Western Australia’s Department of Energy, Mines, Industry Regulation and Safety has granted Reward Minerals (ASX:RWD) an exploration licence for the Carnarvon Potash Project (CPP) in the state’s north.
The project covers more than 200km2 and sits 30km north of the Carnarvon township. Carnarvon Potash has the potential to contain concentrated seawater-type brines at shallow depth, which will be the company’s initial focus of exploration.
Potash is a basic nutrient for plants and an important component in fertiliser. Potash is primarily used in agriculture.
Reward Minerals, which has a market capitalisation of $5.46 million, plans to undertake pilot testwork and Feasibility Studies to recover potassium sulphate (SOP or potash) and other industrial products from residual brine at the project.
CEO Lorry Hughes says the granted licence marks a new chapter as the company continues to advance the development of its novel potash processing technology.
“There is also potential to sublease an existing camp and evaporation ponds located within the CPP that are owned by Beta Nutrition, which holds a 4,000 hectare Crown lease for algae cultivation,” he says.
The CPP adjoins the Crown lease, which covers the Lake Macleod operations predominantly owned by Dampier Salt, a subsidiary of Rio Tinto (ASX:RIO).
“Since the completion of the Engineering Scoping Study in September last year, Reward has been convinced that the development of SOP operations using reject brines from solar salt operations in ideal infrastructure locations such as Carnarvon can result in production of the lowest cost and most ESG friendly SOP globally,” Hughes says.
Hughes notes the pending change of ownership at Lake Macleod to a private equity-owned company may offer a new dimension for potential developments.
Reward Minerals will engage with solar salt, fertiliser, and seawater desalination companies worldwide to discuss applying its technology and proposed SOP developments for possible joint venture participations and investment.
Further, the company will also advance a cultural heritage management plan for its Kumpupintil Lake Potash Project and conduct due diligence activities on new projects within the minerals sector for potential acquisitions.
Write to Aaliyah Rogan at Mining.com.au
Images: AgriBotix
