GrowMax Resources Corp. has announced the results from the pilot potash project on the company's Bayovar Property. The study included capital and operating cost estimates for a pilot facility, including evaporation ponds and a process plant, for the production of 5000 tpy of soluble SOP.
Sulfate of potash
GrowMax has conducted preliminary market investigations, which indicate that there is significant local demand in Peru for soluble SOP, a specialty fertilizer product used in fruit and vegetable irrigation projects, particularly in arid climates such as the coastal regions of Peru. Government of Peru data shows that SOP imports in Peru averaged a landed price of over US$600/t in 2016.
Summary assumptions and results
The study assumes that the Company's existing test wells can produce sufficient brine with concentrations of Potassium and other minerals to feed the processes as contemplated.
The pilot facility design envisions the production of Kainite and Carnallite from evaporation ponds covering approximately 50 hectares, and the processing of those minerals to produce 5000 tpy of soluble SOP. The production process is also expected to produce 185 000 tpy of sodium chloride (NaCl) salt.
The following are the capital and operating cost estimates developed by Advisian (2016 US$) for the pilot project:
- Project CAPEX: US$19.8 million
- Annual OPEX: US$2.1 million
GrowMax's 2017 budget includes a work program to advance the SOP pilot project by securing the necessary environmental permits and government approvals required to initiate construction of the initial 50 hectares of solar evaporation ponds in the second half of 2017. Based upon Kainite and Carnallite production results from the solar evaporation ponds, the Company will plan to start construction of the SOP plant in 2018.
Abby Badwi, Executive Chairman of GrowMax, commented: "GrowMax management is encouraged by the results of this study and will pursue the Company's vision of generating early cash flow through its fertilizer business initiatives. This approach will run in parallel with our initiatives to pursue different fertilizer products such as SSP and the development of the Company's phosphate rock mining assets at Bayovar in Peru."
Read the article online at: https://www.globalminingreview.com/exploration-development/10022017/growmax-announces-results-of-sulfate-of-potash-study/