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Potash West continues to advance its 100% owned Dinner Hill SSP project, which forms part of the overall Dandaragan Trough project in WA targeting greensands. A scoping study has shown the feasibility of a 20 year, +340,000tpa SSP production facility, supplying both domestic and Asian markets, based on forecast USD cfr SSP prices of A$383/tonne.
The keys to the project are a low ($144m) start-up capital, and relatively low operating costs due to the flat-lying, shallow simple mineralisation that is amenable to standard treatment options, and short transport distances. The Company is assessing further process improvements aimed at improving the project economics.
The location is close to a potential market in Asia, with demand for fertilisers expected to continue to grow with the need to continually increase crop yields to feed a growing population.
Potash West (ASX: PWN) holds 100% of the Dandaragan Trough project covering extensive greensand deposits that can be processed to produce a range of fertiliser and chemical products. Since listing in May 2011 considerable progress has been made, including the definition of indicated resources and scoping various development options.
The initial scoping study assessed the viability of treating the glauconite sands to produce a series of products using the Company developed “K-Max” pyro/hydrometallurgical process. This developed positive outcomes at the then economic conditions, albeit with high capital costs that would require a major partner. This option is being kept on the backburner, however can be reactivated should conditions allow.
More recently Potash West has been looking at an SSP operation, based on a phosphate resource of 90Mt @ 2.65% P2O5 which has been outlined at the Dinner Hill deposit. The October 2013 scoping study has indicated positive economics, and this option continues to be advanced.
We see potential in the company’s activities, and hence rate Potash West as a...
ASX on Hotcooper: http://hotcopper.com.au/asx/PWN