Potash West (ASX:PWN) announced the results of a Scoping Study completed on its wholly owned Dandaragan Trough Project in Western Australia. The Study confirms the technical and financial viability for the proposed development of a potash production facility, average revenues per year of A$365 million and an NPV of A$808 million.
As quoted in the press release:
- Study confirms the technical & financial viability for the proposed development of a potash production facility based at the Dandaragan Trough Project
- Demonstrates that glauconite resources at Dinner Hill can support a 2.4 M tpa operation over a +60 year operational life
- Confirms the ability to produce Sulphate of Potash and other valuable products through a proprietary processing method
- Average Revenues per year of A$365 million
- Estimated average annual cash costs of A$137 million
- IRR of 21%
- NPV of A$808 million
- Progressing towards a Definitive Feasibility Study
The Scoping Study (+/- 35% accuracy) demonstrates the robust nature of Potash West’s proprietary K-Max processing process and provides Potash West with the confidence to move forward towards a Definitive Feasibility Study (DFS).