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.

Project Description
Salt Lake Potash has completed a scoping study for a commercial-scale SoP development at Lake Way.

The study has demonstrated the potential of the project to support a low capital and operating cost operation, with production of about 200 000 t/y of premium-grade SoP supported by the total brine production volume of 23 Gℓ/y.

The high-grade SoP resource underpins a life-of-mine of 20 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$580-million and an internal rate of return of 33%, with a payback of 3.2 years.

Capital Expenditure
Capital expenditure is estimated at A$237-million.

Planned Start/End Date
Plant commissioning is expected in the fourth quarter of 2020 using salts from the Williamson pit brine.

Latest Developments
Salt Lake Potash has mandated Taurus Funds Management to provide a staged $150-million project finance facility to fund the Lake Way SoP project.

The facility will comprise $30-million, and will provide Salt Lake with funds for early construction works at the Lake Way project, and to fund the completion of a bankable feasibility study (BFS).

The Stage 1 facility will partly fund civil works, including the construction of key evaporation ponds that will provide the initial harvest salts to allow for the feed for plant commissioning.

The Stage 1 facility will also include $5-million in funding to partially fund the transaction with fellow-listed Blackham Resources, under which Salt Lake will acquire Blackham’s own Lake Way tenements for A$10-million.

The $150-million project development facility will then be used to refinance the Stage 1 facility, and fund project development and working capital associated with the development of Lake Way.

The project development funding will become available on completion of the BFS and the satisfaction of conditions precedent, which include the execution of financing agreements, and the satisfaction of equity requirements.

Key Contracts and Suppliers
Wood (study manager, plant infrastructure, capital and operating (mine gate) estimates compilations); Groundwater Science (resource estimate); Ad-Infinitum/Knight Piésold (brine evaporation); Cardno (brine transfer hydraulics); Carlos Perucca Process Consulting, Saskatchewan Research Council and Wood (process plant design basis/criteria, process testwork and process plant design); Wood/Salt Lake Potash (area infrastructure); Pendragon Environmental Solutions (environmental and heritage studies); CRU International/Argus Media (marketing); Salt Lake Potash (economics); and GR Engineering Services (lead engineer for the BFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Salt Lake Potash, tel +61 8 6559 5800 or email info@so4.com.au.