Junior miner Millennial Potash Corp., West Vancouver, B.C., reported that it has completed a preliminary economic assessment (PEA) on its Banio Potash Project in Gabon in West Africa. The PEA was completed by Micon International in partnership with Agapito Associates Inc.
“We are extremely pleased with the results of the PEA on the Banio Potash Project and it has confirmed our belief that the project is very robust and has significant economic potential,” said Farhad Abasov, Millennial Chair. “The capex for the 800,000 mt/y optimal case is a very competitive $480 million and the opex at approximately $61/mt MOP reflects an expected overall low-cost structure, which would make Millennial’s Banio Potash Project competitive with the lowest-cost producers in the sector.”
At a production rate of 800,000 mt/y, the estimated life of the mine is 56 years. The project has a $1.07 billion after-tax net present value (10%) and 32.6% internal rate of return. The assumption is that most of the product would go to Brazil.
“Moving forward, the company plans to complete an mineral resource estimate (MRE) update in second-half 2024, followed by the completion of early engineering studies and the initiation of a feasibility study and environmental impact assessment,” Abazov said.
Banio is based on the MRE of 657 million mt grading 15.9% KCl and an inferred mineral resource of 1,159 million mt grading 16%. The indicated mineral resource equates to approximately 104.6 million mt of KCl, and the inferred mineral resource equates to approximately 185.3 million mt of KCl.
Solution mining has been deemed most appropriate for the project, whereby enriched brine would be pumped via pipeline to a processing plant facility at the town of Mayumba, 50 kilometers north of the project area. Processing would be via evaporation and crystallization followed by drying and compaction, producing K60 (as well as 99% pure NaCl (sodium chloride), and shipped to market from a deepwater port at Mayumba.