ASX-listed Impact Minerals is making significant strides with the prefeasibility study (PFS) for the Lake Hope high-purity alumina (HPA) project, in Western Australia, and remains on track to finish the study by year-end.

Impact can take an 80% interest in Playa One, which owns Lake Hope, by completing a PFS.

The study follows on from a positive scoping study, which showed that for a benchmark production of 10 000 t/y of HPA, the project has an estimated post-tax net present value of about A$1.3-billion and would potentially be one of the lowest-cost producers of HPA globally by a significant margin.

“The Lake Hope PFS is like a large jigsaw puzzle where we know what the final picture looks like and are now starting to see many of the individual pieces falling into place at a great pace.

“We have been focused on the puzzle's edges with progress made at the proposed mine at Lake Hope itself, the process plant, which will be in Kwinana, and increasingly, product offtake and marketing.

“We are filling the puzzle with discussions with the Ngadju peoples, preparing a mining lease application and completing drilling to help define a maiden reserve,” comments Impact MD Mike Jones.

Testwork is progressing, and as part of that, Impact recently discovered a product that may have various industrial uses with further research being done.

Jones says recent developments with Alpha HPA, which has shown strong global demand for HPA and related products, clearly demonstrate that “if we build it, they will come”.

Alpha, which is considered a leader in the HPA industry, has received funding of $400-million of a total capital expenditure of $500-million, towards building this plant from the Australian government. The funding comprises low-interest loans and demonstrates the ongoing government support for critical minerals and downstream processing, in which Impact intends to participate.

The Lake Hope scoping study had an estimated capital cost of $250-million.