Highlights
- Buffalo Potash has engaged Rheaume Engineering Inc. to complete engineering design of an Initial Production Module (“IPM”) for the Disley Project;
- The IPM represents the first of three planned production facilities at Disley, with the IPM having a design capacity of 125,000 tonnes per annum (“TPA”) of potash production; and
- The engagement follows Buffalo’s recently completed Preliminary Economic Assessment, which outlines a modular development pathway for the Disley Project.
Buffalo Potash Corporation (TSXV:BUFF) (OTCQB: BLPTF) (the “Company” or “Buffalo”) is pleased to announce that it has engaged Rheaume Engineering Inc. (“Rheaume”), an Alberta-based engineering, procurement, and construction management (“EPCM”) firm, to complete engineering design of the Initial Production Module (“IPM”) for its flagship Disley Project (the “Disley Project”), located approximately 50 kilometers northwest of Regina, Saskatchewan.
Mr. Steve Halabura P.Geo., Buffalo Chief Executive Officer, commented: “The engagement of Rheaume Engineering marks a tangible next step in advancing the Disley Project from study to execution. The IPM is the first leg of our phased buildout and the foundation upon which we expect to establish initial soluble-grade potash production and early-stage revenue. Bringing an experienced engineering team to the table at this stage who is familiar with our patented mining methodology reflects our commitment to practical, efficient execution and capital allocation – the same approach that has defined the Disley Project from the outset.”
Brent Rheaume, Rheaume President, commented: “Rheaume Engineering has spent more than two decades building expertise at the intersection of mining and energy, and Buffalo Potash represents exactly the kind of project that defines that confluence. The modular vision Steve and his team have developed for potash production – in Saskatchewan and on the global stage – is one we are proud to support with everything we have built over those years.”
Engagement Overview
Rheaume was selected for its experience with potash and oil and gas producing systems. Rheaume was also an early contributor to the design of Buffalo’s Vortex Crystallizer, including the original engineering work for surface processing related to Buffalo’s HLD solution mining design. Rheaume is expected to complete detailed modelling of the Vortex Crystallizer, in addition to completing engineering and Issued for Construction (“IFC”) drawings for all surface components of the IPM. The IFC’s includes site, piping, tanks, buildings, Vortex Crystallizer, centrifuge, drawing baghouse, and all support equipment highlighted in the Process Flow Diagrams contained in the Preliminary Economic Assessment (the “PEA”).
Initial Production Module
The IPM is the first of three planned solution mining facilities at the Disley Project, with a design capacity of 125,000 TPA of soluble-grade potash, with first production targeted in Q1 2027 and a lower initial CAPEX requirement compared to the full Disley Project build-out.(2) At full build-out – comprising the IPM and two 500,000 TPA mines at Disley East and Disley West – the Disley Project would be expected to produce up to 1,125,000 TPA of potash, as contemplated in Buffalo’s recently released PEA. The modular approach is central to Buffalo’s strategy, designed for the Company to establish initial cash-flowing production at lower upfront capital cost, while building the operational and technical foundation for full-scale development.
The Disley Project
The Disley Project is located approximately 50 kilometers northwest of Regina and covers 10,610 hectares (Crown and Freehold mineral rights). The property is situated immediately adjacent to the east of the K+S Bethune potash solution mine and north of the Mosaic Belle Plaine potash solution mine – both of which are amongst the largest producing potash solution mines in the world.(1) In the opinion of management, the Disley Project is in one of the most favorable areas of Saskatchewan for potash solution mining (see Figure 1) as evidenced by the success of these neighboring projects. (1)
On May 22, 2026, Buffalo released the results of its maiden NI 43-101 Mineral Resource Estimate and Preliminary Economic Assessment for the Disley Project, prepared by Micon International Co Limited. The PEA outlined a phased, modular development plan contemplating full-scale production of 1,125,000 TPA of potash across three solution mining facilities, with an estimated after-tax net present value (NPV) of US$1.1B and estimated internal rate of return (IRR) of 30%.(2) Readers are encouraged to refer to Buffalo’s April 27, 2026 and May 22,2026 news releases and the NI 43-101 technical report filed on SEDAR+ for complete details of the PEA and Mineral Resource Estimate.
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