Potash Deposits in the Devonian Prairie Evaporite, Southwestern Manitoba Lo Eo Gic G a a L B S O U

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Potash Deposits in the Devonian Prairie Evaporite, Southwestern Manitoba Lo Eo Gic G a a L B S O U Potash deposits in the Devonian Prairie Evaporite, southwestern Manitoba lo eo gic g a a l b s o u t r i v n e a MGS y m M.P.B. Nicolas 1928 Manitoba Geological Survey, Winnipeg, Manitoba, Canada Potash Geology 3. Esterhazy Member The Esterhazy Member is the most economic Potash Exploration potash beds. It consists of euhedral to subhedal halite 2. Regional and Local Geology crystals with large anhedral sylvite crystals and minor 1. Introduction interstitial carnolite and clays (Figure 7 and 8). In Manitoba, the Paleozoic-, Mesozoic- and Cenozoic-age strata form a basinward-thickening, southwesterly- 6. Potash Resource 7. Exploration History The Prairie Evaporite is a thick Denonian-aged evaporitic sloping wedge, with the strata reaching a total thickness of 2.3 km in the extreme southestern corner of Manitoba The Esterhazy Member is intermittently present in R29W1 R28 R27 R26 R25 R24 R23 sequence dominantly consisting of halite and anhydrite. It Legend (Figure 4). The potash-bearing Devonian-age Prairie Evaporite was deposited within the Elk Point Basin (Figure Formal mineral resource estimates have been prepared for The discovery of potash in Manitoba was in an oil well T30 a narrow, elongate strip in southwestern Manitoba, includes four potash-bearing members, from oldest to youngest N 5). The Prairie Evaporite consists mainly of thick halite beds, with minor anhydrite and four localized potash beds. the Russell deposit, most recently in 2009. A historical resource drilled in 1951 at 15-18-10-27W1. This discovery led to salt distribution WA T29 from Township 5 to 21, Ranges 27 to 29 W1 (Figure E A H B C Within the basin, the formation can exceed 210 m in thickness, and lies at depths of 200 to 2,700 m below surface. they are: the Esterhazy, White Bear, Belle Plain and Patience O estimate for the St. Lazare deposit was prepared in 1983. Table exploration programs by several companies. Table 2 has a T potash + salt distribution T 2). The Prairie Evaporite salt dissolution edge runs I A T28 N K A Lake members. Of these four members, only the Esterhazy and S A 1 summarizes the estimated resources for both the Russell and detailed chronology of potash exploration in Manitoba. oil fields M S roughly north-south from Township 1 to 29, through T27 The overlying Second Red Bed Member of the Dawson Bay Formation consists of grey, brown and red shales White Bear extend into Manitoba (Figure 1). The Esterhazy Valley River St. Lazare deposits assuming conventional underground mining eastern limit of the T26 Range 27 W1, and represents the maximum eastern Prairie Evaporite and argillaceous mudstones, which are overlain by limestone, dolomite and some interbedded anhydrite. The In 2013, the crown potash area was amalgamated and is Member is the only potash bed in Manitoba with sufficient extent of salt (and therefore potash) occurrence operations. The Russell-McAuley area has a robust resource T25 underlying Winnipegosis Formation consists of interbedded dolomite, dolomitic limestone and anhydrite. Reef currently held by Manitoba Potash Corporation (MPC), and thickness and grade to sustain potentially economic underground wells that penetrate the (Figure 9). Over the area of known potash occurrence potential for a long term, minimum 20 year, secure supply, at a Prairie Evaporite T24 structures within the Winnipegosis Formation have been identified by seismic surveys (Figure 10). These project consists of both the Russell and St. Lazare deposits (Figure potash mining. The ore grade and tonnages measured in in Manitoba, the thickness of the Esterhazy Member rate of 2 Mt/y KCl, or higher. Manitoba's Esterhazy Member are comparable to nearby, active, T23 up into the overlying Prairie Evaporite in a number of locations and are shown schematically in Figure 4 and 6. 11). The MPC property area has a combined exploration 0 10 20 30 40 averages 5.6 m. Table 1: Mineral resource estimates for the Russell and McAuley areas long-lived potash mines in Saskatchewan. Nearby mines include kilometres T22 database for 40 holes that penetrate the Prairie Evaporite in southwestern Manitoba. Formation, with additional data available for a number of other Nutrien’s (fomerly Potash Corporation of Saskatchewan, PCS) T21 The Esterhazy Member in Manitoba compares Russell Rocanville mine and The Mosaic Company's Esterhazy K1 and favourably in grade, size and mining conditions to 3 Average grade holes, both within and outside the property (Figure 10). There is T20 Area Million tonnes K2 mines (Figure 2). (% K2O) also 2-D and 3-D seismic data available for certain areas in and A Manitoba A’ deposits supporting producing mines in southeastern Russell deposit T19 Assiniboine Escarpment around the Property. River Saskatchewan in the operations of Nutrien’s at 1 ERA PERIOD Russell deposit 392 22.5 The known area of potash occurrence in Manitoba can be T18 Winnipeg Rocanville and at Mosaic's operations at Esterhazy, IC O Z Red River O Quaternary N Assiniboine Manitoba is looking to embrace new technologies and subdivided into three subareas that are separated from the others St. Lazare E T17 C Russell-McAuley River River just west of the MPC land holdings. It is the only shale 2 flexibility for future potash development. A new plan targeted to Figure 11: Location of the two historical potash deposits in by broad areas with no potash occurrence in the Prairie Evaporite potash area T16 St. Lazare deposit 650 20.9 Pierre Shale Overburden potash bed of known economic significance in (Figure 3). These areas total approximately 2,247 km2 of known, shale, bentonite encourage potash development in Manitoba will be announced the Russell-McAuley area, southwestern Manitoba. St. Lazare deposit T15 shale, limestone Manitoba. shale 1 potentially mineable, potash occurrences. McAuley Carlile Fm. 300 BHP Billiton reports from ADM Consulting Ltd. and AMEC Americas Ltd. (2009) at a later date. sandstone, shaleshale, sandstone T14 C I Favel Fm. Cretaceous 2 O Z Ashville Fm. Bannatyne (1983), 16% cut off grade T13 O limestone, shale 200 Exploration for potash in Manitoba has been intermittent for S Assiniboine River Swan River Fm. E 3 evaporite, gypsum, red shale, sandstone M many decades since potash exploration targeting the eastern T12 metres Neither of the resource estimates has been reported using the definition standards of Table 2: Detailed chronology of potash exploration in Manitoba. Melita Fm. dolomite, shale 100 the Canadian Institute of Mining, Metallurgy and Petroleum and, therefore, do not dolomite extension of the prolific Saskatchewan deposits started in 1959. T11 Jurassic dolomite, shale clays Reston Fm. meet the reporting requirements of Canadian National Instrument 43-101. Drillhole and coring programs, supported by 2-D and 3-D seismic limestone, dolomite, shale Year Deposit Company Details T10 Amaranth Fm. sandstone, shale 0 Triassic limestone, dolomite surveys, indicate that Manitoba has potentially economically Virden 0 10 20 30 40 - Lodgepole Fm. 1951 Imperial Oil T9 limestone Discovery of potash at 15-18-10-27W1 near Virden. mineable, sizable potash deposits with geological conditions Daly-Sinclair kilometres potash area T8 Mississippian 0 similar to those in Saskatchewan. Torquay Fm 52 Sylvite and its predecessor companies Francana, S.A.M. and Tombill, drilled 10 Saskatchewan Group 1956-1966 St. Lazare Sylvite of Canada Manitoba Group T7 exploration holes between Twp 17-19, Rge 29W1. Prairie Evaporite Lodgepole Fm. Devonian K S.A.M. Explorations Ltd. Lodgepole Fm. K carnallite T6 Bakken Fm. K C K I Mississippian orquay Fm K O T Southeastern Southwestern Prairie Francana Oil & Gas Ltd. Stratigraphy Z K T5 Interlake Group SaskatchewanK Group Saskatchewan O Manitoba K Evaporite Legend R29W1 R28 R27 R26 E Silurian Manitoba Group K L K Tombill Mines Ltd. T4 A Souris River K Hubbard Evaporite P Stonewall & Stony Mountain fms. AAssiniboine K A’ K Melita K salt distribution T21 T3 N R. South of the Sylvite area, Prairie Potash (owned by Canadian Nickel Co. Ltd. and IA Devonian K Russell 1964-1966 St. Lazare Prairie Potash Mines Ltd. Neely Member Pierson R Winnipeg Dawson Neely Member B T2 M potash + salt distribution Consolidated Faraday) drilled 15 holes. They conducted feasibility studies but the lease Bay potash area Red River Fm. A River C innipegosis Fm. Interlake Group innipeg Fm.E W was allowed to lapse in 1977. Formation W R Red P oil fields T20 CANADA T1 Ordovician Ashern Fm. 0 Burr Member Burr Member U.S.A. 49 0 0 100 0 wells that penetrate the 101 96 sylvite 1968 St. Lazare Sylvite of Canada Sylvite let the exploration permit lapse in Manitoba to develop Saskatchewan mine (at Second Red Bed Member Second Red Bed Member Prairie Evaporite Figure 3: Map of southwestern Manitoba showing the kilometres Rocanville). Silurian Stonewall & Stony Mountain fms. Russell deposit T19 distribution of the salt and potash + salt, oil fields and wells Red River Fm. Salt back thickness Patience Lake Member innipeg 1980-1982 St. Lazare International Minerals & Chemical Corporation (Canada) Ltd. (IMC), predecessor to that penetrate the Prairie Evaporite. The three mains areas W Fm. IMC Ltd. Mosaic, explored for potash south of the Sylvite program area. IMC dropped the of potash occurrence are shown, as are the northern K - potash zone, Esterhazy Member 20 m T18 program in 1982. Belle Plaine Member (Russell deposit) and southern (St. Lazare deposit) blocks halite 15 m of the Russell-McAuley area. The salt distribution edge is Figure 4: Vertically-exaggerated and simplified cross-section of Paleozoic to Cenozoic formations in southern Manitoba, showing the Whitebear Member stratigraphy of the potash-bearing Prairie Evaporite, and underlying Winnipegosis and Ashern Formations. (Modified from Bamburak 10 m 1980-1985 equivalent to the eastern limit of the salt and potash + salt St.
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