Western Potash initial Capex will be close to 3 billion! Probably close to 3 times higher than Passport.




December 6th, 2012, Vancouver BC - Western Potash Corp. (WPX: TSX) (FSE: AHE) ("the Company")

is pleased to announce the receipt of a positive Feasibility Study (the "Study") from AMEC Americas Limited ("AMEC") on the Company's 100% owned Milestone property in southern Saskatchewan (the "Project"). The Study confirms that the asset is of sufficient size and grade to support primary and secondary potash solution mining for more than forty years at an ultimate production rate of 2.8Mt/yr. The Study included detailed CAPEX and OPEX estimates with a production start up in 2016.


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%.


Patricio Varas, President and CEO commented "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. These factors, coupled with the detailed scope of project evaluation, the size and grade of the deposit, and the project development expertise of the management team, presents a unique opportunity for investors and developers to secure an economical, reliable and long term supply of potash."


Key Highlights of Study


Initial CAPEX1

$2.91B CAD

Deferred CAPEX2

$0.39B CAD

Contingency and Escalation
included in CAPEX

$0.55B CAD


$62.28 CAD/t at full production capacity

Sustaining CAPEX

Wellfield =$28.49 CAD/t, Plant & Site =$17.99 CAD/t at full production capacity

Rail and Port Cost4

$59.00 CAD/t

Accuracy of Study

+15% to -10%

After-tax NPV10

$2.44B CAD



Payback Period

5.6 years

Proven and Probable Reserves5

137 Mt KCl

1 includes water supply CAPEX.

2 includes all CAPEX required to produce at full nameplate production capacity

3 includes estimates for labour, maintenance, power, natural gas, water, consumables, diesel, and uncapitalized well field operations. Natural gas price =$4.00/GJ.

4 cost includes port operator return on capital

5represents recoverable tonnes KCl


To view the Full Release Please Click Here.



Western Potash Corp. is a development company engaged in the evaluation, exploration and development of potash mineral properties in Western Canada. The Company intends to develop a world-class potash deposit in an ecologically sustainable, economically efficient and socially responsible manner.


For more information on our Western Potash please visit the company's website . Or call us at 604-689-9378.





Angela Aydon
Investor Relations


Western Potash Corp.