Our Project

Wynyard Potash Project

The Wynyard Potash Project is a Carnallite/Sylvinite solution mining project in central Saskatchewan. Using a modular approach, a 2.125 million tonnes per year plant will be constructed in 3 phases beginning with the 625,000 tpy Phase One. The project will produce a premium white granular potash product (KCl 97) with low sodium content. Karnalyte is taking a leading role in the potash industry on environmental stewardship with a potash mine having no salt tailings piles or tailings ponds. Karnalyte has completed a Bankable Feasibility Study, an updated Technical Report, a Preliminary Feasibility Study for magnesium compounds, and obtained EIS approval from the Saskatchewan Ministry of the Environment.

A copy of the June, 2016 Technical Report can be found here (20MB).

Scientific and technical information referred herein has been extracted from and are hereby qualified by reference to the technical report for our project. The technical report referenced herein are as follows: TECHNICAL REPORT (NI 43-101): Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau, North Rim Exploration Ltd., and AMEC Foster Wheeler Canada. 2016 June 23. KCl and MgCl2 Mineral Reserve and Resource Estimate for the Wynyard Carnallite Project, Subsurface Mineral Leases KL 246, KL 247 and KLSA 010, Saskatchewan, Canada. Karnalyte Resources Inc. SEDAR filing. The present Technical Report has been prepared by multiple authors: Principal Author is Dr. Henry Rauche EurGeol of ERCOSPLAN. Further authors are Dr. Sebastiaan N.G.C. van der Klauw, EurGeol of ERCOSPLAN, Ms. Lola Piché, P. Geo. of NREL, Mr. Ellis Buckner, P. Eng. of AmecFW. The authors are Qualified Persons as defined in NI 43-101 (the “Qualified Person”).

Size & Location

Karnalyte Resources Inc has 100% interest in KLSA 010, KL 247A, and KL 246 mineral leases comprising approximately 367 km2 (90,766 acres) of mineral rights. Karnalyte also owns around 4,100 acres of surface lands. The project is located approximately 190 km east of Saskatoon, SK, or 176 km north of Regina, SK. The plant site is located on primary Provincial Grid No. 640, just 2.5 km south of the town of Wynyard. Highway 16 (Yellowhead Highway, the northern route of the Trans-Canada Highway) and the northern main line of CP Rail run through Wynyard.

Mineral Reserves

The mineralized zone contains 3 potash bearing horizons located approximately 1000 meters beneath the surface. The Patience Lake Formation and Belle Plaine Formation are predominantly Carnallatite and are on average 9.4 and 15.3 meters thick respectively. The Esterhazy Formation is predominantly Sylvinite and averages 17.2 meters thick. Karnalyte’s mineral leases contain 147 million tonnes of KCl in the Proven and Probable categories, and 153 million tonnes of “minable” MgCl2 of which 7.9 million tonnes has been assigned as Probable Reserves.

Proven Reserves KCl
Mineralized Material Average KCl Grade % Minable KCl Tonnage Product Tonnage
Patience Lake + Belle Plaine 268.6 18.7 50.3 46.6
Esterhazy 52.8 26.2 13.8 12.9
Total Proven 59.2
Probable Reserves KCl
Mineralized Material Average KCl Grade % Minable KCl Tonnage Product Tonnage
Patience Lake + Belle Plaine 425.1 18.6 78.9 73.2
Esterhazy 61.6 26.5 15.8 14.6
Total Probable 87.8
Probable Reserves MgCl2 Mineralized Material Average MgCl2 Grade % Minable MgCl2 Tonnage Product Tonnage
Patience Lake + Belle Plaine 694.6 22.1 153.3 7.9
Total Probable 7.9
Water Supply

Process Water for solution mining and disposal uses will be produced on site from the Blairmore Formation that is approximately 500 meters beneath the surface. Blairmore water is similar to seawater, with a slightly higher salt content. Karnalyte has drilled and tested 2 Blairmore water wells which have both produced in excess of 650 us gpm (2.5 m3/min).

Solution Mining

A proven solution mining process will be used, with directionally drilled dual well pairs ultimately joined at the bottom to form oblong caverns. The lower Esterhazy zone will be mined first, followed by the Belle Plaine and Patience Lake zones. Hot water will be injected to preferentially dissolve Carnallite leaving salt residues and insolubles underground. Large blocks of all the strata are left undisturbed between caverns as pillars to provide support for all overlying layers. When a cavern is mined out, salt tailings will be used as backfill to help minimize long-term subsidence.

Surface Facility

The surface facility removes water from the brine using evaporators, precipitating both salt and potash and separating them from the remaining magnesium chloride brine. The salt and potash are then separated in a conventional potash crystallizer circuit to produce 99% white potash. Both salt and magnesium brine are sent to disposal. The 99% potash is then sent to be pan-granulated into KCl 97 product.

Tailings

Tailings from the surface facility are either used to backfill spent caverns or injected into deep disposal wells. The Deadwood and Winnipeg formations are approximately 1500 meters deep and are used by the potash industry for brine disposal. Karnalyte has drilled and tested one disposal well with flowrates observed up to 2350 us gpm (9 m3/min). Karnalyte’s Wynyard plant will be the first potash mine in Saskatchewan without a tailings pile or tailings ponds.

Magnesium Project Development

A Preliminary Feasibility Study has been completed for the production of 99% Hydromagnesite and 32% MgCl2 brine. A portion of the MgCl2 brine tailings from the potash facility would be utilized as feedstock to process into these products.