Muskowekwan Prospect
- Encanto has a 100% interest in the Muskowekwan Potash Project underlying 16,831 acres on the Muskowekwan First Nation Home Reserve.
- In March 2011, Encanto released a NI 43-101 Resource Report from North Rim Exploration on the Muskowekwan project confirming grades and favourable potash resource calculations.
- A favourable Preliminary Economic Assessment (PEA) report prepared by Wardrop, a Tetra Tech company, leading provider of engineering consulting services to the potash and mining industries, was announced in August 2011. Based on the analysis in this report, Encanto intends to pursue the development of a solution mine for a number of reasons including longer mine life, lower CAPEX, higher rate of return and shorter time to production as well as better employment possibilities for our First Nation partners. For full details on this PEA report, please click here
The following table provides a summary of the preferred solution mining method analyzed on the Home Reserve land package forming just the first half of the Muskowekwan Project:
| |
Solution Mine |
| Indicated Resource (% KCL) |
79.1 MMt @ 29.4% |
| Inferred Resource (% KCL) |
60.5 MMt @ 29.7% |
| Initial Mine Life (Indicated) |
32 years |
| Possible Additional Mine Life (Inferred) |
24 years |
| Annual Production (Primary & Secondary) t KCL |
2,500,000 tpy |
| Total Estimated Capital Cost |
$2,418,100,000 |
| Project Unit Operating Cost/Tonne |
$68.14/t KCL |
| Estimated Net Present Value (NPV10) |
$2,859,000,000 |
Estimated After Tax & Royalty (IRR) @ $450 t KCL
(Base Case) |
24.0% |
| Estimated After Tax & Royalty (IRR) @ $500 t KCL |
26.6% |
| Estimated After Tax & Royalty (IRR) @ $400 t KCL |
21.3% |
For full disclosure regarding Encanto and its projects, including detailed technical information and all applicable risk factors and cautionary statements, investors are directed to review Encanto's filings on www.sedar.com and on its website at www.encantopotash.com
- Encanto Potash and the Muskowekwan partnership have 100% continuous mineral rights to the property with strong community support in terms of jobs and training/education on this prospect. Both parties have a strong mutual interest in developing the property.
- Upon successful completion of the Treaty Land Entitlement (TLE) designation process in Q4 2011/Q1 2012, Encanto will have 100% interest in an additional 15,500 acres that are currently governed by a J.V. Agreement with the Muskowekwan First Nation.
- Further to this TLE development, Encanto is pleased to confirm that it has mobilized a rig to the TLE lands and drilling has commenced (September 2011). Picture will adjoin this bullet
- Completion of these further two (2) planned drill holes will allow for the calculation and release of an additional and updated 43-101 compliant resource for the expanded Muskowekwan property.
Drill Hole Assay Results
For complete details on all drill hole assay results for the Muskowekwan Prospect please click here.
|
|
|