Encanto Potash is a Potash
exploration company


Muskowekwan Prospect

  • Encanto has a 100% interest in the Muskowekwan Potash Property underlying 61,400 acres on the Muskowekwan First Nation lands.
  • Encanto Potash and the Muskowekwan partnership have continuous mineral rights to the property with strong community support in terms of jobs and training/education on this project.  Both parties have a strong mutual interest in developing the property.
  • 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
  • Encanto and its Muskowekwan First Nations Partner have developed 162 million tonnes of recoverable KCI Proven and Probable Reserves and Measured & Indicated (M&I) Resources of 35.4 million tonnes. 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 has completed 7 drill holes and a 3D seismic program on the MFN lands.  A portion of the TLE lands located North East of the Home Reserve has only had a 2D seismic program but the Company plans to cover that portion with 3D seismic in order to further upgrade the resource.  Feasability studies are expected to be completed by year end 2012. 
  • The following table provides a summary of the financial model as detailed in the updated Pre-Feasibility Study as of June 4, 2013. Please click here for access to the full release.
Realized Potash Price (FOB Vancouver) $460/t standard
$485/t granular
Discount Rate 10%
Inflation Rate 2%
OPEX at full capacity
(includes utilities, labour, maintenance, reagents, fuel, insurances and municipal taxes)
Sustaining capital cost
(includes brine field and Tailing Management Area extensions)

Logistics Costs (rail and port) $50.50/t
Taxes and Royalties
(includes Potash Production Tax, Crown Royalty and Saskatchewan Resource
Surcharge, average over the life of the project)
Initial CAPEX
(includes contingency and escalation)
$2.86 billion
Deferred CAPEX $130 million
All CAPEX and OPEX costs are in $CAD, revenues are in $US
US to CAD exchange assumed as 1.
Annual Production rate 2.8 Mt of K62 grade potash (98% KCl)
Construction Start Date Q2 2014
Mine Start up Q1 2017
Lifespan of Project 50 years +


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

Drill Hole Assay Results

For complete details on all drill hole assay results for the Muskowekwan Prospect please click here.