Name of the Project
Lake Way sulphate of potash (SoP) project.

Location
The project is located in the Northern Goldfields region of Western Australia.

Project Owner/s
Salt Lake Potash (SO4).

Project Description
A bankable feasibility study has demonstrated the potential for Lake Way to support an exceptionally high margin through the production of high-grade SoP, even in the most extreme downside pricing scenarios.

The project has a high-grade probable ore reserve of 5.4-million SoP for 2.4-million tonnes of contained potassium at an initial grade of 6.8 kg/m3, underpinning a life-of-mine (LoM) of 20 years.

The LoM production target of 245 000 t/y of SoP is supported by a salt harvest of 2.27-million tonnes a year, which provides direct feed for the process plant, and potassium chloride addition.

Brine required to produce these harvested salts will be sourced from a network of trenches built in the superficial lake bed sediments and bores that pump brine from the underground paleochannel.

Brine will be extracted using surface trenching and vertical bores.

Solar evaporations ponds covering 909 ha will be built on the lake playa. These ponds will be used to concentrate the brine extracted from the Lake Way resource and precipitate potassium-containing harvest salts.

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$696-million and an internal rate of return of 38%, with a payback of 3.5 years.

Capital Expenditure
$254-million.

Planned Start/End Date
First production is expected in the fourth quarter of 2020.

Latest Developments
Potash developer Salt Lake Potash has received binding commitments to raise A$20-million through a share placement to new and existing institutional investors.

The company has said that it will issue 58.8-million shares at a price of 34c each to raise the cash, enabling Salt Lake to continue to deliver its Lake Way project on schedule.

The project is expected to start commissioning in December, with first production slated for the first quarter of 2021.

The placement will be conducted in two tranches, with the first consisting of more than 56-million shares, to be issued under the company’s existing placement capacity. The second tranche of more than 2.7-million shares will be subject to shareholder approval.

“We are very pleased to have completed this capital raising with the support of our existing shareholders and to bring in a number of new institutional investors. These funds will enable us to continue the rapid development of Lake Way as we progress towards project financial close,” CEO Tony Swiericzuk has said.

Key Contracts and Suppliers
SO4, Argus Media Group and CRU Consulting (industry analysis and marketing); SO4, Groundwater Science and HydroGeoEnviro (resource and reserve estimate); SO4 and Ad-Infinitum (mine planning); SO4, Cardno, Coffey Tetra Tech and Tetra Tech Proteus (brine extraction); SO4, Ad-Infinitum, Coffey Tetra Tech, Tetra Tech Proteus and Knight Piésold (brine evaporation); SO4, CPPC, Saskatchewan Research Council, Wood Group and GR Engineering Services (process plant); SO4 and GR Engineering Services (nonprocess infrastructure); SO4 (product logistics, land access, native title, heritage and social responsibility, operations management); SO4, Bamford Consulting Ecologists, Botanica Consulting, Bennelongia Environmental Consultants, Pendragon Environmental Solutions (environment and approvals); SO4, GR Engineering Services (project implementation); SO4, GR Engineering Services and Turner & Townsend (capital and operating costs); SO4 and EPM Group (risk analysis) and SO4, CAM Financial Modelling (economic analysis).

Contact Details for Project Information
SO4, tel +61 8 6559 5800 or email info@saltlakepotash.com.au.