Parkway Minerals NL (ASX:PWN) has reached agreement on an option to purchase Yallambee, a freehold property, which overlays the Dinner Hill phosphate and potash project.
Dinner Hill is the flagship of the Dandaragan Trough project, located less than 200 kilometres from Perth in Western Australia.
The Indicated Resource delineated at Dinner Hill could be a supplier of phosphates and potash to the agriculture sector for many decades, with a mine life of over 40 years projected.
Currently at Dinner Hill, Parkway is progressing key elements of the Pre-Feasibility Study, and have 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.
They have already identified areas of potential improvement, and test work is being undertaken to optimise the process for one of Dinner Hill’s ore types.
Patrick McManus, managing director, commented:
"Parkway Minerals has been operating in the Dandaragan/Badgingarra area for several years.
"The resources identified at Dinner Hill will underpin a significant, multi-decade project.
"We have now completed a multi-year option to purchase the Yallambee property, which hosts 92% of the current Indicated Resource.
"Whilst the terms of the agreement are confidential, we believe they allow the land-holder to share in the successful development of the Dinner Hill fertiliser feedstock operation."
About Dinner Hill
Dinner Hill is virtually unique in that the project is aiming to produce two of the key fertiliser elements, Phosphorous (P) and Potassium (K), from the one ore sequence.
The company's K-Max process produces phosphates, the premium potash known as Sulphate of Potash or SOP, alum and other minerals.
The location of the deposit is close to rail, power and export ports, providing a low capital cost route to cash flow.
With South East Asia importing virtually 100% of its P and K, Western Australia suppliers provide an opportunity for a tighter supply chain, at more competitive costs and less working capital for operations.