RE:RE:Copycat of Western s Way of Solution Miningcalgarytran, that dependes on where management is currently with the recommendations from the authors of the most recent Technical Report
26.0 RECOMMENDATIONS
Should the WPX Board decide to proceed with development of the Pilot Project, WPX should proceed with detailed engineering, long-lead item procurement, and infrastructure (water, power, etc.) upgrades necessary for production. General recommendations for advancing the Pilot Project include:
Phase 1
1. Develop an updated Environmental Project Description to include the results of hydrogeological, water supply, and brine disposal studies for the Pilot Project. Estimated cost: $388,000.
2. Perform an updated potash market evaluation. Estimated cost: $20,000.
3. Complete process optimization, NaCl supply, plant-size ramp-up and value engineering studies for the Pilot Project. Estimated cost: $555,000.
4. Perform laboratory core dissolution test work to confirm dissolution rates at elevated temperatures. (Previous studies were performed at 60°C and 75°C.) Estimated cost: $148,000. 5. Perform logistics, constructability, risk assessment, safety and project execution planning. Estimated cost: $395,000.
6. Obtain firm pricing for process, mechanical and electrical equipment, piping and buildings. Estimated cost: $180,000.
7. Perform solution mining design optimization study including cavern modeling and subsidence estimation. Estimated cost: $314,000.
Total estimated cost for Phase 1: $2.0 million.
Phase 2
If the results of the studies performed in Phase 1 are sufficiently positive and after permits and other approvals have been granted, project development should continue with:
1. Pre-Execution and basic engineering of plant facilities and equipment. Estimated cost: $1.3 million.
2. Contract administration, project management, and procurement of long-lead equipment. Estimated cost: $0.7 million.
Total estimated cost for Phase 2: $2.0 million.
Future stages will include detailed engineering, procurement, and construction. Costs for such work cannot be estimated at this time.
WPX - The plant unit operating costs (OPEX) were estimated to be Cdn$62/t of product at full production capacity. These operating costs include estimates for labor, maintenance, power, natural gas, water, consumables, diesel, and uncapitalized well-field operations. OPEX excluded taxes, royalties, or the costs associated with transportation to port and ship loading.