BC Iron and Kalium Lakes have entered a joint venture agreement for the Carnegie potash project in Western Australia.
The exploration project, around 220km north east of Wiluna, comprises one granted exploration licence and two licence applications covering approximately 1700 km2.
It is highly prospective for a large sub-surface brine deposit, which could then be developed into a solar evaporation and processing operation producing sulphate of potash (SOP).
Under the agreement, BC Iron can earn up to a 50 per cent interest in the project, by mainly sole-funding exploration and development expenses until a feasibility study is completed.
Kalium will be the joint venture manager, using experience from its flagship Beyondie potash project, also in WA.
BC Iron’s managing director Alwyn Vorster said, “Through this agreement with Kalium, BC Iron has gained exposure to a highly prospective project in an agricultural commodity with attractive long term dynamics.”
Vorster added that becoming involved in an agricultural commodity was one of the company’s key objectives.
“This move into potash, added to the pending conclusion of a scoping study on BC Iron’s Mardie salt project, positions BC Iron well in agricultural and other commodities leveraged to a growing global population,” he said.
Kalium’s managing director Brett Hazelden said the agreement was an “excellent outcome” for their company, as it provides funding to advance the Carnegie project, while also letting the company focus on Beyondie.
“Carnegie’s large footprint and proximity to other exisiting SOP exploration projects provides for a unique opportunity that can leverage relevant knowledge and experience generated for Beyondie,” he said.
Under the agreement, BC Iron has also provided Kalium the right to acquire a 50 per cent interest in the Mardie project, around 100km west of Karratha.