Trigg targets top 10 potash position

AUSTRALIA’S fledgling potash brine industry might be struggling through some teething troubles, but Trigg Mining clearly believes Western Australia is on track to become a key global sulphate of potash producer, and it is eyeing a position near the top of the table when it gets into production.
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Lake Throssell

Haydn Black

Reporter

Trigg has just delivered a positive scoping study for its 100%-owned Lake Throssell project in the Eastern Goldfields and is set to proceed immediately into a prefeasibility study.
 
Trigg plans to develop a A$412 million project capable of producing 245,000tpa over 21 years, at all-in sustaining costs of A$372/t - some of the lowest in the world.
 
Its resources now stand at 14.4 million tonnes grading 4665 milligrams per litre potassium with the inclusion of 4.2Mt at 4770mg/L following a review of the permeability of the basal aquifer.
 
The project has a pre-tax net present value of $364 million, an internal rate of return of 18%, delivering payback of 4.5 years assuming average EBITDA of $97 million per annum using a US$550/t SOP price. 
 
Trigg managing director Keren Paterson said the financials have confirmed Lake Throssell as a potential tier one global SOP project, with low risks and a commercially proven flowsheet that leverages a simple 110km network of trenches, up to 112 bores, solar evaporation, and a process plant uses proven technology.
 
The SOP could be transported 350km by road to the railhead at Leonora prior to loading on to rail and transport 950km to the container port at Fremantle, however the company has indicated it would prefer to target the domestic fertiliser market.
 
Paterson said Lake Throssell alone "can transform Trigg into a modern, sustainable Australian SOP producer with a top 10 globally competitive project", which could in turn leverage its other WA projects.
 
She said the project compares favourably in terms of costs and output to many of its ASX-listed peers.
 
There is a significant exploration target for Lake Throssell, and a potential repeat at the nearby Lake Yeo that offer immediate upside.
 
Lake Throssell has moved quickly since Trigg first drilled the salt lake in 2019, with the company only declaring its maiden inferred resource in April, which was upgraded to an indicated resource in July.
 
The scoping study's completion allow sit to commence initial discussions with potential off-takers and financiers.
 
Construction could commence in 2025. 
 
Trigg shares, which have traded between A8.4-19.5c over the past year were up 5% in early trade to 11c, valuing it at $11 million.