Name and Location
LD potash project, Australia.

Client
Reward Minerals.

Project Description
The base case considered in the scoping study on the LD project envisages an owner-operated mine and processing plant capable of producing sulphate of potash (SoP) at steady state of 400 000 t/y.

The solar evaporation pond system consists of a series of crystalliser ponds occupying an area on the northern margin of the lake. A combination of trenches and deep wells supply brine to a pump-lift station at the primary halite pond, with about 60- to 70-million tonnes of brine delivered to the system each year.

A processing plant, capable of producing 400 000 t/y of SoP, has been completed.

Two surface miners and a fleet of road trains will transport up to 4.2-million tonnes of ore and halite a year, including an estimated 2.8-million tonnes of kainite ore grading about 20% SoP.

The study assumes a life-of-mine of 13 years, based on the existing 24.4-million tonne resource.

Access to LD from Port Hedland is through Newman using the Willjabu and Talawana tracks. These tracks require upgrading to allow for regular use by large road trains with initial estimates of about 40 movements a day when the project is on operation.

Net Present Value/Internal Rate of Return
The project has a base case pretax net present value, at a 10% discount rate, of A$534-million and a pretax internal rate of return of 37%.

Value
The project has a base case capital cost of A$319.8-million.

The capital cost of the project marks the LD project as one of the most attractive greenfield SoP projects, with capital and capital-intensity costs among the lowest in the world.

Duration
Not stated.

Latest Developments
Following the completion of the scoping study, Reward plans to progress immediately to the feasibility study phase of the project and intends to reactivate the environmental approval process.

Further, Reward is undertaking a drilling programme at the project. The programme has the potential to significantly expand the existing 24.4-million-tonne Joint Ore Reserves Committee-compliant indicated SoP resource and substantially extend the mine life of the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Reward Minerals, tel +61 8 9386 4699, fax +61 8 9386 9473 or email admin@rewardminerals.com.