PERTH (miningweekly.com) – A scoping study into Spanish potash developer Highfield Resources’ Sierra del Perdon project has estimated that the project could deliver 520 000 t/y of granular potash.
The scoping study estimated that the project would require a capital investment of $233-million, and projected operating expenditure at $155/t, Highfield reported on Monday.
For the first full year of production, the Sierra del Perdon project was expected to deliver earnings before interest, taxes, depreciation and amortisation of $120-million. The net present value had been estimated at $527-million and the internal rate of return at 38.5%.
Based on an indicated resource of 41.8-million tonnes, averaging 10.7% potassium oxide, and an inferred resource of 40.3-million tonnes, grading 10.5% potassium oxide, the project was expected to have a mine life of 20 years.
“The scoping study indicates that our Sierra del Perdon potash project is technically viable and has the ability to produce strong cash flows over a long mine life. The economic analysis suggests it is one of the best undeveloped potash projects globally,” said Highfield MD Anthony Hall.
He added that this was a “fantastic” second project for Highfield, in addition to the Muga project, which was also located in Spain.
“While our focus remains firmly on the rapid development of our flagship Muga project, Sierra del Perdon’s scoping study demonstrates the robustness of our broader project pipeline, which will be further enhanced by ongoing development work at our Vipasca and Pintano projects.”
The scoping study has delivered sufficient support for Highfield to progress with a prefeasibility study, with work expected to include additional drilling and detailed metallurgical testwork.