Impact Minerals (ASX:IPT) charts low cost path to HPA supply with Lake Hope PFS

Impact Minerals (ASX:IPT) has released a compelling Pre-Feasibility Study for its Lake Hope High Purity Alumina (HPA) project, confirming the project’s potential to be a globally significant, low cost producer.

In this Q&A, Managing Director Dr Mike Jones discusses the economic and strategic implications of the study, the unique characteristics of the Lake Hope orebody, and how the integration with HiPurA downstream technology could transform the company’s pathway to production.

What are the key takeaways from the Lake Hope Pre-Feasibility Study, and how do they compare to industry benchmarks?

The Pre-Feasibility Study delivers a compelling case for development, confirming that Lake Hope is one of the most economically robust HPA projects currently under evaluation globally.

We are looking at a post tax net present value of $1.165 billion and an internal rate of return of 47.5 percent, which is an exceptional outcome for a project of this scale.

More importantly, our projected operating cost is just US$5,860 per tonne of HPA, excluding any revenue from by products, placing us firmly in the lowest quartile of global producers.

“Our costs could be at least 30 percent lower than those reported by Alpha HPA, a recognised leader in the field. This cost advantage gives us a clear financial edge and significant strategic flexibility as the HPA market expands.”

If we can incorporate revenue from the sale of sulphate of potash, a valuable by product of our process, our cost base could fall below US$4,500 per tonne, enhancing competitiveness even further.

How does the Lake Hope orebody contribute to such low production costs and high margins?

Lake Hope stands apart because of its surface-level alunite bearing evaporite orebody, which eliminates the need for blasting, crushing, or on-site beneficiation.

This simplicity strips out a major portion of the cost compared to conventional hard rock or kaolin based projects.

The ore can be stockpiled during dry months and transported year-round to our planned processing facility in Kwinana.

“Because the feedstock is clean and consistent, and the flowsheet is both simple and modular, we are able to maintain very low capital and operating costs. These attributes underpin our strong project margins and provide a significant competitive advantage.”

Our low temperature leach process uses common reagents, recycles hydrochloric acid, and delivers a high value sulphate of potash by product, aligning the project with sustainability and efficiency goals that are now central to HPA sector competitiveness.

What is the potential impact of integrating Lake Hope with the HiPurA downstream processing technology?

The integration of Lake Hope with HiPurA is a highly strategic opportunity that could accelerate our entry into the HPA market and improve overall project economics.

While the PFS evaluated Lake Hope as a stand-alone operation, we have already acquired a 50 percent interest in Alluminous Pty Ltd, the owner of the HiPurA process.

The modular and scalable nature of this downstream technology supports low impact development and enables production that matches customer demand and qualification timelines.

“By linking Lake Hope’s high-quality feedstock with HiPurA’s flexible downstream system, we believe we can accelerate our market entry by several years and potentially improve the combined project economics.”

Integration studies are underway, and this could form the foundation for a fully vertically integrated HPA business from mine to finished product.

What are the next steps now that the PFS is complete?

Now that the PFS is complete, we are moving directly into the Definitive Feasibility Study phase, with pilot plant construction already progressing in partnership with CPC Engineering and Edith Cowan University.

This facility will produce bulk HPA samples for customer testing and allow trials of advanced membrane technology to improve acid recovery and reduce waste.

At the same time, we are progressing our permitting and environmental approvals, continuing engagement with the Ngadju traditional owners, and finalising infrastructure plans for the Kwinana processing site.

Parallel work on the HiPurA pilot program and early offtake discussions are also in progress.

What is the scale and life of the project, and how reliable are the resource and reserve estimates?

Lake Hope is a long life, high confidence project with a maiden Ore Reserve of 1.73 million tonnes at 26 percent alumina, equating to approximately 450,000 tonnes of contained alumina.

This sits within a JORC Mineral Resource of 2.79 million tonnes at 25.1 percent alumina, demonstrating a 66 percent resource to reserve conversion rate.

Notably, 96 percent of the production target is classified as Measured and Indicated resources, providing a solid foundation for financial modelling.

The mine life is estimated at 33 years with simple, low cost truck and shovel mining.

Environmental and heritage surveys have been completed, and there are no material barriers to development, underscoring the low risk and bankable nature of the project.

Path Forward

With the Pre-Feasibility Study complete and a clear path toward low-cost, long-life production of 4N HPA, Impact Minerals is now moving swiftly into execution mode.

Impact Minerals is advancing the Definitive Feasibility Study, accelerating pilot programs, and positioning itself to build early offtake relationships.

By leveraging the natural advantages of the Lake Hope orebody and integrating with the scalable HiPurA technology, Impact is well placed to emerge as a globally competitive, vertically integrated supplier of HPA.

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