Reward Minerals Ltd expects to pass a number of key milestones during the current quarter as it seeks to advance its Reward Process to recover high-purity sulphate of potash (SOP) from seawater and to progress its potash projects.
The September quarter looks set to build on the momentum the company delivered during a busy June quarter as Reward remains bullish on the long-term outlook for SOP demand.
Key milestones
In regard to the Reward Process, this quarter the company intends to finalise an Engineering Scoping Study (ESS) using the technology to recover high-purity SOP from seawater and other high sulphate brines as well as to finalise an international patent for the process.
The company also intends to engage with solar salt, fertiliser and seawater desalination companies worldwide to discuss the application of Reward’s technology to potential and proposed SOP developments for possible joint venture participation.
With its potash projects, the company expects to be granted the Carnarvon Potash Project tenure and to design initial work programs while it will also advance the Cultural Heritage Management Plan for the Kumpupintil Lake (KP) Project.
“Showing a lot of promise”
Chief executive officer Lorry Hughes said: "The September quarter is showing a lot of promise firstly with key milestones expected to be met with completion of the PCT Patent Application for the Reward Process in late July followed by completion of the independent engineering scoping study into recovery of SOP from seawater derived brines.
"The study results will certainly assist us with strategic discussions with solar salt companies.
"Reward also anticipates grant of a new exploration licence located on the coast near Carnarvon in WA.
"We believe there is strong potential for the project to host highly concentrated seawater below surface which could be an ideal feed brine for a SOP recovery operation located on the tenement.
“Alternatively, it is that close to the sea that seawater could be accessed. The infrastructure location is excellent.
"Lastly, we also have strategic discussions planned related to potential new projects."
PCT patent application
Reward remains on track to comply with the PCT Patent Application for its new SOP processing technology and will submit the final application prior to August 11, 2023.
On August 11, 2022, the company filed an Australian Provisional Patent Application to protect IP related to its newly discovered processing technology (Reward Process) for the recovery of high-purity potassium sulphate (K2SO4 or SOP) from seawater and other high-sulphate brines.
Multiple technical activities were completed during the June quarter to provide essential data supporting the Patent Application including:
- Inclusion of additional data to expand the scope of the Reward Process including potassium recoveries from a wide range of brine compositions;
- Confirmation of the variability of potassium recoveries versus reaction temperatures in the Syngenite formation and leaching steps in the Reward Process;
- Improvement in Potassium extraction from various feed brine compositions by variation in Gypsum to brine ratios in the Syngenite formation reaction; and
- High-purity SOP recovery from Syngenite leach liquours.
Engineering Scoping Study
An ESS utilising the Reward Process to recover high-purity SOP from seawater and other high sulphate brines has been underway since May 2023 and is due for completion shortly.
It is being completed by an independent global engineering firm using their own and Reward’s development data.
ESS work streams completed to date include:
- Preliminary mass and energy balance;
- Observations and review of evaporation and filtration test-work conducted by Reward to verify the robustness of key processing steps; and
- Review of entire flowsheet to identify potential fatal flaws in the Reward Process for production of SOP.
- Utilities and reagent consumption requirements;
- Capital and operating cost estimates (-30%-+40%) for a 100,000 tonnes per annum SOP production facility based on seawater bitterns feed source; and
- Review of all findings and recommendations from the independent global engineering firm.
On November 23, 2022, Holocene Pty Ltd, a wholly-owned subsidiary of Reward, lodged a first-in-time application for a single new exploration licence (E09/2763) and has been working through standard objections to grant. If granted, the tenement will be known as the Carnarvon Potash Project.
The tenement of 219 square kilometres has the potential to contain concentrated seawater-derived brines at shallow depths below surface. This will be the focus of the initial exploration activity when granted.
KP Lake progress
Jamukurnu-Yapalikurnu Aboriginal Corporation (JYAC) and Martu Traditional Owners have been undertaking on-country work in preparation for the Reward-JYAC Cultural Heritage Management Plan (CHMP) required by the Kumpupintil Lake (KP) Project Indigenous Land Use Agreement (ILUA).
This work included Martu considering the cultural landscape characteristics in the project area and adjoining country during two excursions completed in the September quarter of 2022.
A third excursion planned for the December quarter of 2022 was postponed due to unforeseen circumstances and is now planned to occur in the current quarter.
Reward said it looked forward to completing the CHMP in preparation for the development of the KP Lake Project.
The ILUA already in place between Reward and JYAC includes opportunities for Martu employment and business development when operations commence.
READ: Reward Minerals retains full ownership of McKay Range as Fortescue (ASX:FMG) withdraws; updates on patent and scoping study
Subsequent to the end of the quarter, FMG Resources Pty Ltd, a subsidiary of Fortescue Metals Group Ltd, provided Reward with formal notice of its intention to withdraw from the McKay Range Farm-in and Joint Venture Agreement.
Bullish on outlook
The company remains bullish on the long-term outlook for SOP demand and reaffirms its aspirations to become a globally relevant low-cost high-quality producer.
Given the Reward Process is technology directly applicable to the recovery of SOP from seawater and other high-sulphate brines, the company sees economic benefits in pursuing new opportunities as part of existing solar salt operations.
Most solar salt operations worldwide utilise seawater as their primary brine supply and are located in coastal areas which are usually ideal for reduced costs to transport salt and other products to export markets.
During the quarter, Reward continued to have dialogue and share data under confidentiality agreements with several companies involved in the solar salt, fertiliser and seawater desalination industries to discuss the application of Reward’s technology for SOP production via joint ventures.
To assist with discussions within the Middle East Region, in particular the Gulf Cooperation Council (GCC), specialist corporate advisor Montpellier Advisory FZE has been engaged on an ongoing retainer basis.
Further, Reward has been undertaking confidential non-binding discussions with a number of potential project and financial partners in the GCC.
The discussions are consistent with the company’s strategy of looking for opportunities to add value and leverage its new technology.