KordaMentha and Macquarie Capital are looking to breathe life into Salt Lake Potash after commencing a formal sales process for the Lake Way project in Western Australia.
Salt Lake went into receivership in October 2021 after coming into financial difficulty at Lake Way, following underwhelming results from the project’s initial plant feed salt program.
In July 2021, the company announced it would explore a revised ramp up strategy for the program which would require further funding for Lake Way operations to recommence. Three months later and the company had gone under.
Lake Way’s resource has been upgraded since Salt Lake’s collapse, with the measured mineral resource increasing by 108 per cent from approximately 900,000 tonnes of potassium to 1.87 million tonnes of potassium. The indicated mineral resource has also increased by 156 per cent.
In a statement, KordaMentha and Macquarie Capital substantiated Lake Way’s resource upgrade while highlighting the project’s strong foundations.
Following the release of Lake Way’s maiden mineral resource estimate in July 2018, a significant extension to the figure ensued in March 2019. In October 2019, Salt Lake released Lake Way’s bankable feasibility study which further refined the mineral resource.
“The availability of additional data collected during the paleochannel production bore drilling program increased the understanding and known extent of the paleochannel sequence,” the statement said.
“The geometry of the page two channel and the overlaying units were able to be further defined through an extensive drilling and test pumping program. This data was used to update the 3D Leapfrog model which increased the confidence in the amount of extractable resource from these units.
“This new information provides a material increase to the previously reported measured resource which is the basis for this resource upgrade.”