This technical report summarizes the feasibility study for a proposed sulphate of potash (SOP) production project at the Sevier Playa in Millard County, Utah.
Report context
The NI 43-101 Technical Report, dated February 21, 2018, was prepared for Crystal Peak Minerals Inc. (CPM) by Novopro Projects Inc., Norwest Corporation, and CH2M Hill, summarizing the feasibility study (FS) for the Sevier Playa Potash Project. The report incorporates relevant information from previous reports including CH2M Hill (2013), March Consulting Inc. (2012), Norwest (2011), and Norwest (2012). The project property is situated approximately 140 miles southwest of Salt Lake City, Utah, between the towns of Delta and Milford. The Playa covers approximately 130,000 acres and is approximately 26 miles long by an average of 8 miles wide. The mineral deposits occur over the entire lakebed and immediate shoreline areas.
Processing route
Proposed extraction methodology
The report describes a proposed approach to harvesting brine minerals through the use of large-scale, shallow solar evaporation impoundments. The ideal conditions for this type of process occur in an area that is arid, relatively hot, and windy. The proposed design relies on management of multiple pond systems at varying stages of development to provide sufficient feed stockpiles to maintain operations throughout the year, addressing climatic challenges related to decreased solar evaporation during winter months.
Historical operating data
A brine collection canal 4.8 miles long was excavated into the lakebed sediments approximately 20 feet deep in the late 1980s, with berms along the edges several feet above the Playa surface. Several evaporation ponds were constructed to be fed by the canal via a series of feeder dikes. The canal, ponds, and feeder dikes remain in place in the south-central margin of the Playa, although the canal has been largely silted-in since brine collection and evaporation ceased in 1993.
Testwork programs
Hazen conducted process testwork incorporated into the design and engineering of the project, covering the following areas: conversion, flotation, mineral leach, MOP addition, and SOP crystallization. In 2017, six Class A standard evaporation pans were installed on the Sevier Playa for empirical measurement of site-specific fresh water and brine solar evaporation rates. Over the evaporation period from April to October 2017, evaporation measurements were taken twice weekly as part of the solar ponds design.
Field test programs included measurement of the annual evaporation rate (fresh water) at 0.094 in/d (2.39 mm/d). Two weather stations recorded climatic conditions at the Playa during the late 1970s. Data from late June through early September 1979 showed daytime temperatures averaging approximately 86°F (30°C) and night-time temperatures approximately 54°F (12.2°C). Wind speeds recorded during spring through fall averaged 15 to 20 mph (24 to 32 km/h).
Proposed processing facility tailings management
Three types of tailings are anticipated to be generated by the evaporation ponds and processing facility:
- Type 1: tailing salts generated in the pre-concentration ponds, to be stored in the pre-concentration ponds with berms continuously raised over the life of mine.
- Type 2: purge brine removed pre-harvest from the final evaporation pond stage, to be pumped to the waste product storage facility's purge brine storage ponds located on the Playa, west of the production ponds.
- Type 3: solid salt tailings removed during the filtration and scrubbing steps of the process, to be trucked as filtered solids material from the processing facility flotation circuit to the tailings storage facility.
Key reported parameters
| Parameter | Value | Basis |
|---|---|---|
| Annual precipitation | 8.03 inches (204 mm) | Historical data (Gwynn, 2006) |
| Average maximum temperature | 66.4°F (19°C) | Regional climate statistics |
| July average high | 93.0°F (33.9°C) | Regional climate statistics |
| January average low | 13.8°F (-10.1°C) | Regional climate statistics |
| Maximum ambient temperature | 105°F (40.6°C) | Western Regional Climate Center |
| Minimum ambient temperature | -7°F (-21.7°C) | Western Regional Climate Center |
| Fresh water evaporation rate | 0.094 in/d (2.39 mm/d) | Field testwork |
| Average wind speed (spring-fall) | 15-20 mph (24-32 km/h) | Historical data (1979) |
| Daytime temperature (June-September 1979) | ~86°F (30°C) | Historical data |
| Night-time temperature (June-September 1979) | ~54°F (12.2°C) | Historical data |
| Brine collection canal length | 4.8 miles (7.72 km) | Historical development |
| Brine collection canal depth | ~20 feet (6.10 m) | Historical development |
| Playa elevation | ~4,514 feet (1,376 m) AMSL | Topographic data |
Project website: https://peakminerals.com/project/
Technical qualifications
This technical report contains forward-looking statements and information as defined in applicable securities legislation that involve uncertainties. Such forward-looking statements pertain to, but are not limited to, Mineral Resource and Reserve estimates, the timing and expectations of project related activities and events, the future price of SOP, governmental regulations and approvals, capital requirements, economic predictions, and other statements that have not yet occurred. These statements are subject to numerous uncertainties and risks that are beyond the control of CPM and/or the authors of this technical report. Risks are associated with, but not limited to, mining, field related and mineral exploration activities, the impact of general economic and industry related conditions, dependence upon regulatory approvals, the assumptions underlying production estimates not being realized, decreases in the future price of SOP, costs of labour, supplies, fuel, equipment and other costs related to the project, the uncertainty of obtaining additional financing, and the other risks outlined in CPM's public filings.
The report carries forward the general body of information reported in the November 2013 NI 43-101 Technical Report titled "Preliminary Feasibility Study of the Sevier Lake Playa Sulphate of Potash Project Millard County, Utah" prepared by CH2M Hill (2013), and the November 2012 NI 43-101 Technical Report titled "Preliminary Economic Assessment EPM Mining Ventures Inc. Sevier Dry Lake, Utah, United States" prepared by March Consulting Associates Inc. (2012).
The authors have reviewed the BLM and SITLA mineral lease documents and find that they appear valid and reasonable for the operation of potash extraction within lease boundaries. No formal legal review or further due diligence has been performed.
Development of CPM's federal leases requires federal approval requiring compliance with NEPA. The Environmental Impact Statement (EIS) is a public disclosure document, not a permit or approval document. Development of the EIS has been initiated and a third-party contractor has been selected to support BLM's preparation of the project EIS.
The findings and conclusions in this technical report are based on information developed by the authors from data provided by CPM. It includes data provided by third parties, specifically analytical data developed by American West Analytical Laboratories (AWAL), Australian Laboratory Services Ltd. (ALS), SGS North America Inc. (SGS), DCM Science Laboratory, Inc. (DCM), Intermountain GeoEnvironmental Services, Inc. (IGES), Pocock Industrial, Inc. (Pocock), and GSH Geotechnical Inc. (GSH). Regarding the history of the project, the authors have relied on data compiled from historic reports related to prior development work, including historic Mineral Resource estimates, most notably Gwynn (2006), Godbe (1984), and Rasmussen (1997).
The United States Customary measurement system, as outlined in the Handbook 44 of the National Institute of Standards and Technology, applies to the project.
Source: NI 43-101 Technical Report Summarizing the Feasibility Study for the Sevier Playa Potash Project, Millard County, Utah, Prepared for Crystal Peak Minerals Inc., February 21, 2018, Sections 2.3, 2.4, 2.6, 3.1, 4.1, 5.1-5.5, 6, 13, 17.
