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Salt Lake Potash virtual site tour showcases Lake Way SOP Project development

Bulk earthworks for the site are complete while major vendor procurement is 77% complete and offsite fabrication activities are substantially progressed.

Salt Lake Potash Ltd - Salt Lake Potash releases virtual site presentation tour showcasing up-to-date process plant images
The Lake Way SOP Project is near the town of Wiluna in WA’s northern Goldfields

Salt Lake Potash Ltd (ASX:SO4) (LON:SO4) (OTCMKTS:WHELF) has released a virtual site presentation which showcases progress on the process plant site, Lake Way Village, trench network and various construction works at the Lake Way Sulphate of Potash (SOP) Project in Western Australia’s northern Goldfields region.

Earlier this month the company awarded EPC and EPCM contracts to GR Engineering Services Ltd (GRES) (ASX:GNG) for construction of the process plant and non-process infrastructure (NPI) at the project.

These contracts, combined, represent more than 40% of the total project capital requirement.

The Engineering, Procurement and Construction (EPC) contract involves the provision of plant, labour, materials and construction services for the plant valued at A$85 million.

Salt Lake’s EPCM contract involves the provision of services for the EPC management (EPCM) for areas of the process plant and NPI valued at A$22 million.

Stage-2 Halite Ponds filling with trench brine.

The company is on track to begin stage-3 construction in Q3 of 2020 with its stage-1 ponds producing plant feed harvest salts and its stage-2 ponds having commenced precipitating harvest salts.

SO4 has a commercial-scale operation that comprises 400 hectares of ponds and 48 kilometres of brine trenches operating for an extended period.

Processing plant site.

The process plant bulk civil earthworks are complete, with the procurement of major items 77% complete and the final engineering and design 85% complete.

The site’s 100 room permanent village is also complete as well as its' occupied and 160 temporary rooms.

Laying foundations at process plant site.

GRES and Wood plc designed the process plant, which is a simple reverse flotation, conversion and re-crystallisation process utilising well-established technology.

As part of the detailed engineering undertaken since completion of the bankable feasibility study (BFS) in October 2019, which now sits at over 85% complete, as well as the negotiated contract risk allocation undertaken with GRES, SO4 has agreed a revised capital budget of A$264 million, a A$10 million increase to the published BFS capital budget.

The revised budget includes an A$18 million contingency allowance and the project remains on schedule for first sales in Q1, 2021.

Precipitated halite salts.

COVID-19 has had no material impact on the schedule of construction works to date with the plant EPCM contractor GRES based in Perth and no delays are expected for delivery of items ordered for the process plant and non-process infrastructure.

To view the presentation, visit this link: https://www.investi.com.au/api/announcements/so4/d31c6791-c39.pdf

Quick facts: Salt Lake Potash Ltd

Price: 33 GBX

AIM:SO4
Market: AIM
Market Cap: £116.58 m
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