And lots of coverage.

http://www.mining.com/encanto-potash-takes-2013-gains-to-27-after-positive-pre-feasibility-44190/

 

 

Encanto Potash takes 2013 gains to 27% after positive pre-feasibility

Frik Els | February 4, 2013

Encanto Potash (TSX-V:EPO) stock gained 2% on Monday bringing its 2013 gains to 27% after the Saskatchewan junior released a positive pre-feasibility study for its Muskowekwan property in the south of the Canadian province.

Encanto, worth $72 million in Toronto, said the PFS confirms Muskowekwan can support a mine for over 50 years with a muriate of potash production rate of 2.8 million tonnes per annum.

"The initial CAPEX estimate for the plant is $2.86 billion and includes estimates for water supply, gas pipeline and a cogeneration plant and includes a contingency and escalation of $460 million," said Vancouver-based  Encanto.

Operating costs were estimated at $54.32/t at full production capacity with royalties and taxes adding another $64.76/t.  Logistical costs are estimated at $50.50/t and sustaining capital costs were estimated at $32.21/t at full production and include well field extension, and tailings management.

Construction is envisaged for the second quarter of next year with start-up early 2017.

In January Encanto published details of an agreement with a Kuwaiti concern to raise $7 million and appointed two new directors. At the time details of a possible deal by Encanto with India's Rashtriya Chemicals and Fertilizers Ltd. (RCF) also emerged.

The proposed agreement with the Indian concern calls for an offtake agreement  for 2 million tonnes of potash at an 8% discount to market price – worth roughly $736 million a year.