Western Potash Delivers Scoping Study for Scalable Pilot Plant at Milestone - Seite 2

Results of the Pilot Study:

The Pilot Study provides an analysis of the potential for selective mining of the Milestone deposit, starting with a smaller scale, low capital cost pilot project. Included in the study is an analysis of a selective mining method relying on horizontally drilled wells selectively mining initially the Esterhazy potash member. The method of selective solution mining has been proven in industry; however, the exact mining method proposed in the Pilot Study has not to date been utilized in Saskatchewan. Other examples of producing operations employing some key aspects of the Pilot Study selective solution mining method include Intrepid Potash, Moab, Utah (Potash), who solution mine potash from flooded underground workings and horizontally drilled caverns, and ETI Soda, Turkey (Trona) and Natural Soda, Colorado (Nahcolite), who both solution mine using horizontal wells.

The Pilot Study envisions the simultaneous operation of three pilot production caverns. The horizontally drilled wells inject a Sodium Chloride (NaCl) saturated brine having a temperature higher than the in-situ rock formation temperatures. Potassium Chloride (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 crystallization facility, producing 145,600 tonnes of standard grade MOP per year.

The Pilot Study produced preliminary process flow diagrams, site layout drawings, mining cavern and drill pad layouts, along with equipment lists and other engineering data. Estimates of capital and operating costs were developed to AACE Class 4 +/- 25% capital and operating cost estimate standards.

Some of the advantages of the proposed methodology are:

• the capital cost will be less than for conventional solution mining;
• the surface foot print will be reduced due to the absence of a salt tailings facility; and
• the Project will provide a scalable production facility that has the potential to be expanded to meet future market requirements and changing investment appetites.

Key Highlights of the Pilot Study: