A Large and Growing Proven Resource
Encanto and its Muskowekwan First Nations Partner have developed recoverable KCI potash resource of 162 million tonnes and Measured and Indicated (M&I) resource of 35.4 million tonnes on their lands. At an extraction rate of 2.8 million tonnes per year, the resource will support a solution mine life in excess of 70 years.
Encanto’s 100% interest in the Muskowekwan Potash Property covers 61,400 acres on the Muskowekwan First Nation Lands.
Encanto has completed 7 drill holes and a 3D seismic program on the MFN lands. A portion of the lands located North East of the Home Reserve has only had a 2D seismic program which the Company plans to cover with new 3D seismic program in order to further upgrade the resource. Feasibility studies commenced in January 2012.
Encanto is currently exploring domestic and international strategic partnerships for the financing, development and sale of potash production from its Muskowekwan JV Property.
In the Heart of Highly Active Potash Country
Encanto's potash properties are located in Saskatchewan - the Potash capital of Canada with more than 50% of the world's Potash reserves and home to some of the world's most established potash producers: Potash Corp, Mosaic & Agrium. Resources & infrastructure are well developed & highly accessible. Recent merger and acquisition activity in the sector include K & S Aktiengesellschaft which acquired Potash One for ~$435 million and BHP Billiton which acquired Athabasca Potash for ~$341 million. Rio Tinto, Yancoal and Vale are new entrants. Encanto is one of only 2 advanced junior potash companies left active in the area.
100% Mineral Rights
The Encanto Muskowekwan lease has continuous mineral rights on its property. We do not need to negotiate with private land owners. Working with the MFN is a critical advantage when it comes to reducing length of permitting time and potentially the length of time to production as we are required to only deal with two stakeholders (our First Nation partners and Aboriginal Affairs and Northern Development Canada, formerly INAC) for permitting.
Multiple Properties in Development
Encanto controls multiple properties with the potential for several potash mines.
A Strengthening Vertical Market
Potash is a key source of potassium, which is a natural component of fertilizer that increases crop yields and there is no known substitute. The world's population is growing by 75 million people per year. The only known way to feed this growing population is to increase crop yields with fertilizer and potassium obtained from potash is one of the key components. Global potash shipments are expected to climb to 64-66 million tonnes in 2014*, similar to the previous peak in 2007.
* per Mosaic's October 7th, 2013 Conference Call