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
Potash developer 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 pre-tax 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
Following the progress in detailed engineering and vendor procurement, the budget for Lake Way has increased marginally from A$254-million to A$264-million, including an unallocated A$18-million contingency.

Planned Start/End Date
The project is on track for first sales in the first quarter of 2021.

Latest Developments
Salt Lake Potash will raise A$15-million through the placement of unsecured zero-coupon convertible notes to fund the continued development of its Lake Way project.

The miner has received firm commitments from corporate and institutional investors, with the convertible notes structured as deferred equity with zero coupon and mandatory conversion into equity at the lower end of 45c a share or a 5% discount to any future equity raising of at least A$10-million.

Equatorial Resources has subscribed for A$100-million of the unsecured convertible notes, saying its investment in Salt Lake follows a detailed review focused on investigating opportunities pertaining to Salt Lake’s current financing requirements and operational progress.

Equatorial has told its shareholders that the timing of the investment in Salt Lake was opportunistic, with the company believing Salt Lake is currently undervalued.

“The convertible notes provides Equatorial with a discounted investment entry price at a time when a number of near-term value catalysts have the potential to drive a significant re-stating of Salt Lake’s share price. These catalysts include completion of project funding, completion of process plant construction, and commencement of production in the first quarter of 2021,” the company said in a statement.

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(s)?, 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, EPC and EPCM); 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.