Buffalo Potash (TSXV: BUFF) has finished drilling at the Initial Production Module of its Disley potash project in Saskatchewan, completing the third and final horizontal well in a five well program.
The 1D15-10 injector well was drilled to a 565 metre lateral and made contact with roughly 95% of the target clay seam, matching the two producer wells completed earlier. All three horizontals were fitted with 11 stage packer systems.
The program opened with a pair of vertical wells, a source well that will supply sodium chloride brine and a disposal well, both returning 100% core recovery. Those cores are now at the lab, with results intended to support a feasibility study on the project’s larger planned mines.
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The horizontal wells form the mining plane for Buffalo’s patented Horizontal Line-Drive method. A central injector sits between the 2 producers along the basal Belle Plaine clay seam, the horizon brine will travel through to link the wells. The packers are designed to spread fluid evenly along that plane rather than letting it channel down a single path.
“This is the milestone the entire drilling program was designed to deliver,” said Chief Executive Officer Steve Halabura, adding that the company remains on track for first production in the first quarter of 2027.
Completion and equipping work to tie in the wells starts shortly, followed by clean-up of the wells and packers.
Brine circulation comes next. Buffalo plans to inject brine through the injector to establish pressure communication along the seam, clear out the clay, then raise flow rates toward both producers to open up surface area for dissolving potassium chloride in the overlying sylvite.
The module is designed to produce 125,000 tonnes per year of soluble-grade potash and is the first of three planned facilities at Disley. Adding the proposed Disley East and Disley West mines, at 500,000 tonnes per year each, would lift output to as much as 1.125 million tonnes annually.
The May 2026 preliminary economic assessment put the project’s after-tax net present value at US$1.1 billion at an 8% discount rate, with a 30% internal rate of return. It estimated a payback of about 12 months for the production module on its own.
The 10,610-hectare property sits immediately east of K+S’s Bethune solution mine and north of Mosaic’s Belle Plaine operation, two of the largest potash solution mines in the world.
Buffalo Potash last traded at $0.96 on the TSX Venture.
