PERTH (miningweekly.com) – A prefeasibility study (PFS) has found that the Beyondie project, in Western Australia, could deliver about 150 000 t/y sulphate of potash (SOP) over an initial 21-year mine life.

ASX-listed Kalium Lakes on Tuesday told shareholders that the project would require a capital investment of A$220-million; however, this could be decreased to A$124-million if the project is developed through a ramp-up from 75 000 t/y to 150 000 t/y SOP.

Based on the 150 000 t/y development case, the project is expected to have a pre-tax net present value of A$388-million, an internal rate of return of 28.7%, and average earnings before interest, taxes, depreciation and amortisation of A$83-million a year.

Life-of-mine operating cash costs have also been estimated at between A$244/t and A$253/t SOP free-on-board, placing the Beyondie project in the lowest quartile cost of global SOP production.

As part of the PFS, Kalium on Tuesday also reported a maiden ore reserve of 2.66-million tonnes, grading 14 210 mg/l SOP, based solely on the Stage 1 approval footprint, which accounts for some 21 of the total lake surface area within the tenement package.

“The project, hosting Australia’s highest grade potash brine resource, has the potential to be a low-cost, long-life and high-margin producer based on the industry’s lowest assumed forward looking SOP price among current project developers,” said Kalium Lakes MD Brett Hazelden.

“Kalium Lakes is particularly proud to be the first potash developer to announce a PFS and maiden ore reserve for an Australian deposit, which allows for an initial mine life of more than 20 years.”

Hazelden added that further project growth was also possible through either extended mine life or increased production from the wider tenement area, as well as the potential incorporation of magnesium products for which pilot scale trials will be undertaken during the coming months.

Kalium Lakes has started work on the Beyondie project’s bankable feasibility study, while also progressing offtake discussions.