Buffalo Potash secures Saskatchewan approval for 125,000-ton Disley module

Buffalo Potash has received Saskatchewan regulatory approval to complete construction and operate the initial production module at its Disley project, about 50 kilometers northwest of Regina, keeping first output on track for early 2027, MINING.COM reported on October 16. The module is designed to produce 125,000 metric tons of potash annually, with capital costs estimated at C$41.5 million ($29.2 million) in an April preliminary economic assessment.

The project will test Buffalo’s patented horizontal line-drive method, which circulates sodium chloride-saturated brine through parallel horizontal wells to dissolve potassium chloride underground. Drilling and well completions are finished, and the company is preparing to begin brine circulation while installing surface equipment.

Buffalo plans to sell soluble-grade potash from the first module to local agricultural customers and for use as a drilling-fluid additive. The initial operation is intended to demonstrate whether the technology can support commercial potash production from deposits that may be less suitable for conventional mining.

The longer-term development plan includes two additional facilities at Disley East and Disley West, each designed for 500,000 metric tons per year. Together with the initial module, the three plants would have planned capacity of approximately 1.13 million metric tons annually, with combined capital expenditure estimated at $639 million.

Granular potash production is not expected before 2029. Buffalo reported C$15.1 million in cash as of June 30 and has said it needs additional financing to advance its plans.

The Disley project is considerably smaller than BHP’s Jansen potash mine, which is designed for substantially greater production capacity. Unlike a large conventional mining development, Buffalo’s project is proceeding without a feasibility study, leaving questions about commercial economics and the financing required for expansion.

The immediate milestone is whether Buffalo can bring the first module into production on schedule. Successful operation could help establish the viability of its solution-mining approach and open a potential development route for smaller Saskatchewan potash deposits.

Source: Mining.com