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Karinga Lakes Potash Project (KLPP)

(PWN 15%, increasing to 40%, conditional option for 50.1%)

  • An extensive brine lake system that covers approximately 1,109km2 over pastoral land in the Northern Territory, Australia.

  • Consists of a chain of dry salt lakes and is located within the Central Australian Groundwater Discharge Zone.

  • Extensive resource appraisal studies have been performed by JV partner Verdant Minerals since 2010.

  • Ideally located, with major road and rail infrastructure located in close proximity to the project, with regional gas options also available. 

Overview

  • The KLPP represents an attractive opportunity for Parkway Minerals, as extensive project evaluation initiatives demonstrate the subsurface brines can be readily accessed by trenching and concentrated through solar evaporation to produce mixed salts containing various precursors to potash production, including sulphate of potash (SOP).

  • On 18 February 2019, Verdant Minerals announced that CPC had satisfied all of the Key Performance Indicators (including the delivery of a Scoping Study based on the aMES™ technology) required in order to acquire an initial 15% of the KLPP and establish a Joint Venture with Verdant Minerals.

  • As a result of entering into an aMES™ licencing agreement in August 2017 with Verdant Minerals regarding the KLPP, Parkway subsidiary AWT holds a 1% royalty (NSR) over the KLPP.

 

Scoping Study

  • The KLPP Scoping Study was carried out by subsidiaries of Parkway Minerals in collaboration with Verdant Minerals, Victoria University and a leading technoeconomic modelling expert. The budget for the study was ~$1 million over 18 months. 

  • Parkway Minerals subsidiary CPC has earned a 15% interest in the KLPP to date, by completing extensive bench scale testwork and a scoping study on the potential feasibility of producing SOP from the KLPP through the use of the aMES™ technology (refer Verdant Minerals ASX announcement, 18 February 2019 Karinga Lakes – Establishment of Joint Venture). 

  • The Scoping Study identified several important strategies to simplify the development of the KLPP by potentially eliminating the requirement for flotation, process steam, gas pipeline and freshwater bore field, which represent major costs in the traditional flowsheet.

 

KLPP Case-Study

The project optimisation opportunities identified at the KLPP through the strategic application of the aMES™ technology, also have applications to many other potash projects:

  • Parkway Minerals has received interest from other potash project producers and proponents investigate the potential of the aMES™ technology.

  • Parkway Minerals has performed several evaluations for other projects and is exploring range of potential collaborative opportunities.

  • Additional information on how the aMES™ technology has the potential to improve potash project performance, is presented in the opportunities for potash production graphic below.

PWN web aMES4.png

Forward Plan

  • As part of the Stage 2 earn-in to the KLPP, Parkway Minerals is currently working with Verdant Minerals to develop an appropriate Pre-Feasibility Study (PFS) scope based on:

    • Updating the KLPP Resource Statement (no field work expected to be required)

    • The strategic application of the aMES™ technology package 

    • Click on the image for more information

PWN web KLPP3.png

Resource Appraisal

  • The KLPP has undergone comprehensive resource appraisal and represents a highly prospective sulphate of potash (SOP) brine project.

  • Verdant Minerals have been exploring the KLPP area since May 2010 and on 20 February 2014 reported an in-situ potash resource for the project. The 2014 resource is based on the total porosity (total brine content) of the host rock (refer to Resource Status section, below, for additional information about the resource status for the KLPP).

  • Most of the process development studies performed to date, including the recently completed technoeconomic study by Parkway Minerals have been based on brine and salt feedstocks from Lake Miningere, where the reported brine composition was deemed to be particularly well suited for the production of SOP. 

Resource Appraisal Status

The potash brine investigations including those utilised for the purposes of resource appraisal and reporting were based on data acquired over several years, including:

  • 93 brine samples from hand dug pits

  • 4 small backhoe trenches which were pump tested

  • 8 vibracore drill holes, 73 sonic drill holes & 200 aircore drill holes

  • 42 installed 50mm piezometers around drill holes & 48 piezometers around trenches

  • 47 installed 100mm wells

  • 10 pumping tests from 100mm wells

  • 4 long term pump tests from 3 trenches and a well

  • 142 porosity samples.

 

Resource Reporting Status

  • In collaboration with joint venture partner Verdant Minerals, the KLPP joint venture will determine an appropriate work program, (as part of a PFS) to revise the resource estimate for the KLPP to conform with updated JORC reporting guidelines. 

  • As a result, investors are cautioned not to make investment decisions based on the presently reported and publicly available mineral resource for the KLPP.

 

Project Ownership

  • Parkway Minerals has earned an initial 15% interest in the KLPP, and has the right to acquire up to 40% through staged investment of a further $2 million. A proportion of these funds have already been expended, with further substantial funds secured through Australian Research Council grant funding.

  • Parkway Minerals holds a conditional option to acquire an additional 10.1%.

  • Parkway Minerals holds its interest in the KLPP through Consolidated Potash Corporation Limited, a wholly-owned subsidiary of Parkway Minerals.

 

Additional Information

For more information about the KLPP including technical information or to explore potential commercial opportunities, please Contact Us.