Karnalyte files updated feasibility study on Wynyard

Executive Summary

• Karnalyte Resources Inc. has filed an updated National Instrument 43-101 technical report for its flagship Wynyard project, confirming strong project fundamentals and long-term potential.
• The updated feasibility study outlines a 70-year mine life with significant economic metrics, including a $2.04-billion after-tax Net Present Value (NPV) and a 12.5% Internal Rate of Return (IRR).
• The project is designed to produce 2,175,000 tonnes of potash and 104,000 tonnes of hydromagnesite annually, supported by secured offtake agreements.

Key Details

• Project Economics:
  • After-tax NPV: $2.04 billion (at an 8% discount rate).
  • Internal Rate of Return (IRR): 12.5%.
  • Mine Life: 70 years.
• Production Targets:
  • Annual Potash Production: 2,175,000 tonnes.
  • Annual Hydromagnesite Production: 104,000 tonnes.
• Commercial Terms:
  • Secured offtake agreement for a portion of production to support reliable cash flow.
  • Existing offtake agreement with Gujarat State Fertilizers & Chemicals Ltd. (GSFC) remains in effect.
• Technical & Regulatory Status:
  • National Instrument 43-101 technical report filed and available on SEDAR+.
  • Preliminary detailed engineering is complete.
  • All environmental permits remain valid.
• Qualified Persons (QPs):
  • Tabetha Stirrett, PGeo (RESPEC)
  • Dr. Sebastiaan van der Klauw, EurGeol (ERCOSPLAN)
  • David Mitchell, PEng (Wood)
  • David Myers, PEng (Wood)
  • Kyle Krushelniski, PEng (MARCH)

Notable Quotes

• "The filing of the updated feasibility study marks an important milestone as we advance the Wynyard project towards development," said Danielle Favreau, chief executive officer of Karnalyte Resources. "With a strong foundation, positive market outlook and clear strategy, Karnalyte is well positioned to create long-term value for our stakeholders."