PERTH (miningweekly.com) – Updated flow models at the Lake Wells sulphate of potash (SoP) project, in Western Australia, have flagged the potential for increased production from brine from the 120 000 t/y previously indicated, to 135 000 t/y.
A 2019 definitive feasibility study (DFS) into the project found that SoP production from brine abstraction could reach 100 000 t/y, with an additional 50 000 t/y of SoP to be produced through the addition and conversion of muriate of potash (MoP) to SoP.
The brine abstraction rate was later optimised through a front-end engineering design (FEED) study, leading to an optimised SoP output of 120 000 t/y.
ASX-listed Australian Potash told shareholders on Tuesday that additional improvements realised in the recent modelling also indicated that 890 supply bores would be suitable for life-of-mine (LoM) operations, whereas the original FEED development model had 172 bores over the LoM.
“We continue to apply a rigorous de-risking methodology to the development and operational strategies at the Lake Wells project, including crucially in the fundamental brine abstraction (mining) process. The Lake Wells project will be developed as a 100% borefield abstraction project with no reliance on surface trenching to collect brine,” said Potash Australia MD and CEO Matt Shackleton.
“The early works program we undertook through 2021 and early 2022 has demonstrated improvements in the brine borefield, and data from constructed bores has allowed us to further optimise the flow model underpinning the Lake Wells development, providing us the opportunity to produce more SoP with less bores over the LoM.
“The financial implications of these results are being worked through, but less bores means lower initial capital cost and lower sustaining capital costs which we reasonably anticipate will flow through to the Lake Well’s financial outcomes. Updated financial modelling will be announced to the ASX as soon as it is available,” said Shackleton.
The original DFS estimated that the project would require a capital investment of some A$208-million, and would have a mine life of 30 years.