https://www.miningweekly.com

Western Potash Milestone pilot study reveals reduced risk profile

3rd July 2015

By: Tracy Hancock

Creamer Media Contributing Editor

  

Font size: - +

JOHANNESBURG (miningweekly.com) – A scoping study on TSX-listed Western Potash’s 100%-owned Milestone property, in southern Saskatchewan, has projected a significantly reduced risk profile and allowed for the staged development of the project.

TSX-listed Western Potash president and CEO Pat Varas pointed out in a statement on Thursday that in the current pricing environment, it had been “very difficult” to find solutions to finance and move Milestone forward.

But, he noted that in taking a step back and rescoping its Milestone property for a pilot-plant-scale selective solution mining operation, the company was greatly encouraged by the results.

The study was a preliminary economic assessment prepared by Novopro Projects in conjunction with Agapito Associates, of Milestone.

It outlined how Western Potash could effectively exploit the Milestone asset through reduced targeted levels of potential production, using selective potash solution mining techniques, while projecting a reduced capital expenditure (capex) and competitive operational expenditure (opex).

The pilot study also included a resource estimate for the study area.

Western Potash advised that the study reported the resulting after-tax/royalty projected net present value for the project to be C$56.7-million, with an internal rate of return of 25.2 %, assuming a nominal discount rate of 10%, capex of C$80.6-million, opex of C$80/t and a potash price of $315/t free on board Vancouver.

“The anticipated lower capex requirements, alternative potential production scenario and improvement in projected economics will potentially facilitate a fresh look at investment in the company by a much larger project financing and investment pool. With this new platform, management is looking forward to renewed interest by the investment community to fund the initial development of Milestone," Varas added.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION