HOUSTON (ICIS)--Canadian potash developer Gold Dragon Resources said on Wednesday that the preliminary economic assessment of its Salar de Llamara (LHLP) project in northern Chile demonstrates financial feasibility due to its low capital cost and the significance of the potential potash resources that can be recovered.
Toronto-based Gold Dragon said that the LHLP project is anticipated to have capital cost of approximately $79m and take almost two years to construct. Company CEO Gordon Miller said that the next step forward will be the preparation of a project feasibility study.
“We are very excited about the results to date from our work on the LHLP Project and believe that it represents a significant new world-class potash discovery. The projected low capital costs associated with the LHLP Project as compared to many other potash developments is a major advantage in the existing financial climate,” Miller said.
Located in northern Chile, the site covers 4,622 hectares (11,416 acres) and will utilise sea water for leaching surface layer minerals as well as implement solar evaporation techniques in order to extract specialty products such as sulphate of potash (SOP).
Production capacity has been estimated at 170,000 tonnes of specialty fertilizers per year, with the potential to increase that volume as the company has estimated approximately 2.2m tonnes of inferred mineral resources. Company officials said that beyond the potential deposits, the project is encouraging because of the significant market premiums paid for products like SOP.