There is no question that the project has more than a couple of key advantages. The sylvinite is a very pure preferred sort of potash mineralization, which tends to have lower operational costs because it is a very clean product. On top of that we have a relatively high grade which is about 10 or 15% higher than the Canadian grades. So the sylvinite in a continuous, easy mineable shallow seam, which lies only 260 to 270 meters deep, is definitely one of the key advantages. The second advantage is the location and the opportunity to give us logistics benefits. Not just only the fact that we are only 90 kilometers away from the existing port, but also the opportunity to build a new ship loading facility among the license area, that we are examining in the current phase of the DFS. We are also well positioned in terms of the shipping routes, particularly to South America, to Brazil. So, in fact those are two of the key advantages that the project presents.
The capital costs, which lie at around 1.7 billion USD at the moment lead to a production rate of 1.8 million tons per year which is bigger than we thought about earlier this year
The second objective of the phase 2 program is to expand the existing resource footprint from 28 to 58 sq km.
K2P Price at posting:
$1.73 Sentiment: None Disclosure: Held
