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 is a Wholly-owned subsidiary of Western Resources Corp.
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 outlined 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 included a resource estimate for the study area.
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. Read more about the Pilot Study.
In late 2016 AMEC Foster Wheeler together with Agapito Associates Inc. delivered a Final Report for Western Potash on the Phase I Project, formerly termed 'the Pilot Project' or "Pilot Study". Since completing the Report, Western has been focused on supplementing financing to allow construction and operation of the Phase I Project. In the meantime, we continue to finalize details regarding marketing and logistics, the construction and procurement strategy, permitting, infrastructure and community engagement.
The successful development of this technology along with favourable market conditions would allow Western to advance the engineering on Phase II - a 1.4 million tonne per year potash project followed by a second 1.4 million tonne per year expansion.
Some of the advantages of the proposed methodology are:
- the capital cost will be less than for conventional solution mining;
- the water requirements are half as much as a typical solution mine;
- 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.