Name of the Project
Wynyard carnalite project.

Location
Saskatchewan, Canada.

Client
Karnalyte Resources and India-listed agribusiness firm Gujarat State Fertilisers & Chemicals (GSFC) made a strategic investment of about $44.7-million in Karnalyte in 2013, resulting in GSFC holding a 19.98% ownership stake in Karnalyte. The strategic partnership between Karnalyte and GSFC provides Karnalyte with a significant competitive advantage in the marketplace, and is expected to provide GSFC with a secure supply of potash for years to come.

Project Description
The project proposes the construction of a solution mining facility at Wynyard, Saskatchewan, to produce a high-grade (97% purity) granular potash product.

Karnalyte intends to build the facility in three phases, with Phase 1 expected to produce an estimated 625 000 t/y, increasing by 750 000 t/y in Phase 2, and totalling 2.125-million tonnes a year with the addition of Phase 3.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
Karnalyte has completed the first phase of its optimisation programme for the Wynyard potash mine.

The company has, through a cold leaching process that lasted about three months, successfully developed an underground production cavern from which the potash brine solution will be mined.

"We are encouraged by the results from the first stage of the optimisation programme. It has the potential to significantly improve the already strong metrics of our project,” Karnalyte president Robin Phinney has said.

The company is now preparing to undertake the second stage of the optimisation programme, which will comprise a hot-leaching phase to produce a concentrated potash brine solution. This will be accomplished by injecting heated source water into the production cavern, recovering the concentrated brine solution and analysing the potash concentration levels.

The heating equipment, piping and natural gas supply has been installed for the second stage of the optimisation programme. The company expects the second stage to start this month, and that it will run until the end of October.

The company has secured sales of more than half of the planned 625 000 t/y potash output from the project’s first phase through an offtake agreement with GSFC, and will now focus on securing sales for the remaining 44% of its potash production from Phase 1.

The unique composition of the Wynyard carnallitite deposit enables the company to produce high-purity potash products with low sodium content.

Karnalyte has advised that it is exploring multiple options for the sale of its potash products, including entering into a strategic partnership with an existing potash producer in Saskatchewan.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Karnalyte Resources, tel +1 306 986 1486 or email info@karnalyte.com.