Gensource Provides Corporate Update
SASKATOON, Saskatchewan – March 31, 2017 – Gensource Potash Corporation (the ‘Company” or “Gensource”) (TSX.V: GSP) is pleased to provide its shareholders an update on key corporate activities.
The ongoing Vanguard One Project Feasibility Study (“Study”) is over 75% complete and remains on track to be finished in Q2 2017. The Study is with respect to the Vanguard One Project, to be located on Gensource’s KL 245 lease. The Study builds upon the positive PEA findings (see Gensource news release dated May 31, 2016) to a scalable approach to potash production (250,000 t/a per facility) at industry-low capex and opex.
- At this stage, the Company does not expect significant changes to estimates or costs from those published in the PEA.
- The Study is being conducted by an integrated team comprising Innovare Technologies Ltd. (“Innovare”), ENGCOMP Engineering and Computing Professionals (“ENGCOMP”) and South East Construction (“SECON”).
- The recently completed 3D seismic program is now being interpreted and will aid in the final stages of the Study. With the 3D data acquisition complete, wellfield planning and site selection is under way.
- Water source testing/drilling fieldwork is nearing completion. This process is providing positive early results with respect to developing a water source from groundwater. One of the environmentally attractive features of Gensource’s small scale approach is that brackish water can be used in the selective solution mining process and there is an overall reduction in water consumption per tonne of product produced – these two factors together lead to the possibility of avoiding the consumption of fresh surface water for the project.
- A well-attended and enthusiastic Open House meeting was held in the Village of Tugaske, SK, on February 1, 2017. Over 100 people from Tugaske and the surrounding communities joined Gensource’s team for a general information session and project update on the Vanguard One Project.
- Gensource will be hosting a First Nations & Metis specific general information session in Regina, SK, on April 6, 2017.
- The environmental and regulatory work continues to progress with the expectation that Gensource will submit its Technical Project Proposal to Environmental Assessment Branch by the end of April.
The Company is also making progress on its JV partnership with Essel Group ME
(‘EGME”) (see Gensource news release dated November 29, 2016), and continues to work on definitive documentation with respect to the JV. Pursuant to the non-binding Memorandum of Understanding, EGME has agreed to finance the project in two tranches – one immediately, intended to complete the Study, and a second to provide full construction financing for the project upon confirmation, in the Study, of the technical and economic viability of the project. Further announcements will be made on the status of this the JV Partnership.
Further, Gensource is currently making plans for further exploration and development work on its KL 244 lease later in the year.
The scientific and technical information contained in this news release was reviewed and approved by Mike Ferguson, P.Eng., the President and CEO of Gensource and a Qualified Person under NI 43-101.
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province. Gensource’s President and CEO, Mike Ferguson, P.Eng., has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key components – vertical integration with the market to ensure that all production capacity built is directed to a specific market, eliminating market-side risk; and, technical innovation which will allow for a small and economic potash production facility, the output of which can then be directed to a single, specific market.
For further information please contact:
Gensource Potash Corporation:
Mike Ferguson, President & CEO
Telephone: (306) 974-6414