Resource World Magazine

2014. Agrium reported a gross annual profit for potash in 2012 of $342 million, which compares with $513 million in 2011. It blamed the fall primarily on lower sales volumes stemming from a decline in demand. The company and Jana Partners LLC (which holds a 7.5% stake in Agrium) have recently been involved in a heated proxy battle. Encanto Potash Corp. [EPO-TSXV] works in partnership with First Nations groups to explore and develop potash resources in southeast Saskatchewan. Proven and probable reserves at the company's flagship Muskowekwan Project stand at 161.96 million tonnes potassium chloride (KCl), grading 28%. The project could potentially pzroduce up to 2.8 million tpy potash over a 50-year plus lifespan. On March 4, the company announced receipt of a water rights licence from the Saskatchewan Water Security Agency for Muskowekwan. Encanto also wholly-owns the Ochapowace-Chacachas and Spar properties in Saskatchewan. K+S Potash Canada, a subsidiary of K+S Group [SDF-FSE] is developing the Legacy potash project, located 38 km northeast of Moose Jaw, southern Saskatchewan. The company will invest a total of $3.25 billion in the project during the first two expansion phases. First production is targeted for late 2015, with output then climbing to a nameplate capacity of 2.86 million tpy by 2023. Further potential expansion could boost output to as much as 4 million tpy. Mosaic Co. [MOS-NYSE] has three major Saskatchewan-based potash operations: Belle Plaine, Colonsay and Esterhazy. Over 80% of the $1 billion earmarked by the company for expansion work relates to Esterhazy K3. Meanwhile, Colonsay's underground development will be completed in H2. Net sales for the company's potash division reached $758 million for Q3 fiscal-year 2013, which compares with $553 million for Q3 fiscal-year 2012. Potash Corporation of Saskatchewan Inc. [POT-TSX] has five potash operations in Saskatchewan and one in New Brunswick. All six make up Potash Corp.'s North American unit, which recorded 20 www.resourceworld.com 2.59 billion tonnes sold for $1.23 billion in 2012. This compares with just over 3.11 billion tonnes sold for $1.5 billion in 2011. The company stressed that the potash market had been affected by dealer de-stocking, market caution and reduced demand from India (exacerbated by a weak rupee). For 2013, Potash Corp. expects a rebound in potash demand to meet consumption requirements in key markets. SPECIALTY METALS Great Western Minerals Group Ltd. [GWG-TSXV] has two exploration plays in Saskatchewan: Hoidas Lake, 50 km northeast of Uranium City, and the Douglas River Project, located south of Lake Athabasca. In November 2009, the company released a NI 43-101-compliant resource estimate for Hoidas. Using a 1.5% total rare earth element (TREE) cut-off grade, the property has measured resources of just below 964,000 tonnes for 2.142% TREE and 2.568% total rare earth oxide (TREO). Indicated resources are just below 1.6 million tonnes for 1.958% TREE and 2.349% TREO. Tantalum Mining Corp. of Canada Ltd. (Tanco) is a wholly-owned subsidiary of Cabot Corp. [CBT-NYSE] and operates the Tanco tantalum-cesium-lithium mine in Lac du Bonnet in southern Manitoba. On March 13 the Winnipeg Sun and CBC News reported that the mine was closing its tantalum section, with 35 employees laid off, effective end-March. The decision was made on weak market conditions and on costs associated with mining lowerquality ore as high-grade material has been mined out. The site's cesium unit remains unaffected. Tanco has two-thirds of the world's known reserves of pollucite, which contains cesium that is used as a lubricating agent in the oil drilling industry once processed into a cesium formate solution. URANIUM Alpha Minerals Inc. [AMW-TSXV] and 50/50 partner Fission Energy Corp. [FIS-TSXV] have a new uranium discovery in the Athabasca Basin at Patterson Lake South. See Ten Top Stock Market Performers article on page 8. Anglo-Bomarc Mines Ltd. [ANB-TSXV] holds a 10% stake in the Hughes Lake uranium project in the Athabasca Basin, northern Saskatchewan. Other strategic partners are Cameco Corp. (73.77%) and Areva Resources Canada Inc. (16.23%). On March 18, the company outlined its exploration program for 2013: a 13,000metre drill campaign of 15-20 diamond drill holes undertaken from January to September. Anglo-Bomarc will contribute $400,000 to the $4 million budget. Athabasca Uranium Inc. [UAX-TSXV] has a suite of projects in the Athabasca Basin that includes the Keefe Lake, McCarthy Lake, McGregor Lake and East Key Lake. Drilling last year focused on Keefe Lake and the adjacent Volhoffer property. At Keefe, hole KEF-12-08 intersected 116 ppm uranium from 470.9-471.5 metres, and 175 ppm uranium from 546.9-547.9 metres. The company believes that the deeper mineralized zone is a "plumbing system" for a shallower deposit. On March 25, the company announced that its intended private placement had been cancelled due to unfavourable market conditions. Cameco Corp. [CCO-TSX; CCJ-NYSE] claims 14% of global uranium production. In northern Saskatchewan it has operational interests in Cigar Lake (50%owned), Rabbit Lake (100%), and the McArthur River Mine and Key Lake mill (70%). The company expects an output of 13.2 million lbs U3O8 from McArthur River in 2013, which compares with 13.6 million lbs U3O8 in 2012. At Rabbit Lake it expects 4.2 million lb U3O8 for 2013 compared with 3.8 million lbs U3O8 in 2012. The Cigar Lake property will be bought on stream this year, with Cameco's share of production estimated at just 300,000 lbs U3O8 for 2013. This figure is then expected to ramp up to 1.8 million lbs U3O8 in 2014 and 5.5 million lbs U3O8 in 2015. CanAlaska Uranium Ltd. [CVV-TSX; CVVUF-OTCBB; DH7N-FSE] is focused on developing its 8,720 km2 holdings in the Athabasca Basin. The company's two core projects are the West McArthur and the Cree East projects. West McArthur is jointventured with Mitsubishi Corp., while a M AY 2 0 1 3

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