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

Location
North-eastern Goldfields, Australia.

Project Owner/s
Australian Potash.

Project Description
Australian Potash has updated the flow modelling, which outlines the potential for increased production from brine at the LSoP project.

The August 2019 definitive feasibility study projected sulphate of potash (SoP) production from brine abstraction at 100 000 t/y over a 30-year mine life, resulting in a probable reserve of 3.6-million tonnes (using about 20% of the in situ measured resource).

An additional 50 000 t/y was forecast to be produced through the addition and conversion of muriate of potash to SoP.

The brine abstraction rate was optimised through the April 2021 front-end engineering design (FEED), leading to optimised SoP output of 120 000 t/y.

The updated June 2022 hydrogeological flow model demonstrates the potential to increase SoP production from 120 000 t/y proposed in FEED study to 135 000 t/y.

Additional improvements proposed in the modelling also indicate that 89 supply bores will be suitable for life-of-mine (LoM) operation, whereas the original FEED development model had 172 bores over the LoM, a 48% reduction in installed bores.

Along with the reduction in bore number, the updated flow model predicts a higher-grade and a longer production profile. The implications for the pond network, harvest ponds and processing plant are being thoroughly considered in light of the improved flow model.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The April 2021 FEED estimated a pretax net present value, at an 8% discount rate, of A$614-million and an internal rate of return of 21%, with a payback of 4.5 years.

Capital Expenditure
Fewer bores result in lower initial capital costs and lower sustaining capital costs, which Australian Potash reasonably expects will flow through to the LSoP’s financial outcomes.

The April 2021 FEED estimated that the project would require a capital investment of about A$292-million.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
AQ2 (hydrogeological model for the LSoP).

Contact Details for Project Information
Australian Potash, tel +61 8 9322 1003 or email admin@australianpotash.com.au.