POTASH STUDY: Karnalyte eyes initial 625,000 t/y project

SASKATCHEWAN - Calgary-based Karnalyte Resources has received a positive feasibility study for its Wynyard potash project 175 km east of Saskatoon. Construction could start early in 2012 with production targeted for early 2014 at an initial rate of 625,000 t/y potassium chloride using solution mining techniques.

The project will be expanded in phases. The initial phase of construction carries a price tag of $593 million. To reach the full 2.125 million t/y will cost a total of $1.98 billion. Operating costs are expected to be $129/t KCl. The property has proven reserves of 62.9 million tonnes and probable reserves of 92.0 million tonnes, sufficient for 60 years of operations.

Karnalyte is ready to move forward with detailed engineering and apply for environmental approval. The company has yet to raise the money for the first phase of construction. It is also considering a pilot plant at an additional cost of between $2 million and $3 million.

More information is available at www.Karnalyte.com.