Kalium announces big resource upgrade at flagship Beyondie project
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Would-be fertiliser producer Kalium Lakes has delivered a 150 per cent increase in resources for its flagship Beyondie sulfate of potash project in WA.
The stock gained 3 per cent to 47c after the resource turned out “thicker” than expected. The shares have traded between 34c and 54c over the past year.
A new feasibility study for the project is due to be completed this month.
Kalium (ASX:KLL) managing director Brett Hazelden said he “measured and indicated” resources would translate into a substantial increase in ore reserves, which is also due for an update this month.
Mesured and indicated resources are based on estimates made with reasonable and high degrees of confidence. Ore reserves are the highest confidence category, and represent a resource than can be mined economically.
The high-margin, long-life project already has enough in reserves to mine 75,000 tonnes each year for more than 23 years.
“It is also likely that we will be able to increase the mine life which will, in turn, generate additional opportunities to increase our production rates,” Mr Hazelden said.
Kalium is one of a handful of ASX-listed juniors are involved in the SOP projects where salt lake brines are to be tapped for the valuable fertiliser — and they are attracting strong investor interest on the back of the need-to-feed-the-world thematic.
Kalium is aiming to make a final investment decision on the project in early 2019.
Kalium is not yet making any money.
It burned $11 million last year, leaving $7.6 million in the kitty at the end of June. About $900,000 will be spent this quarter.