Lake Chandler potash deposits investigated 12/03/2009 11:36:00 AM LAKE Chandler could be mined for potash again. The lake was mined for potash in the 1940s during a period of scarce resources after World War II but the processing operation was hampered by the lack of equipment and fuel.
Queensland based explorer ActiveEX is now focusing on its potash project at Lake Chandler as global demand for fresh food increases the demand for fertilisers.
The potash project took an important step towards development when the company announced a maiden inferred resource estimate of 5.77 million tonnes at 5.73 percent potassium oxide in January.
Mineralisation at Lake Chandler occurs as alunite, which is a potassium aluminium sulphate.
The new resource estimates are based on drilling results from two exploration campaigns of 112 holes conducted in the 1980s.
Potash is a source of potassium which, when used in fertilisers, raises yields and disease resistance for plants and improves the flowering and setting of fruit.
The growth in demand for fertilisers in recent years has been influenced by increased pressure for fresh food due to changing eating habits in the growing economies of India and China and the competing requirements of agricultural products for biofuel stocks.
ActivEX managing director Doug Young said the resource estimate was an important step in the development of the project giving the company confidence in the deposit.
“We believe there are additional alunitic clays in the area,” he said.
“But expanding the resource base is not our highest priority at present given that the resource announced is sufficient for a 20 to 30 year mine life at the production rates being considered.”
ActivEX priority is reviewing treatment options for the deposit with a target throughput of 150-300,000 tonnes of raw alunitic clay a year.
The company believes the mining process should be a simple open pit ripping and scraping operation.
Mr Young said the company will concentrate on the chemical engineering and marketing for the project during the next six to 12 months and believed the market would be replacing imports from Canadian producers
Australia imports about 25-50,000 tonnes of potassium sulphate each year and ActivEX estimated throughput would cover about half of current imports.
Mr Young said there were real advantages for ActivEX in the potash project as about 40 percent of the Australian market was close by in Western Australia and the project is close to excellent local infrastructure.
“Because it was previously mined, there is already water and power on site which could be easily restored and rail access is at nearby Merredin,” he said.
“Another real advantage for the company is the price it is bringing in the global marketplace.
“We see potash as having a good future and global prices have not been as badly affected by the economic downturn as have other mineral commodities.”
