Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) (the “Company” or “Buffalo“) is pleased to announce the completion of a Preliminary Economic Assessment (“PEA“) and concurrent release of its maiden 43-101 Mineral Resource Estimate for its 100%-owned Disley Potash Project (the “Disley Project”), located in Saskatchewan, Canada.
The PEA has been filed and can be found under the Company’s profile on SEDAR+ (www.sedarplus.ca) and on the Company’s website (www.buffalopotash.ca).
PEA & Mineral Resource Estimate Highlights
- Total production of 1,000,000 tonnes per annum (TPA) of K62 granular-grade Muriate of Potash (MOP) and 125,000 TPA of K62 soluble grade MOP
- After-tax NPV(1)(8) of US$1.1B and IRR(1) of 30%
- US$639M initial CAPEX estimate, including US$128M in contingency
- Estimated US$55/t MOP OPEX (Table 4)
- Measured and indicated tonnage of 1,671.5 million metric tonnes at an average grade of 34.8% KCl, yielding 582 million tonnes of KCl
- Over 50 years of mine life at 1,125,000 TPA based on current resource estimate (Table 2)(2)
- The advancement of a Feasibility Study (“FS”) for Disley East and Disley West (the “HLD Mines”) will run concurrent with Initial Production Module (“IPM”) construction, with FS completion representing the key decision gate for proceeding to construction of Disley East and Disley West(3)
(2) Based on Measured and Indicated resource estimate of 582Mt at 34.8% KCl.
(3) The PEA does not constitute a feasibility study and does not demonstrate economic viability
Mr. Steve Halabura P.Geo., Buffalo Chief Executive Officer, commented: “Since founding Buffalo Potash in 2018, the team and I have invested years of disciplined work – geological, technical, and strategic – to systematically unlock the potential of modular selective solution potash mining in Saskatchewan, the key being Buffalo’s Disley Project. Having spent my career working in Saskatchewan potash, I had a strong conviction from the beginning that Disley had a substantial resource endowment, and this Mineral Resource Estimate confirms exactly that. The PEA illustrates both low capex per tonne and operating cost per tonne, as well as setting a new environmental standard for how potash production should look in the 21st century – no tailings stored on surface and minimal freshwater usage.”
Mr. Halabura continued: “The team and I believe the Disley Project represents the next generation of Saskatchewan potash solution mining and are excited to begin development of the Initial Production Module, which will be the first leg of this buildout and is expected to bring soluble-grade potash production online within the next 12 months. During the development of the Initial Production Module, we will also test our patent-pending Vortex Crystallizer, alongside an industry standard crystallizer, which has the potential to significantly reduce the capex of the Initial Production Module and further potential build-outs. With global attention turning to the security of critical supply chains, the urgency to bring reliable, jurisdiction-stable potash production online has never been greater. This is a proud moment for our team, our shareholders, and the stakeholders that have supported us along the way – and we are just getting started.”
Conrinue at Buffalo Potash
—
