- A pre-feasibility study (PFS) for Parkway Minerals’ (PWN) Karinga Lakes Potash Project (KLPP) has been completed
- Pleasingly, Parkway reports the PFS highlights KLPP as a potentially attractive producer of high-quality, soluble grade, sulphate of potash (SOP)
- The project’s been assigned an initial capital cost (CAPEX) of $80 million and a production cost (OPEX) of $293/t of SOP
- While Karinga Lake’s Indicated Mineral Resource sits at 1 million tonnes of potassium
- And, the estimated annual earnings before interest, taxes, depreciation and amortisation (EBITDA) for KLPP is $18.6 million
- Parkway’s MD has labelled the PFS completion as a major milestone for the company and its aMES Technology
- Shares in Parkway Minerals are currently trading down 9.52 per cent at 1 cent each
Parkway Minerals’ (PWN) has completed and released the long-awaited pre-feasibility study (PFS) for its Karinga Lakes Potash Project (KLPP).
The study was prepared by Parkway and Verdant Minerals — which has a stake in the Northern Territory based KLPP — with Worley acting as study manager.
PWN said the PFS has confirmed the project as being a potentially attractive producer of high-quality, soluble grade, sulphate of potash (SOP).
It also highlighted the benefits of the company’s aMES technology — which enables the treatment of concentrated brine solutions to recover minerals, reagents and fresh water.
“Completion of the KLPP-PFS represents a significant milestone for Parkway Minerals, as this study confirms our long-held belief, that our aMES technology, has the potential to transform the high-grade, but relatively small-scale potash resource at the KLPP, into a viable project,” Managing Director Bahay Ozcakmak said.
The study assigned KLPP an initial capital cost (CAPEX) of $80 million for an initial 40,000tpa SOP production capacity, which is inclusive of all non-process infrastructure and indirect costs (including a $6.7 million contingency).
In comparison, the 2014 scoping study outlined a 125,000tpa SOP production scenario which generated an estimated total CAPEX of $340 million.
This new PFS also estimates the project’s production cost (OPEX) of $293/t of SOP, ex-mine gate, or $391/t SOP delivered to either Adelaide or other proximal regional markets.
Karinga Lake’s Indicated Mineral Resource sits at 1 million tonnes of potassium, with 580,000 tonnes of potassium hosted within eight lakes that are incorporated into the mine plan.
The mine plan itself includes the production of 430,000 tonnes of potassium, which is sufficient to underpin an initial mine life of 20 years, based on a scheduled production rate.
Cash-generation wise, KLPP has an estimated annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of $18.6 million and an EBITDA margin of 54.4 per cent.
While ungeared development of the project would result in payback being achieved in around 5.5 years from first SOP production.
Speaking on the next steps following the issue of the PFS, Parkway’s MD said the focus would now turn to potential commercial opportunities.
“With these outstanding PFS results in hand, we will continue to engage with our JV partner, to determine the appropriate next steps for the KLPP. In addition to the KLPP, the PFS provides Parkway Minerals with a strong foundation from which to progress commercial opportunities with other project developers,” Bahay said.
“We have previously investigated the potential application of aMES technology for a range of projects, predominantly, in the energy and mining sectors. With the completion of the KLPPPFS, we look forward to providing further details, as evaluations of these projects progress,” he added.
Shares in Parkway Minerals are currently trading down 9.52 per cent at 1 cent each at 3:20 pm AEDT.