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Reward Minerals Ltd.
Summary
| Project: | LD Project | |
|---|---|---|
| Deposit: | LD Project | |
| Location: | Australia | |
| Commodities: | Potash | |
| Date: | 7/13/2018 | |
| Report Code: | JORC | |
| Report Type: | Pre-Feasibility Study | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 13-7-2018: Reward Minerals Ltd. announces a Pre-Feasibility Study report for its LD Project deposit at the LD Project project. PFS results incl. pre-tax NPV of A $517.6M (8%), IRR of 18.8%, 22yr LOM at the project. Sulphate of Potash (“SOP”) exploration a | |
| Resources: | (Resource, I+I): 153Mt @ 11.35kg/m3 SOP (Drainable) | |
| CP/QP: | [Resources]: Robert Kinnell (Strategic Water Management ) | |
| ABSTRACT: | Sulphate of Potash (“SOP”) exploration and development company Reward Minerals Ltd (“Reward” or “the Company”; ASX: RWD) is pleased to announce that it has taken an important first step to improve the overall economics of its advanced stage, 100%-owned LD SOP Project. Recently, the Company completed a class-leading Pre-Feasibility Study (“PFS”) on the LD SOP Project, which is located 340 km east of Newman in north-western Western Australia (refer ASX Announcement dated 1 May 2018 entitled “PFS Confirms LD Project as a Globally Significant SOP Project”). Previously, Reward announced that the PFS was both highly detailed and conservative and that there would be an ongoing focus to improve capital and operating costs as well as the various operating parameters to enhance the Project’s viability. An immediate focus for the Company was product logistics as transporting SOP from site to Port Hedland and ship loading made up 34.8% of the Project’s estimated total cash operating cost. Further cost optimisation work has resulted in an 18.5% reduction in the product trucking cost, reducing the overall cost of product logistics costs by 15%, with further savings anticipated. Reward’s CEO Greg Cochran welcomed the first significant improvement to the PFS commenting: “This is a material outcome and an important step towards making the LD Project even more attractive.” “There are many other opportunities that we are pursuing to ensure that LD’s FOB cash costs reside well within the first quartile of global SOP producers. Importantly, only those opportunities that fit within the PFS’s strict accuracy limits of +/-20% will be incorporated.” “Whilst we are working on other areas to reduce our costs it is important not to lose sight of the fact that LD benefits from multiple inherent competitive advantages that make the development of a brine operation comparatively low risk. The deposit’s size and consistently high in-situ average grade2 – the highest in Australia – implies less resource risk, whilst its location provides the industry’s most ideal operating environment with the highest evaporation rate and lowest average rainfall. | |
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