Gensource Potash is pleased with early test results on their exploration wells northwest of Moose Jaw.

According to a Gensource news release, "the company completed the first of two confirmation wells or drill holes – about 1600 meters deep" recently and core samples from the first hole were sent to a lab for analysis.

The drilling is meant to “confirm resource extent and grade in the area adjacent to one of the initial resource wells drilled in the area in 2012," explained Gensource CEO Mike Ferguson, who said the results will play a major role in their pending feasibility study.

Ferguson says they drilled for further confirmation that the source is "large enough and rich enough for what we want to do."

Gensource says "the sample yielded a 63-meter core from the Prairie Evaporite formation with 41 meters bearing potash from three geological layers."

"The three layers of potash that we expect to be there, are in fact there," Ferguson explained. "The mineralization in Sylvanite, which is the ore we're looking for, is there.  It looks consistent with the data we have from the 2012 program, so that's positive news for us."

Photo of Gensource potash samples taken at the Vanguard site (supplied photo)

There has been plenty of positive news on the business side for Gensource since announcing the first project near  Craik in late 2014.  Cients in Brazil and India have spoken for about 150,000 of the 250,000 tonnes per year expected to be produced at that site. 

Earlier this year Gensource purchased two mining leases from Yancoal Canada Resources, which involves Yancoal purchasing the entire 250-thousand tonnes per year expected to be produced from the new mine near Tugaske.

In addition, earlier in December Gensource signed a Memorandum of Agreement (MOA) to form a joint venture with India's Essel Group Middle East Limited (EGME).

According to Gensource, "the joint venture company will own a land package suitable for a long-life production facility in Gensource’s Vanguard area and will develop, construct and operate the facility.  EGME will provide business and logistic expertise to the joint venture and will provide financing in two stages – first to complete the current feasibility study, and second to finance the construction of the project. Ultimately, the joint venture will be owned 70 per cent by EGME and 30 per cent by Gensource."

"This is another very big milestone for us," commented Ferguson. "Our hope is that we can begin some construction..in 2017."

The mines are expected to create dozens of long-term jobs.