Gensource Potash Corporation (“Gensource” or the “Company”)
(TSX.V: GSP) is pleased to announce the results from the detailed
feasibility study (“Study” or “FS”) for its Vanguard One
Potash Project (“Vanguard”, or “Project”) in Saskatchewan.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170531006367/en/
*Figure 1: 3D Model of the Gensource Small Scale Potash Facility (Graphic: Business Wire)
The FS was completed by an integrated team, consisting of ENGCOMP
Engineering and Computing Professionals Inc. of Saskatoon, SK and its
engineering sub-consultants, South East Construction L.P. of Esterhazy,
SK, Terra Modelling Services Inc. of Dalmeny, SK, Innovare Technologies
Ltd. of Carlyle, SK, Golder Associates Ltd. of Saskatoon, SK, and
Whiting Equipment Canada Inc. of Welland, ON. These companies are
experts in their respective fields, and bring best-in-class Saskatchewan
potash knowledge and experience to the Project. The integrated team
joined together the engineers, designers, fabricators, and construction
contractors to collaborate on the design, constructability, and
optimization of key projects elements. This integrated approach supports
the development of a solid capital cost estimate and project schedule,
which bolsters confidence in the overall Study.
Gensource’s President & CEO, Mike Ferguson, said, “We are delighted to
have completed the feasibility study for Vanguard, and are even more
pleased that, as we dig deeper into the detail, the chosen mining and
processing methods continue to affirm that Gensource has selected the
right approach to potash production. Not only do we have a world class
resource, but the project also provides a strong return on investment,
in part because it is small and easily scalable, and all the while
setting a new bar for environmental responsibility in the development of
new potash production. The results of the Study speak for themselves:
even in this time of low potash prices, and even with Gensource’s
conservative assumptions on potash price into the future and on-going
sustaining capital costs for the operation, the project is technically
and economically robust. We are excited to take the Vanguard Project to
the next step – confirming the construction financing and then into
construction and ultimately, operation. We are more convinced more than
ever that this is the way to produce potash in the 21st
century.”
The Study was initiated in October 2016 with a planned completion date
of Q2 2017, a goal which has now been met. Effort invested in
engineering, design, management, procurement, estimating, planning, and
report preparation exceeded 20,000 hours over the Study period. A
National Instrument (NI) 43-101 technical report will be filed within 45
days of this news release, and will also be available on the Company’s
website.
The FS was undertaken, financed and completed directly by Gensource
Potash Corporation and it represents the next step in the Company’s
drive to bring new technologies and new business approaches to the
potash industry. It is based on engineering and cost estimating methods
and levels of effort sufficient to support an AACE International Class 3
capital cost estimate – key to adding certainty to both the engineering
design as well as construction costs and schedule for the project.
As background, the Company’s new “business + technology” approach to
potash utilizes a small-scale production model that has the following
features:
-
It allows for vertical integration of the mine with an identified
market partner,
-
It facilitates lower capital expenditures (CAPEX), and is therefore
more readily financed, together with site-based operating costs (OPEX)
that are at the low end of the lowest quartile of all potash
operations globally, and
-
The selective solution mining techniques continue to exhibit a
significantly reduced environmental footprint, with no salt tailings
on surface, no brine ponds or other brine control structures, and no
requirement for surface water consumption. Consequently, the Company
hopes that permitting the Vanguard One project will be easier than a
typical potash project.
See *Figure 1: 3D Model of the Gensource Small Scale Potash
Facility
FS SUMMARY
The following are general highlights from the
Study:
General:
Table 1: FS Highlights
Parameter
|
|
Results
|
Project capacity:
|
|
250,000 t/y final product, standard grade (“MOP”, or “potash”)
|
Mine life:
|
|
See Geology section below
|
Mining method:
|
|
Selective dissolution using horizontal caverns
|
Processing:
|
|
Cooling crystallization incorporating innovative energy efficiency
measures
|
Product storage:
|
|
Intermodal shipping containers covering 7 days of operation
(typical) on rotation, with an additional 14 days of container
storage available on-site as needed
|
Product Transport:
|
|
$100/t transportation and logistics to overseas destination included
in the economic analysis, based on quotations received
|
CAPEX:
|
|
$CAD 279M including contingency – (~$US 210M at today’s nominal
exchange rate of 1.33)
|
OPEX:
|
|
$CAD 53.23/t final product ($US 39.54/t at today’s nominal CAD/US
exchange rate of 1.345 as set by the Bank of Canada May 25, 2017).
The major components of OPEX are natural gas delivered to site at
$CAD 3.71/GJ and operating personnel count of 46 full time staff.
All operating costs were inflated at 1.5% per annum. Natural gas
prices were taken as a 5-year forecasted average as per Sproule
Associates Ltd., April 2017 and inflated annually.
|
Sustaining CAPEX:
|
|
Average annual sustaining capital of $CAD 3.29 million ($US 2.91
million) or $CAD 15.68/t ($US 11.65/t) per year includes full cavern
replacement every 14 years, annual well work-overs and 2% of plant
site equipment. Sustaining capital is inflated at 1.5% per annum.
|
Construction:
|
|
22-month construction period, peak construction work force of
approximately 150.
|
CAPEX:
The total project capital
construction cost is estimated at $CAD 279M, including contingency –
(~$US 210M at today’s nominal exchange rate of 1.345)
The following is a summary of the Class 3, Capital Cost Estimate,
summarized by project area:
Table 2: CCE Summary
AREA
|
|
$CAD
|
Mining
|
|
$
|
23,738,000
|
Wellfield
|
|
$
|
17,304,000
|
Process Plant
|
|
$
|
70,610,000
|
Product Storage & Loadout
|
|
$
|
957,000
|
Site Infrastructure
|
|
$
|
27,297,000
|
Offsites
|
|
$
|
6,877,000
|
Non-Process Facilities
|
|
$
|
29,550,000
|
Project Indirects
|
|
$
|
77,972,000
|
TOTAL (Pre-Contingency)*
|
|
$
|
254,305,000
|
Contingency (P75)
|
|
$
|
25,564,000
|
GRAND TOTAL
|
|
$
|
279,869,000
|
*A statistical analysis was completed, using Palisade’s @Risk software,
to yield a range of probable project costs and aid in the determination
of a probabilistic contingency to apply to the project. A contingency of
$25,564,000 was selected, representing the value from the 75th
percentile of the analysis output. The 75th percentile (or
Level of Confidence) value means that 75% of the total project cost
outputs from the statistical analysis were equal to or less than this
value.
Economic Analysis:
The financial
performance of the project is shown in table below, for a range of
product prices and costs of capital.
Table 3: Financial Performance Post Potash Production Tax, Royalties,
Levies and Surcharges
Price/Tonne US$
|
|
Project IRR
|
|
NPV @
|
|
Opp Margin
|
|
Payback (Yrs)
|
|
|
|
|
|
|
|
|
|
|
|
6.00%
|
|
8.00%
|
|
10.00%
|
|
|
$225
|
|
9.83%
|
|
$ 135,019,994
|
|
$49,178,315
|
|
($3,494,593)
|
|
78.20%
|
|
10.00
|
$250
|
|
12.10%
|
|
$ 220,792,606
|
|
$ 112,507,467
|
|
$45,070,745
|
|
79.88%
|
|
8.00
|
$275
|
|
14.26%
|
|
$ 305,333,691
|
|
$ 174,755,710
|
|
$92,696,697
|
|
81.34%
|
|
7.00
|
$300
|
|
16.31%
|
|
$ 388,540,731
|
|
$ 235,822,250
|
|
$139,282,488
|
|
82.42%
|
|
6.30
|
$325
|
|
18.30%
|
|
$ 471,047,175
|
|
$ 296,232,842
|
|
$ 185,262,292
|
|
83.45%
|
|
5.25
|
$350
|
|
20.24%
|
|
$ 553,536,139
|
|
$ 356,569,799
|
|
$ 231,132,156
|
|
83.45%
|
|
5.00
|
$375
|
|
22.11%
|
|
$ 635,518,277
|
|
$ 416,435,959
|
|
$ 276,567,150
|
|
85.00%
|
|
4.80
|
$400
|
|
23.97%
|
|
$ 717,756,211
|
|
$ 476,482,843
|
|
$ 322,125,403
|
|
85.78%
|
|
4.70
|
$425
|
|
25.75%
|
|
$ 799,288,171
|
|
$ 535,897,782
|
|
$ 367,117,241
|
|
86.36%
|
|
4.30
|
$450
|
|
27.50%
|
|
$ 880,785,576
|
|
$ 595,272,298
|
|
$ 412,064,642
|
|
86.89%
|
|
4.00
|
$475
|
|
29.22%
|
|
$ 962,232,078
|
|
$ 654,587,267
|
|
$ 456,946,581
|
|
87.35%
|
|
3.80
|
$500
|
|
30.92%
|
|
$ 1,043,678,579
|
|
$ 713,902,236
|
|
$ 501,828,519
|
|
87.77%
|
|
3.00
|
At a base case potash price of $US 300/t, a 45-year economic project
life, 1.5% operating cost inflation, $CAD 100/t ($US 74.29) shipping
cost to East Asia, operating costs of $CAD 53.23/t ($US 39.54),
sustaining capital reinvestment totaling $CAD 15.68/t ($US 11.65/t) and
a constant exchange rate of 1.30 $CAD/$US the financial performance of
the project can be summarized as:
Table 4: Financial Performance Summary
Indicator
|
|
Pre Sask. Profit Tax
|
|
Post Sask. Profit Tax
|
NPV8
|
|
$329,403,545
|
|
$235,822,250
|
IRR
|
|
18.32%
|
|
16.31%
|
The following defines the input parameters and assumptions used in the
discounted cash flow model (DCFM) for the Gensource Vanguard project:
-
The economic analysis is based on a 100% equity scenario.
-
Potash production is 100% standard grade.
-
Cash-flow model constructed in $CAD.
-
Base-case pricing for standard product is $US 300/t, CFR Asia starting
in 2019 with an escalation of 1%.
-
Operating costs and sustaining capital reinvestment costs have been
inflated at 1.5% per annum.
-
There will be no expansion beyond 250,000 t/y.
-
Consideration was given to the expected timing of construction
expenses.
-
Operating costs and sustaining capital costs are included in the model.
-
Annual sustaining Capital cost averages $CAD 15.68/t ($US $11.65/t)
-
Insurance during construction is included in the models.
-
The cash flows include Saskatchewan Resource Surcharge (3% of
revenue), Provincial Royalties (4.4% of K2O), and
Saskatchewan Potash Production Tax.
-
The economic model includes a 3% per annum “Other Royalty” on net
revenue.
-
Transportation costs to destination are assumed CFR Asia. $CAD 100/t
has been included under the OPEX section of the cash flow.
-
Revenue generated from future potash sales are converted into $CAD at
a long-term historical exchange $CAD:$US of 1.30.
-
Working capital requirements of $CAD 2.66/t.
-
Head office general and administrative expenses of 1.1% of Revenue or
$CAD 5/t.
-
Spot $CAD:$US exchange rate used as of the date of this report is
1.345 as set by the Bank of Canada May 25, 2017.
Schedule:
Gensource’s small-scale
concept facilitates a development timeline of approximately two years
from construction to first production.
Conclusions and Recommendations:
The
conclusions and recommendations made in the report are to:
-
Complete the environmental assessment approval process and move into
the permitting phase to ensure the appropriate permits, approvals, and
licenses are obtained to advance the Project into the construction
phase, followed by operations.
-
Complete the full project financing package
-
Initiate procurement for key long-lead items
-
Initiate detailed engineering including final trade-off studies.
-
Complete advanced modelling and testing of cavern temperature and
dissolution rates
FURTHER FS DETAIL
Geology:
From
the 17Feb2017 NI 43-101 Technical Report, the following tables define
the Indicated and Inferred Resource in the Vanguard area (Base Case
Highlighted). Note that the Indicated Resource data is inclusive of the
Reserve data listed in Table 7.
Table 5: Indicated Resource
INDICATED RESOURCE
|
Member
|
|
Sub- Member
|
|
Total KCl Grade
|
|
Carnallite Grade
|
|
Insoluble Grade
|
|
Average Thickness
|
|
Total Sylvinite Tonnage
|
|
Sylvinite Tonnage with Deductions
|
|
Sylvite Tonnage (KCl), 30% recovery
|
|
Sylvite Tonnage (KCl), 40% recovery
|
|
Sylvite Tonnage (KCl), 50% recovery
|
|
|
Weight %
|
|
Weight %
|
|
Weight %
|
|
meters
|
|
Weight %
|
|
Million tons
|
|
Million tons
|
|
Million tons
|
|
Million tons
|
Patience Lake Member
|
|
PLM1
|
|
39.03
|
|
0.75
|
|
6.21
|
|
4.40
|
|
290.00
|
|
232.00
|
|
27.16
|
|
36.22
|
|
45.27
|
|
PLM2
|
|
28.91
|
|
0.60
|
|
7.03
|
|
3.65
|
|
240.07
|
|
192.06
|
|
16.66
|
|
22.21
|
|
27.76
|
|
PLM3
|
|
39.33
|
|
0.60
|
|
9.24
|
|
2.91
|
|
145.84
|
|
116.67
|
|
13.77
|
|
18.36
|
|
22.94
|
|
PLM4
|
|
36.32
|
|
0.67
|
|
10.43
|
|
1.90
|
|
125.48
|
|
100.38
|
|
10.94
|
|
14.58
|
|
18.23
|
Sub-Total
|
|
35.63
|
|
0.67
|
|
7.67
|
|
12.86
|
|
801.39
|
|
641.11
|
|
68.53
|
|
91.37
|
|
114.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Belle Plaine Member
|
|
BPM1
|
|
37.82
|
|
0.98
|
|
6.20
|
|
0.79
|
|
35.24
|
|
28.19
|
|
3.20
|
|
4.26
|
|
5.33
|
|
BPM2
|
|
41.18
|
|
0.44
|
|
2.69
|
|
2.06
|
|
81.79
|
|
65.43
|
|
8.08
|
|
10.78
|
|
13.47
|
|
BPM3
|
|
33.36
|
|
0.45
|
|
2.38
|
|
1.27
|
|
59.09
|
|
47.27
|
|
4.73
|
|
6.31
|
|
7.88
|
|
BPM4
|
|
28.70
|
|
0.70
|
|
3.58
|
|
2.00
|
|
130.12
|
|
104.09
|
|
8.96
|
|
11.95
|
|
14.94
|
|
BPM5
|
|
35.65
|
|
1.40
|
|
4.83
|
|
1.26
|
|
82.05
|
|
65.64
|
|
7.02
|
|
9.36
|
|
11.70
|
|
BPM6
|
|
26.53
|
|
1.62
|
|
2.00
|
|
1.70
|
|
110.51
|
|
88.41
|
|
7.04
|
|
9.38
|
|
11.73
|
|
BPM7
|
|
55.73
|
|
1.64
|
|
0.63
|
|
0.45
|
|
8.58
|
|
6.86
|
|
1.15
|
|
1.53
|
|
1.91
|
Sub-Total
|
|
33.00
|
|
0.98
|
|
3.29
|
|
9.53
|
|
507.37
|
|
405.89
|
|
40.18
|
|
53.57
|
|
66.96
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
1047.01
|
|
108.70
|
|
144.94
|
|
181.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Case
|
|
|
Table 6: Indicated Resource
INDICATED RESOURCE
|
Member
|
|
Sub- Member
|
|
Total KCl Grade
|
|
Carnallite Grade
|
|
Insoluble Grade
|
|
Average Thickness
|
|
Total Sylvinite Tonnage
|
|
Sylvinite Tonnage with Deductions
|
|
Sylvite Tonnage (KCl), 30% recovery
|
|
Sylvite Tonnage (KCl), 40% recovery
|
|
Sylvite Tonnage (KCl), 50% recovery
|
|
|
Weight %
|
|
Weight %
|
|
Weight %
|
|
meters
|
|
Weight %
|
|
Million tons
|
|
Million tons
|
|
Million tons
|
|
Million tons
|
Patience Lake Member
|
|
PLM1
|
|
39.10
|
|
0.69
|
|
6.61
|
|
4.27
|
|
743.30
|
|
557.47
|
|
65.39
|
|
87.19
|
|
108.99
|
|
PLM2
|
|
29.59
|
|
0.73
|
|
8.52
|
|
2.82
|
|
441.02
|
|
330.77
|
|
29.36
|
|
39.15
|
|
48.94
|
|
PLM3
|
|
35.09
|
|
0.83
|
|
11.58
|
|
2.39
|
|
296.75
|
|
222.56
|
|
23.43
|
|
31.24
|
|
39.05
|
|
PLM4
|
|
36.86
|
|
0.65
|
|
9.38
|
|
2.29
|
|
336.86
|
|
252.64
|
|
27.94
|
|
37.25
|
|
46.56
|
Sub-Total
|
|
35.72
|
|
0.72
|
|
8.40
|
|
11.77
|
|
1817.93
|
|
1454.34
|
|
146.12
|
|
194.83
|
|
243.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Belle Plaine Member
|
|
BPM1
|
|
54.80
|
|
4.16
|
|
0.72
|
|
0.83
|
|
70.53
|
|
52.90
|
|
8.70
|
|
11.60
|
|
14.49
|
|
BPM2
|
|
27.29
|
|
3.82
|
|
2.19
|
|
2.07
|
|
190.20
|
|
142.65
|
|
11.68
|
|
15.57
|
|
19.46
|
|
BPM3
|
|
35.02
|
|
3.22
|
|
4.77
|
|
1.23
|
|
165.83
|
|
124.37
|
|
13.07
|
|
17.42
|
|
21.78
|
|
BPM4
|
|
28.55
|
|
0.78
|
|
3.68
|
|
2.00
|
|
343.42
|
|
257.57
|
|
22.06
|
|
29.41
|
|
36.77
|
|
BPM5
|
|
32.18
|
|
0.56
|
|
2.58
|
|
1.31
|
|
224.79
|
|
168.60
|
|
16.28
|
|
21.70
|
|
27.13
|
|
BPM6
|
|
41.04
|
|
0.47
|
|
2.75
|
|
1.61
|
|
276.84
|
|
207.63
|
|
25.56
|
|
34.08
|
|
42.61
|
|
BPM7
|
|
42.28
|
|
1.05
|
|
8.20
|
|
0.59
|
|
40.33
|
|
30.25
|
|
3.84
|
|
5.12
|
|
6.39
|
Sub-Total
|
|
34.28
|
|
1.62
|
|
3.20
|
|
9.64
|
|
1311.95
|
|
983.96
|
|
101.18
|
|
134.91
|
|
168.63
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
2438.31
|
|
247.30
|
|
329.73
|
|
412.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Case
|
|
|
Based on the geological work completed to date, including the 3D seismic
program just completed, the following Reserve is defined as the base
case for the Vanguard One Project FS:
Table 7: Proven & Probable Reserve
Potash Sub-Member
|
|
Reserve
|
|
Grade KCl (Weight % KCl)*
|
|
Recoverable Tonnage KCl (Mt)
|
PLM1
|
|
Proven
|
|
44.0
|
|
5.19
|
|
Probable
|
|
41.2
|
|
2.67
|
*cutoffs: 24.6% KCl, 6% Carnallite, no insoluble or thickness cutoff
Cautionary Notes on Geology:
-
The above Reserve data represents only the base case for the FS for
the Vanguard One project. Since the mine plan is focused initially
only on the Patience Lake sub-member 1 (PLM1) within the Patience Lake
member of the Prairie Evaporite, and focuses on a relatively small
component of the area of 3D seismic coverage, only a small portion of
the overall Resource is converted to Reserve for the base case.
-
Modelling and analysis work is not 100% complete at the time of this
news release, and on that basis, the final Reserve data is subject to
change in the final 43-101 Technical Report, however the QP does not
anticipate that the base case mineral reserve will change materially.
Mining:
Vanguard will implement a
selective mining approach, using horizontal caverns. A total of 6
caverns, covering nominally 2 sections (1 section = 1 square mile) of
mineral resource will be required to attain the planned 250,000 t/a
production rate. Calculated cavern life, using only the PLM1 sub-member
of the Patience Lake member of the Prairie Evaporite formation (as
defined in the Technical Report) is 11.9 years. Allowances for cavern
replacement costs and pipeline extension costs have been made in the
sustaining capital estimate.
Processing:
The process plant is
designed to recover 250,000 metric tons per annum of standard grade
Muriate of Potash (MOP) from the solution mining operation. The
production of potash product (nominally 96% purity KCl) is accomplished
by the removal of KCl from the recirculating brine stream by temperature
reduction. Temperature reduction is accomplished by a vacuum
crystallizer, followed by a surface cooling crystallizer operation. The
brine stream continuously recirculates between the solution mining
caverns and the process plant, picking up KCl in the caverns and
crystallizing it into solid KCl in the process plant.
Utilities:
Plant utilities, including
steam, natural gas, water, power, etc. are distributed from central
locations to each process/mining unit operation.
All power required on-site will be self-generated by a natural gas fired
steam turbine-driven generator. Construction Power and Temporary
“backup” power will be provided by a 25kV, 2MVA service from SaskPower.
Based on field drilling investigation and aquifer modelling completed
during the study it has been determined that raw water for the entire
site can adequately be supplied from a local and accessible aquifer
should deep brackish sources not be identified.
Off-site utilities include, natural gas, fibre optic line, and
potentially potable water. For natural gas to the site, a new 150mm
diameter pipeline is to be supplied by an existing 400mm diameter
TransGas transmission pipeline, located approximately 10 kilometers
north of the project area.
Product Loading & Handling:
Gensource
will direct load product into intermodal shipping containers, utilizing
these containers as the primary means of loading, storing, and moving
product at the mine site and to the end customers. No on-site or tide
water bulk storage and handling facilities/systems are required as a
result. Direct loading into containers has the added benefit of
minimizing product handling, reducing product degradation and losses as
a result. It also allows for easier transport and handling for the end
customer.
Transportation and Logistics:
A plant
site rail spur is planned, thereby allowing all product to be
transported in intermodal shipping containers by rail, avoiding
heavy-haul truck traffic on the exiting road network.
The cost of ocean freight, including the cost to move the product from a
West coast port in North America to an East coast port in Asia has been
factored into the operating cost estimate.
Environmental & Regulatory:
Gensource
has engaged Golder Associates to prepare a Technical Proposal for the
Vanguard One Project, to be submitted to the Environmental Assessment &
Stewardship Branch of the Ministry of Environment. This submission is
currently being completed and will be submitted in June 2017.
The scientific and technical information contained in this news release
is based on the actual feasibility study work and data produced. Each
named company participating in the FS has reviewed and approved the
content of this news release. Gensource’s independent QP for this work,
Mr. Louis Fourie, P.Geo., Pri. Sci. Nat., of Terra Modelling Services
Inc., has reviewed and approved the content of this news release.
About ENGCOMP
ENGCOMP is a multi-discipline engineering
consulting firm located in Saskatoon, SK. With more than 13 years of
establishment in the heart of Saskatchewan's potash industry, ENGCOMP is
a leader in the delivery of engineering for potash processing
facilities. For more information see www.engcomp.ca.
About South East Construction
SECON is a multi-discipline
construction and service company with its head office in Esterhazy,
Saskatchewan. By delivering projects safely with uncompromised
integrity, SEC has proven to be a preferred contractor in the province.
For more information see www.secon.ca.
About Terra Modelling Services
Terra Modelling Services Inc.
is a geological consulting company based in Dalmeny, Saskatchewan, with
specific expertise in potash and related minerals, as well as diamonds
and kimberlites. For further information about Terra Modelling Services,
email: louis.fourie@terramodellingservices.ca
About Innovare
Innovare Technologies Ltd. is a consulting
firm, specialized in drilling, solution mining and processing
technologies for potash mining projects. The three principals of the
company have a combined 100+ years’ experience, much of that in the
potash industry, and have successfully developed potash projects in
Saskatchewan. Based on solution mining and processing concepts developed
in other commodities dating back to 1997, the principals realized the
potential applications of these concepts and began to adapt them to the
extraction of potash.
About Golder
Established in 1960, Golder is a global,
employee-owned group of companies driven by our purpose to engineer
earth’s development while preserving earth’s integrity. From over 165
offices worldwide, our more than 6,500 employees help our clients find
sustainable solutions to the challenges society faces today. Golder has
been working in Saskatchewan since 1970, and Golder’s potash experience
includes environmental assessment for greenfield potash mines, tailings
management, and geotechnical investigations for mining infrastructure.
About Whiting
Whiting Equipment Canada Inc. is a licensee of
the internationally recognized and accepted line of Swenson Technology,
Inc., supplying evaporation and crystallization equipment and systems
for the chemical processing industry. Our equipment is used in various
applications including salt, potash and sodium chlorate. Typical scope
of supply ranges from engineering and feasibility studies to a fully
integrated process including structural steel, vessels, piping,
instrumentation, and electrical components. For more information, visit www.whiting.ca.
About Gensource
Gensource is based in Saskatoon,
Saskatchewan and is focused on developing the next potash production
facility in that province. Gensource’s President and CEO, Mike Ferguson,
P.Eng., has assembled a management and technical team with direct and
specific expertise and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key components -
vertical integration with the market to ensure that all production
capacity built is directed to a specific market, eliminating market-side
risk; and, technical innovation which will allow for a small and
economic potash production facility, the output of which can then be
directed to a single, specific market. For more information, visit www.gensource.ca
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This news release may contain forward looking information and
Gensource cautions readers that forward looking information is based on
certain assumptions and risk factors that could cause actual results to
differ materially from the expectations of Gensource included in this
news release. This news release includes certain "forward-looking
statements”, which often, but not always, can be identified by the use
of words such as "believes", "anticipates", "expects", "estimates",
"may", "could", "would", "will", or "plan". These statements are based
on information currently available to Gensource and Gensource provides
no assurance that actual results will meet management's expectations.
Forward-looking statements include estimates and statements with respect
to Gensource’s future plans, objectives or goals, to the effect that
Gensource or management expects a stated condition or result to occur,
including funding and development pursuant to the definitive joint
venture agreement with the EGME, the expected timing for release of a
reserve estimate and a feasibility study and whether or not the study
will conclude that mineral production is feasible on a technical or
economic basis, and the establishment of vertical integration
partnerships and the sourcing of end use potash purchasers. Since
forward-looking statements are based on assumptions and address future
events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results relating to, among other things,
funding and development pursuant to a definitive joint venture agreement
with the EGME, results of exploration, the economics of processing
methods, project development, reclamation and capital costs of
Gensource’s mineral properties, the ability to complete a feasibility
which supports the technical and economic viability of mineral
production, Gensource’s financial condition and prospects, the ability
to establish viable vertical integration partnerships and the sourcing
of end use potash purchasers, could differ materially from those
currently anticipated in such statements for many reasons such as:
failure to obtain funding and undertake development pursuant to the definitive
joint venture agreement with the EGME; an inability to finance and/or
complete an update of the resource estimate to a reserve estimate, and a
feasibility study which supports the technical and economic viability of
mineral production; changes in general economic conditions and
conditions in the financial markets; the ability to find distributors
and source off-take agreements; changes in demand and prices for potash;
litigation, legislative, environmental and other judicial, regulatory,
political and competitive developments; technological and operational
difficulties encountered in connection with Gensource’s activities; and
other matters discussed in this news release and in filings made with
securities regulators. This list is not exhaustive of the factors that
may affect any of Gensource’s forward-looking statements. These and
other factors should be considered carefully and readers should not
place undue reliance on Gensource’s forward-looking statements.
Gensource does not undertake to update any forward-looking statement
that may be made from time to time by Gensource or on its behalf, except
in accordance with applicable securities laws.
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