Name of the Project
Wynyard carnalite project.

Location
Saskatchewan, Canada.

Project Owner/s
Karnalyte Resources and India-listed agribusiness firm Gujarat State Fertilisers & Chemicals (GSFC) made a strategic investment of about $44.7-million in Karnalyte in 2013, resulting in GSFC holding a 19.98% ownership stake in Karnalyte.

Project Description
The project proposes the construction of a solution mining facility at Wynyard, Saskatchewan, to produce a high-grade (97% purity) granular potash product.

Karnalyte intends to build the facility in three phases, with Phase 1 expected to produce an estimated 625 000 t/y, increasing by 750 000 t/y in Phase 2 and totalling 2.125-million tonnes a year with the addition of Phase 3.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Karnalyte Resources has received a strategic review report from MNP, which has concluded that the junior must find a “major industry partner” to develop the Wynyard potash project.

In its feedback on the report, the Karnalyte board has indicated that attracting another strategic partner with a strong presence in the industry could help overcome unfavourable market conditions, including low prices and low interest levels from financial institutions.

The board has also indicated that market sounding activities to date have shown industry partner interest, although the interest has been limited in terms of the number of players.

“It is indicative that there is additional potential with an aggressive and well-structured marketing effort,” Karnalyte has said.

Karnalyte has an agreement with its Indian strategic partner, GSFC, for an offtake of about 56% over 20 years in the expected production in Phase 1 of the project.

Besides an offtake agreement, other positives counting in Wynyard’s favour is that the mine will not produce tailings piles or ponds and that it will require limited use of fresh water, resulting in minimal surface impact.

Karnalyte has also pointed out that the oversupply in the potash market, which has created an ongoing structural problem, appears to be easing and that recent developments could signal a shift in upward pressure on prices.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Karnalyte Resources, tel +1 306 986 1486 or email info@karnalyte.com.