Karnalyte Resources' potash project near Wynyard, Saskatchewan.
Located 175 km east of Saskatoon, the project targets annual production of 2.2 million tonnes of potash at full capacity, plus 104,000 tonnes of hydromagnesite, a high-value fire-retardant material. Over the mine life, total output is projected at 142.2 million tonnes of potash and 7 million tonnes of hydromagnesite.
The study shows an after-tax net present value of approximately C$2 billion ($1.4 billion) at an 8 percent discount rate, an internal rate of return of 12.5 percent, and a payback period of 8.8 years. The technical report will be filed within 45 days.
Chief executive Danielle Favreau stated that the results demonstrate the deposit's long-term potential and the company's readiness to progress the project. She highlighted potash's importance for food production and noted favourable market conditions for both potash and high-purity hydromagnesite, where global supply remains limited.
Initial capital expenditure is estimated at C$4.2 billion, including C$4 billion for phased potash processing facilities and C$231 million for the hydromagnesite plant. Sustaining capital over the life of the mine is forecast at C$7.62 billion. Operating costs are projected at C$134.01 per tonne for potash and C$318.04 per tonne for hydromagnesite.
Measured and indicated resources total 2.95 billion tonnes across the Patience Lake, Belle Plaine, and Esterhazy members. The carnallite-rich deposit enables simultaneous production of potash and magnesium compounds, creating opportunities for additional products such as magnesium chloride brine, magnesium hydroxide, and magnesium oxide.
A long-term offtake agreement with major shareholder Gujarat State Fertilizers and Chemicals secures 350,000 tonnes annually from Phase 1, 250,000 tonnes from Phase 2, and an option for up to 400,000 tonnes from Phase 3, potentially reaching 1 million tonnes per year at full buildout.
The project is expected to create 244 permanent positions and approximately 1,100 jobs during construction. Phase 1 received environmental approval in 2013, with amendments planned for the subsequent phases.
Karnalyte describes the Wynyard project as construction-ready, with completed engineering and secured permits. Further progress will depend on financing arrangements and sustained market conditions for potash and magnesium products.
