FYI Resources has completed the first level of a review of targeted potash project in Laos, which included a study of the logistics and energy options in-country with the company now focusing on further development options.

FYI scheduled a number of key meetings during the December quarter as the company focuses on plans to bring potash projects in Laos as well as Thailand into production.

The Laos target project areas are approximately 220km southeast of the country’s capital, Vientiane, and directly across the Mekong River from FYI’s target project areas in Thailand.

FYI’s attraction to the Lao project area is:

  • Well defined production location - proximity to current trial production;
  • Well defined potash geology;
  • Historic drilling data confirming the presence of high grade, shallow potash;
  • Excellent projected project economics;
  • Good logistics and project support; and
  • Excellent operating environment and mineral law.

The northeast Thai portfolio focuses on the Khorat Basin. The areas were selected on the basis of previous drilling campaign results and associated technical data.

FYI’s attraction to these project areas include:

  • Demonstrated high grade potash occurrences (Carnallite and Sylvite);
  • Shallow mineral horizons relative to current global production;
  • Lower projected project costs; and
  • Immediacy to large domestic and global import markets.

The potential of both target areas is excellent given the ideal geological setting and demonstrated past exploration success.

FYI will focus on establishing and developing shallow high grade, large tonnage potash operations. Because of the natural technical and operational, including capex and opex cost, advantages that the target areas exhibit and have the ability to support, it is expected that the region will become a major competitor in the potash industry.

The offtake potential for future production is positive for domestic and export markets. Thailand and Laos are close to the world’s largest potash consumer markets while both are also agrarian based and have considerable internal potash consumption, of which 100% of demand is imported.

FYI recently raised $600,000 in an oversubscribed placement supported by Peloton Capital with funds to be used to advance the potash plans and to support a parallel high-pressure alumina strategy.