Gensource congratulates Innovare Technologies on patent approval and discusses next steps
Gensource Potash Corporation has announced that its underlying technology provider, Innovare Technologies Ltd, has received confirmation of US Patent.
The Vanguard One project, for which a detailed feasibility study was completed on May 31, 2017, will use selective solution mining to extract potash from the sylvinite ore body underlying Gensource’s KL 245 subsurface mineral lease and cooling crystallisation techniques in the surface process plant to extract solid phase KCl from the feed brine. For the mining method, while Gensource will employ innovative cavern designs at the ore body, the general method of selective solution mining is well understood and has been in active use in the industry for some time. However, in the process plant, Gensource is employing specific improvements developed by Innovare (“Technologies”) to improve the energy efficiencies in the plant, which results in a lower operating cost. The companies’ shareholders will recall that Vanguard One’s stated operating cost per tonne, as determined in the feasibility study, is projected to be among the lowest in the industry, even though the operation will produce only 250,000 tonnes per year, which represents a very small potash project. Up to now, potash producers have relied on scale (i.e., large tonnages) to obtain low per-tonne operating costs.
Additionally, the mining method will produce no salt tailings on the surface and the process design, using cooling crystallisation, requires no surface cooling ponds – the result is no brine or salt on the surface, resulting in a major step forward in reducing the environmental impact of potash mining in Saskatchewan.
The specific improvements from Innovare were covered under patent pending protection until now. Gensource has been notified that Innovare has received confirmation of acceptance of patent for its surface plant techniques. Gensource is a licensor of the Innovare Technologies and, further, Innovare acts as Gensource’s technical advisory board.
The fact that the Technologies have been accepted by the US Patent Office is an exciting development that speaks to the level of advancement of the Technology and its applicability to Gensource’s potash production plans. The Company will benefit greatly from the use of the Technologies by implementing state of the art processing at Vanguard One that will help it keep operating costs at the very lowest level: a key attribute for any new project. Gensource congratulates Innovare for this significant milestone.
Gensource is poised and ready to advance the Vanguard One project. The business structure planned for Vanguard One has not changed: It will be executed under a joint venture in partnership with an off-taker, or buyer, of the product and a financial partner. As previously disclosed, Gensource is in discussions with several parties – all of whom are credible and active participants in the potash industry - to create these partnerships and the Company is excited at the prospect of moving the project ahead.
The scientific and technical information contained in this news release was reviewed and approved by Mike Ferguson, P.Eng., President and CEO of Gensource and a Qualified Person under NI 43-101.