Australian Potash Encouraged by Lake Wells Scoping Study Results

THE BOURSE WHISPERER: Australian Potash (ASX: APC) has completed a Scoping Study on the development of the company’s 100 per cent-owned Lake Wells potash project in Western Australia.

Australian Potash declared the Scoping Study exceeded its expectations and had confirmed the Lake Wells project’s economic, financial and technical aspects to all be exceptionally strong.

The company also said the Study highlights its potential to become a long-life, low capital and high margin sulphate of potash (SOP) producer.

Having received the results, Australian Potash indicated it will immediately move to conduct brief optimisation studies, site investigations and test-work, all of which will form the basis for a Feasibility Study planned to commence in the second quarter of 2017.

“This Scoping Study shows that the Lake Wells potash project, located 500 kilometres north-east of Kalgoorlie, will enjoy considerable production scale, low capital expenditure, high margins and a long mine life,” Australian Potash executive chairman Matt Shackleton said in the company’s announcement to the Australian Securities Exchange.

“From initial planned production rates, we have numerous opportunities to expand production capacity to meet growing demand and the market environment at the time.

“The project has the right location, the right brine chemistry and the right extraction method of the resource, to truly allow for numerous expansion pathways.

“In addition, we have identified numerous potential upside opportunities for the project, which in turn allows for the optimisation of fundability and economic returns and positions APC exceptionally well to dominate Australian SOP supply.

“In light of these strong findings, we are commencing optimisation studies before quickly moving to a Feasibility Study, beginning with building a pilot harvest pond.

“The optimisation studies and Feasibility Study will generate strong newsflow over the coming months as we seek to expedite technical studies, funding discussions and project development.”