Encanto Potash Corp V.EPO.H

8% Increase in Recoverable Tonnage

[srpat]

In reading the full 43-101 report, it seems we already have an official increase in our recoverable tonnage for the solution mining scenario.  Not counted in the original release was the interbed layer. 

Previously released indicated and inferred K20 / KCL :  88.21 / 139.63 MMT

Indicated and inferred from newly released 43-101  K20 / KCL :  95.75 / 151.57 MMT

That's roughly an 8% increase in reported recoverable tonnage.  Maybe not a huge increase, but definitely notable.


The description of this is below.  My understanding from talking Jim Walchuck a while back was that the Esterhazy layer would still be counted in one of the next updated 43-101 reports.  Not quite sure what it means with the last sentence below.


From page 3 of the 43-101 report:  "Based on the solution mining methodology described in Hardy et al. (2010), the ‘solution interval’ is defined as the entire Patience Lake Member, the salt interbed and the entire Belle Plaine Member. It includes all barren interbed halite as well as insoluble rich layers. An ‘economic cutoff grade’ for the roof and floor picks was assumed to be where K2O values were greater than 10% and where average ‘mineable grade’ was greater than 15% (Hardy, Halabura, & Shewfelt, 2010). The Esterhazy was not included in the calculation as it has an average carnallite grade of 7.57% (2.59% MgCl2) and the grade was lower than the economic threshold cutoff."


srpat