VANCOUVER, Oct. 25, 2019 - Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) is very pleased to announce that Western Potash Corp., the company’s wholly-owned subsidiary, has safely and successfully completed the Phase I production drilling program, and has start solution mining into all three horizontal caverns. These are the first intentionally drilled and connected horizontal potash caverns in Saskatchewan, and signify a new and improved method of extracting potash in the province.
The drilling included three directionally drilled production wells, which were then connected to injection wells. Advanced horizontal drilling techniques were used to target the high-grade potash bed, and measurements confirmed the consistency along the entire length of the horizontal wells. After casing and tubing was placed, water from the crystallization pond was successfully circulated into the injection well and back out the production well in all three caverns.
Pumping will be ongoing to enlarge the caverns and saturate the brine with salt in preparation for the start of hot mining in early 2020. Hot mining will recirculate brine into the caverns and preferentially extract the KCl (leaving the NaCl in place underground), building an inventory of potash in the crystallization pond over the winter.
By the third Quarter of 2020 the process plant will be constructed and ready to harvest the inventory of potash in the pond. The plant will then de-brine, dry and compact the potash and truck to the local Port Lajord fertilizer distribution center for sale via Archer Daniel Midlands (ADM), who has signed a binding off-take for the entire Phase I production. Appropriate operating permits were obtained as part of the on-going permitting process, and the project continues to work in close conjunction with the RM of Lajord, Provincial Government, the local community and businesses.
Mr. Fritz Venter, President and CEO of Western Potash Corp., commented:
“The entire drilling program was completed safely on schedule and budget, and we are very excited about the possibilities this new method of solution mining potash provides in the province. We would like to thank our own team and the over 30 Saskatchewan and Alberta companies that have been involved in the project, including Artisan Consulting Services Ltd. who provided overall drilling supervision and Akita Drilling who provided the drill rig and crew to operate the rig.”
About Western Resources Corp.
Western Resources Corp. (TSX: WRX) (FSE: WR0) (“Western” or “the Company”) and the company’s wholly-owned subsidiary Western Potash Corp. are constructing Canada’s newest and most innovative, environmentally friendly and capital-efficient potash mine. This will be the first potash mine in the world that will leave no salt tailings at the surface, thereby reducing the water consumption by half as well as significantly improved energy efficiency. The Phase I Project will be in production by Quarter 3 of 2020, paving way for further expansion.
ON BEHALF OF THE BOARD OF DIRECTORS
Hon. James Moore
Cautions Regarding Forward-Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the filing and results of the Technical Report. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information that is set out herein, except in accordance with applicable securities laws.
For more information on the contents of this release please contact Jerry Zhang, Corporate Secretary, at 604-689-9378.