Name and Location
Milestone potash project, Saskatchewan, Canada.

Client
Western Potash.

Project Description
A pilot study completed on the Milestone project has outlined how Western Potash can effectively exploit the Milestone asset through reduced targeted levels of potential production using innovative selective potash solution-mining techniques, while projecting a reduced-capital and competitive operating expenditure.

The study is based on a mineral resource in the Esterhazy member (the target mining horizon) in the study area, comprising a measured resource of 7.17-million tonnes grading 39.5% potassium chloride (KCl), an indicated resource of 11.56-million grading 39% KCl and an inferred resource of 1.77-million tonnes grading 39% KCl.

The study provides an analysis of the potential for selective mining of the Milestone deposit, starting with a smaller-scale, low-capital-cost pilot project.

The study includes an analysis of a selective mining method relying on horizontally drilled wells initially mining the Esterhazy potash member.

Selective solution mining has been proven in industry; however, the exact mining method proposed in the pilot study has to date not been used in Saskatchewan.

Envisioned is the simultaneous operation of three pilot production caverns. The horizontally drilled wells inject a sodium chloride (NaCl) saturated brine that has a temperature higher than the in situ rock formation temperatures.

KCl is then selectively dissolved within the potash formation, leaving a lattice of NaCl behind. KCl-rich brines are then brought to surface through each production well. KCl recovery is achieved through delivery of the resultant KCl-rich brine to a surface crystallisation facility, producing 145 600 t/y of standard-grade muriate of potash.

The project has a 12-year mine life.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value of C$56.7-milion and an internal rate of return of 25.2% assuming a nominal discount rate of 10%.

Value
The project is expected to cost about C$80.6-million.

Duration
Not stated.

Latest Developments
The pilot study has concluded that the project is economically viable.

The successful operation of the pilot plant will support potential future feasibility studies of a larger commercial scale facility.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Western Potash, tel +1 604 689 9378 or email info@westernpotash.com.