Years of Mine LifeAccording to our NI Resource Estimates we have “4 distinct potash beds”
“YEARS OF MINE LIFE”:
Whether Farhad chooses Solution Mining, Solution Mining and Open Pit Mining or Open Pit Mining
Allana will be mining between 39 years / 2m tons – 78 years / 1m tons….long after most of us will be dead….Farhad’s overall goal will be to maximize mined KCL to 2 million tons per year…as he rightfully
stated you can have million of tons in the ground but it comes down to how much you can mine and sell…
Allana NI Resource Estimate: Total M&I 673mt @ 18.5% plus Inferred 596mt @19.69
On the conference call Farhad revealed a couple of important points for longs to consider.
First, he stated that Allana will likely mine the Sylvinite Layer (30% KCL) and then the Kainitite Layer second (19.76% KCL) …The Sylvinite layer contains the valuable 30% KCL…so it makes sense.
According to my calculation below and adding 50% increase from the 6 Infill Drill Holes we can expect:
112 total years of mine life from all 4 layers at 1 million tons KCL per year or
56 total years of mine life from all 4 layers at 2 million tons KCL per year
First: Sylvinite Layer 28 years of mining (14 years if 2m tons)
Next: Kainitite Layer 50 years of mining (25 years if 2 m tons)
(we do not need to ever mine the upper or lower Carnalite Layers)
If Allana uses only Solution Mining with a 35% extraction rate of KCL, then the end numbers are:
46.3 mt of recoverable KCL or 46 years of mine life
Sylvinite: 10.3 mt of recoverable KCL + 6 mt of recoverable KCL from infill drilling
Kainitite: 20 mt of recoverable KCL + 10 mt of recoverable KCL from infill drilling
These calculations do NOT include any resource from the EAST. Depending on the results from
Holes #20 #21 #22 #23 #24 plus 6 more planned holes in the EAST the Open Pit Mine may
end up beginning in the east? Farhad will likely mine the best parts of the West or East….
Assumes Open Pit Mining and Dundee’s 60% extraction rate:
Dundee’s report uses 85% extraction rate from open pit mining – 25% for loses = 60% extraction rate
Sylvinite M&I 98 mt 30.00% 29.5mt kcl X 60% = 18 mt recoverable KCL and 18 yrs mine life
+ (Inf 108mt 31.00%) x 50% infill drilling x 60% = 10.2 mt recoverable KCL and 10 yrs mine life
Kainitite M&I 289mt 19.76% 57mt kcl x 60% = 34.2 mt recoverable KCL and 34 yrs mine life
+ (Inf 271mt 20.30%) x 50% infill drilling x 60% = 16.5 mt recoverable KCL and 16 yrs mine life
U Carnalite M&I 78mt 18.76% 14.5mt kcl x 60% = 9.0 mt recoverable and mine life
+ (Inf 90mt 18.60%) x 50% infill drilling x 60% = 5.0 mt recoverable and mine life
L Carnalite M&I 210mt 12.00% 25.5mt kcl x 60% = 15.0mt recoverable and mine life
+ (Inf 126mt 11.30%) x 50% infill drilling x 60% = 4.2 mt recoverable and mine life
Total Tons from all 4 layers 675.0 mt Measured + Indicated
Total Tons of KCL from all 4 layers 126.5 mt Measured + Indicated
Total Tons of KCL from all 4 layers 112.1 mt Recoverable Measured + Indicated + 50% Converted
Inferred to Recoverable by infill drilling
126.5 M+I + 60.5 increase from infill drilling = 187 million tons of KCL after 6 infill drill holes are completed