Impact Minerals (ASX:IPT) Managing Director Dr Mike Jones says the company is on the cusp of delivering a “significant, low-cost and highly scalable” asset via its Lake Hope High-Purity Alumina (HPA) Project in Western Australia.
The company completed a Prefeasibility Study (PFS) which outlines “strong” economic metrics and a low-cost production. The Lake Hope project is forecast to produce 10,000 tonnes of HPA per year over a 33-year period.
Impact, which has a market capitalisation of $21.75 million, says the PFS outlines Lake Hope to have a net present value (NPV) of $1.165 billion, with an internal rate of return of 44%.
The PFS also outlines a capital expenditure of $259 million and a post-tax cashflow of $170 million. The company adds the life of mine cashflow is projected to be $5.148 billion. It also shows the lowest quartile life-of-mine opex cash costs of US$5,860 ($9,450) per tonne, excluding byproduct credits.
Jones says that the company has proven Lake Hope’s unique natural feedstock, combined with a straight-forward flowsheet, offers one of the most capital-efficient and environmentally responsible pathways to HPA production globally.
“The project’s strong margins, minimal carbon footprint and ability to deliver 4N product without critical reagents or complex processing provides us with a clear competitive advantage as the HPA market enters a phase of rapid growth,” he says.
Jones adds that with the PFS completed, the company will advance the detailed engineering required to bring Lake Hope into production. This work includes a Definitive Feasibility Study, which includes the construction of a pilot plant to produce HPA samples at scale for discussions on offtake agreements.
This will revolve around the co-funded membrane research project currently underway, in parallel with Edith Cowan University and CPC Engineering.
“We believe very significant improvements to our flowsheet will emerge from that work,” he says.
“We will also progress approvals and initiate offtake discussions. At the same time, we will help fund and rapidly develop the HiPurA modular production pathway to establish near-term capacity and position Impact as a differentiated, vertically integrated supplier of high-purity alumina to the global market.”
Further, Impact says the PFS positions the Lake Hope Project to be the upstream foundation of the vertically integrated HPA business.
Through the recent acquisition of a 50% interest in privately held Alluminous and the HiPurA downstream processing technology, Impact is expediting plans to integrate Lake Hope feedstock with HiPurA’s potentially modular HPA production capacity.
“This unique model offers Impact the flexibility to scale production in line with market demand and customer qualification, while minimising capital intensity and de-risking the path to early revenues,” Jones says.
The Lake Hope Project has a maiden probable and proved ore reserve of 1.7 million tonnes @ 26% aluminium oxide for 450,000 tonnes of contained aluminium oxide. The project spans 238km2, encompassing several salt lakes stretching from Hyden to Norseman in southern Western Australia.
Impact Minerals will be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort.
Mining.com.au is an official media partner of this year’s conference.
Write to Aaliyah Rogan at Mining.com.au
Images: Impact Minerals
