HoW GenSouRCe iS WoRKinG To ReDuCe GLobaL fooD inSeCuRiTy

climate change, conflict, and inequity have more people than ever going hungry. With food security challenging 10 per cent of the population, it equals approximately a billion people around the world being affected, and the problem is growing. The urgent need for sustainable agricultural technology to help reduce the global food crisis has never been greater.

Gensource recognizes the responsibility of delivering a strategic and critical nutrient (potash) to support global food production needs. With bridge engineering at its flagship Tugaske project already underway (further advancing its front-end engineering and design work completed in October 2021), the company is using this unique opportunity to simplify certain aspects of its operations, uncovering significant potential to improve both overall performance and profitability.

In particular, process and technology improvements within the surface process plant and optimization of its underground cavern design and layout are expected to yield significant simplifications. The outcomes of the bridge engineering efforts are anticipated to be shorter construction schedules, capital cost savings, and operating cost reductions.

As one of the safest jurisdictions to do business in the world, Saskatchewan lays claim to 50 per cent of the known global potash resource. Included on the critical minerals list by the Canadian federal government, potash produced in Saskatchewan is essential to world food production, land management, and sustainable development. Agri-food exports also help drive the provincial and federal economies. The province makes up 21 per cent of Canada’s agri-food exports and 40 per cent of Canada’s total farm area.

Like many other industries, the potash industry has been hit by wide-ranging cost escalations stoked by inflation, supply chain disruptions, global security issues, and more that have resulted in escalating CAPEX and operating costs for most capital projects, Gensource Potash included.

Gensource conceived the modular and scalable approach to potash production that is now being widely considered. Its modular technology will produce potash with near-zero environmental impact, and its diminutive production footprint is designed to integrate into smaller rural Saskatchewan communities. With no salt tailings or brine ponds, both synonymous with traditional potash production, and 75 per cent less water used, it presents a new and sustainable way of extracting a critical mineral that is essential to both the Canadian and global food production industries.

Against a backdrop of a tenuous global economy and tumultuous financial markets, a prudent business strategy called for a close look at every facet of the development of the company’s flagship Tugaske project for both synergies and cost savings.

Now, with the recent close of a non-brokered private placement, the company is poised to advance, with plans to implement its design and process changes, and start drilling its first cavern as early as summer 2023.

The company is proud of its recently announced strategic business partnership with the Nekaneet First Nation, a relationship that encompasses equity ownership that will bring both multi-generational benefits to its shareholders and the local community, as well as an opportunity to help shape the future of the company through board representation. The deal reflects Gensource’s commitment to truth and reconciliation.

“Part of truth and reconciliation means working together as a community and as leaders in local development opportunities,” said Mike Ferguson, Gensource’s chief executive officer. “In this case, the opportunity is to participate together in the ownership and development of resource projects in Saskatchewan and we couldn’t be more excited to work together.” l