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Karnalyte Resources Inc T.KRN

Alternate Symbol(s):  KRLTF

Karnalyte Resources Inc. is a Canada-based development stage company. The Company is engaged in the exploration and development of its property and possible construction of a production facility and development of a potash mine. It is focused on two fertilizer products, potash and nitrogen, to be produced and manufactured in Saskatchewan. The Company owns the construction ready Wynyard Potash Project, with planned phase I production of 625,000 tonnes per year (TPY) of high-grade granular potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY. The Company is also exploring the development of the Proteos Nitrogen Project, which is a proposed small scale nitrogen fertilizer plant with a nameplate production capacity of approximately 700 metric tonnes per day (MTPD) of ammonia and approximately 1,200 MTPD of urea, and a target customer market of independent fertilizer wholesalers in Central Saskatchewan.


TSX:KRN - Post by User

Comment by mdjbrownon Jun 13, 2022 10:28am
191 Views
Post# 34751760

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Kudos to the corporation for webcasting

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Kudos to the corporation for webcastingbk, GSP is a completely different animal than KRN, but are similiar in the fact that the technology both corporations are hoping to implement has not been proven viably economical in Saskatchewan yet.  Add Western to that mix as well.

I believe the techniques will be proven viable economically at some point, but havnt to date.

Krn's production model is based on the same mining techniques used at DEUSA in Germany, but their annual volume is much lower than Wynyards anticipated nameplate capacity. DEUSA's mines are aso much shallower than the target zones at Wynyard

The founder of the corporation has patented his process: 

 https://patents.google.com/patent/US20110123420A1/en 

and if memory serves me right, he was able to extract an amazing 11 or 12% concentration in a preliminary unofficial brine test back in 2012.

The more official optimization tests in 2016 were in the 9% range if I recall, and I am sure can be improved upon with more tweaking.

As far as the $280 debt facilty GSP has, KRN had a $300 million debt facility but raising the equity componet to start the project was the bigger hurdle.   GSP is currently finding that out as well.

GSP has a board stacked with potash experience in Saskatchewan, connections high up across the province, to my knowledge have more than 1 employee, and do not run operations from a virtual office.

Last, but not least GSP is not mining carnalitte, which has been said can have greater challenges associated with both downhole and the processing procedures than sylvinite targets.

On the bright side though, the mag extracted in the brine with the KCl is an added bonus if a dual processing facility is built as described in the previous technical reports.
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