Salt Lake Potash (ASX: SO4) has developed exploration targets for eight of its nine lakes at its Goldfields Salt Lakes project, with the ninth lake already possessing a JORC-compliant resource.
Lake Wells is the only lake to have a JORC resource and it currently sits between 80 million tonnes and 85mt of contained sulphate of potash.
Including the Lake Wells resource, Salt Lake Potash has developed a resource target between 290-458mt of contained sulphate of potash for its entire Goldfields Salt Lakes project.
The average grade range in the estimate is 4.4kg per cubic metre to 7.1kg/m3.
However, this estimate is purely conceptual at this stage.
“These initial exploration targets allow us for the first time to quantify the real scale of the long-term opportunity at the Goldfields Sale Lakes project,” Salt Lake Potash chief executive officer Matt Syme said.
The Goldfields Salt Lakes project covers 3,312 square kilometres of playa surface, which Salt Lake Potash claims is amenable to low cost on-lake construction.
Salt Lake Potash’s strategy is to produce from its lakes within the project after developing a 50,000 tonne per annum demonstration plant to confirm the project’s viability.
In addition to the suitable lake development setting, the project is exposed to “excellent” evaporation condition as well as required transport and infrastructure.
Blackham Resources collaboration
Earlier this month, Salt Lake Potash teamed up with gold producer Blackham Resources (ASX: BLK) to investigate developing a sulphate of potash operation on Blackham’s contiguous gold tenements.
According to Salt Lake Potash, its tenements lie over the Lake way Paleochannel and Blackham possesses 64sq km of land to the north of the paleochannel.
Blackham’s tenements also surround a historic potash mine that produce 25kg m3 sulphate of potash.
Under the collaboration between the parties, Salt Lake Potash can acquire the brine rights across Blackham’s tenements, while Blackham will possess the gold rights over Salt Lake Potash’s project area.
Each company will have access to the other’s land, share data and facilitate any exploration or development activities.
Because Blackham has acquired necessary approvals, Salt Lake Potash anticipates it would be faster to establish an operation on Blackham’s tenements.
Additionally, this will give Salt Lake Potash access to Blackham’s existing infrastructure, with the duo evaluating the viability of sharing accommodation camp facilities.
The initial plan is to dewater the historic pit on Blackham’s tenements and use the brine as a starter feed for its evaporation ponds.
Salt Lake Potash’s share price had lifted almost 4% to A$0.58 in late morning trade.