Northern Miner: Gensource Potash is a Company to Watch

Gensource Potash (TSXV: GSP) is working on the optimization of the selective dissolution potash mining method and its vertical integration within the potash market. The company has developed a technology whereby brine is injected into potash-bearing caverns. The potassium-enriched brine is pumped for potassium nutrient crystallization with the remaining brine returned underground. This design allows drilling of multiple wells from one location with a smaller operational footprint and a scalable recovery process. Each module is expected to produce 250,000 tonnes of potash annually in the lowest-cost quartile and at a lower unit capital cost compared to current potash mining methods.

Gensource also holds a 100% interest in the Vanguard property in central Saskatchewan, 170 km south of Saskatoon. A feasibility study on the Vanguard 1 project completed in May 2017 outlined an operation producing 250,000 tonnes per year of salable potash at a capital cost of US$210 million with operating costs of US$39.54 per tonne. Current proven and probable reserves at the project stand at 9.79 million tonnes of recovered potassium chloride at a total KCl grade of 43.44% for a total of 9.79 million tonnes of recovered KCl. In May 2018, the company executed a definitive offtake agreement for the purchase of 100% of the production from one 250,000-tonne-per-year module.

Gensource has mandated a German bank as the lead arranger for the debt component for the Tugaske project within the Vanguard area. Gensource also holds the Lazlo area projects in central Saskatchewan which are prospective for potash exploration targets. The company has a current market capitalization of about $53 million.

The Northern Miner

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