Karnalyte Resources also has a significant magnesium chloride resource and is conducting a pre-feasibility study for the production of magnesium compounds in consideration of producing magnesium products as a second product line.
While the Company will initially focus on the production of high quality potash products and dispose of the magnesium salt also produced during the solution mining process, there is an opportunity to use this magnesium salt to produce marketable magnesium compounds for industrial and agricultural markets.
Magnesium compounds (chloride, hydroxide, oxide and carbonate) are used in a very wide range of applications, just a few of which are: a raw material for the chemical, petrochemical and detergent industries, raw materials for refractories for the steel and cement industries, as additives and fillers for rubber and other polymers, in the pulp and paper industry and as a mineral supplement for livestock.
In July 2011, Karnalyte announced that it has selected Lyntek Incorporated ("Lyntek") to perform a NI 43-101 compliant pre-feasibility study on magnesium chloride (MgCl2) process streams. Karnalyte anticipates the pre-feasibility study will be completed prior to December 31, 2011.