Buffalo Potash Completes Second Horizontal Well at Disley Initial Production Module

Buffalo Potash Corporation has completed the second horizontal well as part of the second phase of development at its Disley Initial Production Module (IPM), located in Saskatchewan. This achievement marks a significant milestone in the company’s plan to establish a solution mining plane using its patented Horizontal Line-Drive (HLD) technology.

The completion of the 4D15-10 Well (Producer Well 2) follows a successful installation of an 11-stage packer system designed to collect KCl-rich brine. The packers will play a crucial role in managing the flow of brine across the mining plane, facilitating the extraction of potash. Mr. Quinton Hardage, Buffalo Potash Corporation’s President and Chief Operating Officer, expressed satisfaction with the progress: "Successfully laying each of the horizontal production wells for our mining plane along the identified basal Belle Plaine clay seam is key to establishing efficient fluid connection between wells. The fact that we have achieved 95% contact with the target clay seam in both the first and second producer wells is a fantastic outcome and gives our team a lot of confidence as we move forward."

Hardage continued, "With the successful completion of Producer Well 2, we are now spudding the third and final horizontal well (the 1D15-10 Well or Injector Well). This well is intended to serve as the injection well in the IPM, introducing NaCl brine from the surface into the mining plane."

The IPM is designed to produce 125,000 tonnes per annum of soluble-grade potash and is the first of three planned solution mining facilities at the Disley Project. The project is located approximately 50 kilometers northwest of Regina, covering 10,610 hectares of Crown and Freehold mineral rights. The Disley Project is situated in one of the most favorable areas of Saskatchewan for potash solution mining, as evidenced by its proximity to major potash solution mines such as K+S Bethune and Mosaic Belle Plaine.

Buffalo Potash Corporation’s Disley Project is advancing through a phased, modular development plan. The current phase involves drilling three horizontal wells, establishing brine circulation, and progressing to site development and surface processing. The project is expected to reach first production in Q1 2027. According to the company’s preliminary economic assessment, the IPM is anticipated to have a payback period of approximately 12 months from the start of production. However, the company cautions that the production decision is not based on a feasibility study with mineral reserves demonstrating economic and technical viability. As such, the project is historically associated with a higher risk of economic and technical failure.

The Disley Project is part of Buffalo Potash Corporation’s broader strategy to establish capital-efficient, lower-impact potash production in one of the world’s leading potash jurisdictions. The company’s approach is based on its patented HLD technology, which is designed to optimize the extraction of potash from the underground clay seam. The success of the second horizontal well and the spudding of the third well further underscore the company’s commitment to this innovative approach.

The company’s Disley Project is set to be a significant contributor to the potash market, with the potential to produce up to 1,125,000 tonnes per annum of potash when fully developed. The project’s modular design allows for phased development, enabling the company to manage financial risks and optimize resource allocation.