Name and Location
Vanguard potash project, Saskatchewan, Canada.

Client
Gensource Potash Corporation.

Project Description
The preliminary economic assessment (PEA) on the Vanguard project has formalised the conceptual engineering design for the project, and has become the prototype for Gensource’s small-scale production facilities with a target production rate of 250 000 t/y.

The PEA indicates that there is good potential for an economic potash operation using small-scale mining techniques. The company plans to mine the resource through selective dissolution using horizontal caverns. Six caverns, covering nominally two sections (one section = 2.59 km2) of mineral resource will be required to attain the planned 250 000 t/y production rate.

The PEA envisages processing the ore through cooling crystalisation, incorporating advanced energy efficiency measures. The production of potash product (nominally 96% purity potassium chloride) is accomplished by the removal of potassium chloride from the recirculating brine stream by temperature reduction.

Temperature reduction is accomplished by a flash cooling crystalliser, followed by a cooling surface crystalliser operation. The brine stream is continuously recirculated between the solution mining caverns and the process plant, picking up potassium chloride in the caverns and crystallising it into solid potassium in the process plant.
Plant utilities, including steam, natural gas, water, power and control are distributed from central locations to each process/mining unit operation.
Off-site utilities include power, natural gas and potentially potable water.

A rail spur is planned to be built to the plant site to enable all product to be transported by rail, resulting in no heavy-haul truck traffic on the existing road network. The project has a mine life of more than 100 years, based on an inferred resource of 64-million tonnes.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $322.59-million and an internal rate of return of 19.55%, with a payback of 4.8 years.

Value
The project will cost an estimated C$247-million to implement.

Duration
It will take eight to ten months to complete the development phase of the project, including engineering studies and environmental and regulatory licensing.
Construction will take 18 to 20 months to complete.

Latest Developments
The report has concluded that the resource should be upgraded to measured and indicated through drilling and three-dimensional seismic programmes.
The cost estimate to complete this work is estimated at C$2.6-million. Completion of this work is subject to Gensource obtaining additional financing.

Further, Gensource must complete a preliminary feasibility study for Vanguard. Completion of this work is subject to Gensource obtaining additional financing.
The determination of the prospects for commercial operations at the Vanguard project is dependent upon a feasibility study demonstrating economic and technical viability.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Gensource Potash Corporation president and CEO Mike Ferguson, tel +1 306 974 6414 or email mike@gensource.ca.