PERTH (miningweekly.com) – A scoping study into the Carnegie potash project, in Western Australia, has confirmed the project had the potential to be technically and economically viable, prompting joint venture partners BCI Minerals and Kalium Lakes to green light a prefeasibility study.
With the completion of the scoping study, BCI has now earned a 30% interest in the project area, by sole-funding the study.
The ASX-listed company could now earn a further 10% interest by sole funding a further A$3.5-million of the prefeasibility study phase.
“Completion of the scoping study is a significant milestone for the Carnegie potash project and follows closely after BCI’s recent announcement on the positive prefeasibility study for the Mardie project,” said BCI MD Alwyn Vorster.
“These projects form the core of BCI’s commitment to develop a substantial salt and potash business,” he added.
BCI could potentially earn a 50% interest in the Carnegie project by sole funding the completion of a feasibility study into the project, spending a further A$5.5-million in addition to the capital invested in the scoping and prefeasibility studies.
The prefeasibility studies at Carnegie will no progress during the next 12 to 18 months, with the initial focus on securing tenure and access to all Carnegie tenements, followed by various approvals to undertake site-based exploration activities, including drilling, trenching and test pumping with the aim of expanding the resource.
“Results from this scoping study on the Carnegie potash project support potential technical and economic viability of the project, and form part of Kalium Lake’s long-term plan for sustainable sulphate of potash (SOP) production,” said Kalium Lakes MD Brett Hazelden.
“With the Carnegie potash project being part of the Kalium Lakes portfolio, we are not only on track to become Australia’s first SOP producer from Beyondie, but are also setting up a strategic growth path with the goal of becoming one of the world’s top tier SOP producers.”’
The scoping study leveraged the technical knowledge, experience and intellectual property developed by Kalium Lakes in advancing its Beyondie project.
The study also resulted in an inferred resource of 0.88-million tonnes SOP for Carnegie, based only on the top 1.7 m of the 27 874 ha surficial aquifer on the granted tenement, as well as an exploration target of between 3.46-million and 7.44-million tons SOP within the deeper aquifers.
A further 82 000 ha of lake surface on pending tenements is not included in the current inferred resource and exploration target, providing further resource upside potential.