WESTERN POTASH CORP T.WPX

Metals & Mining Industrial Metals & Minerals

"Western Potash Corp is engaged in the acquisition, evaluation, and exploration of mineral properties containing potash in Western Canada. The Company holds interests in the Milestone Project located in Southern Saskatchewan."

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WESTERN POTASH CORP

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Post by more2comeon Dec 14, 2011 2:02pm

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Post# 19322110

KRN/WPX Opex + Resource

KRN:

Estimated Annual (OPEX) ca. 129 - 132 p.t. kci

recoverable kci ca. 221 million t. in total

Description	625K Facility ($ millions)/yr	Per Tonne KCl ($/tonne)	2.125 M Facility ($ millions)/yr	Per Tonne KCl ($/tonne)
Personnel	6.84	10.95	16.22	7.63
Natural Gas	29.37	46.99	99.85	46.99
Electricity	9.70	15.53	32.99	15.53
Brine Field Expansion	20.70	33.12	70.38	33.12
Maintenance & Spare Parts	7.83	12.54	26.64	12.54
Blanket Oil Replacement	3.99	6.38	13.57	6.38
Other	4.61	7.36	14.90	7.01
Total OPEX	83.04	132.87	274.55	129.20

Summary of Reserve and Resource Update

Based on the Technical Report, 144 million tonnes of potash product canbe extracted and produced from the Project's reserves at 97% KCl and90% plant efficiency, which suggests a project life of 68 years at aproduction rate of 2.125 million tpy.

The Technical Report has reclassified most of the "Measured Resources"and "Indicated Resources" to "Proven Reserves" and "ProbableReserves". These resource areas have been reduced by the definition oftechnical exclusion areas where mining should not take place to avoidproblems at the surface due to potential subsidence. Proven Reserveshave been estimated by placing caverns over the license area in grid asdefined by the mining method. For each drill hole, a typical cavernrecovery of mineralized material at a given grade has been estimated.This amount has been reduced by 10% to account for any anomalies belowthe 3D seismic resolution. Reserves were estimated by calculating thenumber of caverns in the Measured and Indicated Resource areas for eachdrill hole and multiplying by the typical cavern recovery. The resultsfor Proven and Probable Reserves are as follows:

Proven Reserves	Mineralized Material (million tonnes)	Average KCl Grade (% KCl)	Mineable KCl Tonnage (million tonnes)
Total Average Carnallitite	261.6	18.7	49.0
Total Average Sylvinite	52.7	26.3	13.9
Total	314.3		62.9

Probable Reserves	Mineralized Material (million tonnes)	Average KCl Grade (% KCl)	Mineable KCl Tonnage (million tonnes)
Total Average Carnallitite	416.0	18.5	77.0
Total Average Sylvinite	58.3	25.8	15.0
Total	474.3		92.0

In addition to the Mineral Reserves, the Technical Report provides anestimate of the "Inferred Resources". It cannot be assumed that all orany part of the Inferred Resources will be upgraded to an Indicated orMeasured Resources due to additional exploration. Inferred Resourceshave not been considered in the FS as they are considered toogeologically speculative.

Inferred Resources	Mineralized Material (million tonnes)	Average KCl Grade (% KCl)	Mineable KCl Tonnage (million tonnes)
Total Average Carnallitite	1320	13.8	50.2
Total Average Sylvinite	298	17.8	15.9
Total	1618		66.1

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wpx:

Target Annual Production rate 2.8 Mt/yr

OPEX $62.35 CAD/tonne (+ Transport ca. 40-45 bucks = ca. 107-108 )

recoverable kci ca. 942 million t. in total

Table 1. Measured Mineral Resource within Crown and Leased Freehold Areas Only*

Bed	Average KCL Grade (%)	In-Place Tonnage (Mt)	In-Place KCL Tonnage (Mt)	KCL Resource**(Mt)
Patience Lake	28.66	314.27	90.06	29.60
Belle Plaine	30.13	131.70	39.68	13.04
Esterhazy	33.71	190.71	64.28	21.13
Total	30.47	636.68	194.02	63.77

* Search Radius of 800 m used; Mt = million tonnes; K2O grade > 15%; Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (5%), and extraction ratio (34.6%).

Table 2. Indicated Mineral Resource within Crown and Leased Freehold Areas Only*

Bed	Average KCL Grade (%)	In-P lace Tonnage (Mt)	In-Place KCL Tonna ge (Mt)	KCL Resource**(Mt)
Patience Lake	28.60	930.41	26 6.09	83.78
Belle Plaine	29.97	391.00	117.20	36.90
Esterhazy	33.66	536.03	180.44	59.31
Total	30.35	1,857.45	563.731	179.99

* 8.0 km radius used; Mt = million tonnes; K2O grade > 15%; Density = 2.08, KCl = 1.58303 K2O.
** Resource accounts for geologic anomalies (25%), extraction ratio (34.6%).
** Resource accounts for geologic anomalies (9%), extraction ratio (34.6%).

Table 3. Inferred Mineral Resource within Crown and Leased Freehold Areas Only*

Bed	Average KCL Grade (%)	In-Place Tonnage (Mt)	In-Place KCL Tonnage (Mt)	KCL Resource**(Mt)
Patience Lake	28.68	4,349.59	1,247.56	323.74
Belle Plaine	29.88	2,030.82	606.71	157.44
Esterhazy	33.47	2,526.82	845.61	219.44
Total	30.31	8,907.24	2,699.89	700.62