Kalium Lakes Limited provided a progress update on the commissioning of the SOP purification plant at its Beyondie SOP Mine (Beyondie). Design grade KTMS was fed to the SOP purification plant from early to late October during which 10,520 tonnes at an average 8.6% K material was processed. Month-to-date plant performance (to 29 October 2022) is: KTMS feed throughput of 19,566 tonnes; and SOP production of 502 tonnes.

Key positives during the design grade feed period in October 2022 include: stable plant operation was achieved, supporting sample data collection and refinement of higher KTMS feed grade operating parameters; significant reductions in recirculating loads within the schoenite circuit; and SOP produced continues to meet or exceed target K grade specifications. The table below details a comparison of the KTMS feed rate and schoenite production during the design grade feed period in October 2022 compared to the previous best operating period in July 2022. Throughout the design grade feed period, Kalium Lakes' focus was on improving stability of the overall plant operation and the operation of the flotation circuit and, during this period, below-par flotation and solid /liquid separation were identified as limiting factors for the plant's operation, contrasting with laboratory test work to date which has generated significantly better results.

As a result of the limited flotation performance, the downstream operation of the SOP circuit was constrained and further refinement of the SOP circuit at higher schoenite throughputs is required to ensure the increased schoenite is converted to final SOP product at higher efficiencies than experienced at lower feed grades. Having regard to the flotation and solid /liquid separation issues, the Company is progressing a plant performance improvement plan. Kalium Lakes will provide an update to shareholders (via further ASX announcements) on the potential impact on its previously advised timetable for production ramp up once the plant performance improvement plan has been finalised and implemented.

Kalium Lakes continues to be supported, both on site and remotely, by EBTEC through its leading SOP production technical expertise. The systematic commissioning of SOP purification plant operations has been jointly planned by the Kalium Lakes and EBTEC teams, in conjunction with international experts with both SOP processing operations experience and flotation experience. All parties are focussed on developing a comprehensive plant performance improvement plan targeting systematic and progressive resolution of key issues and improvement of overall plant operation.

The performance issues within the flotation circuit during the processing of design grade material are being investigated, with slurry conditioning, froth loading and froth mobility being targeted in a systematic manner. A froth mobility trial encompassing the installation of a radial launder in flotation cell 1 (as shown in the photos below) is underway and preliminary results are positive. Further initiatives currently include: pursuing alternate means to increase the reagent dosage to identify whether above-design reagent addition similarly influences recovery as has been evidenced in laboratory testing; testing of flotation agent batches to check for possible aging effects and considering alternative reagents; and targeting increases in slurry conditioning prior to flotation through increasing the energy in the conditioning tanks.