We anticipate potash production in 2016.
CEO Corner
How soon will Western Potash be in production?
What is your strategy for the Milestone, Saskatchewan project?
Our strategy is simple. We have a Tier 1 deposit and recognize that the most value we can create for all stakeholders is by building the Milestone Potash Solution Mine in SK, Canada. We will require a partner to finance the construction at Milestone but our intention is to remain involved with the project.
What are the benefits of Solution Mining?
Solution Mining has many benefits.
It is less expensive to drill a series of production wells than to construct a pair of conventional shafts, undertake the initial underground development work and install mining machinery.
Conventional potash operations yield large amounts of waste salt that is usually piled at the mine site, as back filling of the salt is costly and difficult to undertake. Solution mines can avoid this problem by pumping back underground any solid waste in the form of a slurry. As the environmental regulations begin to tighten up this is a clear advantage for solution mines.
Solution mines do not have the specific problem of water inflow that threatens conventional underground mines.
Solution mines are able to mine irregular deposits, access deep reserves and have the option of making a high grade of its final product.
What are the benefits of traditional mining?
Traditional mining has the advantage of utilizing established technologies and therefore standardized economic models.
While the Capex may be higher than solution mine, operating cost may actually be lower in many situations as the primary source of energy would be electrical.
How much will it cost to reach production?
According to our Preliminary Feasibility Study effective October 31st, 2011, the capital cost estimate for the Milestone project to reach production is $3.299 billion.