Project Highlights & Management Commentary
The Project utilizes the existing Eddy Shaft to access a 270-million-gallon brine pool with a potassium chloride (“KCl”) concentration expected at over 9% (1). We estimate this 270-million-gallon brine pool will translate to 85 to 110 thousand potash product tons which will be incremental to other brine sources at HB (2). By utilizing the Eddy Shaft, we avoided the time and capital associated with drilling and only incurred costs related to the installation of a new pump system and corresponding surface infrastructure.
We expect the production contribution from the Project to begin in the second half of 2024 and carry into 2025, with this brine source and extraction point becoming a consistent, longer-term contributor to our production as we continue brine injection over time. The Project’s brine pool is currently being extracted at a rate of approximately 750 gallons per minute and we expect the 270-million-gallon brine pool to be pumped into our ponds by the start of the 2024 summer evaporation season.
Our brine cycle at HB is a continuous process: brine is injected into the cavern system, we then extract brine from low points in the cavern after sufficient residence time, while continuously replacing extracted brine with new injection to replenish the caverns and continue the development of high-grade brine pools. Accordingly, as we extract the high-grade brine in the Eddy Cavern, we’ll continue our injection throughout the HB cavern system which will help maximize the brine availability and residence time to support brine grade and production rates over the longer-term.
Project Summaries at HB
Increasing production at the HB solar solution mine is key for improving Intrepid’s overall potash production profile and unit economics. Successfully completing the
Phase Two of the
For detailed summaries on our potash projects and assets, we encourage investors to view our recent presentation, “Overview of Intrepid’s Potash Operations,” which can be assessed from the Investor Relations tab at intrepidpotash.com.
Notes
(1) To date, we’ve extracted approximately 34 million gallons of brine with an average KCl concentration of approximately 9.2%.
(2) The estimated range of potash product tons is dependent on the exact brine grade, brine volume, and evaporation scenario. The Eddy Shaft brine is expected to be the primary source of potash production for the second half of 2024 and early-2025.
About Intrepid
Intrepid is a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed and the oil and gas industry. Intrepid is the only
Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Intrepid’s mineral production comes from three solar solution potash facilities and one conventional underground Trio® mine.
Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. Investors and other interested parties are encouraged to enroll at intrepidpotash.com, to receive automatic email alerts or RSS feeds for new postings.
Forward-Looking Statements
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause our actual results in future periods to differ materially from anticipated or projected results. Forward-looking statements in this press release include, among others, statements about the volume, KCl grade, and expected production from the brine pools in the Eddy Cavern, and the estimated completion date of certain projects. An extensive list of specific material risks and uncertainties affecting Intrepid is contained in our Annual Report on Form 10-K for the year ended
Contact
Phone: 303-996-3042
Email: evan.mapes@intrepidpotash.com
Source:
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