Western Potash Corp. ("Western" or the "Company") is a development stage potash company focused on building a solution mine on the Milestone Project located in southern Saskatchewan, Canada. The Company intends to develop this world-class Milestone potash deposit in an ecologically sustainable, economically efficient and socially responsible manner. The Company has raised in excess of $200 million CAD from institutional and retail investors, including the IPO in May 2008.
In July, 2015, the Company announced the completion of a Scoping Study for a Pilot Plant Scale Selective Solution Mining Operation on the Milestone Project property (the "Pilot Study"). The Pilot Study is a preliminary economic assessment and was prepared by Novopro Projects Inc. in conjunction with Agapito Associates Inc.
The Pilot Study outlines how the Company can utilize the Milestone asset through reduced levels of potential production using innovative selective solution mining techniques. Reducing the CAPEX and maintaining a competitive OPEX were key goals throughout the process. The Pilot Study also includes a resource estimate for the study area.
The Pilot Study reports that the resulting after-tax/royalty projected Net Present Value is $56.7M CAD, with an Internal Rate of Return of 25.2 % (assuming a nominal discount rate of 10%), CAPEX of $80.6M CAD, OPEX of $80 CAD per tonne, and a potash price of $315 USD per tonne FOB Vancouver.
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.
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.
Read more about the Pilot Study.