Encanto Potash Corp and the Muskowekwan First Nation have engaged Golder Associates as a vital part of the next step in developing a significant potash mine in Saskatchewan. As part of Encanto’s previously stated plan to strive to significantly reduce both the OPEX and CAPEX for an advanced potash solution mine, Golder will prepare two studies for Encanto over the remaining summer months.
- A water study to finalize the most appropriate and viable water supply for the Muskowekwan potash project with regards to cost savings and environmental stewardship
- An Environmental Impact Study (EIS) gap analysis to determine all steps necessary to complete the full EIS and proceed with the Environmental safeguarding for the entire Muskowekwan potash project.
Chief Operating Officer Richard Lively: “After careful consideration, we decided to appoint Golder as our partner to move ahead for this very important aspect of our project. Golder has an immaculate reputation and a wealth of experience to draw from. We feel very confident having them as part of our team moving ahead. Golder’s experienced and dedicated team of professionals will be a great asset to Encanto and our plan to start moving this project forward is a meaningful and strategic manner.”
Golder’s inclusion comes at a time when the financial support of the Government of Canada via funding through Indigenous Services Canada to support the upcoming engineering steps of the project has become available. “After much hard work and open communication, this initial government demonstration of support for a major Encanto/Muskowekwan First Nation project couldn’t have come at a better time,” stated Mr. Lively.
With Golder on board, Encanto is confident in its ability to deliver multiple updates to its stakeholders and the investment community in fourth Quarter, 2018. These reports will form the basis of a firm work plan to finalize and deliver a technically advanced and construction ready project by November, 2019.
Through a joint venture agreement with Muskowekwan Resources Ltd, Encanto has secured a project land package which totals approximately 61,000 largely contiguous acres. The PFS dated February 28, 2013 titled Encanto Potash Corp. Technical Report Summarizing the Preliminary Feasibility Study for the Muskowekwan First Nations Home Reserve Project in South Eastern Saskatchewan, Canada confirms the Proven and Probable KCI Reserves totalling 162 Mt grading 28% KCl (average) which supports primary and secondary mining for over 50 years at an assumed annual rate extraction rate of 2.8 Mt of MOP.
The PEA dated May 24, 2017 titled NI 43-101 Technical Report on a Preliminary Economic Assessment and Preliminary Feasibility Study of the Muskowekwan Potash Project, South-Eastern Saskatchewan, Canada summarizes an alternative development option that supports primary and secondary mining of the Mineral Resources for 48 years at an annual extraction rate of 3.4 Mt of MOP. On December 30, 2016, Encanto signed a 20-year off-take agreement with the National Federation of Farmers’ Procurement, Processing, and Retailing Cooperatives of India Ltd., (NACOF) registered under the Ministry of Agriculture, Government of India to supply 5 Mt/y of potash.