A ‘debottlenecking’ style review of the design at Kalium Lake’s (ASX:KLL) Beyondie Sulphate of Potash (SOP) Project in Western Australia has identified opportunities for the proposed development to produce up to 100,000 tonnes per annum (tpa) in the initial phases.
Studies of Purification Plant design, combined with performance to date from the brine supply and evaporation ponds, indicates that steady state production of least 100,000 of SOP is achievable at the Beyondie SOP Project due to:
- Better than expected potassium grades in brines that will improve the quality of the plant feed salts;
- Improvements in forecast availability and utilisation of the SOP purification; plant.
- Conservatism in the plant design.
Studies have also revealed that first phase production of 120,000 tpa is well within reach.
However, CEO, Rudolph van Niekerk, says Kalium Lakes is now evaluating additional options for maximising value of its significant resource endowment, including expansion to 400ktpa of SOP and commercially exploiting valuable by-products, including magnesium.
We are pleased to announce that a ‘debottlenecking’ style review of the plant design for the BeyondieSOP Project confirms that an annual steady-state production rate of at least 100ktpa is achievable. Additionally, the current evaporation ponds’ performance indicates that this production rate can be achieved by mid-2022,” Mr van Niekerk.
“The company is also confident that a production increase to 120,000 tpa can be achieved without the need for substantial plant modifications and is currently examining pathways to deliver this outcome.
“Previous work has confirmed the embedded optionality in the Beyondie’s enormous resource endowment. The current resource would support 400,000 tpa of SOP production for 20+ years and, consistent with our strategy to be a growth company, the company is considering how best to leverage this asset and maximise value for shareholders.”
Beyondie’s existing JORC Ore Reserve is 5.13mt tonnes with an SOP grading of 13.15kg/m3, representing only 16% of the Total Mineral Resource. An internal concept level analysis completed on the company’s published Resources and existing Mine Plan options shows potential for substantially increased production scenarios that will maximise the value of the resource endowment.
This review shows that 400,000 tonnes per annum of SOP production may be achievable for a 20+ year mine life within the current Beyondie SOP Project’s total Mineral Resources.
This increased throughput would be sourced from the total previously announced Resources, with Resources from the eastern tenements being brought forward in the Mine Plan.
In addition, internal studies show potential for realising value from magnesium which is a by-product of the production process. If realised, this has the potential to provide significant additional revenue streams and reduce Kalium Lakes’ unit operating cost base. Once first SOP production has commenced, the Company plans to devote further resources to investigate this opportunity.
The project economics are expected to improve significantly at higher throughput levels, and further work to establish the company’s optimal growth strategy to maximise production is underway.