A Saskatoon-based potash company is planning to expand its operations within the province after purchasing two mining leases that could lead to a small production site in south central Saskatchewan.
Gensource Potash Corporation reached the agreement with Yancoal Canada Resources this past April. If seen through, the leases would be developed into a mine north-west of Regina, near Eyebrow, Sask.
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Gensource’s business model revolves around pre-selling its product before it starts to develop a project. Ferguson said that was one of the reasons why the company entered the agreement with Yancoal.
“The opportunity here was of course to engage Yancoal as the off-taker, the market, that will purchase this product in the future,” Ferguson said.
Gensource’s “Vanguard” project will produce 250,000 tonnes of potash a year and employ 46 long-term staff, according to Ferguson. The site would be roughly an hour drive from Craik, Sask., where the company is developing a separate small mine.
“We’ve very familiar and comfortable with the geology in the area,” Ferguson said.
The transaction with Yancoal is expected to be complete in July, according to Ferguson. He added that it would likely take more than two years until the site is constructed and producing potash.
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