Resources

CPC’s Resources

The Elk Point Basin is a broad, shallow, Middle‐Devonian seaway that spans from Manitoba to North Dakota and hosts the potash‐bearing Prairie Evaporite Formation in Saskatchewan. The “Commercial Potash Mining Belt” historically has been a world leader in potash production – holds 53% of world’s potash reserves and annually produces approximately one third of the world’s potash.

Canada Potash Corp. (CPC) possesses 8 subsurface mineral permits in the “Commercial Potash Mining Belt”, which covers approximately 2430 km². According to the historic data from 165 wells in and around the mining area, CPC hosts more than 30 billion metric tons of potash resources with 20%~35% K2O.

Highlight of CPC’s Resources

1. Compared with approximately 19% of K2O in European and South American, Prairie Evaporite of Elk Point Basin has potash deposit with 20%~35 % K2O. It has simple mineral compositions, less impurities, consistent geological structure, and shallow potash deposits at about 700~1100 meters, which can facilitate efficient underground mining work. The potash deposits of the Prairie Evaporite Formation are shovel-shaped with no deformation occurred and good continuity. Therefore, it may not be affected by a variety of complex factors, making its production cost lower than other minerals, it is one of the lowest cost potash mining areas in the world.

2. The “Commercial Potash Mining Belt” has 10 potash mining production plants (two solution mines, eight conventional underground mines). There are 6 potash producing mines near CPC mining area, with nearly 50 years of mining history. Both conventional mining method or solution mining method have been applied successfully. The same technology, equipment and resource, as well as a large number of skilled workers and experienced engineers, have substantially reduced the risk of potash mining.

3. “Commercial Potash Mining Belt” is located in central south of Saskatchewan with continental climate, which has mild and small precipitation. Topography of the area is relatively flat, and flood risk is minimal. In addition, with mature potash investment market, government’s supports for new mine development and unlimited export sales, the natural risk and social risk are very low in CPC’s potash mining projects.

4. CPC’s mining area is located in south of Saskatchewan, a grid pattern road and a rural gravel road system have been developed by the government. It also has existing comprehensive infrastructures, such as railway, electricity and natural gas pipelines, etc. Railway system can reach west coast of Pacific Ocean, such as Vancouver, Prince Rupert and Portland, Oregon of the United States.

5. CPC’s solid potash mining has similar production cost compared to potash extracted from salt lakes in Qinghai and Xinjiang, China, but its transportation cost and time cost are lower. It is possible to ship CPC’s potash products from Vancouver to Japan, Korea, South and East China in 17 days, as well as to reach Southeast Asia areas, such as Indonesia, Malaysia and Vietnam within 19 days.

6. CPC’s rich potash resources can effectively reduce the financial risk of exploration investment.