielded 4.5 m³/h, per RESPEC LLC review
  • Hydrogeological results will be incorporated into ongoing engineering studies alongside the updated NI 43-101 resource estimate

Peterson 1 Drill Stem Test Results at Sage Plain

Northstar Drillstem Testers Inc. completed three inflate-straddle Drill Stem Tests over 38-metre intervals at the Peterson 1 well. DST 1, targeting the Cutler Formation at 1,033–1,071 metres depth, recovered approximately 2.8 cubic metres of formation water and recorded shut-in pressures of 1,068 and 1,061 psig. DST 3, targeting the Lower Cutler/Rico Formation at 1,295–1,334 metres depth, recovered approximately 2.5 cubic metres and recorded shut-in pressures of 1,434 and 1,419 psig. DST 2 produced negligible inflow and was excluded from water chemistry analysis as laboratory results confirmed the recovered fluid was not representative of formation water.

Water Chemistry Confirms Suitability for Solution Mining Processes

Fluid samples from DST 1 and DST 3 were submitted to ACZ Laboratories, Inc., a NELAC-accredited laboratory. Both samples are sodium-chloride type waters. The DST 1 sample recorded a calculated dissolved solids content of approximately 32,400 mg/L, while the DST 3 sample recorded approximately 79,600 mg/L. The company states both waters are non-potable and unsuitable for agricultural or domestic use. Sage Potash considers sodium-chloride concentrations well below salt saturation, retaining dissolving capacity adequate for solution mining. Specific process design requirements, the release states, will be addressed in future engineering studies.

Alignment With Sage Potash's Existing Utah Water Right

The Utah Division of Water Rights approved the company's 20-year Fixed-Time Application in July 2023, authorising withdrawal of up to 150 acre-feet of brackish water annually to support processing and solution mining. The permit contemplated sourcing brackish water from an approximate depth of 1,200 metres, a target depth the company says is directly validated by the productive horizons confirmed in DST 1 and DST 3. An additional high-permeability zone was also encountered in the Honaker Trail Formation, which the company identifies as a target for future groundwater evaluation, though no DST was conducted at that interval.

Integration Into Sage Plain Engineering Studies

The company states hydrogeological results will be incorporated into ongoing engineering studies alongside the updated NI 43-101 resource estimate. RESPEC LLC, which completed the company's September 8, 2025 resource estimate, reviewed the DST data and provided preliminary yield estimates. The qualified person for the technical disclosure is Greg Vogelsang, P.Geo., P.Eng., Vice President, Project Development. The immediate share price impact was not clear from available public information.