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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 |
From Apr 2019 to Apr 2024
TIDMSO4
RNS Number : 8572N
Salt Lake Potash Limited
31 October 2016
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31 October 2016 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
September 2016 Quarterly Report
---------------------------------
The Board of Salt Lake Potash Limited (the Company or Salt Lake) is pleased to present its quarterly report for the period ending 30 September 2016.
Highlights:
Ø Completion of a positive Scoping Study: which confirmed the potential of the Lake Wells Project to produce low cost SOP by solar evaporation of lake brines for domestic and international fertiliser markets. The Scoping Study (accuracy +/-30%) prepared by global engineering firm, Amec Foster Wheeler, and other international experts, demonstrates excellent project fundamentals based on well-established solar evaporation and salt processing techniques. Based on the positive results of the Scoping Study, the Company will now proceed to a Pre-Feasibility Study (PFS).
Lake Wells has the potential to be one of only five large scale salt lake SOP producers around the world and the Project's estimated cash production costs of A$185 per tonne (Stage 2) would be amongst the lowest in the world. The Scoping Study is based on a two stage development plan for Lake Wells:
- Stage 1 is based on shallow trenching and bore production with 100% of brine feed drawn from the near surface Measured Resource.
- Stage 2 also includes pumping additional brine from the deeper Inferred Resource, to increase production to 400,000 tpa of SOP.
All-in capital costs total A$268 million for the 400,000 tpa production scenario, amongst the lowest capital intensity for any proposed potash project worldwide.
Ø Aircore drilling at Lake Wells: the Company continued the aircore program targeting the Lake Wells paleochannel, successfully defining the Basal Paleochannel Sediments through the entire length of the Lake, which will comprise the main productive aquifer in the deeper part of Lake Wells brine resource.
Ø Process development testwork: Three separate brine evaporation trials under both simulated and actual site conditions were under way. Institutional process development company, Hazen Research Inc. (Hazen), in Colorado, USA, and Bureau Veritas (BV) in Perth conducted laboratory trials under simulated conditions and an extensive Site Evaporation Trial (SET) was established at Lake Wells to process large volumes of brine under site conditions.
SCOPING STUDY
A Scoping Study (accuracy +/-30%) was completed by global engineering firm, Amec Foster Wheeler, and other international experts, demonstrating excellent project fundamentals based on well-established solar evaporation and salt processing techniques. Based on the positive results of the Scoping Study, the Company has commenced a Pre-Feasibility Study (PFS). (See Announcement dated 30 August 2016 for full details of the Scoping Study).
Lake Wells has the potential to be one of only five large scale salt lake SOP producers around the world and the Project's estimated cash production costs of A$185 per tonne (Stage 2) would be amongst the lowest in the world.
The Project will produce SOP from hypersaline brine extracted from Lake Wells via trenches and a combination of shallow and deep production bores. The extracted brine will be transported to a series of solar evaporation ponds built on the Lake where selective evapo-concentration will precipitate potassium double salts in the final evaporation stage. These potassium-rich salts will be mechanically harvested and processed into SOP in a crystallisation plant. The final product will then be transported for sale to the domestic and international markets.
The Scoping Study is based on a two stage development plan for Lake Wells:
- Stage 1 is based on shallow trenching and bore production with 100% of brine feed drawn from the near surface Measured Resource.
- Stage 2 also includes pumping additional brine from the deeper Inferred Resource, to increase production to 400,000 tpa of SOP.
Key Scoping Study results for Stage 1 and Stage 2:
Stage 1 Stage 2
------------------------------------------------------------------- ------------- -------------
Annual Production (tpa) - steady state 200,000 400,000
------------------------------------------------------------------- ------------- -------------
Capital Cost * A$191m A$39m
------------------------------------------------------------------- ------------- -------------
Operating Costs ** A$241/t A$185/t
------------------------------------------------------------------- ------------- -------------
* Capital Costs based on an accuracy of -10%/+30% before contingencies and growth allowance
but including EPCM.
** Operating Costs based on an accuracy of +/-30% including transportation & handling (FOB
Esperance) but before royalties and depreciation.
The Scoping Study utilises the Project's Mineral Resource Estimate of 80-85 Mt of SOP in 9,691 GL of brine at an average of 8.7 kg/m(3) of K(2) SO(4) . The Mineral Resource Estimate includes Measured and Indicated Resources of 26 Mt of SOP in the shallowest 20m of the Lake.
The Study has established the indicative costs of a two stage production operation, initially producing 200,000 tonnes per annum (tpa) and then 400,000 tpa of dried organic SOP. Stage 1 produces 200,000 tpa but includes most of the capital works required for a 400,000 tpa operation. Stage 2 will commence after initial capex is repaid by cashflow generated from the shallow Measured and Indicated Resource.
Key Assumptions and Inputs ----------------------------------------------------- ------------------ Maximum Study Accuracy Variation +/- 30% +/- 30% ----------------------------------------------------- -------- -------- Stage Stage 1 Stage 2 ----------------------------------------------------- -------- -------- Life of Mine (LOM) 20 years ----------------------------------------------------- ------------------ Annual Production (steady state) tonnes 200,000 400,000 ----------------------------------------------------- -------- -------- Portion of Production Target - Measured & Indicated 100% 70% ----------------------------------------------------- -------- -------- Portion of Production Target - Inferred 0% 30% ----------------------------------------------------- -------- -------- Mining Method (Extraction) ----------------------------------------------------- -------- -------- Trenches (km) 107 157 ----------------------------------------------------- -------- -------- Shallow Bores (number) 4 4 ----------------------------------------------------- -------- -------- Deep Bores (number) - 34 ----------------------------------------------------- -------- -------- Mining Method (Extraction (volume)) ----------------------------------------------------- -------- -------- Trenches (m(3) /h) 3,074 4,521 ----------------------------------------------------- -------- -------- Shallow Bores (m(3) /h) 576 576 ----------------------------------------------------- -------- -------- Deep Bores (m(3) /h) - 2,203 ----------------------------------------------------- -------- -------- Total Volume 3,650 7,300 ----------------------------------------------------- -------- -------- Evaporation Ponds ----------------------------------------------------- -------- -------- Area (ha) 2,990 3,170 ----------------------------------------------------- -------- -------- Recovery of Potassium from feed brine 70% 70% ----------------------------------------------------- -------- -------- Recovery of Sulphate from feed brine 18% 18% ----------------------------------------------------- -------- -------- Plant ----------------------------------------------------- -------- -------- Operating time (h/a) 7,600 7,600 ----------------------------------------------------- -------- -------- Operating Costs * (+/-30%) ----------------------------------------------------- -------- -------- Minegate (A$/t) $165.74 $110.00 ----------------------------------------------------- -------- -------- Transport (A$/t) $75.10 $75.10 ----------------------------------------------------- -------- -------- Total (A$/t) $240.84 $185.10 ----------------------------------------------------- -------- -------- Capital Costs (-10%/+30%) ----------------------------------------------------- -------- -------- Direct A$160.7 A$32.0 ----------------------------------------------------- -------- -------- Indirect A$30.5 A$6.8 ----------------------------------------------------- -------- -------- Growth Allowance A$32.5 A$5.1 ----------------------------------------------------- -------- -------- Total Capital A$223.7 A$43.9 ----------------------------------------------------- -------- --------
* Before Royalties and Depreciation
The Scoping Study results highlight the benefits of Lake Wells' location in the Northern Goldfields, with excellent access to gas and transportation infrastructure. Total Capex of A$268 million for 400,000 tpa of SOP is amongst the lowest capital intensity of any proposed potash project worldwide.
Opportunities have been identified to further optimise capital and operating costs through equipment lease financing, further operational refinements and partnerships. The Company will also continue to investigate potential additional revenue streams for the project.
EXPLORATION
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. 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.
The location and depth of the paleochannel has been interpreted by modelling gravity profiles across the structure.
Aircore Drilling Program
During the quarter, the aircore drilling program continued to test potential palaeochannel aquifer targets identified by geophysical surveys. The results provide further understanding of the characteristics of the paleochannel aquifer and generate locations for further test pumping bores to advance and refine the Lake Wells hydrogeological model. The program comprised of 22 drillholes with a total of 2,274 metres drilled, directed at areas where the modelled paleochannel intersected the edge of the Lake, allowing aircore drilling with a truck-mounted rig.
The stratigraphic sequence encountered at each hole was consistent with palaeovalley fill. The different stratigraphic descriptions at the various depth levels are provided below:
Quaternary Alluvium (typical Depth 0-20)
Unconsolidated, gypsiferous sand with minor silt in the upper 0.5m. This unit is dominated by fine to medium, sub-rounded, aeolian quartz, lithic and gypsum sand with a strong overprint of ferric oxides. Minor lithic fragments are found throughout and rarely the unit is very fine sand and silt dominated.
The Quaternary Alluvium comprised mainly fine grained silts and clay with some evaporite minerals in the shallower intervals. This unit yielded up to 3 L/s during aircore drilling, averaging 0.7L/s.
Plastic Clays (typical Depth 20-45)
Grey, massive, clay, the clay is very firm to indurated and is commonly described as plastic in its saturated state. It is also extremely homogenous. It is predominantly massive although there are occasional fine laminae. Occasionally the grey clay has red mottling.
Minor silt/fine sand unit (typical Depth 45-60)
Silt and very fine sand. This fine grained unit yielded water to aircore drilling at rates generally below 1 L/s. It is a low permeability aquifer and likely to be low yielding. It does produce brine samples that are useful for confirming the brine chemistry profile with depth.
Stiff Clays (typical Depth 60-100)
Black to Grey to Purple, lacustrine, massive clays. These sediments are similar to the overlying plastic clays but differ in that they commonly contain organic material. The clay is massive but with common fine clay laminae. The clay is homogenous throughout its depth and breadth, and is compact.
Basal Paleochannel Sediments
The Basal Paleochannel Sediment (BPS) is the main productive aquifer in the study area. It is a broadly fining upwards sequence which infilled the lowest part of the palaeovalley (Thalweg), and is differentiated by upper and lower units:
Upper unit (typical Depth 100-115)
The upper unit comprises silt and very fine sand with clay interbeds. The top of the unit is fairly consistent at 350m AHD, which equates to 90 to 100m below Lake Playa Surface. Thickness ranges from 4 to 30m.
Lower unit (typical Depth 115-125)
The lower unit comprises generally medium to coarse grained sands with silt, clay and minor lignite interbeds. Sands are typically angular to sub-angular quartz. The thickness of the unit ranges from 4 up to 21m. Aircore yields range up to 9 L/s averaging 3 L/s.
Basement (typical Depth >125m)
Basement comprised well indurated, fine-grained, meta-siltstone and meta-sandstone. A single drillhole, LWA048 at the southern extent of the tenement intersected granitic basement.
A long section illustrating the paleochannel extent is presented as Figure 3. The inferred paleochannel extends the full length of Lake Wells, although drillhole LWA040 intersected shallow basement. The detailed structure in this area has not yet been defined.
The thickness of the Basal Paleochannel Sediments unit varies from approximately 10 to 25m. The Lower Unit comprises fine to very-coarse grained sands interbedded with silt, clay and minor lignite. The sequence is broadly fining upwards and the Upper Unit comprises predominately very fine sands and silts.
A test production bore was constructed and a pumping test was undertaken at site LWA033 as reported in ASX release dated 10 August 2016. Further test production bores and pumping tests will be completed in the current Quarter in order to measure the aquifer properties and determine production bore yields.
Brine Concentration
The average potassium concentration of brine samples from the Basal Paleochannel Sediment unit at each drillhole is summarised in Figure 4. Some drillholes terminated in basement and did not intersect the paleochannel.
Drill holes where the truck-mounted aircore rig was able to access targets on the lake edge exhibited Potassium (K) concentrations ranging from approximately 3,000 - 4,500mg/L, while drillholes that tested targets outside the immediate vicinity of the lake edge (LWA030, LWA044 and LWA048) returned Potassium (K) concentrations in the range of 2,000 - 3,000mg/L. The lower potassium concentration observed at these drillholes indicates that, as anticipated, brine concentration decreases with distance from the salt lake edge.
Shallow Auger and Trench Program
The Company has designed a program of shallow augering and test trenching (6m maximum depth) to gather further geological and hydrological data in relation to the near surface aquifer hosted by the Quaternary Alluvium stratigraphic sequence within the top 20 metres of the Lake. This aquifer is potentially a productive source of brine which would be extracted via trenching. The auger and test trench programs both commenced in October and will provide valuable data for the pre-feasibility study.
Process Development Testwork
The Company has undertaken a range of process development testwork on bulk samples of Lake Wells brine. Two bench scale trials are being conducted, the first in the USA by Hazen Research and the second in Western Australia by Bureau Veritas (BV). A large scale site evaporation trial has also commenced at the Lake Wells Project.
Bench Scale Trial - Hazen Research
Hazen Research, Inc. is a world class industrial research and development firm located in Golden, Colorado that has developed hundreds of hydrometallurgical, pyrometallurgical, and mineral beneficiation processes for most commercial metals and industrial minerals, and many inorganic and organic chemicals, including potash and other crop nutrients.
Salt Lake engaged Hazen to complete an evaporation, flotation and crystallisation trial on a representative sample of Lake Wells brine, under simulated site conditions.
The Hazen trial is intended to provide evaporation and crystallisation data to enhance the Lake Wells process model and also to improve the model for ongoing testwork to be conducted at Hazen, Bureau Veritas and at Lake Wells. The Hazen trial is intended to initially produce potassium containing salts and then to process those salts via flotation, conversion and crystallisation into Sulphate of Potash.
The Hazen evaporation test was monitored using a USBM theoretical model and comprised an initial charge of 240kg of Lake Wells Brine.
At the end of the quarter, the actual evaporation pattern was closely following the modelled theoretical pattern.
Bench Scale Trial - Bureau Veritas
The Company engaged international laboratory and testing company, Bureau Veritas (BV) in Perth, to conduct a series of tests based on evaporating brine at simulated average Lake Wells site conditions. The aim of the BV trials is to monitor the chemical composition of the brine and salts produced through the evaporation process to establish:
-- Concentration thresholds in the brine chemistry which can be used to maximise the recovery of sulphate and potassium harvest salts and minimise the quantity of dilutive salts into a process plant;
-- The quantity and composition of harvest salts which will be the plant feed in commercial production; and
-- The potential for any internal evaporation pond recycle streams that may improve harvest salt recovery.
The first trial in the series consisted of evaporation of 90kg of brine on a load cell to monitor evaporative loss. The temperature of the brine was controlled to a constant 23(o) C using infra-red lamps and air flow across the brine surface was provided by a fan.
Site Evaporation Trial
A large scale, continuous Site Evaporation Trial (SET) was established at Lake Wells to refine the process design criteria for halite evaporation ponds and subsequent harvest salt ponds. The SET will process up to 1 ton of brine per day and produce substantial ongoing quantities of potassium and sulphate salts. These salts will then be further processed to produce samples of SOP for potential customers and partners.
The objectives of the SET are to:
-- Refine the solar evaporation pathway, under actual site conditions, for Lake Wells brine. The analysis of this pathway will define the salting points of the various salts along the evaporation pathway allowing for the completion of a detailed mass balance for the pond system;
-- Refine the quality and quantity of brine and salts produced at the various points along the evaporation path;
-- Define the distribution in various salts of potassium, magnesium and sulphate through the evaporation system;
-- Provide design information for brine in-flow requirements, pond area, required number of ponds and flow requirements between ponds for a commercial facility; and
-- Determine opportunities for recycle of bittern or salt that may improve potassium, magnesium or sulphate recovery to the harvest salts.
The outputs of the ongoing test work will also provide key inputs into prefeasibility study costings for the halite and harvest salt evaporation ponds for the Lake Wells SOP project and assist in the development of a more extensive test work program including:
-- Halite Evaporation Pond Design: On-lake pond construction trial; -- Harvest Salt Pond Design
-- Conversion Test Work: Collected harvest salts will provide the inputs for conversion design trials;
-- Flotation Test Work: Outputs from the conversion trials above will provide inputs for flotation work;
-- Crystallisation Trials: Outputs from the flotation trials above will provide inputs for crystallisation test work.
The SET will comprise two trains each of six plastic lined ponds, designed to operate continuously under all weather conditions for up to 12 months. Brine is introduced to the first Halite Pond, H1, via a small surface trench. The brine progresses on a continuous basis through a series of six ponds as it concentrates through evaporation: two halite ponds; two transition ponds; and two harvest salt ponds.
Train 1 has been completed and will process approximately 500kg of fresh brine per day. Train 2 will double that volume when established. At the end of the quarter, Train 1 had several tonnes of brine in circulation and was producing initial salts.
An Automatic Weather Station (AWS) will be established at the SET site, providing comprehensive, continuous data for temperature, solar radiation, pan & theoretical evaporation, relative humidity and wind velocity and direction. The AWS data combined with actual evaporation records from the nearby SET will allow for sizing and detailed production modelling of commercial scale evaporation ponds.
REGIONAL LAKES
Lake Lewis
During the quarter, the Company conducted an initial reconnaissance and pit sampling program at Lake Lewis located in the Northern Territory. A traverse of shallow pit samples was completed across the eastern and northern parts of the lake (Figure 8), highlighting the potential of the lake to contain large volumes of highly saline brine with elevated levels of potassium and sulphate. A total of 24 pit samples have been collected at Lake Lewis encountering brine at a standing water level from less than 1 metre from surface and the average brine chemistry of the samples was:
Brine Chemistry K (mg/L) Mg (mg/L) SO(4) (mg/L) TDS (mg/L) --------------------------------- --------- ---------- ------------- ----------- Average of 24 pit water samples 3,364 1,865 22,808 237,009 --------------------------------- --------- ---------- ------------- -----------
Lake Lewis has a highly strategic location in the Northern Territory being located adjacent to a sealed road, and in close vicinity to the Adelaide-Darwin railway line and an existing gas pipeline.
Table 1 - Summary of Exploration and Mining Tenements
As at 30 September 2016, the Company holds interests in the following tenements:
Australian Projects:
Project Status Type of Change License Number Area (km(2) ) Term Grant Date Date of First Relinquish-ment Interest (%) Interest
1-Jul-16 (%)
30-Sept-16
Western Australia
=================== =========== ================= ================ =================================== ============================== ============= ============
Lake Wells
5
Central Granted - E38/2710 192.2 years 05-Sep-12 4-Sep-17 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
South Granted - E38/2821 131.5 years 19-Nov-13 18-Nov-18 100% 100%
5
North Granted - E38/2824 198.2 years 04-Nov-13 3-Nov-18 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
Outer East Granted - E38/3055 298.8 years 16-Oct-15 16-Oct-20 100% 100%
Single 5
Block Granted - E38/3056 3.0 years 16-Oct-15 16-Oct-20 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
Outer West Granted - E38/3057 301.9 years 16-Oct-15 16-Oct-20 100% 100%
North West Application - E38/3124 39.0 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Lake
Ballard
5
West Granted - E29/912 607.0 years 10-Apr-15 10-Apr-20 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
East Granted - E29/913 73.2 years 10-Apr-15 10-Apr-20 100% 100%
5
North Granted - E29/948 94.5 years 22-Sep-15 21-Sep-20 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
South Granted - E29/958 30.0 years 20-Jan-16 19-Jan-21 100% 100%
Lake Irwin
============ ===== =========== ================= ================ =================================== ============================== ============= ============
5
West Granted - E37/1233 203.0 years 08-Mar-16 07-Mar-21 100% 100%
5
Central Granted - E39/1892 203.0 years 23-Mar-16 22-Mar-21 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
East Granted - E38/3087 139.2 years 23-Mar-16 22-Mar-21 100% 100%
North West Application - E37/1260 203.0 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
North Application - E37/1261 107.3 - - - 100% 100%
Central
East Application - E38/3113 203.0 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
South Application - E39/1955 118.9 - - - 100% 100%
South West Application - E39/1956 110.2 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Lake
Minigwal
5
West Granted - E39/1893 246.2 years 01-Apr-16 31-Mar-21 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
5
East Granted - E39/1894 158.1 years 01-Apr-16 31-Mar-21 100% 100%
Central Application - E39/1962 369.0 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Central
East Application - E39/1963 93.0 - - - 100% 100%
South Application - E39/1964 99.0 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
South West Application - E39/1965 89.9 - - - 100% 100%
Lake Way
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Central Application - E53/1878 217.0 - - - 100% 100%
South Application - E53/1897 77.5 - - - 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Lake Marmion
Application
North Application Lodged E29/1000 167.4 - - - - 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Application
Central Application Lodged E29/1001 204.6 - - - - 100%
Application
South Application Lodged E29/1002 186.0 - - - - 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
South Australia
Lake 5
Macfarlane Granted - EL5702 816 years 20-Jan-16 19-Jan-21 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Island 5
Lagoon Granted - EL5726 978 years 08-Feb-16 07-Feb-21 100% 100%
Northern Territory
=================== ============ ================ ================ =================================== ============================== ============= ============
Lake Lewis
6
South Granted - EL 29787 146.4 year 08-Jul-13 7-Jul-19 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
6
North Granted - EL 29903 125.1 year 21-Feb-14 20-Feb-19 100% 100%
============= ================ ================== ================= ============== ====== =========== ============================== ============= ============
Other Projects:
Location Name Resolution Number Percentage Interest USA - Colorado C-SR-10 C-SR-10 80% ================ ========== =================== ==================== USA - Colorado C-JD-5A C-JD-5A 80% USA - Colorado C-SR-11A C-SR-11A 80% ================ ========== =================== ==================== USA - Colorado C-SR-15A C-SR-15A 80% USA - Colorado C-SR-16 C-SR-16 80% ================ ========== =================== ==================== USA - Colorado C-WM-17 C-WM-17 80% USA - Colorado C-LP-22A C-LP-22A 80% ================ ========== =================== ==================== USA - Colorado C-LP-23 C-LP-23 80% ================ ========== =================== ====================
Competent Persons Statement
The information in this report that relates to Exploration Results, or Mineral Resources for Lake Wells is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken 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 Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this Announcement that relates to Exploration Results on geophysical and test pumping results for Lake Wells, is extracted from the reports entitled Geophysics and Test Pumping Reinforce Lake Wells Potential ' dated 10 August 2016 and 'Excellent Initial Pump Test Results at Lake Wells ' dated 12 May 2016 and is available to view on the Company's website www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Exploration Results on geophysical and test pumping results for Lake Wells 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 was 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. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
The information in this report that relates to Exploration Results for Lake Lewis is based on information compiled by Mr Charles Nesbitt, who is a member Australian Institute of Mining and Metallurgy. Mr Nesbitt is employed by Redbelly Resources Pty Ltd, an independent consulting company. Mr Nesbitt 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 Nesbitt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Cautionary Statement and Important Information
The information in the Report that relates to the Scoping Study is extracted from the report entitled 'Scoping Study Confirms Potential Confirms Lake Wells Potential' dated 30 August 2016 (Scoping Study Announcement). The announcement is available to view on www.saltlakepotash.com.au. The Scoping Study has been prepared and reported in accordance with the requirements of the JORC Code (2012) and relevant ASX Listing Rules.
The primary purpose of the Scoping Study is to establish whether or not to proceed to a Pre-Feasibility Study ("PFS") and has been prepared to an accuracy level of +/-30%, the Scoping Study results should not be considered a profit forecast or production forecast. As defined by the JORC Code, a "Scoping Study is an order of magnitude technical and economic study of the potential viability of Mineral Resources. It includes appropriate assessments of realistic assumed Modifying Factors together with any other relevant operational factors that are necessary to demonstrate at the time of reporting that progress to a Pre-Feasibility Study can be justified." (Emphasis added)
The Modifying Factors included in the JORC Code have been assessed as part of the Scoping Study, including mining (brine extraction), processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and government factors. The Company has received advice from appropriate experts when assessing each Modifying Factor.
Following an assessment of the results of the Scoping Study, the Company has formed the view that a PFS is justified for the Lake Wells project, which it will now commence. The PFS will provide the Company with a more comprehensive assessment of a range of options for the technical and economic viability of the Lake Wells project.
The Company has concluded it has a reasonable basis for providing any of the forward looking statements included in this announcement and believes that it has a reasonable basis to expect that the Company will be able to fund its stated objective of completing a PFS for the Lake Wells project. All material assumptions on which the forecast financial information is based are set out in the Scoping Study Announcement.
In accordance with the ASX listing rules, the Company advises the Scoping Study referred to in the Scoping Study Announcement is based on lower-level technical and preliminary economic assessments, and is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised.
Production Target
The Production Target stated in this Report is based on the Company's Scoping Study for the Lake Wells Project as released to the ASX on 30 August 2016. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 was included in the Company's ASX Announcement released on 30 August 2016. The Company confirms that the material assumptions underpinning the Production Target referenced in the 30 August 2016 release continue to apply and have not materially changed.
The Production Target referred to in this Report and the Scoping Study Announcement is based on 100% Measured Mineral Resources for Stage 1 and 70% Measured Mineral Resources and 30% Inferred Mineral Resources for Stage 2. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Measured or Indicated Mineral Resources or that the production target or preliminary economic assessment will be realised.
Forward Looking Statements
This Report contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to pre-feasibility and definitive feasibility studies, the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in Schedule 2 of the Company's Notice of General Meeting and Explanatory Memorandum dated 8 May 2015.
APPIX 1 - LAKE WELLS DRILLHOLE DATA
RL
---------- -------------- ------- -------- ---- --------
Drilled Depth (mAHD)
Hole_ID (m) East North Dip Azimuth
---------- -------------- ------- -------- ------- ---- --------
LWA030 107 518616 7058726 448.1 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA031 100 526070 7040544 441.5 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA032 101 523956 7040687 444.9 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA033 126 518042 7055955 441.5 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA034 126 527042 7045897 441.1 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA035 119 520177 7051758 440.1 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA036 119 519893 7051962 440.0 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA037 118 520491 7051569 439.7 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA038 114 519272 7053911 439.9 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA039 123 524291 7049514 440.2 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA039aR 119 524436 7049781 442.3 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA039b 107 524545 7049985 445.4 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA039c 71 524736 7050342 451.6 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA040 87 531740 7042216 442.9 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA041R 125 536340 7034079 438.3 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA042 101 537798 7031018 442.4 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA043 125 537614 7023076 441.0 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA044 107 539336 7012139 449.8 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA045 107 547030 6997952 443.8 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA046 34 545426 6993869 439.3 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA047 34 544041 6993551 439.3 -90 0
---------- -------------- ------- -------- ------- ---- --------
LWA048 125 546500 6992333 443.4 -90 0
---------- -------------- ------- -------- ------- ---- --------
HoleID Stratigraphic K SO4 TDS SG
Unit
---------- --------------- ------------------------- ---------------------- ---------------------- -----------------------
LWA030 Q 110 1,003 9 1.01
LWA030 S 1,510 11,200 132 1.09
LWA030 P 2,665 14,750 213 1.13
---------- --------------- ------------------------- ---------------------- ---------------------- -----------------------
LWA031 Q 1,050 8,100 84 1.06
LWA031 P 3,520 18,500 260 1.16
---------- --------------- ------------------------- ---------------------- ---------------------- -----------------------
LWA032 Q 985 8,840 87 1.06
LWA032 B 1,050 9,570 95 1.06 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA033 Q 3,657 15,867 253 1.15 LWA033 S 3,907 17,533 277 1.16 LWA033 P 3,923 19,267 298 1.17 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA034 Q 2,970 18,350 238 1.14 LWA034 S 3,130 18,500 253 1.15 LWA034 P 3,213 18,800 277 1.16 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA035 P 3,945 18,267 297 1.17 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA037 Q 3,884 17,840 288 1.17 LWA037 P 4,048 19,840 310 1.18 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA038 Q 3,350 15,100 255 1.15 LWA038 P 3,710 19,280 289 1.17 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA039 Q 3,583 19,675 269 1.15 LWA039 P 3,960 22,500 329 1.18 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWAT39a Q 2,945 20,900 240 1.13 LWAT39a S 3,270 21,500 268 1.14 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA039aR Q 2,700 19,100 233 1.13 LWA039aR P 3,703 21,825 302 1.15 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA039b Q 2,630 21,900 228 1.13 LWA039b S 4,030 24,700 343 1.17 LWA039b P 3,955 24,750 336 1.17 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA039c Q 1,147 12,433 109 1.07 LWA039c B 1,270 13,300 123 1.08 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA040 S 4,335 18,750 300 1.17 LWA040 B 4,387 18,600 303 1.17 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA041 Q 3,405 15,300 247 1.14 LWA041 S 3,120 14,400 226 1.13 LWA041 P 2,950 14,400 229 1.14 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA041r Q 2,660 12,700 204 1.12 LWA041r P 3,053 14,300 235 1.13 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA042 Q 2,970 17,900 241 1.14 LWA042 P 3,910 18,500 296 1.16 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA043 Q 3,830 16,700 285 1.15 LWA043 P 3,306 13,850 244 1.14 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA044 Q 1,100 7,950 103 1.07 LWA044 P 2,440 15,825 231 1.14 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA045 Q 3,140 12,000 243 1.14 LWA045 S 2,265 9,278 167 1.10 LWA045 P 2,928 11,730 225 1.13 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA046 Q 2,780 13,000 227 1.14 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA047 Q 2,805 13,525 229 1.14 ---------- --------------- ------------------------- ---------------------- ---------------------- ----------------------- LWA048 Q 1,726 6,582 120 1.07 LWA048 S 1,830 7,410 133 1.08 LWA048 P 2,780 13,145 230 1.13 ---------- --------------- ------------------------- ---------------------- ---------------------- -----------------------
Notes: 1) Stratigraphic Unit - Q = Quaternary, S = Silt/fine sand unit, P = Paleochannel unit, B = Basement
APPIX 2 - LAKE LEWIS TEST PIT RESULTS
East North K SO(4) Mg TDS
(mg/L) (mg/L) (mg/L) (mg/L)
--------- -------- ---------- -------- -------- -------- --------
LLPN01A 229,323 7,475,900 3,760 23,400 1,990 254,485
--------- -------- ---------- -------- -------- -------- --------
LLPN02A 234,651 7,476,224 3,890 21,100 1,490 227,663
--------- -------- ---------- -------- -------- -------- --------
LLPN03A 232,099 7,473,646 2,980 19,900 1,930 223,072
--------- -------- ---------- -------- -------- -------- --------
LLPN04A 234,311 7,473,549 3,400 21,000 1,740 240,540
--------- -------- ---------- -------- -------- -------- --------
LLPN05A 237,769 7,473,263 3,510 19,200 1,730 240,128
--------- -------- ---------- -------- -------- -------- --------
LLPN06A 244,410 7,473,550 2,970 19,500 1,570 214,445
--------- -------- ---------- -------- -------- -------- --------
LLPN07A 229,516 7,470,184 3,770 25,700 2,350 258,421
--------- -------- ---------- -------- -------- -------- --------
LLPN08A 231,787 7,470,456 3,150 21,500 1,960 233,408
--------- -------- ---------- -------- -------- -------- --------
LLPN09A 234,098 7,470,203 3,560 22,700 2,020 262,532
--------- -------- ---------- -------- -------- -------- --------
LLPN10A 237,453 7,470,154 3,450 18,300 1,450 215,321
--------- -------- ---------- -------- -------- -------- -------- LLPN11A 245,375 7,470,403 3,370 20,100 1,460 208,284 --------- -------- ---------- -------- -------- -------- -------- LLPN12A 247,640 7,470,150 2,790 21,500 1,620 206,957 --------- -------- ---------- -------- -------- -------- -------- LLPN13A 233,125 7,468,749 3,360 23,000 2,040 250,609 --------- -------- ---------- -------- -------- -------- -------- LLPN14A 236,915 7,469,380 3,350 19,600 1,540 221,818 --------- -------- ---------- -------- -------- -------- -------- LLPS01A 234,066 7,468,191 3,230 22,100 2,300 256,710 --------- -------- ---------- -------- -------- -------- -------- LLPS02A 237,366 7,468,281 3,520 22,900 1,620 237,283 --------- -------- ---------- -------- -------- -------- -------- LLPS03A 241,118 7,467,453 3,510 21,200 1,760 237,930 --------- -------- ---------- -------- -------- -------- -------- LLPS04A 246,392 7,467,399 3,190 23,200 1,550 216,217 --------- -------- ---------- -------- -------- -------- -------- LLPS05A 246,447 7,468,698 3,080 20,100 1,640 213,247 --------- -------- ---------- -------- -------- -------- -------- LLPS06A 239,828 7,463,303 3,780 28,400 2,440 276,867 --------- -------- ---------- -------- -------- -------- -------- LLPS07A 241,405 7,463,368 3,480 28,800 1,940 245,667 --------- -------- ---------- -------- -------- -------- -------- LLPS08A 243,200 7,463,180 3,920 31,200 1,660 240,134 --------- -------- ---------- -------- -------- -------- -------- LLPS09A 245,675 7,463,420 2,900 26,900 1,560 220,041 --------- -------- ---------- -------- -------- -------- -------- LLPS11A 241,547 7,461,704 3,210 27,500 2,700 259,792 --------- -------- ---------- -------- -------- -------- -------- LLPS14A 237,672 7,465,169 2,970 21,400 2,560 265,909 --------- -------- ---------- -------- -------- -------- --------
APPIX 3 - JORC TABLE ONE
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of Lake Wells
sampling (eg cut channels, Geological samples were obtained from buckets below the
random chips, or specific cyclone during aircore drilling. Brine
specialised industry samples were obtained during aircore drilling from the
standard measurement tools cyclone when airlifting at the end
appropriate to the of each drill rod. Airlifts were completed on minimum air
minerals under and sampling took place following
investigation, such as stabilisation of flow approximately between 2 and 10mins
down hole from start of airlift.
gamma sondes, or handheld
XRF instruments, etc). Lake Lewis
These examples should not Brine samples were collected from shallow pits dug into the
be taken as limiting lake surface to a depth of 0.5
the broad meaning of to 0.75m. Brine samples are composite samples from the
sampling. water that filled the pit after digging.
Include reference to The material in the pit was geologically logged as a
measures taken to ensure composite qualitative description for
sample representivity and the entire pit.
the appropriate
calibration
of any measurement tools
or systems used.
Aspects of the
determination of
mineralisation that are
Material to the Public
Report.
In cases where 'industry
standard' work has been
done this would be
relatively simple (eg
'reverse circulation
drilling was used to
obtain 1 m samples from
which 3 kg was pulverised
to produce a 30 g charge
for fire assay'). In other
cases more explanation may
be required,
such as where there is
coarse gold that has
inherent sampling
problems. Unusual
commodities
or mineralisation types
(eg submarine nodules) may
warrant disclosure of
detailed information.
=========================== =========================== ============================================================
Drilling techniques Drill type (eg core, Lake Wells
reverse circulation, Non-face discharge vacuum aircore drilling at 138mm
open-hole hammer, rotary diameter.All holes vertical.
air blast, auger, Bangka,
sonic, etc) and details Lake Lewis
(eg core diameter, triple Not Applicable
or standard tube, depth of
diamond tails,
face-sampling bit or other
type, whether core is
oriented and if so, by
what method, etc).
Drill sample recovery Method of recording and Lake Wells
assessing core and chip Geological sample recovery when aircore drilling was
sample recoveries and through the cyclone and of excellent
results assessed. quality. Drill rates were slowed to ensure a clean sample
Measures taken to maximise was produced and that contamination
sample recovery and ensure was minimised. Cuttings were recovered by placing a clean
representative nature of bucket under the cycloneBrine samples
the samples. were obtained following stabilisation of flow approximately
Whether a relationship between 2 and 10mins from start
exists between sample of airlift.
recovery and grade and
whether sample bias may Lake Lewis
have occurred due to Not Applicable
preferential loss/gain of
fine/coarse material.
=========================== =========================== ============================================================
Logging Whether core and chip Lake Wells
samples have been All drill holes were geologically logged qualitatively by a
geologically and qualified geologist, noting in
geotechnically logged to a particular moisture content of sediments, lithology,
level colour, induration, grainsize and shape,
of detail to support matrix and structural observations. Flow rate data from
appropriate Mineral airlifting was logged to note water
Resource estimation, inflow zones.
mining studies and
metallurgical Lake Lewis
studies. All pits were geologically logged by a qualified geologist,
Whether logging is noting colour, induration, moisture
qualitative or content of sediments grain size distribution and lithology.
quantitative in nature.
Core (or costean, channel,
etc)
photography.
The total length and
percentage of the relevant
intersections logged.
Sub-sampling techniques If core, whether cut or Lake Wells
and sample preparation sawn and whether quarter, Brine samples were obtained during aircore drilling from
half or all core taken. the cyclone when airlifting at the
If non-core, whether end of each drill rod.
riffled, tube sampled, Sample bottles are rinsed with brine which is discarded
rotary split, etc and prior to sampling.
whether sampled wet or All brine samples taken in the field are split into two
dry. sub-samples: primary and duplicate.
For all sample types, the Reference samples were analysed at a separate laboratory
nature, quality and for QA/QC.
appropriateness of the Representative chip trays and bulk lithological samples are
sample preparation kept for records.
technique.
Quality control procedures Lake Lewis
adopted for all Not Applicable
sub-sampling stages to
maximise representivity
of samples.
Measures taken to ensure
that the sampling is
representative of the in
situ material collected,
including for instance
results for field
duplicate/second-half
sampling.
Whether sample sizes are
appropriate to the grain
size of the material being
sampled.
=========================== =========================== ============================================================
Quality of assay data and The nature, quality and Primary samples were sent to Bureau Veritas Minerals
laboratory tests appropriateness of the Laboratory, Perth.
assaying and laboratory Brine samples were analysed using ICP-AES for K, Na,
procedures used and Mg, Ca, with chloride determined by Mohr
whether the technique is titration and alkalinity determined volumetrically.
considered partial or Sulphate was calculated from the ICP-AES
total. sulphur analysis.
For geophysical tools, * Reference standard solutions were sent to Bureau
spectrometers, handheld Veritas Minerals Laboratory to check accuracy..
XRF instruments, etc, the
parameters used in
determining the analysis
including instrument make
and model, reading times,
calibrations
factors applied and their
derivation, etc.
Nature of quality control
procedures adopted (eg
standards, blanks,
duplicates, external
laboratory
checks) and whether
acceptable levels of
accuracy (ie lack of bias)
and precision have been
established.
Verification of sampling The verification of Data entry is done in the field to minimise transposition
and assaying significant intersections errors.
by either independent or Brine assay results are received from the laboratory in
alternative company digital format, these data sets are
personnel. subject to the quality control described above. All
The use of twinned holes. laboratory results are entered in to the
Documentation of primary company's database and validation completed.
data, data entry Independent verification of significant intercepts was not
procedures, data considered warranted given the
verification, data storage relatively consistent nature of the brine.
(physical
and electronic) protocols.
Discuss any adjustment to
assay data.
=========================== =========================== ============================================================
Location of data points Accuracy and quality of Hole co-ordinates were captured using hand held GPS.
surveys used to locate Coordinates were provided in GDA 94_MGA Zone 51.
drill holes (collar and Topographic control is obtained using Geoscience
down-hole surveys), Australia's 1-second digital elevation product.
trenches, mine workings
and other locations used
in Mineral Resource
estimation.
Specification of the grid
system used.
Quality and adequacy of
topographic control.
Data spacing and Data spacing for reporting Lake Wells
distribution of Exploration Results. Drill hole spacing is shown on the attached map and varies
Whether the data spacing due to irregular access along the
and distribution is lake edge.
sufficient to establish
the degree of geological Lake Lewis
and grade continuity Data spacing is very wide and can only be considered to be
appropriate for the reconnaissance level work.
Mineral Resource and Ore
Reserve estimation
procedure(s)
and classifications
applied.
Whether sample compositing
has been applied.
=========================== =========================== ============================================================
Orientation of data in Whether the orientation of All drill holes and pits were vertical. Geological
relation to geological sampling achieves unbiased structure is considered to be flat lying.
structure sampling of possible
structures and
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 All brine samples were marked and kept onsite before
ensure sample security. 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 Data review is summarised in Quality of assay data,
or reviews of sampling laboratory tests and Verification of sampling
techniques and data. 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 Lake Wells
status and ownership including agreements or Tenements drilled were granted
material issues exploration licences 38/2710,
with third parties such as joint 38/2821, 38/2824, 38/3055, 38/3056
ventures, partnerships, overriding and 38/3057 in Western Australia.
royalties, native title Exploration Licenses are held by
interests, historical sites, Piper Preston Pty Ltd (fully owned
wilderness or national park and subsidiary of ASLP).
environmental settings. Lake Lewis
The security of the tenure held at Tenements pit sampled were grant
the time of reporting along with any exploration licences EL29787 and El
known impediments 29903 in the Northern
to obtaining a licence to operate in Territory.
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 Lake Wells
material to the understanding of Details are presented in the report.
the exploration results including
a tabulation of the following Lake Lewis
information for all Material Hand dug pits as described above and
drill holes: presented in the announcement.
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 Lake Wells
widths and intercept lengths important in the reporting of The unit is flat lying and drill
Exploration Results. holes are vertical hence the
If the geometry of the mineralisation intersected downhole depth is
with respect to the drill hole angle equivalent to the inferred thickness
is known, its nature of mineralisation.
should be reported.
If it is not known and only the down Lake Lewis
hole lengths are reported, there Not Applicable
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 Gravity survey was completed by Atlas
and material, should be reported Geophysics using a Hi Target V100
including (but not GNSS receiver for
limited to): geological observations; accurate positioning and CG-5 Digital
geophysical survey results; Automated Gravity Meter.
geochemical survey results; Gravity data was gained using the
bulk samples - size and method of contractors rapid acquisition, high
treatment; metallurgical test accuracy UTV borne techniques.
results; bulk density, groundwater, The company's own in-house reduction
geotechnical and rock and QA software was used to reduce
characteristics; potential the data on a daily
deleterious or contaminating basis to ensure quality and
substances. 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 Lake Wells
further work (eg tests for lateral Exploration aircore drilling to
extensions or depth extensions further define the paleochannel
or large-scale step-out drilling). aquifer depth and geometry.
Diagrams clearly highlighting the Installation of monitoring bores.
areas of possible extensions, Further test production bores to be
including the main geological constructed and test pumping
interpretations and future drilling completed to determine, aquifer
areas, provided this information is properties, expected production rates
not commercially sensitive. and infrastructure design (trench and
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.
Lake Lewis
Further drilling to assess the
occurrence of brine at depth.
Closer spaced, more evenly distribute
drilling, particularly to define the
thickness of the
LPS unit.
Hydraulic testing be undertaken, for
instance pumping tests from bores
and/or trenches to
determine, aquifer properties,
expected production rates and
infrastructure design (trench
and bore size and spacing).
Lake recharge dynamics be studied to
determine the lake water balance and
subsequent production
water balance. For instance
simultaneous data recording of
rainfall and subsurface brine level
fluctuations to understand the
relationship between rainfall and
lake recharge, and hence
the brine recharge dynamics of the
Lake.
Study of the potential solid phase
soluble or exchangeable potassium
resource.
====================================== ====================================== ======================================
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
END
MSCUAUKRNBARORA
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