TIDMSO4
RNS Number : 7919A
Salt Lake Potash Limited
14 September 2018
14 September 2018 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
Salt Lake Potash and Australian Potash to Study Benefits of Cost Sharing at Lake Wells
-----------------------------------------------------------------------------------------
Highlights:
-- Salt Lake Potash Limited (ASX/AIM: SO4) and Australian Potash
Limited (ASX: APC) have entered into a Memorandum of Understanding
and Co-operation Agreement to study the potentially very
substantial benefits of sharing infrastructure and other costs at
Lake Wells
-- The Companies will conduct a joint study into the merits of
developing aspects of their respective Lake Wells projects together
(the 'Study')
-- The Study will initially focus on a shared costs model around infrastructure developments
-- The Study will also address at a high-level the potential for
cost sharing on common evaporation and salt processing
developments
-- Both Companies' projects at Lake Wells will proceed
independently in parallel with the Study with no impact on either
Company's timelines
Salt Lake Potash Limited (ASX/AIM: SO4) and Australian Potash
Limited (ASX: APC) are pleased to advise that the Companies have
entered into a Memorandum of Understanding and Co-operation
Agreement to undertake a joint study of the potential benefits of
development cost sharing for each Company's project developments at
Lake Wells.
The Companies' substantial project holdings at Lake Wells are
contiguous with many common infrastructure elements, including
access roads, proximity to the Leonora rail terminals, and
potential power and fresh water solutions. Both Companies
anticipate substantial potential Capex and Opex benefits from some
level of infrastructure sharing, with further potential benefits
arising from shared or common evaporation and salt processing
facilities.
A paleochannel extending in excess of 140 kilometres traverses
the Companies combined tenement holding over Lake Wells. Recently
both APC and SO4 have been granted initial Mining Leases over their
respective projects at Lake Wells.
APC's scoping study released in March 2017 indicated a staged
development producing 150,000 tpa rising to 300,000 tpa(i) of
premium grade Sulphate of Potash (SOP) from its stand-alone
development. APC has a 2012 JORC Mineral Resource Estimate
(calculated from drainable porosity) of 14.7 Mt(i) of SOP (derived
from a total of 72 Mt contained in total porosity).
SO4's scoping study released in August 2016 indicated a staged
development producing 200,000 tpa rising to 400,000 tpa on a fully
ramped basis. SO4 has reported a total JORC Mineral Resource at
Lake Wells of 80-85 Mt of SOP (Stored Resource).
Logistics and Infrastructure
Each Company's project is based on heavy haulage road transport
from Lake Wells to the rail head at either Malcolm (280kms) or
Leonora (300kms), utilising the same haulage route. There is
compelling logic in pursuing the economies of scale inherent in a
(larger) shared solution as well as sharing the capital costs for
road upgrades, haulage equipment and other transport and handling
facilities. There is similar synergy potential in shared power, air
transport, accommodation and process water costs.
Both projects have very similar brine chemistry given they are
essentially hosted on the same paleochannel. Naturally they will
also experience the same climatic conditions, meaning the process
flowsheets for each project should be very similar. This offers the
opportunity for potential additional savings by a co-operative
arrangement extending to evaporation and salt processing
facilities.
The Companies have agreed to constitute a joint study team to
carry out an initial assessment of the merits of infrastructure
cooperation. The team will also conduct a high-level review of
potential benefits of upstream operational synergies. A substantial
part of the Study work will be outsourced to independent engineers
and both Companies intend to continue with their independent
project developments in parallel with the Study.
For further information please visit www.saltlakepotash.com.au
or contact:
Matt Syme/Clint McGhie Salt Lake Potash Limited Tel: +61 8 9322 6322
Jo Battershill Salt Lake Potash Limited Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat/Ben Roberts Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs Shore Capital (Joint broker) Tel: +44 (0) 20 7468 7967
Competent Person Statements
The information in this Announcement that relates to APC's
Exploration Targets and Mineral Resources is based on information
that was compiled by Mr Duncan Gareth Storey. Mr Storey is a
Director and Consulting Hydrogeologist with AQ2, a firm that
provides consulting services to the Company. Neither Mr Storey nor
AQ2 own either directly or indirectly any securities in the issued
capital of the Company. Mr Storey has 30 years of international
experience. He is a Chartered Geologist with, and Fellow of, the
Geological Society of London (a Recognised Professional
Organisation under the JORC Code 2012). My Storey has experience in
the assessment and development of paleochannel aquifers, including
the development of hypersaline brines in Western Australia. His
experience and expertise are such that he qualifies as a Competent
Person as defined in the 2012 edition of the "Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore
reserves". Mr Storey consents to the inclusion in this report of
the matters based on this information in the form and context as it
appears.
The information in this Announcement that relates to Salt Lake
Potash Limited's Mineral Resources is extracted from the reports
entitled 'Lake Wells Resource Increased by 193% to 85Mt of SOP'
dated 22 February 2016 and 'Significant Maiden SOP Resource of 29Mt
at Lake Wells' dated 11 November 2015. These announcements are
available to view on www.saltlakepotash.com.au. The information in
the original ASX Announcements that related to Mineral Resources
was based on, and fairly represents, information compiled by Mr Ben
Jeuken, who is a member Australian Institute of Mining and
Metallurgy and a member of the International Association of
Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty
Ltd, an independent consulting company. Mr Jeuken has sufficient
experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity, which he
is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Salt Lake Potash
Limited confirms that it is not aware of any new information or
data that materially affects the information included in the
original market announcement and, in the case of estimates of
Mineral Resources, that all material assumptions and technical
parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed.
Salt Lake Potash Limited confirms that the form and context in
which the Competent Person's findings are presented have not been
materially modified from the original market announcement.
The information in this Announcement that relates to Salt Lake
Potash Limited's Lake Wells Scoping Study is extracted from the
report entitled 'Scoping Study Confirms Potential Confirms Lake
Wells Potential' dated 29 August 2016. The Announcement is
available to view on www.saltlakepotash.com.au. The information in
the original announcement that relates to processing,
infrastructure and cost estimation are based on and fairly
represents information compiled or reviewed by Mr Zeyad El-Ansary,
who is a Competent Person as a member of the Australasian Institute
of Mining and Metallurgy. Mr Zeyad El-Ansary has 9 years'
experience relevant to the activities undertaken for preparation of
these report sections and is a employed by Amec Foster Wheeler. Mr
Zeyad El-Ansary consents to the inclusion in the report/press
release of the matters based on their information in the form and
context in which it appears. Salt Lake Potash Limited confirms that
it is not aware of any new information or data that materially
affects the information included in the original market
announcement. Salt Lake Potash Limited confirms that the form and
context in which the Competent Person's findings are presented have
not been materially modified from the original market
announcement.
Production Target
Australian Potash Limited's Lake Wells SOP Project's Production
Target, as stated in this Announcement is based on the it's Scoping
Study as released in the ASX announcement of 23 March 2017 'Scoping
Study Confirms Exceptional Economics of APC's 100% Owned Lake Wells
Potash Project In WA'. That announcement contains the relevant
statements, data and consents referred to in this announcement.
Apart from that which is disclosed in this document, Australian
Potash Limited, its directors, officers and agents: 1. Are not
aware of any new information that materially affects the
information contained in the 23 March 2017 announcement, and 2.
State that the material assumptions and technical parameters
underpinning the estimates in the 23 March 2017 announcement
continue to apply and have not materially changed.
Salt Lake Potash Limited's Lake Wells Production Target stated
in this Announcement is based on it's Scoping Study as released to
the ASX on 29 August 2016. The information in relation to the
Production Target that Salt Lake Potash Limited is required to
include in a public report in accordance with ASX Listing Rule 5.16
and 5.17 was included in its ASX Announcement released on 29 August
2016. Salt Lake Potash Limited confirms that the material
assumptions underpinning the Production Target referenced in the 29
August 2016 release continue to apply and have not materially
changed.
Note
i Refer to ASX announcement 23 March 2017 'Scoping Study
Confirms Exceptional Economics of APC's 100% Owned Lake Wells
Potash Project In WA'. That announcement contains the relevant
statements, data and consents referred to in this announcement.
Apart from that which is disclosed in this document, Australian
Potash Limited, its directors, officers and agents: 1. Are not
aware of any new information that materially affects the
information contained in the 23 March 2017 announcement, and 2.
State that the material assumptions and technical parameters
underpinning the estimates in the 23 March 2017 announcement
continue to apply and have not materially changed.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCSFUSILFASELU
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