Lake MacKay is a modern, playa lake with a surface area of over 2,250km2. The Lake is situated in the Gibson Desert, straddling the Western Australia–Northern Territory border, 50 kilometres north of the Tropic of Capricorn. Reward Minerals Ltd has delineated a JORC compliant, Inferred Resource at Lake Mackay as follows:
4,780,400,000 BCM* at 4.3kg of K2SO4 (SOP) per BCM for a total of 20.56 Million Tonnes of K2SO4
The resource estimate was calculated on the basis of lakebed sediment volume (BCM) from surface to a depth of two metres and the water soluble potassium sulphate content of these sediments located within the Company’s tenement holdings at Lake Mackay.
The next stage of development at Lake MacKay will involve infill drilling, construction of pilot ponds and pump testing as well as flow sheet development for the preparation of a project feasibility study.
Prior to committing to this phase the Company has engaged in discussions with Tjamu Tjamu people and other Traditional Owner groups aimed at reaching agreement on terms which would be acceptable for development to proceed at Lake Mackay in the event feasibility analysis proved favourable.
To assist in explanation of development plans, Reward Minerals Ltd arranged a visit by a party of ten people nominated by the Traditional Owners to a solar salt production operation in Western Australia during June 2010. The visit was designed to provide the Group with an overview of an operation very similar to a Potash recovery project as proposed by Reward Minerals Ltd at Lake Mackay. The visit was coordinated by Reward Minerals Ltd and Central Desert Native Title Services Ltd with two representatives from CDNTS accompanying the Traditional Owners group on the site visit.
During September 2010, Company representatives attended an on-country meeting at Kiwirrkurra to discuss the Lake Mackay project with the Tjamu Tjamu people and other aboriginal stakeholders from Balgo, Kintor and Papunya. The meeting was coordinated by Central Desert Native Title Services. The Tjamu Tjamu people has appointed an eight person Negotiation Committee to receive and assess proposals by Reward Minerals Ltd in respect of a Mining Agreement for a Potash recovery operation at Lake Mackay. A Negotiation Protocol was executed by Tjamu Tjamu people and company representatives at the September meeting.
On 8th November 2010, Company representatives attended an on-country meeting at Kiwirrkurra to discuss the Lake Mackay project with the Tjamu Tjamu people and other aboriginal stakeholders from Balgo, Kintor and Papunya and with the authorised Negotiating Committee for further discussions. The meeting was coordinated by Central Desert Native Title Services. In respect of a Mining Agreement for a Potash recovery operation at Lake Mackay, an outline of essential terms of such an agreement have been proposed by Reward Minerals Ltd and presented to the Committee.
While it is the understanding of Reward Minerals Ltd that the majority of the Native Title Holders are in favour of development of the Lake Mackay project, no satisfactory commercial agreement has been forthcoming to date. Negotiations are continuing.