Western Potash Corp. (TSX:WPX) announced that they received a positive Feasibility Study regarding their Milestone property in southern Saskatchewan, which confirmed that the project will support primary and secondary potash solution mining for a span of 40 years or more. The study also included APEX and OPEX estimates with a production start up in 2016.

As quoted in the press release:

The Study reports that the resulting after-tax project Net Present Value (“NPV”) is $2.44B CAD, with an Internal Rate of Return (“IRR”) of 18.6 % assuming a nominal discount rate of 10%.  On a before tax basis, the Project yields an NPV of $3.6B CAD and an IRR of 21%.

Western Potash’s President and CEO, Patricio Varas, said:

Our Project is in an enviable, low risk geopolitical and regulatory jurisdiction, which is a key advantage for developers that look for long-term investment predictability. The lower capital intensity of the Project combined with the plant’s efficient operations and high throughput produce a project with attractive rates of return and significant free cash flow.

To view the whole press release, click here