Canada Potash Corp. owns 8 Subsurface Mineral Permits in the world’s largest Commercial Potash Mining Belt in Saskatchewan, Canada. This Potash Mining Belt is flat lying with rich potash reserves, has good continuity and undeformed. It typically occurs at the depth of less than 1,100m, facilitating cost-effective underground mining. The grade of ore within the area is relatively high with excellent value. The climate of the mining area is temperate. The land in the mining area is flat with good existing basic infrastructure. The area has adequate professional and skilled labour and the political risk is lower compared to other regions in the world.
CPC’s 8 Subsurface Mineral Permits cover approximately 2,430 square kilometres of land in south‐central Saskatchewan.
Based on the compilation and integration of data obtained from 165 wells on and around CPC’s Project area and recently released publications from SMER(as shown in the graphs on the right about PL, BP and EH formation), independent third party exploration company Caracle Creek International Consulting Inc. (CCIC) believes that potash mineralization to be present underlying all of the permitted area reaching thicknesses of up to 27m in the Patience Lake Member and up to 21m in the Belle Plaine and Esterhazy. These thicknesses are greater than previous interpreted and therefore the Project area has a significant potential to host numerous mineable potash deposits.
Historically, CPC’s potash permits were considered to be too far north to contain sufficient thicknesses of the Prairie Evaporite Formation. However, recent statistics as shown in the graphs on the right, there is potential for the north-west permit areas to host thicker sequences of Patience Lake member than areas to the south, the centrally located permits (north of Saskatoon) to host thicker sequences of both the Belle Plaine and Patience Lake members, the eastern permits to host all three potash members, and the potash beds to reach thicknesses of up to 50m.
Based on the historical drill data, CCIC estimated that potential for the target type one exploration targets range from 3.6 – 5.4 billion tonnes, 15.7 to 22.7 billion tonnes and 10.4 to 13.9 billion tonnes of potash in the Patience Lake, Belle Plaine and Esterhazy Members, respectively. If more than one potash horizon could be extracted at a time, the total cumulative resources could range from 10 to 12.6 billion tonnes.