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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Salt Lake Potash Limited | LSE:SO4 | London | Ordinary Share | AU000000SO44 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.45 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMSO4
RNS Number : 7825G
Salt Lake Potash Limited
10 August 2016
Hot Features
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10 August 2016 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
Geophysics and Test Pumping Reinforce Lake Wells Potential
------------------------------------------------------------
Salt Lake Potash Limited (SO4 or the Company) is pleased to advise the results of a comprehensive geophysical survey at Lake Wells, as well as outstanding initial test pumping results of brine from the Lake Wells paleochannel. These results substantially enhance the potential for production of Sulphate of Potash (SOP) by brine extraction and solar evaporation at the Lake Wells Project.
-- Over 350km of ground based gravity and seismic surveys have been completed, providing the first detailed geophysical model of the Lake Wells paleovalley.
-- The model has mapped the deepest parts of the paleovalley (identified as the paleochannel) over approximately 100km within the Project area, the target for the paleochannel aquifer which is likely to provide the best sites for brine extraction bores.
-- An aircore drill program testing the paleochannel geophysical model along the Northern fringes of the Lake has completed five holes, all of which validated the interpretation.
-- Three of those holes were on the north-eastern fringe of the Lake, testing the main trunk of the modelled paleochannel and encountering substantial widths of paleochannel sands, including two with very coarse (more permeable) sands and gravels.
-- A comprehensive, sustained pump test of one of the coarse sand and gravel zones confirms production bores in this part of the aquifer should sustain brine extraction rates of up to 25 litres per second (L/s), reinforcing the potential for extraction of large volumes of hypersaline brine from the paleochannel aquifer.
CEO Matt Syme commented "We are again very pleased with our exploration results at Lake Wells, with a test pumping result which we believe is one of the highest quality and most comprehensive undertaken on an Australian salt lake. The geophysical surveys and interpretation have produced a comprehensive model of Lake Wells to guide our future exploration work. As the first test pumping demonstrates, the model will allow us to find the most effective basis to extract Lake Wells' large brine resource and has already provided valuable input into the Scoping Study currently underway."
Geophysical Surveys
An extensive ground based geophysical survey was completed aimed at assessing the Lake Wells bedrock topography and generation of paleochannel aquifer drill targets. Atlas Geophysics were engaged to undertake a gravity survey using industry leading high accuracy gravimeters and position systems to measure subsurface density. A total of 46 gravity lines comprising 2,147 stations spaced 50 - 200m apart were completed. In addition, a passive seismic (Tromino) system was used to correlate a secondary geophysical interpretation tool with the gravity and provide a more robust model. A total of 11 passive seismic lines spanning 30km was completed on priority lines identified by the gravity survey.
Gravity measurements were processed and merged by Western Geophysics with available regional data. The final merged residual gravity data have been used as the basis for interpretation.
Image processing of the gravity data shows there is a semi-continuous distinct residual gravity low present along the eastern to central areas of the entire tenement area. The anomaly which is approximately 2km wide, traces a typically sinuous path, including several cut out meandering branches from the northern to southern tenement boundaries. The location and depth of the paleochannel has been interpreted by modelling gravity profiles across the structure. Modelling has been assisted and where applicable constrained by a number of aircore holes that have penetrated the Tertiary sequence to bedrock.
The geophysical modelling indicates the paleochannel has a maximum depth of approximately 125m. At these points the geometry of the model is that of a valley which is approximately 800m wide. Completed drill holes have encountered a basal aquifer comprising sand, gravel and rounded cobble sized rocks. The basal unit is up to 30m thick and limited pump testing indicates the presence of a highly permeable aquifer.
The gravity survey method has been successfully applied to mapping the Lake Wells paleochannel for over 100km within the Company's tenements.
Aircore Drilling
A truck mounted aircore drill rig from Austral Drilling was mobilised to the northern end of Lake Wells for initial exploratory drilling to test the geophysical paleochannel model. In the current campaign, five holes have been completed on either side of the Lake where the channel was interpreted to be between 101m and 125m deep.
All five holes validated the geophysical model, encountering bedrock at the predicted depth. The three holes on the northern side of the lake encountered significant widths of paleochannel sand and gravels.
In holes LWA030 and LWA033 coarse sands and gravels were encountered from 95m to up to 130m, where very substantial airlift flows of between 7 and 9L/s were measured. Water assays confirm the aquifer contains hypersaline brine of similar chemistry to other paleochannel bores drilled on lake at Lake Wells.
In both holes, the aircore rig encountered rounded to sub-angular cobbles of up to 8cm in diameter and high sub-artesian conditions.
Test pumping
A subsequent mud rotary hole adjacent to hole LWA033 was successfully cased and screened from 95m to 125m. Siltstone bedrock was encountered from 125m to end of hole at 130m.
A test pumping system from Airwell Group was mobilised to Lake Wells and installed a pump at 59m. A calibration test was completed, including pumping for 10 minutes at 20L/s and 2 minutes at 40L/s to test the sustainable flow rates for the step rate test. A step rate test was then undertaken to measure bore performance at flow rates of between 6 and 16L/s, followed by a 10 hour constant rate test to determine aquifer properties at 15L/s.
Modelling of the step rate test indicates that a pump set at 90m in this bore will be able to produce a sustained yield of up to 25L/s, substantially more than previously assumed for production from the paleochannel aquifer.
The constant rate test, has measured aquifer transmissivity of 41m2 per day, with an equivalent bulk hydraulic conductivity of 1.4m per day.
Ongoing pump testing on this hole will also provide industry leading data on aquifer boundary conditions and storage.
Ongoing Work
Having successfully validated the geophysical model, the aircore rig will now proceed to test a number of other targets along the full length of the paleochannel, in order to further understand the characteristics of the paleochannel aquifer. Where appropriate, further test pumping bores, similar to that installed adjacent to hole LWA033, will likely be installed and test pumped, to advance and refine the Lake Wells hydrogeological model.
Competent Persons Statement
The information in this report that relates to Exploration Results for Lake Wells is based on information compiled by Mr Adam Lloyd, who is a member of the Australian Institute of Geoscientists and International Association of Hydrogeology. Mr Lloyd is an employee of Salt Lake Potash Limited. Mr Lloyd has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Lloyd consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
APPIX 1 - LAKE WELLS DRILLHOLE DATA
RL
--------- -------------- ------- -------- ---- --------
Drilled Depth (mAHD)
Hole_ID (m) East North Dip Azimuth
--------- -------------- ------- -------- ------- ---- --------
LWA030 107 518525 7058696 449 -90 0
--------- -------------- ------- -------- ------- ---- --------
LWA031 100 526074 7040567 444 -90 0
--------- -------------- ------- -------- ------- ---- --------
LWA032 101 523934 7040676 443 -90 0
--------- -------------- ------- -------- ------- ---- --------
LWA033 110 518038 7055963 444 -90 0
--------- -------------- ------- -------- ------- ---- --------
LWA034 126 527040 7045891 442 -90 0
--------- -------------- ------- -------- ------- ---- --------
APPIX 2 - JORC TABLE ONE
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (eg Geological samples were obtained at
cut channels, random chips, or 1m intervals from the top of the open
specific specialised industry hole by sieve during
standard measurement tools mud rotary drilling and from buckets
appropriate to the minerals under below the cyclone during aircore
investigation, such as down hole drilling. The mud rotary
gamma sondes, or handheld XRF samples were logged and used to
instruments, etc). These examples confirm the geological strata
should not be taken as limiting encountered are equivalent to
the broad meaning of sampling. the adjacent aircore hole, typically
Include reference to measures taken less than 10m away.
to ensure sample representivity and Brine samples were obtained during
the appropriate calibration aircore drilling from the cyclone
of any measurement tools or systems when airlifting at the
used. end of each drill rod. Airlifts were
Aspects of the determination of completed on minimum air and sampling
mineralisation that are Material to took place following
the Public Report. stabilisation of flow approximately
In cases where 'industry standard' between 2 and 10mins from start of
work has been done this would be airlift.
relatively simple (eg The pump used during test pumping was
'reverse circulation drilling was an 8" Grundfos SP160-8 coupled to a
used to obtain 1 m samples from which Franklin 150KW motor.
3 kg was pulverised The flow from the bore was controlled
to produce a 30 g charge for fire using a variable speed drive and
assay'). In other cases more monitored using dual
explanation may be required, calibrated magflow meters.
such as where there is coarse gold The test pumping methodology involved
that has inherent sampling problems. calibration testing to ensure
Unusual commodities equipment is working appropriately
or mineralisation types (eg submarine and to estimate sustainable step rate
nodules) may warrant disclosure of flow rates, individual steps were a
detailed information. minimum of 60 minutes'
duration. The constant rate was run
for 10 hrs before drawing the pumping
water level down
to below the level of the pump at
59m. Recovery of water levels was
monitored. All data was
used in the interpretation.
Drawdown in the pumping bore
(LWTB009) and monitoring bore
(LWA033) was measured using vented
data loggers coupled to a laptop to
provide a live readout.
The discharge line outlet at the test
bore was located 150m away from the
bore, no re-circulation
effects were detected due to the
confined nature of the aquifer.
====================================== ====================================== ======================================
Drilling techniques Drill type (eg core, reverse Non-face discharge vacuum aircore
circulation, open-hole hammer, rotary drilling at 138mm diameter and
air blast, auger, Bangka, conventional mud rotary drilling
sonic, etc) and details (eg core at diameters between 162mm and 374mm
diameter, triple or standard tube, and was completed by Austral Drilling
depth of diamond tails, Services of Malaga,
face-sampling bit or other type, Perth. All drilling was completed
whether core is oriented and if so, using a multipurpose truck mounted
by what method, etc). Schramm 685.
All holes vertical.
Drill sample recovery Method of recording and assessing Geological sample recovery when
core and chip sample recoveries and aircore drilling was through the
results assessed. cyclone and of excellent
Measures taken to maximise sample quality. Drill rates were slowed to
recovery and ensure representative ensure a clean sample was produced
nature of the samples. and that contamination
Whether a relationship exists between was minimised. Cuttings were
sample recovery and grade and whether recovered by placing a clean bucket
sample bias may under the cyclone for the
have occurred due to preferential entire metre length and then emptying
loss/gain of fine/coarse material. out on a pre-marked grid on the edge
of the drill pad.
Geological sample recovery when
drilling conventional mud rotary was
low to moderate due to
the crushing and mixing nature of the
drilling method.
Brine sample recovery during test
pumping was relevant to the bulk
chemistry of the slotted
section of the production bore.
Airlifts were completed on minimum
air and sampling took place following
stabilisation of
flow approximately between 2 and
10mins from start of airlift.
====================================== ====================================== ======================================
Logging Whether core and chip samples have All drill holes were geologically
been geologically and geotechnically logged qualitatively by a qualified
logged to a level geologist, noting in
of detail to support appropriate particular moisture content of
Mineral Resource estimation, mining sediments, lithology, colour,
studies and metallurgical induration, grainsize and shape,
studies. matrix and structural observations.
Whether logging is qualitative or Where mud rotary drilling was
quantitative in nature. Core (or completed logging was compared
costean, channel, etc) to the adjacent aircore hole to
photography. determine if geological variation
The total length and percentage of occurs.
the relevant intersections logged. Flow rate data from airlifting was
logged to note water inflow zones.
Mud logs were completed during mud
rotary drilling to record how the
muds changed composition
during drilling through different
formations to maintain a stable hole
and optimise penetration
rate.
Sub-sampling techniques and sample If core, whether cut or sawn and Brine was sampled directly from the
preparation whether quarter, half or all core end of the discharge hose during test
taken. pumping or flowing
If non-core, whether riffled, tube water from the top of the bore casing
sampled, rotary split, etc and during development, ensuring no
whether sampled wet or dry. contamination with overland
For all sample types, the nature, flow occurred.
quality and appropriateness of the Brine samples were obtained during
sample preparation technique. aircore drilling from the cyclone
Quality control procedures adopted when airlifting at the
for all sub-sampling stages to end of each drill rod.
maximise representivity Sample bottles are rinsed with brine
of samples. which is discarded prior to sampling.
Measures taken to ensure that the All brine samples taken in the field
sampling is representative of the in are split into two sub-samples:
situ material collected, primary and duplicate.
including for instance results for Reference samples were analysed at an
field duplicate/second-half sampling. approximate 1:8 ratio and sent to a
Whether sample sizes are appropriate separate laboratory
to the grain size of the material for QA/QC.
being sampled. Brine samples once collected are
stored in eskys on site for no more
than 7 days prior to
freighting to the laboratory for
testing.
Representative chip trays and bulk
lithological samples are kept for
records.
====================================== ====================================== ======================================
Quality of assay data and laboratory The nature, quality and Primary samples were sent to
tests appropriateness of the assaying and Bureau Veritas Minerals
laboratory procedures used and Laboratory, Perth.
whether the technique is considered Brine samples were analysed
partial or total. using ICP-AES for K, Na, Mg, Ca,
For geophysical tools, spectrometers, with chloride determined by Mohr
handheld XRF instruments, etc, the titration and alkalinity
parameters used in determined volumetrically.
determining the analysis including Sulphate was calculated from the
instrument make and model, reading ICP-AES
times, calibrations sulphur analysis.
factors applied and their derivation, Reference standard solutions
etc. were sent to Bureau Veritas
Nature of quality control procedures Minerals Laboratory to check
adopted (eg standards, blanks, accuracy.
duplicates, external laboratory Reference standards analysis
checks) and whether acceptable levels reported an average error of
of accuracy (ie lack of bias) and less than 10%.
precision have been -- .
established.
Verification of sampling and assaying The verification of significant Data entry is done in the field to
intersections by either independent minimise transposition errors.
or alternative company Brine assay results are received from
personnel. the laboratory in digital format,
The use of twinned holes. these data sets are
Documentation of primary data, data subject to the quality control
entry procedures, data verification, described above. All laboratory
data storage (physical results are entered in to the
and electronic) protocols. company's database and validation
Discuss any adjustment to assay data. completed.
Independent verification of
significant intercepts was not
considered warranted given the
relatively consistent nature of the
brine.
====================================== ====================================== ======================================
Location of data points Accuracy and quality of surveys used Hole co-ordinates were captured using
to locate drill holes (collar and hand held GPS.
down-hole surveys), Coordinates were provided in GDA
trenches, mine workings and other 94_MGA Zone 51.
locations used in Mineral Resource Topographic control is obtained using
estimation. Geoscience Australia's 3-second
Specification of the grid system digital elevation product.
used. Topographic control is not considered
Quality and adequacy of topographic critical as the salt lakes are
control. generally flat lying
and the water table is taken to be
the top surface of the brine
resource.
GNSS and gravity control stations
were used to tie the survey to GDA94
and Australian Height
Datum.
Primary gravity control stations were
established at the same location as
the primary GNSS
Once tied to the Australian
Fundamental Gravity Network (AFGN),
the gravity control stations
allowed all field gravity
observations to be tied to the AAGD07
gravity datum employed by
Geoscience Australia
Data spacing and distribution Data spacing for reporting of Drill hole spacing is on average 4
Exploration Results. km. The drilling is not on an exact
Whether the data spacing and grid due to the irregular
distribution is sufficient to nature of the salt lake shape,
establish the degree of geological aquifer occurrence and difficulty
and grade continuity appropriate for obtaining access to some
the Mineral Resource and Ore Reserve part of the salt lake.
estimation procedure(s)
and classifications applied.
Whether sample compositing has been
applied.
====================================== ====================================== ======================================
Orientation of data in relation to Whether the orientation of sampling All drill holes were vertical.
geological structure achieves unbiased sampling of Geological structure is considered to
possible structures and be flat lying.
the extent to which this is known,
considering the deposit type.
If the relationship between the
drilling orientation and the
orientation of key mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and reported
if material.
Sample security The measures taken to ensure sample All brine samples were marked and
security. kept onsite before transport to the
laboratory.
All remaining sample and duplicates
are stored in the Perth office in
climate-controlled conditions.
Chain of Custody system is
maintained.
====================================== ====================================== ======================================
Audits or reviews The results of any audits or reviews Data review is summarised in Quality
of sampling techniques and data. of assay data, laboratory tests and
Verification of sampling
and assaying. No audits were
undertaken.
====================================== ====================================== ======================================
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure Type, reference name/number, location Tenements drilled were granted
status and ownership including agreements or exploration licences 38/2710,
material issues 38/2821, 38/2824, 38/3055, 38/3056
with third parties such as joint and 38/3057 in Western Australia.
ventures, partnerships, overriding Exploration Licenses are held by
royalties, native title Piper Preston Pty Ltd (fully owned
interests, historical sites, subsidiary of ASLP).
wilderness or national park and
environmental settings.
The security of the tenure held at
the time of reporting along with any
known impediments
to obtaining a licence to operate in
the area.
====================================== ====================================== ======================================
Exploration done by other parties Acknowledgment and appraisal of No other known exploration has
exploration by other parties. occurred on the Exploration Licenses.
Geology Deposit type, geological setting and Salt Lake Brine Deposit
style of mineralisation.
====================================== ====================================== ======================================
Drill hole Information A summary of all information Test production bore drilling
material to the understanding of comprised one mud rotary drilled
the exploration results including hole. Aircore Drilling comprised
a tabulation of the following five aircore holes.
information for all Material Details are presented in the
drill holes: report.
o easting and northing of the
drill hole collar
o elevation or RL (Reduced Level
- elevation above sea level in
metres) of the drill hole
collar
o dip and azimuth of the hole
o down hole length and
interception depth
o hole length.
If the exclusion of this
information is justified on the
basis that the information is not
Material and this exclusion does
not detract from the
understanding of the report, the
Competent
Person should clearly explain why
this is the case.
Data aggregation methods In reporting Exploration Results, Within the salt lake extent no low
weighting averaging techniques, grade cut-off or high grade capping
maximum and/or minimum grade has been implemented.
truncations (eg cutting of high
grades) and cut-off grades are
usually Material and should
be stated.
Where aggregate intercepts
incorporate short lengths of high
grade results and longer lengths
of low grade results, the procedure
used for such aggregation should be
stated and some typical
examples of such aggregations should
be shown in detail.
The assumptions used for any
reporting of metal equivalent values
should be clearly stated.
====================================== ====================================== ======================================
Relationship between mineralisation These relationships are particularly The brine resource is inferred to be
widths and intercept lengths important in the reporting of consistent and continuous through the
Exploration Results. full thickness
If the geometry of the mineralisation of the sediments. The unit is flat
with respect to the drill hole angle lying and drill holes are vertical
is known, its nature hence the intersected
should be reported. downhole depth is equivalent to the
If it is not known and only the down inferred thickness of mineralisation.
hole lengths are reported, there
should be a clear statement
to this effect (eg 'down hole length,
true width not known').
Diagrams Appropriate maps and sections (with Addressed in the announcement.
scales) and tabulations of intercepts
should be included
for any significant discovery being
reported These should include, but
not be limited to a
plan view of drill hole collar
locations and appropriate sectional
views.
====================================== ====================================== ======================================
Balanced reporting Where comprehensive reporting of all All results have been included.
Exploration Results is not
practicable, representative
reporting of both low and high grades
and/or widths should be practiced to
avoid misleading
reporting of Exploration Results.
Other substantive exploration data Other exploration data, if meaningful Test pumping interpretation data was
and material, should be reported corrected for brine specific gravity
including (but not and analysed using
limited to): geological observations; the industry standard Cooper - Jacob
geophysical survey results; method (Cooper, H.H. & Jacob, C.E.
geochemical survey results; (1946) A generalised
bulk samples - size and method of graphical method for evaluation
treatment; metallurgical test formation constants and summarizing
results; bulk density, groundwater, well field history. Transactions
geotechnical and rock of the American Geophysical Union 27,
characteristics; potential 526-534).
deleterious or contaminating Gravity survey was completed by Atlas
substances. Geophysics using a Hi Target V100
GNSS receiver for
accurate positioning and CG-5 Digital
Automated Gravity Meter.
Gravity data was gained using the
contractors rapid acquisition, high
accuracy UTV borne techniques.
The company's own in-house reduction
and QA software was used to reduce
the data on a daily
basis to ensure quality and
integrity. All gravity meters were
calibrated pre and post survey
and meter drift rates were monitored
daily. 3 to 5 % of the stations are
repeated for quality
control.
Western Geophysics were engaged to
manage and process the gravity
survey. Processing the survey
involved reducing the gravity data
and integrating to the regional data
to a residual anomaly
which shows there is a
semi-continuous distinct residual
gravity low of negative 2 to 2.5
milligals present along eastern to
central areas to the entire tenement
area.
====================================== ====================================== ======================================
Further work The nature and scale of planned Exploration aircore drilling to
further work (eg tests for lateral further define the paleochannel
extensions or depth extensions aquifer depth and geometry.
or large-scale step-out drilling). Installation of monitoring bores.
Diagrams clearly highlighting the Further test production bores to be
areas of possible extensions, constructed and test pumping
including the main geological completed to determine, aquifer
interpretations and future drilling properties, expected production rates
areas, provided this information is and infrastructure design (trench and
not commercially sensitive. bore size and
spacing).
Numerical hydrogeological modelling
to be completed that incorporates the
results of the test
pumping. The model will be the basis
of the annual brine abstraction rate
and mine life.
====================================== ====================================== ======================================
For further information please visit www.saltlakepotash.com.au or contact:
Matthew Syme/Sam Cordin Salt Lake Potash Limited Tel: +61 8 9322 6322 Colin Aaronson/Richard Tonthat/Daniel Bush Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0)207 383 5100 Nick Tulloch/Beth McKiernan Cenkos Securities plc (Broker) Tel: +44 (0) 131 220 6939
This information is provided by RNS
The company news service from the London Stock Exchange
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