Vanguard Area Projects

The Property:

  • 100% owned Vanguard property in central Saskatchewan.
  • Comprised of two subsurface mineral leases, KL 244 and KL 245, surrounding the towns of Tugaske and Eyebrow
  • Two cored exploration wells
  • Over 100 km of 2D Seismic
  • Close proximity to essential utilities and services (rail, road, gas, etc.)

Concept:

  • Small scale production facility with a target production rate of 250,000 tonnes annually (tpa)
  • Solution mining using a proprietary selective mining techniques, allowing for selective dissolution with enhanced crystallization recovery
  • Environmental impact will be minimal, compared to typical potash mines, due to the lack of a brine pond and no salt tailings area
  • No freshwater or surface water consumption, as the vast majority of the water required for mining and processing will come from water wells that will draw from brackish formations
  • Facility is scalable, and several plant site modules can be constructed in a small area
  • Potash production is pre-sold
  • Direct-ship transportation to end user, either in bulk or bulk-in-container, via rail to tidewater (East or West), ocean freight

Work to Date:

  • Completion of an Asset Purchase Agreement (APA) with Yancoal Canada Resources, including a signed take or pay off-take agreement
  • Completion of an NI43-101 Technical Report on Inferred Mineral Resource & Exploration Targets
  • Publishing of a Preliminary Economic Assessment (PEA)
  • Execution of Private Placements (both brokered and non-brokered)

Preliminary Economics:

project-financial

Current Efforts:

  • Two vertical resource confirmation wells are being drilled to:
    • Confirm resource extents and grades in the area adjacent to one of the initial resource wells drilled in the area in 2012,
    • Upgrade resource categorization from Inferred (see Gensource News Release dated April 28, 2016 for information on the initial NI 43-101 resource definition) to Measured and Indicated and issue a revised NI 43-101 Resource Report, and
    • Prepare for the integration of the Resource into the on-going feasibility study and subsequent conversion to Reserve

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Figure 1 – Vanguard Area Leases and Location of Exploration Drilling

  • Advancing the Feasibility Study for the first module to be construction in the Vanguard Area, being referred to as Vanguard One
  • Kicked off Feasibility Study in October 2016
  • Early involvement and an integrated approach with the key stakeholders in the study, including equipment vendors and construction contractor, alongside engineering consultants. This approach will help ensure validated design and production expectations and provide for construction cost estimates that exceed confidence levels provided by traditional engineering-only feasibility studies. Further, the integrated team will significantly contribute to execution efficiency going forward because of the inclusion of the construction general contractor at this early stage.
  • Aiming for Feasibility Study completion in late Q1/early Q2 2017

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Figure 2 – Isometric View of Site with Preliminary Process Plant & Ancillary Facilities

Big Picture:

  • Assemble full CAPEX financing
  • Roll into detailed engineering upon completion of the Feasibility Study
  • Begin initial site preparation and construction in 2017
  • Complete early procurement of long-lead equipment
  • Begin commissioning in 2018, with first product in Q4 2018/Q1 2019
  • Ramp-up to full production of 250,000 tpa by Q4 2020/Q1 2021