Aspiring sulphate of potash (SOP) miner Trigg Mining (ASX: TMG) has engaged “highly regarded” consultant Tim Langmead to oversee its external relations activities.
According to Trigg, Mr Langmead has “significant experience” in external relations roles within the resources sector and was most recently a member of iron ore major Fortescue Metals Group’s (ASX: FMG) executive team.
While with Fortescue, Mr Langmead was responsible for the company’s external relations across community, environment and government.
He has also held senior roles with other majors including Hess Exploration Australia, and INPEX.
Trigg managing director Keren Paterson said Mr Langmead’s experience, skills and extensive contact network will be “invaluable” to the company as it advances its flagship Lake Throssell SOP project in Western Australia.
Advancing Lake Throssell
Trigg is advancing Lake Throssell to produce SOP, which can be used as a natural mineral fertiliser for global food production.
The company aims to ensure Lake Throssell is a sustainable operation, which will use solar to evaporate the saline brine.
Lake Throssell has a total drainable mineral resource of 14.4 million tonnes at 10.4 kilograms per cubic metre of SOP.
Within that is an indicated drainable resource of 4.2Mt at 10.6kg/m3 SOP.
Located near Laverton, the project has access to sealed roads and rail.
Scoping study metrics
A scoping study completed on the project indicates a 21-year initial mine life – producing 245,000 tonnes per annum of SOP.
The life of mine production is based on only 41% of the total drainable mineral resource of 5.9Mt at 10.4kg/m3 of SOP.
To bring Lake Throssell online, capital expenditure of $378 million is estimated, with a 4.5-year pay back period.
Based on forecast all-in-sustaining costs of $372 per tonne and an average sales price of US$550/t free on board, the scoping study assumes Lake Throssell could generate annual earnings before interest tax depreciation and amortisation of $97 million.
Trigg noted the metrics from the study place the project as a potential global top 10 producer and in the lowest cost quartile.
Additionally, the assumed SOP price of US$550/t FOB is well below the current price of US$830/t FOB – indicating potential revenue upside.