Potash exploration enters new phase

BHP Billiton, the world's largest mining company, has begun drilling core samples near Melville as a new step in its exploration for potash in the area.

Survey results from the Melville site were the "most encouraging" out of three separate two-dimensional seismic scans conducted in the Yorkton/Melville area last June, says Chris Ryder, BHP's vice president of external affairs. The company followed up the initial survey southeast of Melville with 3D seismic scans between October and March, and began core drilling operations in mid-July.

"We've sort of been doing the sniffing with seismic, and now this is the tasting," says Ryder. "This is where we find out whether what we think we're seeing on the seismic is actually down there. This is a very important part of the process."

The drilling, along with a second round of 3D seismic work this winter, is expected to answer questions about the nature of the deposit, its viability for mining, and-potentially-the location of a future mine shaft.

"The results of this will determine whether we want to take the next step in exploration," says Ryder, himself a former Melville resident.

According to BHP, the time period between discovery and construction of a mine is typically seven to eight years. A proposed mine at Jansen, SK recently received environmental approval and is expected to begin production in 2015.

"To put it in perspective, we're about where we were two or three year years ago on the Jansen project," says Ryder.

Dozens of workers are already on the ground around Melville and a base of operations has been established on the edge of the city. The total crew size should eventually grow to between 60 and 70 people.

BHP has enlisted RPS Boyd PetroSearch as its prime contractor for the seismic operations and Norwest Corporation for drilling operations.

Yorkton's Larry Kitchen is acting as BHP's community liaison officer, a "point of contact" for all matters relating to the local potash exploration.

"I'm the guy on the ground. I'm the familiar face," says Kitchen.

The potash deposit southeast of Melville is believed to be located approximately one kilometer below ground.

Melville drilling operations should continue for about 12 months assuming initial results are positive.