PERTH (miningweekly.com) – A scoping study into the Lake Throssell sulphate of potash (SoP) project, in Western Australia, has estimated that the project could support production of 245 000 t/y over an initial mine life of 21 years.

ASX-listed Trigg Mining on Tuesday told shareholders that the project would generate average life-of-mine (LoM) cash operating costs of some A$341/t SoP and an all-in sustaining cost of A$372/t.

The scoping study estimated that the project would require an initial capital injection of A$378-million, which included a A$70-million contingency, with the Lake Throssell project expected to generate average annual earnings before interest, taxes, depreciation and amortisation of A$97-million at an SoP price of $550/t.

The study estimated a pre-tax net present value of A$364-million and an internal rate of return of 18%.

“The completion of a scoping study is a huge milestone for the Trigg team, for our shareholders and for those who have supported us since we listed two years ago. The scoping study outcomes strongly vindicate our long-held belief that Lake Throssell is a potential company-maker, a high-quality, long-life asset which can transform Trigg into a modern, sustainable Australian SoP producer with a Top 10 globally competitive project,” said Trigg Mining MD Keren Paterson.

“The key attributes of the project are clearly highlighted in this study: the scale and quality of the resource, its Tier-1 location, proximity to infrastructure and ability to support a multi-decade operation which can also deliver a number of exceptional environmental and social governance outcomes. Apart from the social and economic benefits it will provide, the project utilises solar evaporation to produce a natural fertiliser essential for global food security.”

“This is a defining moment for Trigg and provides investors with a clear picture of the economic potential of Lake Throssell as a long-life, low-cost project that can ultimately provide dividends to shareholders.

“Our methodical and focused approach to developing the project will continue as we leverage the key learnings from the new potash industry currently being developed in Western Australia.

“We are very excited about the opportunities in front of us and we are looking forward to progressing the project to the next stage of a prefeasibility study.”