LONDON (Alliance News) - Salt Lake Potash Ltd on Tuesday said the results of its recent scoping study of its Lake Wells sulphate of potash project in Western Australia confirm the project's potential.
The scoping study demonstrates the "excellent project fundamentals" based on well-established solar evaporation and salt processing techniques, the company said.
Based on its results, the company will now proceed to a pre-feasibility study.
Salk Lake Potash believes that the Lake Wells project has the potential to be "one of only five" large-scale salt lake SOP producers around the world, and its estimated cash production costs of AUD185 million would be "amongst the lowest in the world".
"We are very pleased with the scoping study results, which confirm Lake Wells as a potential lowest cost quartile SOP producer. This study highlights Lake Wells' relative advantages based on a large consistent resource, potential for brine extraction by both surface trenching and pumping the deeper paleochannel aquifer, and of course the locational advantages of access to the gas pipeline and transportation infrastructure," said Chief Executive Officer Matt Syme in a statement.
Shares in Salt Lake Potash were down 6.8% at 29.50 pence Tuesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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