Name of the Project
Beyondie sulphate of potash project (BSoPP).

Location
Western Australia.

Client
Kalium Lakes Limited (KLL).

Project Description
A definitive feasibility study (DFS) on the BSoPP has demonstrated that the project is economically and technically robust and has the potential to generate substantial value for shareholders.

Based solely on the Stage 1 approval footprint, which represents less than a quarter of the total lake surface area within the tenement package, the project has a proven reserve of 1.65-million tonnes, grading 13830 mg/ℓ SoP at a cutoff grade of 2 500 mg/ℓ potassium and a probable reserve of 3.49-million tonnes grading 11 820 mg/ℓ SoP at a cutoff grade of 2 500 mg/ℓ potassium.

The DFS proposes the development of a subsurface brine deposit to initially produce 82 000 t/y of SoP before expanding to produce 164 000 oz/y of SoP product through evaporation and processing within the Stage 1 Beyondie, 10 Mile and Lake Sunshine tenement holdings. Further expansion into the eastern tenement area – Stage 2 – could result in future expansion of up to 250 000 t/y of SoP. BSoPP has a mine life of 30 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$575-million and an internal rate of return of 20.4%, with an initial payback of seven years.

Value
Preproduction capital for Stage 1 is estimated at A$159.6-million. A deferred capital cost of A$125.3-million is required to ramp up the project to 164 000 oz/y.

Duration
Production is expected in 2020.

Latest Developments
KLL has received environmental approval for its BSoPP.

The environmental approval covers the Stage 1 area of the project, which is based on the base case production of 164 000 t/y of SoP over a mine life of 30 years.

Key Contracts and Suppliers
KLL (DFS), K-UTEC, DRA Global, Advisian, Shawmac, Wyntak and Preston Consulting (principal technical consultants); RSM, DLA Piper Australia, HopgoodGanim Lawyers and BurnVoir Corporate Finance (accounting, legal, commercial and financial advisers).

On Budget and on Time?
Not stated.

Contact Details for Project Information
KLL, tel +61 8 9240 3200 or email info@kaliumlakes.com.au.