Muskowekwan Prospect
- Encanto has a 100% interest in the Muskowekwan Potash Property underlying 58,300 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 recoverable KCI potash resources of 130.7 million tonnes of Measured and Indicated (M&I) and 234.7 million tonnes of inferred on their lands. At an extraction rate of 2.5 million tonnes a year, the M&I resources along will support a solution mine life of 52 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 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
Drill Hole Assay Results
For complete details on all drill hole assay results for the Muskowekwan Prospect please click here.
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