Junior solutions miner Gensource Potash Corp., Saskatoon, said on March 22 it has completed its National Instrument (NI) 43-101 Technical Report, providing the most current technical and economic information for its first project, the Tugaske Project. It said the project is nearing completion of the non-recourse financing process with its debt and equity partners – aiming to move towards construction later this year.
“Since our last technical report, the company has grown rapidly and the project has progressed notably,” said Mike Ferguson, Gensource President and CEO. “Gensource and our partners remain confident that the Tugaske Project, as validated by our team of experts and disclosed in this 2021 Technical Report, is technically and economically robust – and as such, we continue to move as swiftly as possible to complete the financing process in order to see the project realized. We are pleased to share the updates on our first project, and look forward to more exciting announcements to come.”
Key milestones have already been achieved, including securing a customer, Helm Fertilizer Corp., for 100 percent of the intended production of 250,000 mt/y of granular potash. The company has adjusted its production for the U.S. market. The product will be pink or white and SGN 300 granular.
There will also be a 25,000 st storage facility at the project site, with a bulk railcar track with the ability to load and ship both by bulk rail or truck. Helm will take title to the product at the project site.
Other milestones include: additional resource confirmation drilling and geological studies focused on operational items; arranging for the senior debt facility; attracting potential equity partners; advancing engineering and design efforts; completing land control activities to enable the project to proceed into construction smoothly; selection of key vendors; advancing long-lead procurement; and completion of a FEED (Front End Engineering and Design) level study, ready for full execution.
Total capital expenditure for the project is put at US$261.9 million. Construction will take 24 months, with peak construction work force of approximately 150.
Operating expenses are put at US$47.48/mt KCI, with the major expense being natural gas. The all-in cost is put at $79.87/mt. The operating personnel count is 46 full time staff members.
The study puts proven and probable reserves of 14.5 million mt, which indicates a minimum expected mine life of at least 58 years based on annual production of 250,000 mt. However, Gensource said economic analysis only considers 40 years of full production.