Encanto Potash and Muskowekwan First Nation Engage Hatch Engineering for Value Engineering Study

TSX-V: EPO

VANCOUVER, Aug. 1, 2018 /CNW/ - Encanto Potash Corp. ("Encanto") (TSX-V: EPO) and the Muskowekwan First Nation are very pleased to announce that they have engaged Hatch Engineering ("Hatch") for the next step in their plan towards the construction target of a significant potash mine in the 4^th Quarter 2019. With the financial support of the Government of Canada via funding through Indigenous Services Canada (please refer to the Company's press release dated July 23, 2018), the Company is quickly moving forward with the upcoming engineering steps of the Muskowekwan Potash Project. 

Hatch will perform a value engineering analysis in efforts to lower the project's total Capex, with results expected in 4^th Quarter 2018. Chief Operating Officer Richard Lively stated, "I have worked with numerous projects both in Canada and globally and as a result of that practical experience in design and operations, combined with what we know about the property geologically, I believe that there is substantial potential that the Capex and Opex can be reduced."

Lively continued, "I have been involved with Hatch on other projects and feel very confident in having them join Encanto for the Value Engineering study that will help define these cost reductions while adding value to our project." Hatch will be completing this study to re-evaluate our projected costs and define our next step towards detailed design engineering. Hatch has been granted a new patent for potash and mineral salt pond crystallization—the only filed patent that has been validated to increase production over the "conventional wisdom" approach that is typically used today. This new technology is anticipated to reduce costs and increase production.

Hatch has a demonstrated history of completing projects on time and on budget. Lively states, "In my experience working with Hatch in the past, they cater to the clients specific needs and strive to lower costs and increase the quality of the project to deliver true value for all stakeholders. Hatch has experience in many successful potash projects which instills our complete confidence in them. We are very pleased to have Hatch on board and we look forward to having their potash expertise which will guide us together through the next steps as we plan to develop the next generation of potash mines in Saskatchewan."

About Hatch
Whatever our clients envision, our teams can design and build. With over six decades of business and technical experience in the mining, energy, and infrastructure sectors, we know your business and understand that your challenges are changing rapidly.  We respond quickly with solutions that are smarter, more efficient and innovative. We draw upon our 9,000 staff with experience in over 150 countries to challenge the status quo and create positive change for our clients, our employees, and the communities we serve.  

Our diverse teams combine vast engineering and business knowledge, working in partnership with our clients to develop market strategies, manage and optimize production, develop new game-changing technologies, and design and deliver complex capital projects.

We work closely with the communities in which we serve to ensure that our solutions optimize environmental protection, economic prosperity, social justice, and cultural vibrancy. We want their businesses, ecosystems, and communities to thrive, both now and into the future. http://www.hatch.com 

About Encanto Potash Corp.
Encanto Potash Corp. is a TSX Venture Exchange listed and traded Canadian Resource Company engaged in the development of potash properties in the Province of Saskatchewan, Canada, the largest producing potash region in the world. Through a joint venture agreement with Muskowekwan Resources Ltd, Encanto has secured a project land package which totals approximately 61,000 largely contiguous acres. Pre-Feasibility Study dated February 28, 2013 titled "Encanto Potash Corp. Technical Report Summarizing the Preliminary Feasibility Study for the Muskowekwan First Nations Home Reserve Project in South Eastern Saskatchewan, Canada" confirms the Proven and Probable KCI Reserves totaling 162 Mt grading 28% KCl (average) which supports primary and secondary mining for over 50 years at an assumed annual rate extraction rate of 2.8 Mt of MOP. The PEA dated May 24, 2017 titled " NI 43-101 Technical Report on a Preliminary Economic Assessment and Preliminary Feasibility Study of the Muskowekwan Potash Project, South-Eastern Saskatchewan, Canada" summarizes an alternative development option that supports primary and secondary mining of the Mineral Resources for 48 years at an annual extraction rate of 3.4 Mt of MOP. On December 30, 2016, Encanto signed a 20-year off-take agreement  with the National Federation of Farmers' Procurement, Processing, and Retailing Cooperatives of India Ltd., (NACOF) registered under the Ministry of Agriculture, Government of India to supply 5 million metric tons a year of potash. 

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SOURCE Encanto Potash Corp.