Name of the Project
Lake Wells sulphate of potash (LSoP) project.

Location
The project is located 160 km north-east of the Eastern Goldfields of Laverton, in Western Australia.

Project Owner/s
Australian Potash.

Project Description
The results of a definitive feasibility study (DFS) have proposed developing the LSoP into a 150 000 t/y operation.

The project will be developed as a solar salt operation comprising brine abstraction, brine evaporation and salt processing.

The LSoP will be developed using a borefield network to abstract the brine contained within a section of the estimated 125 km palaeochannel, mitigating the geotechnical challenges and decline in grade and production over time, evident in trenching systems.

A 30-year life-of-mine (LoM) is estimated, with LoM production estimated at 4.5-million tonnes of premium high-grade SoP, based on the Joint Ore Reserves Committee-complaint measured resource estimate of 18.1-million tonnes drainable SoP.

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$665-million and an internal rate of return of 25%.

Capital Expenditure
Development capital expenditure is estimated at A$208-million.

Planned Start/End Date
The project is expected to take 24 months to complete after the final investment decision.

Latest Developments
Australian Potash will raise A$10-million in a share placement to fund activities at the LSoP project, ahead of a final investment decision.

The placement will be undertaken in two tranches, with the first comprising more than 62.2-million shares at 14c each. The first tranche placement will be conducted under Australian Potash’s existing placement capacity.

A second tranche of more than 9.2-million shares will be subject to shareholder approval. The funds raised will be used for drilling of paleochannel production wells at Lake Wells, the start of early works for the staff village, finalising the syndicated debt facility with the commercial bank club, and starting a maiden diamond drill hole programme across the Laverton Downs nickel sulphide targets.

Key Contracts and Suppliers
Lycopodium, together with Novopro Projects, AQ2, Knight Piésold, Argus Media Group and MBS Environmental (DFS).

Contact Details for Project Information
Australian Potash, tel +61 8 9322 1003.