It’s a busy news day for Reward Minerals Ltd (ASX:RWD), which has received formal notice from FMG Resources Pty Ltd, a subsidiary of Fortescue (ASX:FMG) Metals Group Ltd, about its intention to withdraw from the McKay Range Farm-in and Joint Venture Agreement (FJVA).
Ownership in company’s hands
As a result, Reward Minerals will retain full ownership of the E45/3285 and E45/4090 tenements, which are part of the Kumpupintil Lake Potash Project.
Fortescue had previously conducted a reverse circulation (RC) drilling program, completing seven holes across 1,338 metres.
Encouragingly, four of the holes intersected anomalous mineralisation, including 5 metres at 0.15% copper from 212 metres in Hole MO0004.
These results indicate the potential presence of a sedimentary-hosted copper mineral system in the southern region of the McKay Dome.
Reward Process patent
In addition to the withdrawal from the joint venture, Reward Minerals has provided an update on its technical activities related to the development of a new process called the 'Reward Process'.
This innovative process aims to recover potassium sulphate (SOP) directly from seawater and other high-sulphate brines. The company has filed a patent cooperation treaty (PCT) patent application to protect the intellectual property associated with the Reward Process.
Over the past few months, Reward has been conducting various activities to support the patent application, including expanding the scope of the Reward Process by incorporating additional data on potassium recoveries from different brine compositions.
The company has also confirmed the variability of potassium recoveries in relation to reaction temperatures and has made improvements in potassium extraction and high-purity SOP recovery.
A final laboratory test-work program is underway, with completion expected in July.
This program will provide crucial data to finalise the patent application, and Reward remains on track to comply with the PCT Patent Application deadline of August 11.
Engineering scoping study
The company has simultaneously been conducting an engineering scoping study (ESS) using the Reward Process for the production of high-purity SOP from seawater and other high-sulphate brines.
The ESS, which commenced in May 2023, is nearing completion. An independent global engineering firm has been collaborating with Reward to review and verify the viability of the Reward Process.
ESS work streams completed to date include preliminary mass and energy balance assessments, as well as the review of evaporation and filtration test-work conducted by the company. The entire flowsheet has been reviewed to identify any potential flaws in the process for SOP production.
Final activities for the ESS include further review of utilities and reagent consumption requirements, as well as capital and operating cost estimates for a 100,000 tonnes per annum SOP production facility based on seawater bitterns feed source. All findings and recommendations from the independent engineering firm will also be considered.
Moreover, Reward Minerals has initiated discussions with solar salt, fertilizer, chemical and seawater desalination companies worldwide regarding potential joint venture participation or acquisition.
These discussions aim to explore the application of Reward's technology for SOP production using various high-sulphate SOP-rich brines.