Blackham Resources Ltd’s (ASX:BLK) partner, Salt Lake Potash Ltd (ASX:SO4) has received approval to dewater the Williamson Pit near its Wiluna Gold Operation in Western Australia.
The Williamson Pit at Lake Way has a JORC Measured resource of 1.26 gigalitres of brine at an average SOP grade of 25 kilograms per metric metre, easily the highest grade SOP brine resource in Australia.
The government approval is to construct ponds totalling up to 133 hectares, as well as ancillary infrastructure to extract brine from the Williamson Pit.
Pursuant to an MoU Salt Lake Potash will dewater the pit ahead of Blackham re-entering the pit for mining.
READ: Blackham Resources confirms potash value through partner’s scoping study
A scoping study released in early August 2018 supported a low capex, highly profitable, staged development operation at Lake Way.
It had total capital costs of $49 million and average cash operating costs FOB of $387 per tonne sulphate of potash (SOP).
Under the MoU, SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to Salt Lake Potash's Lake Way holdings.
READ: Blackham Resources farms out Wilconi project, delivers 150% increase in gold-silver revenue
Blackham recently entered into a binding term sheet with A-Cap Resources Ltd (ASX:ACB) to farm-out a 75% interest in the nickel, cobalt and associated metals of the Wiluna Cobalt Nickel Project.