KARNALYTE RESOURCES INC. ANNOUNCES 2024 THIRD QUARTER RESULTS AND CORPORATE HIGHLIGHTS
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SASKATOON, SK, Nov. 6, 2024 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX:KRN) today announced its financial results and corporate highlights for the third quarter ended September 30, 2024.
Q3 2024 HIGHLIGHTS
UPDATE ON NATIONAL INSTRUMENT 43-101 COMPLIANT TECHNICAL REPORT
The Company continued to make progress on its NI 43-101 compliant technical report, a key precursor to any mine construction. In the third quarter, this included work on the equipment sourcing initiative that the Company previously announced. In pursuit of cost savings, the Company is analyzing cost efficiencies from sourcing certain equipment from overseas and expects to provide an update in the fourth quarter of the year. This initiative is being supported by our strategic partner, Gujarat State Fertilizers and Chemicals ("GSFC"). The cost savings initiative is being led by Wood PLC, a leading global consulting and engineering company that is the independent lead author of the update.
As previously announced, industry leading solution mining and engineering firm ERCOSPLAN ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN") is assisting with the technical report, including the update of the mineral resource estimation and the mine plan for brine field development as the basis for the mineral reserve estimate.
REVIEW OF DEVELOPMENT STRATEGY
During the quarter, the Company announced it will begin a review of its development strategy to evaluate the economic potential of increasing magnesium chloride production at the Company's Wynyard Project by developing the magnesium assets at the same time as the development of the potash project.
Carnallite, also known as hydrated potassium magnesium chloride, is abundant within the Company's mineral deposit. As part of its review, the Company has begun preliminary studies to evaluate the economic opportunity of developing carnallite for the co-production of magnesium chloride and potassium chloride. The aim is to significantly increase magnesium chloride production, compared to previous studies, through the use of advanced solution mining technologies.
Magnesium is listed as one of Canada's 34 critical minerals and is a key mineral in the clean technologies and advanced manufacturing value chains. Additionally, Magnesium chloride serves as a key raw material in the production of various chemicals, including magnesium metal, magnesium hydroxide, magnesium oxide, and magnesium carbonate. These chemicals are used in high-tech applications such as semiconductor manufacturing, lithium-ion battery production, and in industries including metallurgy, pharmaceuticals, agriculture and wastewater treatment, driving the demand for magnesium chloride.
Permanent Appointments of CEO and CFO
On ...