Buffalo Potash Wraps Up Drilling at Disley, Putting Palisades’ Warrants Over 130% In-the-Money
In December 2025, our management team received a call about a new potash venture aiming to fast-track to production using a novel, patented technology. The company needed a final $1 million to complete its go-public financing. Palisades was offered a place in the round at a reasonable valuation, with full three-year warrants attached.
Less than nine months after listing, Buffalo Potash Corp. (TSX-V: BUFF) has hit a major milestone. On September 25, the company completed the third and final horizontal well at the Initial Production Module (IPM) of its Disley Project in Saskatchewan, wrapping up its drilling program.
The program consisted of five wells. Two are vertical wells for brine supply and disposal. The other three are precisely placed horizontal wells that form the mining plane, the mechanical foundation for Buffalo’s patented Horizontal Line-Drive (HLD) mining method.
According to the company, each horizontal well stayed within the target clay seam for roughly 95% of its length. Multi-stage packer systems were also installed along all three wells as designed. That matters because the clay seam is the pathway the brine travels along. Accurate placement means the brine can be distributed evenly across the potash for efficient extraction.
In short, the drilling program was completed exactly as designed.
What’s Next?
With the wells in place, Buffalo now moves into brine circulation, connecting the wells and establishing the mining plane where solution mining will take place. This is the next real test for the HLD method, and the company is targeting first production at the IPM in Q1 2027.
But the IPM is only the beginning.
It is designed to generate early cash flow at a low upfront capital cost, while building the operational and technical foundation for full-scale development. At full build-out, Disley would combine the 125,000-tonne-per-year IPM with two 500,000-tonne-per-year mines, Disley East and Disley West, for total production of up to 1.125 million tonnes of potash per year.
The company’s 2026 Preliminary Economic Assessment (PEA) estimates an after-tax NPV of US$1.1 billion for the full build-out, with an IRR of 30%.
Breaking From the Herd
Buffalo sits in a prime location for solution mining. Disley lies immediately east of the K+S Bethune mine and north of the Mosaic Belle Plaine mine, two of the largest potash solution mines in the world. But Buffalo is not copying its neighbors’ large, cavern-based operations.
What sets Buffalo apart is its approach: horizontal wells, selective dissolution and a modular build. Together, these aim to put production within reach at a fraction of the capital its neighbors required.
When you’re next door to two proven mines, you don’t need to prove the potash is there. You need to prove there’s a better way to mine it.
How It Fits Our Strategy
Buffalo’s differentiated approach, combined with its need for go-public capital, is why we took an early position in December 2025. As companies like Buffalo deliver on their milestones, those early positions can be well rewarded.
Palisades holds 4,100,000 warrants in Buffalo, exercisable at C$0.40 until December 29, 2028. That represents a 3.6% partially-diluted stake. With Buffalo closing at C$0.95 on October 2, the warrants carry over C$2 million in intrinsic value. And with the PEA pointing to a US$1.1 billion NPV, there is room for further upside if management continues to execute.
We will continue to keep you informed as developments unfold across our holdings.
Sincerely,
The Palisades Team