Potash West (OTCQX:PWNNY,ASX:PWN) announced results from a Scoping Study targeting single superphosphate production on its wholly owned Dandaragan Trough Project, located 150km north of Perth in Western Australia. The Study confirms technical & financial viability of single superphosphate (SSP) production at the Dandaragan Trough Project, and confirmed the ability to produce commodity grade SSP, as well as an IRR of 26% and low capital costs of $144M, inclusive of indirect costs.
As quoted in the press release:
• Study confirms technical & financial viability of single superphosphate (SSP) production at the Dandaragan Trough Project
• Phosphate resources at Dinner Hill can support an operation producing over 340,000 tpa of SSP for over 20 years
• Ability to produce commodity grade SSP confirmed
• Average Revenues per year of A$131 million
• Estimated average total annual cash costs of A$97.6 million
• IRR of 26%
• NPV8% of A$218 million
• Low capital costs of $144M, inclusive of indirect costs
• Payback in under four years
• Straightforward, established mining method
• Low cost and simple processing
• Progressing towards a Definitive Feasibility Study
Potash West Managing Director Patrick McManus said:
The significant phosphate potential of the Dinner Hill region of the Dandaragan Trough was recognised as we developed the economics of our patent-pending K-Max process, which produces not just potash, but also phosphate, alum and iron oxide. Capturing the full value of the phosphate allows a viable independent phosphate facility to be considered, in addition to providing major improvements to the economics of a K-Max plant.