Buffalo Potash receives two potash test well licences

Executive Summary

• Buffalo Potash Corp. has received two potash test well licenses from the Saskatchewan Ministry of Energy and Resources, marking the first step in the "confirmation phase" of its flagship Disley project.
• The company intends to commence drilling to validate the geological and solution mining framework, which is foundational for advancing an economic evaluation of the project.
• The Disley project is located in Southern Saskatchewan, adjacent to major producing mines (K+S Bethune and Mosaic Belle Plaine), and utilizes a patented horizontal line-drive mining system.

Key Details

• Licensing: Received two potash test well licenses from the Saskatchewan Ministry of Energy and Resources.
• Project Phase: Commencement of the "confirmation phase" (initial phase of work) to evaluate resource potential.
• Confirmation Phase Objectives:
  • Drilling of confirmation well No. 1.
  • Drilling of confirmation well No. 2.
  • Testing and analysis of historical core samples, including a historical pilot.
  • Completion of additional seismic interpretation.
  • Evaluation of resource potential and preparation of a National Instrument 43-101 technical report.
  • Commissioning and completion of a preliminary economic assessment.
• Project Location: Southern Saskatchewan, approximately 50 km northwest of Regina.
• Property Size: Approximately 9,413 hectares.
• Strategic Positioning: Situated immediately adjacent to the east of the K+S Bethune solution potash mine and north of the Mosaic Belle Plaine solution potash mine.
• Historical Context: A historical pilot project in the 1960s by Lumsden Potash Development Company demonstrated communication across the potash zone and the ability to extract potash using a two-well cavern system.
• Technical Approach: Management is incorporating historical pilot results, 3-D seismic interpretation, and geochemical modelling to inform preliminary geological interpretation. The project aims for a modular, selective solution mining operation using Buffalo's patented horizontal line-drive mining system.
• Qualified Person: Douglas F. Hambley, PhD, PE, PEng, PG, reviewed and approved the scientific and technical information.

Notable Quotes

• Steve Halabura, PGeo, CEO: "The receipt of these well licences allows us to commence confirmation phase drilling at Disley and begin validating the geological and solution mining framework of the property. This work is foundational to advancing an economic evaluation of the Disley project in the near term."
• Steve Halabura, PGeo, CEO: "We are pleased to be advancing the Disley project, which is located in one of the world's most established and technically proven jurisdictions for potash production... our technical team brings a deep understanding of the potash geology we are now seeking to confirm at Disley as we advance the project through the next stage of technical evaluation."