Targeting Potash Production in 2027, But Can this Mining Method Work? | Buffalo Potash CEO Interview

**Antonio** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today in the CEO BBQ Potash exploration in Saskatchewan together with Buffalo Potash. But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, theresourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general and in-personal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on Sitterplus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases, and do not consume this content if you don't agree with everything said therein. Moving on, Buffalo's flagship project is called Dizzly, and it's located about 50 kilometers northwest of Regina in Saskatchewan's Regina Subbasin, which is within the Elk Point Basin. The target here is Potash mineralization in the Prairie Evaporate Formation, where historical drilling in the 1960s confirmed the presence of silvite dominant beds suitable for dissolution mining methods, which we'll definitely touch upon later on. Buffalo completed a maiden NI43-101 resource estimate on the project in April of this year, outlining 581 million tons of measured and indicated KCI, at average grades of almost 35%, plus a larger inferred component, all derived from a combination of re-acid legacy core, as well as some new limited new data. The immediate focus now is on proving the horizontal line drive selective solution mining approach at commercial scale through the initial production module at Disney, which of course will be a big part of the conversation later today.
Drilling for that module began very recently, and as far as I understand, the goal is to reach first production in early 2027 So that's very, very close by. They also still have another project, the Edenwold and Odessa projects. There are actually two of those in the same general region, though these are earlier stage and they're not currently receiving meaningful work, but maybe a brief update in the latter part of the conversation as well. Now for some of the numbers and more of the details, Buffalo is listed as Buff with a double F, so that's B-U-F-F on the TSX-V in Canada, where the average daily volume of the last three months has been about 170,000 units.
52-week-high is $1.07 and 52-week-low is $0.25.
With a little under 110 million shares outstanding and a $77 million market cap today, this is a 70-cent stock with a 50 and a 200-day moving average at 56 and 51 cents respectively. So the stock is now trading above those two. There are a little over 25 million warrants as well as 9 million options, 3.2 million RSUs and then together, they represent about 25% of the 147 million shares on a fully-dialoaded basis. Buffalo just raised some capital in June, closing in on almost $15 million financing. It was both hard dollars and some flow-through.
Hard dollars and 45 cents with a half a warrant and it's a flow-through at 52 cents, as well as charity flow-through at 56 cents. So what is this money going to buy them exactly? And when will they have to hit the market for some capital again? If at all, there are questions that I'll be asking later on in the conversation. But for this to actually become a conversation, though, I will unfortunately have to shut up already. And Steve, I'll give you the word here. But first of all, thank you for sitting down with me today.

**Steve** (3:47)
Hey, thank you for the invitation, Antonio. I always love a good barbecue. Do I get a choice of meats? Like, can I pick a hot dog over a burger or?

**Antonio** (3:58)
Well, actually, the very first question that I ask people, when I'm trying to get to know someone, and I do try to get to know management in these conversations Well, the. very first question I ask is how do you like your steak? So you do get that choice.

**Steve** (4:11)
I'm actually a medium-rare guy. I've yet to precisely barbecue a steak to medium-rare. So in theory, medium-rare, in practicality, well done.

**Antonio** (4:22)
Really?
Because you have to grill it yourself. Well, hopefully it's going to be different for you and you're not going to be well done toward the end of this conversation. No, no.