Stop the Hogs!

Karnalyte submits Environmental Impact Statement for Wynyard Carnallite Project

----- Original Message -----
From: Elaine Hughes
To: Sask Environmental Society ; Sask EcoNetwork ; Council of Canadians
Cc: The Ecologist Magazine ; SK Watershed Auth. ; SDWF ; Sierra Club Prairie ; Nature Saskatchewan ; Sask. Wildlife Fed. ; Mining Watch.ca ; SK Green Leader - Lau, Victor
Sent: Friday, November 18, 2011 10:08 AM
Subject: FYI: Karnalyte submits Environmental Impact Statement for Wynyard Carnallite Project


An article in Nov. 16, 2011 issue of the Wadena News "Karnalyte Resources preparing for construction" indicates that a public meeting was held in Wynyard last Wednesday and that construction for a 'solution mining potash mining project' will get under way by April 2012 to be completed November 2013.

It has access to over 85,000 acres of private and crown land for exploration, and company spokesperson, Robert Macgillivray, says "the company has a very 'aggressive schedule" to "become a leading producer of high-quality potash using an established solution mining process".

Their plans for Solution Mining:
http://www.karnalyte.com/our-plans/solu ... fault.aspx

They're asking that local contractors, and suppliers of services and supplies contact the company ASAP in order to get on the 'list' and thus, "be in line to see an economic spin-off from the carnallite project planned . . . "

From the Karnalyte website, "The EIS (Environmental Impact Study) will be released for public comment by the MOE (Ministry of Environment) once the document has been reviewed and deemed complete. Karnalyte expects this to occur in the first quarter of 2012."

....with the same old questions:

How many millions of (unmetered?) water will this project need, and where will the water come from - other than from the Quill Lakes - in order to produce "625,000 tonnes per year of potash product with expansion to 2.125 million tonnes of potash per year over a five- to six-year period."- using this 'solution mining process'?

How long will local wells and dugouts hold up under this assault before they go dry?

What happens to the contaminated (radioactive??) water from this process?

There's already a huge pipeline from the Quill Lakes to supply water to the BHP Billiton Potash mine at Janzen - and now this?!!!

The Quill Lakes have been designated as a Western Hemispheric Shorebird Reserve:
http://www.wetlands.org/RSIS/_COP9Directory/Directory/
ris/4CA023en.pdf

Elaine

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Karnalyte submits Environmental Impact Statement for Wynyard Carnallite Project

http://www.newswire.ca/en/story/868663/
karnalyte-submits-environmental-impact-statement-for-wynyard-carnallite-project
October 31, 2011 4:00 PM
CALGARY, Oct. 31, 2011 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced that it has submitted the Environmental Impact Statement ("EIS") for its proposed Wynyard Carnallite Project (the "Project") to the Saskatchewan Ministry of Environment ("MOE"). The EIS was prepared by Dillon Consulting Limited, under contract to a subsidiary of Foster Wheeler AG's Global Engineering and Construction Group ("FW"), with the support and participation of FW subcontractors ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, North Rim Exploration Ltd, ENVIRON EC (Canada), Inc., GeoEngineers, Inc., RPS Energy, Clifton Associates Ltd., Canada North Environmental Services and Glen Veikle, M.A.

"Karnalyte considers strong environmental stewardship as a prime objective in the design, construction and operation of the Wynyard Carnallite Project," said Robin Phinney, President and CEO of Karnalyte. "Submission of the EIS is an important milestone for Karnalyte and we are confident the intensive two year preparation leaves us well positioned to move the Project forward."

The EIS considers the environmental impact of constructing a solution mining facility that will produce 625,000 tonnes of potash per year. The MOE will review the EIS in consideration of granting environmental approval for the Project, which is required under the Saskatchewan Environmental Assessment Act before Karnalyte may proceed with the required licenses, permits and environmental protection measures associated with the construction of its proposed potash facility.

The EIS will be released for public comment by the MOE once the document has been reviewed and deemed complete. Karnalyte expects this to occur in the first quarter of 2012.

About Karnalyte Resources Inc.

Karnalyte is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products. Karnalyte intends to develop and extract a carnallite - sylvite mineral deposit through a known solution mining process at competitive costs and with minimal environmental impact. Using a staged approached to potash plant construction, the Corporation plans to operate a solution mining facility that will initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year. Karnalyte owns a 100% interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Saskatchewan, comprising a total of 85,126 acres.

Reader Advisory

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Corporation's future operations, including the timing and review process of the EIS by the MOE. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Karnalyte, including with respect to the Corporation's future operations. Although Karnalyte believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Karnalyte can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the mining industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Karnalyte undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

For further information:
Robin Phinney, President & Chief Executive Officer
Ron Love, Chief Financial Officer & Vice-President Finance
Julius Brinkman, Vice-President Corporate Development
Telephone: (403) 995-6560
E-mail: info@karnalyte.com
Website: www.karnalyte.com

It’s Always About The Water, Mr. Wall!

Published in the Wadena News on Nov. 23, 2011

Letter to the Editor

RE: Karnalyte Resources preparing for construction – November 16, 2011

While reading this article, one could almost taste the high excitement as Karnalyte Resources Inc. encourages local contractors, business people and property owners to get in line for the goodies offered from their ‘solution mining’ potash project at Wynyard.

But, farmers and residents are always left with important questions when a corporation rolls into town with great tales of ‘economic spin-off’ from their latest scheme.

What about the negative impacts on the water in this huge watershed? Are residents encouraged to get their well water tested before this project begins? How many millions of gallons of (unmetered?) water will this project demand? Where will the water come from - the Quill Lakes?

How long will it take for surrounding aquifers, sloughs, wells and dugouts to dry up under Karnalyte’s ‘aggressive schedule’ to produce "625,000 tonnes per year of potash product with expansion to 2.125 million tonnes of potash per year over a five- to six-year period."? What happens if central Saskatchewan experiences a few dry years?

According to Karnalyte’s website, “ . . . solution mining involves introducing a fluid into the mineral deposit via a drilled well. The carnallite mineral dissolves in this fluid to form a brine solution which is brought back to the surface. The potassium and magnesium minerals are then recovered from the solution and processed.” How is this brine solution treated and stored after it is brought to the surface? Is the correct treatment available if it comes up radioactive???

And, of critical consideration is the fact that the Quill Lakes are designated as a Western Hemispheric Shorebird Reserve, meaning that the Saskatchewan Government is INTERNATIONALLY responsible to protect this precious resting place for hundreds of millions of waterfowl during their migrations.

How will Mr. Wall do that - ensure drinking water for residents, local farmers and their livestock for miles around, keep the potash seekers happy and carry out a proper, arms’ length Environmental Impact Study – all at the same time?

Elaine Hughes
Archerwill, SK

Karnalyte Resources amends, restates technical report

https://prosperitysaskatchewan.wordpres ... 012/04/04/
karnalyte-resources-amends-restates-technical-report/

Posted by prosperitysaskatchewan

4 Apr 2012 The StarPhoenix SCOTT LARSON THE STARPHOENIX

Karnalyte Resources Inc. said all systems are go after experiencing a short delay related to comments from the Alberta Securities Commission about the technical report produced for its carnallite potash project near Wynyard.

“The regulators wanted clarification around a few points,” said Julius Brinkman, Karnalyte’s vice-president of corporate development.

Karnalyte intends to develop a greenfield potash plant and extract a carnallite-sylvite mineral deposit through a solution mining process. Using a staged approached to potash plant construction, the company plans to initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year.

Brinkman said all issues with the commission have been resolved through an Amended and Restated Technical Report.

Changes made in the amended report include:

• An increase in the accuracy range of estimated capital expenditure, or CAPEX, and operating expenditure, or OPEX, costs from plus/ minus 25 per cent to plus/minus 15 per cent for the second and third phases of plant expansion from 625,000 tonnes per year to 2.125 million tpy of granular product. This change increased estimated CAPEX from $1.973 million to $2.002 million for the 2.125 million tpy facility and decreased estimated OPEX from $129.20 to $125.45 per tonne. OPEX includes annual brine field expansion and contingency.

• An update by the corporation on certain assumptions in the project economics to better reflect current trends.

• Clarification as to why a pilot operation is not required to obtain feasibility status.

The amended report will be available on SEDAR at www.sedar.com in the next few days.

“The proven and probable reserves remain at 155 million tonnes of KCL, which is enough reserve for a 2.125 million tonne facility for 70 years on 20 per cent of our property,” Brinkman said, adding they still plan on a two-year construction period, opening the mine in 2014.

“Therefore it’s a very short period of time until cash flow,” he said.

“We are kicking off the detailed engineering — we have over $30 million in working capital, which is more than enough to kick off the engineering and establish an operations office in Saskatoon.”

He said they are focused on meeting near-term milestones, which include working with the government for environmental approval, getting debt financing in order and having ongoing discussions with strategic partners.

“We also have a pre-feasibility study coming out in Q2 for production and marketing of magnesium compounds,” Brinkman said.

“That should add some additional economics and strengthen the overall project.”