Trigg Minerals shifts focus to alternative processing of SOP feed salts
Technical and project approval work at Lake Throssell has been put on hold as Trigg focuses on a new technology solution.
Trigg Minerals (ASX: TMG) is shifting its focus for the coming period to an innovative technology solution to produce potassium-rich salts that could potentially de-risk its Lake Throssell sulphate of potash (SOP) project in Western Australia.
In light of difficult prevailing market conditions, the company today announced it will progress research and development activities on a recently identified alternative processing method for producing the salts.
As a result of this change in focus, all other technical and project approval work for the flagship project will be put on hold.
Trigg’s recent cash-preserving initiatives
Trigg has recently been reviewing key work streams and put in place cost management activities which has included the downsizing of staff, closing of the current office lease and non-executive directors agreeing to a temporary reduction in fees of 60-75% each from the start of February.
These measures are estimated to result in about $600,000 in annualised savings.
The company today confirmed it has a cash balance of about $1.8 million and will continue to investigate additional options to converse cash and access funds.
In the meantime, the company aims to advance bench-scale test work on an alternative method to produce more consistent and reliable potassium-rich feed salts into the process plant.
“The company believes that significant value can be unlocked if a more efficient and reliable process can be commercially implemented to produce the processing feed salts,” Trigg chairman Mike Ralston said.
“If the planned test programs yield the same promising results as the initial bench-scale testing, then Trigg may have uncovered an innovative processing solution to overcome some of the most significant challenges associated with the existing processing routes adopted by the SOP sector in Western Australia.”
He added that some of the recent cost-saving initiatives that have been implemented across the company have been “regrettable, but important” to preserve cash and ensure Trigg is in a position to maintain value for shareholders.
“Lake Throssell is an important long-life sulphate of potash project needed to help address climate change and global food security. The shift in focus announced today is designed to preserve the significant value of this asset for our shareholders in what remains a challenging market for junior companies in this space,” Mr Ralston said.
Trigg confirmed that managing director and chief executive officer Keren Paterson will remain in the business to manage the day-to-day affairs and said it will advise of a new company secretary and any change to the place of business in time.
Prior to today’s announcement, Trigg had announced a 90% increase to the indicated mineral resource estimate at its flagship Lake Throssell project. The new figure totals 8 million tonnes of drainable SOP at 4,690mg per litre potassium (or 10.5kg per cubic metre SOP).