Parkway Minerals NL (ASX:PWN) has changed its name from Potash West NL after a successful vote at its annual general meeting.
The logic behind the change is that a key element of the company’s flagship Dinner Hill project value is its phosphate content.
Development of Stage 1 is focussed solely on the phosphate layer at Dinner Hill.
Potash production will only emerge as a key element of the Stage 2 development program.
Patrick McManus, managing director, commented: “The name change reflects the importance of phosphate and other minerals in the value proposition of our Dandaragan Trough project area.
“In our flagship Dinner Hill project, phosphate is the principal revenue stream.”
Parkway Minerals holds 2,082 square kilometres over one of the world’s largest known glauconite deposits.
Dinner Hill is the company’s flagship project within this land holding and contains significant resources of both phosphate and potash.
Scoping studies indicate a robust development plan of:
- Stage 1, production of single superphosphate, using established technology; and
- Stage 2, production of potash, phosphoric acid, and other products, using K-Max technology.
A scoping study was completed on the project forecasting an expected mine life of 40 years and pre-tax net present value of A$378 million.
A pre-feasibility study (PFS) commenced in 2015.
Parkway Minerals is progressing key elements of the current PFS and has engaged Kemworks to review the process work carried out to date.
Kemworks is a phosphate process specialist, based in Florida U.S, which is one of the centres of excellence for phosphate mining.
Areas of potential improvement have been identified and test work is being undertaken to optimise the process for one of Dinner Hill’s ore types.
A fauna study has been completed on the potential mine site, to complement the flora study completed in 2015. The report is imminent.
Dinner Hill is unique in that the project is aiming to produce two of the key fertiliser elements, phosphorous and potassium, from the one ore sequence.
Furthermore, the company’s K-Max process produces phosphates, the premium potash known as sulphate of potash or SOP, alum and other minerals.
The deposit is located proximate to rail, power and export ports, provides a low capital cost route to cash flow.
With South East Asia importing close to 100% of its phosphate and potassium, local Western Australian suppliers provide an opportunity for a tighter supply chain, at more competitive costs and less working capital for operations.
Davenport Resources IPO and spin-off
Davenport Resources Ltd (ASX:DAV) will look to raise $6 million and be focusing on its South Harz potash project in Germany and high potential Southern Cross Bore iron-oxide copper gold project in the Northern Territory.
Parkway Minerals sold its interest in the South Harz project to Davenport during 2015 in exchange for Davenport shares.
The company will own 19.2 million shares of Davenport, 26.1% of the company at the minimum raising.
Long term, the fertiliser feedstock market is expected to grow faster than gross domestic product (GDP), driven by population growth, improving diets and relative decline in arable land.
Good fertiliser feedstock projects in localities like Western Australia with low sovereign risk, good infrastructure and close to large local and regional markets, will attract strong interest.
Short term, work on the Dinner Hill PFS should be reported in the coming March quarter, as well as updates from a review of the South Harz potash project data.