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Salt Lake Potash Limited Initial estimate of Exploration Targets

28/03/2018 7:00am

UK Regulatory (RNS & others)


TIDMSO4

RNS Number : 0688J

Salt Lake Potash Limited

28 March 2018

 
 28 March 2018   AIM/ASX Code: SO4 
 
 
                 SALT LAKE POTASH LIMITED 
   Exploration Targets Reveal World Class Scale Potential 
--------------------------------------------------------- 
 

Salt Lake Potash Limited (SLP or the Company) is pleased to announce results of an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company's Goldfields Salt Lakes Project (GSLP). The ninth lake, Lake Wells, already has a Mineral Resource reported in accordance with the JORC code.

The total "stored" Exploration Target for the GSLP is 290Mt - 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 - 7.1kg/m(3) (including Lake Wells' Mineral Resource of 80-85Mt). On a "drainable" basis the total Exploration Target ranges from 26Mt - 153Mt of SOP. The total playa area of the lakes is approximately 3,312km(2) .

The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

 
               Area      Average Grade (kg/m(3) )         Stored (Mt)           Drainable (Mt) 
 Lake        (km(2) )    SOP (min)      SOP (max)    SOP (min)   SOP (max)   SOP (min)   SOP (max) 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Ballard       626          3.5            4.7          42          53          3.1         18 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Barlee        350          1.9            4.3          10          21          0.8         8.1 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Irwin         306          4.8            8.1          25          43          1.9         15 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Marmion       339          3.0            5.1          20          34          1.6         11 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Minigwal      567          3.8            8.3          45          98          3.4         31 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Noondie       386          4.2            6.0          35          50          2.8         16 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Raeside        89          2.1            7.0           6          20          0.4         5.4 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Way           172          5.6           15.5          28          54          2.7         19 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Wells         477          8.7            8.8         80(1)       85(1)       9(2)        29(2) 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 Total        3,312         4.4            7.1          290         458         26          153 
----------  ---------  -------------  ------------  ----------  ----------  ----------  ---------- 
 
   1.     Incorporating Lake Wells' stored Mineral Resource Estimate previously reported. 
   2.     Lake Wells Mineral stored Mineral Resource Estimate converted to drainable equivalent. 

Table 1: GSLP Exploration Target

The combined resources and exploration targets in the GSLP comprise a globally significant Project in the SOP sector, potentially sustaining one of the world's largest SOP production operations for many decades.

CEO Matt Syme commented "These initial exploration targets allow us for the first time to quantify the real scale of the long term opportunity at the Goldfields Salt Lakes Project. We have already made very substantial progress in revealing the outstanding potential at Lake Wells and these Exploration Targets illustrate how the broader Project has a multiple of that potential. This places the GSLP asset at the leading edge of world scale SOP development opportunities."

The Company's long term plan is to develop an integrated SOP operation, producing from a number (or all) of the lakes within the GSLP, after confirming the technical and commercial elements of the Project through construction and operation of a Demonstration Plant producing up to 50,000tpa of SOP.

The Company's recent Memorandum of Understanding with Blackham Resources Limited (see ASX Announcement dated 12 March 2018) offers the potential for an expedited path to development at Lake Way, possibly the best site for a 50,000tpa Demonstration Plant in Australia.

The GSLP has a number of very important, favourable characteristics:

Ø Very large paleochannel hosted brine aquifers, with chemistry amenable to evaporation of salts for SOP production, extractable from both low cost trenches and deeper bores;

Ø Over 3,300km(2) of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø Excellent evaporation conditions;

Ø Excellent access to transport, energy and other infrastructure in the major Goldfields mining district;

Ø Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;

Ø Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;

Ø Multi-lake production offers operational flexibility and protection from localised weather events;

Ø The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and

Ø Potential co-product revenues, particularly where transport costs are lowest.

Salt Lake Potash will progressively explore the lakes in the portfolio with a view to estimating resources for each Lake, in parallel with the development of the Demonstration Plant. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

THE GOLDFIELDS SALT LAKES PROJECT

The nine lakes comprising the GSLP were selected for scale, potential brine volume, known hypersaline brine characteristics, and the potential for production from both shallow trenches and deeper paleochannel aquifer bores. Each has a large surface area, a flat and bare surface playa and proximity to the important transport and energy infrastructure and engineering expertise available in the Western Australian Goldfields.

The GSLP has a number of very important, favourable characteristics:

Paleochannel Hosted Brine Aquifers

The GSLP salt lakes are each part of typical Western Australian paleovalley environments. Ancient hydrological systems incised paleovalleys into Palaeozoic or older basement rocks, which were then infilled by Tertiary-aged sediments, typically comprising a coarse-grained fluvial basal sand, overlain by paleovalley clay with some coarser grained interbeds. The clay is overlain by recent Cainozoic material including lacustrine sediment, calcrete, evaporite and aeolian deposits.

There are two methods of extracting brine from aquifers. Firstly, low cost trenching from the surface aquifer and the secondly, extraction from the paleochannel basal aquifer via bores.

All the lakes in the GSLP offer very large paleochannel hosted brine aquifers, with brine chemistry amenable to evaporation of salts for SOP production.

Large Playa Surface

The lakes included in the GSLP have a surface area averaging 370km(2) and totaling over 3,300km(2) . This large surface area and the occurrence of impermeable clays near the surface, provides the potential for constructing low cost, on-lake, unlined evaporation ponds.

As demonstrated at Lake Wells (refer to ASX Announcement dated 16 October 2017), this provides significant potential capex savings. The results from the evaporation pond trial at Lake Wells exceeded expectations and strongly validated SLP's model for construction of on-lake, unlined evaporation ponds. Net seepage of 2.4mm per day in a test scale pond extrapolates to less than 0.125mm per day in a 400ha Demonstration Plant scale halite pond, a negligible inefficiency in the context of overall pond operations.

Preliminary excavation and sampling at Lakes Ballard, Irwin and Way also indicate the presence of clays amenable for pond construction near the lake surface.

Excellent Evaporation Conditions

The Goldfields has very favourable arid climatic conditions with annual Class A pan evaporation in the region around 3,000mm per year. This compares favourably with other global brine projects currently in production.

Access to Transport, Energy and Other Infrastructure

The lakes of the GSLP are strategically located close to the regional transport and energy infrastructure corridor. Transport from site to port is the single largest cost factor for (export oriented) Australian salt lake SOP projects, and the GSLP has a considerable advantage in this regard, with excellent proximity to the Kalgoorlie-Leonora rail line and the Goldfields Highway. The Company has made substantial progress in understanding and optimising its transport proposition, with major economies of scale to be achieved as the production volume increases.

The table below sets out the straight-line and existing road distances to the nearest railhead for each lake.

 
      Lake        Railhead    Straight-line Distance to Rail line   Likely Road Haul Distance 
                                              (km)                             (km) 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Wells        Malcolm                    270                              318 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Way          Leonora                    230                              281 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Irwin        Leonora                    85                               170 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Ballard      Menzies                     2                               20 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Marmion      Menzies                    20                               47 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Minigwal    Kookynie                    130                              172 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Raeside      Leonora                    20                               20 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Noondie      Leonora                    110                              198 
---------------  ----------  ------------------------------------  -------------------------- 
 Lake Barlee       Menzies                    130                              133 
---------------  ----------  ------------------------------------  -------------------------- 
 Average                                      111                              151 
---------------------------  ------------------------------------  -------------------------- 
 

Table 2: Transportation Distances of the GSLP

The Goldfields Gas Pipeline also intersects the GSLP, passing close to a number of lakes, offering potential energy cost savings.

Multi-Lake Production

There is substantial potential for integration, economies of scale, operating synergies and overhead sharing in the GSLP across a number of producing lakes.

There is also the possibility of some important elements of the SOP production process such as compaction, agglomeration and packaging being centralised, probably adjacent to rail loading facilities.

The flexibility of multi-lake production is also appealing for a natural production process which is subject to climate variability, where the operating risk of individual high rainfall events is diminished over a portfolio of production lakes.

Technical Validation Already Undertaken at Lake Wells

At Lake Wells, the Company has tested and verified all the major technical foundations for production of SOP from Lake Wells brine to a standard previously unseen in Australia under actual site conditions and across all seasons.

These key technical achievements at Lake Wells will have significant application across the other lakes in the GSLP, given the similar geology, brine chemistry and climate conditions.

Lowest Quartile Capex and Opex

The Scoping Study on Lake Wells released in August 2016 (see ASX announcement dated 29 August 2016) highlighted the outstanding potential economics of extracting hypersaline brine by trenches and bores for solar evaporation of salts and processing to produce premium SOP. The Scoping Study indicates Lake Wells would be firmly in the lowest cost quartile for any SOP Project in Australia and around the world, with relatively low transport costs being a major advantage.

 
                                                                            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. Stage 1 Capital Costs include most of the main capital items for 400,000tpa 
  production. 
  ** Operating Costs based on an accuracy of +/-30% including transportation & handling (FOB 
  Esperance) but before royalties and depreciation. 
 

Table 3: Lake Wells Scoping Study

Lake Way is likely to offer material economic advantages even over Lake Wells due to proximity and availability of transport and other infrastructure and potential cost saving with the Matilda-Wiluna Gold Operation.

Production of Valuable Co-Products

Brine modelling and evaporation testwork has demonstrated that Lakes Wells, Irwin, Ballard and Way can produce potassium and magnesium salts amenable to conversion to SOP and also potentially other valuable co-products.

Kieserite (MgSO(4) .H(2) O) and Epsom salts (MgSO(4) .7H(2) O) are valuable fertiliser products for both the domestic and export markets, with particular application in the tropical crop regions in South East Asia, South America and Africa.

While magnesium nutrients have lower market value than SOP, they are potentially valuable co-products, particularity where transport costs are lowest, for example Lakes Ballard and Marmion.

Exploration Targets for MgSO(4) .7H(2) O (Epsom Salt) were calculated at the each lake, except Lake Wells, as follows:

 
                      Stored (Mt)                   Drainable (Mt)             Average Grade (kg/m(3) ) 
 Lake        MgSO(4) (min)   MgSO(4) (max)   MgSO(4) (min)   MgSO(4) (max)   MgSO(4) (min)   MgSO(4) (max) 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Ballard          667             949             51              320             58              82 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Barlee           158             431             13              163             31              84 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Irwin            145             304             11              106             27              57 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Marmion          355             712             27              235             53              107 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Minigwal         668            1,462            50              469             57              124 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Noondie          308             488             23              154             37              58 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Raeside          86              358              6              98              30              126 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Way              151             339             15              125             49              105 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 Total           2,538           5,043            196            1,670            46              92 
----------  --------------  --------------  --------------  --------------  --------------  -------------- 
 

MgSO(4) = the molar mass of MgSO(4) .7H(2) 0 based on a conversion ratio of 10.14 of Mg to MgSO(4) .7H(2) O.

Table 4: Magnesium Sulphate Exploration Target

The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

APPIX 1 - EXPLORATION TARGET METHODOLOGY AND RESULTS

GSLP Exploration Targets:

Exploration Target calculated using Total Porosity:

 
                           Estimated                                  Average Potassium 
                          Paleochannel   Sediment      Brine            Concentration                SOP Tonnage 
   Lake      Playa Area      Length       Volume       Volume              kg/m(3)                        Mt 
               Km(2)           Km          Mm(3)        Mm3         Lower          Upper         Lower        Upper 
                                                                   Estimate      Estimate       Estimate     Estimate 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Ballard        626            55         26,370       11,487        1.6            2.1            42           53 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Barlee         350            60         11,455       5,107         0.8            1.9            10           21 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Irwin          306            22         11,942       5,236         2.1            3.6            25           43 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Marmion        339            35         15,294       6,626         1.3            2.3            20           34 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Minigwal       567           100         27,166       11,716        1.7            3.7            45           98 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Noondie        386            75         19,412       8,345         1.9            2.7            35           50 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Raeside         89            35          6,775       2,844         0.9            3.1            6            20 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Way            172            25          8,044       3,475         3.6            7.0            28           54 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 Wells          477            60         24,723       9,639                 3.9                   80           85 
----------  -----------  -------------  ----------  -----------  ---------------------------  -----------  ----------- 
 Total         3,312          467         151,181      64,474                                     290          458 
----------  -----------  -------------  ----------  -----------  -----------  --------------  -----------  ----------- 
 

Table 5: Exploration Target calculated using Total Porosity

Exploration Target calculated using Drainable Porosity:

 
                          Weighted Average         Brine Volume          Average Potassium            SOP Tonnage 
             Sediment    Drainable Porosity                                Concentration 
   Lake       Volume             (1) 
                       ---------------------- 
                                                       Mm(3)                  kg/m(3)                     Mt 
----------  ---------  ----------  ----------  --------------------  -------------------------  ---------------------- 
              Mm(3)        Sy          Sy        Lower      Upper      Lower         Upper         Lower       Upper 
                          Lower       Upper     Estimate   Estimate   Estimate     Estimate      Estimate    Estimate 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Ballard      26,370      0.03        0.15        882       3,913       1.6           2.1           3.1         18 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Barlee       11,455      0.04        0.17        404       1,931       0.8           1.9           0.8          8 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Irwin        11,942      0.03        0.15        408       1,844       2.1           3.6           1.9         15 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Marmion      15,294      0.03        0.14        501       2,192       1.3           2.3           1.6         11 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Minigwal     27,166      0.03        0.14        877       3,783       1.7           3.7           3.4         31 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Noondie      19,412      0.03        0.14        619       2,645       1.9           2.7           2.8         16 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Raeside      6,775       0.03        0.11        198        778        0.9           3.1           0.4          5 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Way          8,044       0.04        0.15        299       1,196       2.8           7.1           2.7         19 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 Wells(2)     24,723      0.04        0.14       1,074      3,355               3.9                  9          29 
----------  ---------  ----------  ----------  ---------  ---------  -------------------------  ----------  ---------- 
 Total       151,181      0.03        0.14       5,262      21,637                                  26          153 
----------  ---------  ----------  ----------  ---------  ---------  ---------  --------------  ----------  ---------- 
 

1. Drainable Porosity was assigned to each geological unit per Table 9 Porosity Estimates. The volume weighted average value is presented here.

   2.   Incorporating Lake Wells' total Mineral Resource Estimate previously reported. 

Table 6: Exploration Target calculated using Drainable Porosity

The potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The Company engaged an independent hydrogeological consultant with substantial salt lake brine expertise, Groundwater Science Pty Ltd, to complete the Exploration Targets for all the lakes in the GSLP.

Scope

The Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement of estimate, quotes as a range of tones and a range of grade (or Quality), relative to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The Exploration Targets are reported in accordance with

   --          the JORC Code 2012, 

-- the draft Guidelines for Resource and Reserve Estimation for Lithium and Potash Brines, developed by the Australia Association of Mining and Exploration Companies (AMEC), and

-- the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Best Practice Guidelines for Resource and Reserve Estimation for Lithium Brines.

A Mineral Resource Estimate for Lake Wells has been reported (refer to ASX Announcements dated 11 November 2015 and 22 February 2016), comprising a total of 85Mt SOP. This estimate was calculated as the total in-situ resource based on the total porosity of the brine host aquifer. The resource has been re-calculated for this study based on the estimates of drainable porosity that are detailed below. The aim is to provide an estimate of mineralisation that is comparable to the proposed Exploration Targets and collate an inventory of the entire GSLP project.

Data sources

An exploration target for each lake has been defined by review of:

-- All historic exploration data that has been released for the tenement, including drilling and geophysics;

   --      All public geology and hydrogeology reports, maps and data; 
   --      Company hydrogeological reports obtained from the Western Australia Department of Water and Environmental Regulation via freedom of information request; 
   --      Surface brine samples from test pits; and 
   --      Test Pits, test excavation, and geophysical survey, undertaken by SLP. 

Geology

Each playa lake exhibits reasonably consistent Tertiary paleovalley morphology as described in detail by Bell et al. (2012)([1]) , Johnson et al. (1999)([2]) , and DeBroekert and Sandiford (2005)([3]) . Paleovalleys are incised into the Palaeozoic or older basement rocks. These are then infilled by Tertiary-aged sediment typically comprising a coarse-grained fluvial Basal Sand overlain by Paleovalley Clay with some coarser grained interbeds. The clay is overlain by Cainozoic Alluvium, that includes lacustrine clay, calcrete, evaporite and aeolian deposits.

 
 Geological     Inferred age         Description                 Hydrogeological 
  Unit                                                            Attributes 
=============  ===================  ==========================  ======================== 
 Lake surface   Recent               Clay sediments with         Minor aquifer. 
  and islands                         some sandy, evaporite       Highly variable 
                                      and calcrete horizons       permeability and 
                                      containing variable         moderate drainable 
                                      abundance of evaporite      porosity. 
                                      minerals, particularly 
                                      gypsum. 
=============  ===================  ==========================  ======================== 
 Alluvium       Cainozoic            Unconsolidated silt,        Minor aquifer. 
                                      sand and clay sediments.    Moderate permeability 
                                                                  and moderate drainable 
                                                                  porosity 
=============  ===================  ==========================  ======================== 
 Paleovalley    Tertiary (Miocene)   Stiff to plastic clay.      Aquitard. 
  clay                                Minor silt and sand         Low permeability 
                                      interbeds                   and low drainable 
                                                                  porosity 
=============  ===================  ==========================  ======================== 
 Basal sand     Tertiary (Eocene)    Typically fining upwards    Major aquifer. 
                                      sequence of sand with       High to moderate 
                                      silt, clay and lignitic     permeability and 
                                      interbeds.                  High to moderate 
                                                                  drainable porosity 
=============  ===================  ==========================  ======================== 
 

Table 7: Geological Units

Geological Model

At each playa lake, the extent and thickness of each geological unit has been inferred from the available data. Differentiating each geological unit is important because each unit exhibits specific hydrogeological properties, permeability and drainable porosity as described below.

Area

The area of each playa lake was calculated by digitising the lake surface and removing area covered by islands. These areas are used to calculate the volume of the lake sediments. The extent of the brine body hosted by alluvium has been defined by the extent of the lake playa. Extension of the brine body beyond the lake playa edge in shallow sediment is possible but unsupported by data at this stage. Studies on other playa lakes have demonstrated that brine concentration quickly diminishes with distance from the playa edge. The mechanism for lower brine grade off the playa is understood to be dilution by rainfall infiltration and the absence of the intense evaporation that occurs on the playa surface.

The extent of the lower Paleovalley Clay and Basal Sand is based on the mapped distribution of paleovalleys across the Northern Goldfields by Johnson et al. (1999) and other studies. This has been used as the basis for determining paleovalley length. There has been additional geophysics undertaken at Lakes Ballard, Irwin and Marmion that provides a more accurate interpretation. At Lake Way, exploration drilling for the Mt Keith Borefield (AGC Woodward Clyde, 1992) has further confirmed the paleochannel extent and presence of the Basal Sand.

Thickness

Lake Sediments (Upper Alluvium)

The lake sediments are dominated by clay lacustrine deposits with abundant evaporite minerals, such as gypsum. The thickness of this unit is poorly resolved. An average thickness of 10m has been assumed. The 10m thickness of Lake sediments are also the maximum depth of dilution calculated beneath islands on the Playa Surface.

Alluvium

The alluvium comprises a mixed sequence of sheetwash, calcrete and aeolian deposits that underlie the lake sediments. It has been mapped by Johnson et al. (1999) as a channel fill deposit being similar in nature to that found in present-day outwash alluvial fans and minor creeks, and it extends and is present beyond the lake margins. The thickness is highly variable and is up to 60m thick in parts of the Raeside Paleovalley. An average thickness of 15m has been applied for the exploration target estimation.

Paleochannel Clay

The paleochannel clay is a stiff clay that confines the basal paleochannel sand. It has a variable thickness depending on whether a site is within a trunk (thicker) or tributary (thinner) paleovalley. The width is dependent on the basement material with wider channels in granitoid basement and narrower channels in greenstone lithologies. For the resource estimation, the thickness and width was determined based on nearby geological transects from Langford (1997) and Johnson et al. (1999), or other company drilling in the case of Lake Way.

Basal Sand

The basal sand is present in the deepest section of the paleovalley. It has a variable thickness with some sand sections being up to 40 m thick. The development of the sand is dependent on proximity to granitoid catchments with less sand thickness in catchments dominated by greenstone lithologies. As with the paleochannel clay, the thickness and width was determined based on nearby geological transects from Langford (1997) and Johnson et al. (1999), or other company drilling in the case of Lake Way. As an example, the conceptual model applied to a cross section at Lake Ballard developed by Langford (1997).

Brine Concentration

Brine concentration has been defined based on samples taken from test pits excavated into the Alluvium by SLP in 2017 (Appendix 3), and from historic drilling data where available. Minimum and Maximum values have been defined as the mean value +/- one standard deviation for sample sets of more than 10 samples. For sample sets of less than 10 samples, the minimum and maximum values have been used.

Where no brine chemistry data is available for the paleochannel sediments, brine concentration is assumed to be constant with depth. This assumption is supported by SLP's experience at Lake Wells, other company reports for comparable paleochannel hosted brine in the Goldfields region, and work by Water and Rivers Commission and others. Proving this assumption by drilling and sampling is a priority for progressing evaluation of these targets.

Hydrogeological Attributes

Hydrogeological attributes assigned to each geological unit are summarised in Table 8.

The permeability of the Lake Sediments and Alluvium is expected to be variable. Permeability is dependent on the lithology of the sediment, development of evaporite minerals that can enhance permeability, and the development of calcrete minerals that can be extremely permeable.

Paleovalley Clay is a low permeability aquitard, brine held in this unit will not be drained by bores; however, some fraction of the brine stored in this unit might be accessed by leakage into the underlying basal sand.

Basal Sand is typically permeable, and brine is expected to be extracted by pumping from bores.

 
 Geological Unit    Hydrogeological Properties 
=================  =============================================== 
 Lake Sediments     Highly variable aquifer dependent on lithology 
                     and evaporite formation 
=================  =============================================== 
 Alluvium           Highly variable aquifer dependent on lithology 
                     and evaporite formation 
=================  =============================================== 
 Paleovalley Clay   Aquitard low permeability 
=================  =============================================== 
 Basal Sand         Aquifer high permeability 
=================  =============================================== 
 

Table 8: Hydrogeological Attributes

Porosity

Total porosity (Pt) relates to the volume of brine-filled pores contained within a unit volume of aquifer material. A fraction of this pore volume can by drained under gravity, this is described as the drainable porosity (or specific yield). The remaining fraction of the brine, which is held by surface tension and cannot be drained under gravity, is described as the specific retention (or un-drainable porosity).

A resource calculated as the product of drainable porosity is still not completely recoverable by gravity drainage to trenches or bores.

The reported mineral tonnage represents the brine with no recovery factor applied. It will not be possible to economically extract all the contained brine by pumping. The amount that can be extracted depends on many factors including the permeability of the sediments, adjacent groundwater composition, and the recharge dynamics of the aquifers. Brine projects typically recover a small fraction of the in-situ resource.

The total and drainable porosity of each geological unit has been estimated from lithology and benchmarking against other studies completed in comparable geological settings. A summary of the porosity assigned to each geological unit and the source of the estimates is presented in Table 9.

Benchmarking of the porosity applied in this study to other Australian salt lakes is presented in Table 10.

 
 Geological Unit    Total Porosity (%)   Drainable Porosity (%) 
=================  ===================  ======================= 
 Lake Sediments                   0.46                 0.04-0.2 
=================  ===================  ======================= 
 Alluvium                         0.46                 0.04-0.2 
=================  ===================  ======================= 
 Paleovalley Clay                  0.4                0.01-0.05 
=================  ===================  ======================= 
 Basal Sand                        0.4                  0.1-0.2 
=================  ===================  ======================= 
 

Table 9: Porosity Estimates

 
                                                               Project 
----------------  ----------------  ------------------------------------------------------------- 
                                      WA Salt     WA Salt     WA Salt      WA Salt        GSLP 
                                       Lake 1      Lake 2      Lake 3       Lake 4 
                                      Mineral     Mineral     Mineral     Exploration 
                                      Resource    Resource    Resource      Target 
                                      Estimate    Estimate    Estimate 
----------------  ----------------  ----------  ----------  ----------  -------------  ---------- 
 Lake Sediments 
  and Alluvium     Total Porosity         0.39        0.47        0.45      0.42-0.53        0.46 
================  ================  ==========  ==========  ==========  =============  ========== 
  Drainable 
   Porosity                               0.16        0.17       0.064      0.13-0.15   0.04-0.20 
 ---------------------------------  ----------  ----------  ----------  -------------  ---------- 
 Clay              Total Porosity         0.47         0.5           -                        0.4 
================  ================  ==========  ==========  ==========  =============  ========== 
  Drainable 
   Porosity                               0.06        0.03           -                  0.01-0.05 
 ---------------------------------  ----------  ----------  ----------  -------------  ---------- 
 Basal Sand        Total Porosity          0.4         0.4           -                        0.4 
================  ================  ==========  ==========  ==========  =============  ========== 
  Drainable 
   Porosity                               0.23        0.28           -                   0.1-0.20 
 ---------------------------------  ----------  ----------  ----------  -------------  ---------- 
 

Source: Company releases

Table 10: Porosity Benchmarks

Brine Hydrology and Water Balance

The brine hydrology and water balance of each playa lake is not yet defined at this early stage of project evaluation.

All the playa lakes are understood to flood intermittently following large rainfall events. This is based on information derived from a Geoscience Australia dataset that presents the frequency of inundation for the Australian continent based on analysis of Landsat TM images compiled since 1984 (GA, 2017)([4]) .

Flooding and direct infiltration of rainfall will recharge the lake sediments and contribute to the water balance of the brine system.

Pumping from confined paleochannels results in depressurisation of the paleochannel and subsequent slow leakage of groundwater from the overlying clay aquitard and lateral inflow from the adjacent weathered basement aquifer. Studies of long-term water supply abstraction from the Roe paleochannel suggest sustainable water yields of around 1GL/year per 10km of paleochannel are possible (Johnson, 2007)([5]) .

Neighbouring properties and temporal effects

Neighbouring properties and temporal effects have not been evaluated at this early stage of project development.

Treatment of Islands

Many of the salt lake playas contain islands on the playa surface. These islands generally comprise gypsiferous dunes and often exhibit some vegetation. They are more common in playas that are less frequently inundated Bowler, (1986)([6]) , presumably due to the erosion that occurs through wave action during periods of inundation. Research on other playas has shown that the brine beneath islands is typically diluted close to the surface. The mechanism is understood to be dilution by infiltration of rainfall through the islands, without the subsequent intense evaporation that occurs on the playa surface. This dilution effect diminishes with depth.

Shallow dilution beneath islands is considered in the Exploration Target estimate by defining the area occupied by islands and reducing brine concentration beneath the islands by a factor of 3 to a depth of 10m.

Mineralisation Extent

Mineralisation is calculated for the area beneath the salt lake playa and islands only. There is in-sufficient data at each site to infer continuity of the mineralisation beyond the playa extent.

A summary of the geological and hydrogeological data review undertaken at each playa lake is presented below.

APPIX 2 - GSLP GEOLOGICAL AND HYDROGEOLOGICAL DATA REVIEW

LAKE BALLARD

Previous Exploration

A large amount of historical exploration work has been undertaken surrounding Lake Ballard focusing on gold, nickel and uranium. There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10 m. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities. The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the Lake Ballard paleodrainage.

Esso Australia (1977) completed ground-based gravity and seismic geophysical survey at western end of lake suggesting the presence of the palaeovalley. Uranerz Australia (1977) undertook airborne spectrometric and ground-based scintillometric surveys that was followed by auger drilling with 81 holes being completed to depths of up to 30 m bgl, which suggested the shallow alluvium is dominated by clay lithologies and some drill holes encountered the top of the paleochannel clay. Uranoz Ltd (2007) completed an airborne gravity survey over the eastern portion of Lake Ballard and eastward over the northern portion of Lake Marmion that broadly mapped the distribution of the paleochannel thalweg.

The most useful hydrogeological data relates groundwater exploration undertaken by the Geological Survey of Western Australia (GSWA) in 1987. Three north-south transects were drilled between Lake Ballard and Lake Marmion to explore for the main trunk paleodrainage that originates to the west of Lake Ballard and flows to the east beneath Lakes Marmion and Rebecca. Drill holes were cased where possible; however, most holes into the deeper paleochannel sediments couldn't be cased owing to running sands. There are some drill sites with multiple bores and different screen intervals. A bore completion report details the drilling and bore construction (Nidagal, 1992), while a description of the hydrogeology between the two lakes is provided by Langford (1997).

Geology

The Lake Ballard paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. There is a shallow sedimentary sequence comprising lake sediments overlying alluvium and colluvium that concealed a deeper sedimentary sequence of plastic clay and basal sand. The paleochannel sands occur only in the deepest portion.

The lake sediments are thin being less than 2 to 3 m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30 m thick). This upper sequence appears to be more clayey with noticeably less sandy horizons, when compared with other paleodrainages to the north. Between Lakes Ballard and Marmion, there are clay layers (up to 20 m thick) being separated by sandy clay to clayey sand beds.

The understanding of the deep stratigraphy in the paleovalley is limited to three drilling transects between Lakes Ballard and Marmion. The lower Tertiary-aged paleochannel sequence comprises dense plasticine clay (60m thick) and basal sands (up to 20m thick). In places, there are silcrete and sandy intervals within the plasticine clay providing a different stratigraphy to other paleodrainages.

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer associated with Lake Ballard, and in some places may form an aquitard. The basal sands are confined beneath the plastic clay and comprise fine to coarse-grained quartz sand, which forms a deeper aquifer being about 80m bgl in the west (estimated from ground-based geophysics) and about 110m bgl at the east of Lake Ballard. There has been no hydraulic testing of the shallow or deep aquifers at Lake Ballard; however, bore yields will be higher from the basal sands.

References

Esso Exploration and Production Australia Inc, 1977, 1999 Annual (Final) Report, Lake Ballard - Project 650, Mineral Claims 29/2988-3000, 29/3059 and 3060, 30/1249-1253, and 30/1266-1270 - unpublished report by Esso Australia, WAMEX A7536.

Langford, R., 1997, Hydrogeology of part of the Rebecca Palaeodrainage between Lake Ballard and Lake Marmion in the northeastern Goldfields of Western Australia, unpublished thesis for Master of Science (Applied Geology) at Curtin University.

Nidagal, V., 1992, Lake Ballard palaeodrainage groundwater investigation bore completion reports, Western Australia Geological Survey, Hydrogeology Report 1989/18, unpublished.

Uranerz Australia, 1977, Final Report covering the period from 10/12/1976 to 1/11/1977, Temporary Reserve No 6400H, unpublished report by Uranerz Australia, WAMEX A7330.

Uranoz Ltd, 2007, E59/599 - Goongarrie Project, Annual Technical Report, Period Ending December 18, 2007: Report compiled by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report for Uranoz Ltd, WAMEX A76810.

LAKE BARLEE

Previous Exploration

There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10m. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities (Jervois Mining, 2013; Northern Uranium, 2008). The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the Lake Barlee paleodrainage.

Recent potash exploration work by Parkway Minerals on their tenements to the north of SLP tenements suggest the presence of a paleochannel feature (Parkway Minerals, 2017). There has been no drilling to date, but geophysics results indicate the combined depth of the paleovalley is about 75m (Parkway Minerals, 2017) being shallower than other paleodrainages as it is close to its headwaters.

Geology

There is little known about the stratigraphy in the Barlee Paleodrainage, as there has been no regional assessment undertaken. The paleovalley becomes shallower towards its headwaters in the west and south; as such it is possible that it is about 50m deep beneath the SLP tenements.

The paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. Lake sediments are thin being less than 2 to 3m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30m thick). This shallow sedimentary sequence may conceal a deeper sedimentary sequence of plastic clay and basal sand. The presence of the paleochannel sands is unknown; however, if present they will occur in the deepest portion.

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer, and in some places may form an aquitard. Basal sands comprise fine to coarse-grained quartz sand may be confined beneath plastic clay and form a deeper aquifer. There has been no hydraulic testing of the shallow or deep aquifers at Lake Barlee; however, bore yields are likely to be higher from the basal sands.

References

Jervois Mining, 2013, Bulga Project, Final Surrender Report for period 6th September to 22nd May 2013, unpublished report, WAMEX A98133.

Northern Uranium, 2008, Annual Report for the Lake Barlee Project, Exploration Licence E77/1331, unpublished report, WAMEX A77895.

Parkway Minerals, 2017, Parkway Minerals announces seismic survey at Lake Barlee confirms deep paleo-channels, ASX announcement by Parkway Minerals, 17 October 2017.

LAKE IRWIN

Previous Exploration

Significant historical exploration work has been completed in the Lake Irwin area focusing on nickel and gold. This exploration work was largely undertaken in the basement lithologies surrounding the lake; however, there has been no substantial exploration on the lake.

The most useful stratigraphic and hydrogeological data relates to groundwater exploration undertaken by the Water and Rivers Commission (WRC) in 1997 and 1998. Three investigation transects were completed surrounding and across Lake Irwin. Transect B located across the middle of the lake failed to encounter the main trunk paleodrainage and is somewhat inconclusive. Transect C in the northwest encountered a palaeotributary with basal sand between 80 and 90 m bgl. Transect D located to the north of the lake encountered the basal sand between 110 and 140 m bgl. A bore completion report details the drilling and bore construction (Johnson et al., 1998), while a regional description of the hydrogeology is provided by Johnson et al. (1999).

Geology

The Carey paleodrainage, passing beneath Lake Irwin, is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. There is a shallow sedimentary sequence comprising lake sediments overlying alluvium and colluvium that concealed a deeper sedimentary sequence of plastic clay and basal sand. The paleochannel sands occur only in the deepest portion.

The stratigraphy comprises thin lake sediments overlying an upper interbedded sequence of alluvium and colluvium (30m thick), and a lower Tertiary-aged paleochannel sequence of dense plasticine clay (50 to 60m) and basal sands (20 to 30m thick) that is surrounded by Archaean granite and greenstone basement.

Hydrogeology

The upper alluvium and colluvium is considered a minor aquifer owing to the fine-grained nature of the sediments and lack of thick sandy / gravel horizons. This aquifer is present beneath the entire lake surface. Direct hydraulic testing is limited; however, bore yields are likely to be low in the order of 1 to 2 L/sec and up to 5 L/sec in some cases. It is utilised by the pastoral industry for stock watering with bores and wells.

The deeper paleochannel sand is an important regional aquifer that is widely developed by the mining industry for meeting process water requirements. The thalweg of the trunk paleochannel appears to be about 1 to 2 km northeast of the lake, and only paleotributaries on the western side are present the current lake surface. In these paleotributaries, there are two production borefields (Charlie Well and Greymare) operated by Minara Resources' Murrin Murrin operation. Long-term bore yields are commonly between 10 and 15 L/sec with up to 20 L/sec in the thickest thalweg sections.

References

Johnson, S., Mohsenzadeh, H., Yesterener, C., and Koomberi, H., 1998, Northern Goldfields regional groundwater assessment bore completion reports: Western Australia Water and Rivers Commission, Hydrogeology Report 107, unpublished.

Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater resources of the Northern Goldfields, Western Australia: Western Australia Water and Rivers Commission, Hydrogeological Record Series, Report HG2, 57p.

LAKE MARMION

Previous Exploration

A large amount of historical exploration work has been undertaken surrounding Lake Marmion focusing on gold, nickel and uranium. There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10m. The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the paleodrainage beneath Lake Marmion.

Reports from previous tenement holders detailing mineral exploration programs provided useful data on the location of the paleochannel, and thickness / nature of the lake sediments. There have been a range of exploration activities including wide-spaced gravity surveys and some drilling at the western and eastern lake margins.

There have been several gravity surveys across the lake that have provided an understanding of the distribution of the paleochannel. The most recent surveys by Uranoz Ltd (2007a, b and c), Nickleore Ltd (2008) and Siburan Resources (2011a, b, c and 2012) suggest that the main trunk drainage takes a meandering path beneath the northern parts of the lake that merges with a large palaeotributary from the south.

Geology

There have been no regional studies on the Ballard-Marmion-Rebecca Paleodrainage - unlike the paleodrainages to the north (Johnson et al., 1999) and to the south (Commander et al., 1992). Despite this, there is high level of confidence that the main trunk drainage traverses the northern portion of the lake from Lake Ballard to Boomerang Lake / Lake Rebecca in the east, and there is also a large paleotributary from the south. The stratigraphy seems to broadly align with other paleodrainages in the northern Goldfields.

Lake sediments are probably thin being less than 2 to 3m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30m thick). This upper sequence may be more clayey with noticeably less sandy horizons, when compared with other paleodrainages to the north. Between Lakes Ballard and Marmion, there are clay layers (up to 20m thick) being separated by sandy clay to clayey sand beds.

The understanding of the deep stratigraphy is based on the drilling undertaken at the lake margins. In the northwest, one incomplete and shallow drilling transect was completed by AFMECO (1978 a and b) and three drilling transects were completed by the GSWA between Lakes Ballard and Marmion with detailed lithological descriptions in the bore completion reports (Nidagal, 1992) and interpreted stratigraphy for each transect (Langford, 1997). This drilling suggests a total thickness of about 80m with 20m of alluvium / colluvium overlying 45m of plasticine clay and 15m of basal sands. There are silcrete and sandy intervals at the base of the alluvium / colluvium and throughout the plasticine clay that provides a different stratigraphy to other paleodrainages.

Hydrogeology

The upper alluvium and colluvium is considered a minor aquifer owing to the dominance of clay lithologies and lack of thick sandy / gravel horizons. It is present beneath the entire lake surface. There has been no direct hydraulic testing with bore yields to be very low, less than 1 L/sec. In places, discrete bodies of calcrete are present that form localised aquifers; however, these bodies are less common near Menzies when compared with areas to the north. Groundwater resources in this shallow aquifer will be more likely accessed via leakage rather than direct abstraction.

The deeper paleochannel sand is an important regional aquifer that is widely developed by the mining industry to the north; however, there has been no utilisation in the vicinity of Lake Marmion. Long-term bore yields are commonly between 10 and 15 L/sec with up to 20 L/sec in the thickest thalweg sections.

References

AFMECO, 1978a, Yilgarn Drainage, Temporary Reserve 6402H, West Lake Marmion, Annual Report, Report WA 275F, February 1978, unpublished report, WAMEX 7573.

AFMECO, 1978b, Yilgarn Drainage, Temporary Reserve 6402H, West Lake Marmion, Final Report, Report WA 275F, July 1978, unpublished report, WAMEX 7945.

Commander, D.P., Kern, A.M. and Smith, R.A., 1992, Hydrogeology of the Tertiary Palaechannels in the Kalgoorlie Region (Roe Palaeodrainage): Western Australia Geological Survey, Record 1991/10.

Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater resources of the Northern Goldfields, Western Australia: Western Australia Water and Rivers Commission, Hydrogeological Record Series, Report HG2, 57p.

Langford, R., 1997, Hydrogeology of part of the Rebecca Palaeodrainage between Lake Ballard and Lake Marmion in the northeastern Goldfields of Western Australia, unpublished thesis for Master of Science (Applied Geology) at Curtin University.

Nickleore Ltd., 2008, E29/634 (Lake Marmion), 2008 Annual Report, 12 April 2007 to 11 April 2008, unpublished report, WAMEX 79044.

Nidagal, V., 1992, Lake Ballard palaeodrainage groundwater investigation bore completion reports, Western Australia Geological Survey, Hydrogeology Report 1989/18, unpublished.

Siburan Resources, 2011a, Lake Marmion Project, Annual Report, Exploration Licence E29/756, Western Australia, Reporting period 19 August 2010 to 18 August 2011, unpublished report, WAMEX 91660.

Siburan Resources, 2011b, Lake Marmion Project, Annual Report, Exploration Licence E29/757, Western Australia, Reporting period 18 November 2010 to 17 November 2011, unpublished report, WAMEX 92276.

Siburan Resources, 2011c, Gravity surveys outline new uranium prospective paleochannels at Lake Marmion Project, ASX announcement.

Siburan Resources, 2012, Lake Marmion Project, Annual Report, Exploration Licences E29/637, E29/756-757, E29/773, E29/778-780, E29/782, E31/939-940, E31/976-977, Reporting period 5 July 2011 to 4 July 2012, unpublished report, WAMEX 95065.

Uranoz Ltd., 2007a, Goongarrie Project, E59/598, Annual Technical Report, Period Ending November 14, 2007: Report prepared by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report, WAMEX 76809.

Uranoz Ltd., 2007b, Goongarrie Project, E59/599, Annual Technical Report, Period Ending December 18, 2007: Report prepared by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report, WAMEX 76810.

Uranoz Ltd., 2007c, Goongarrie Project, E59/600, Annual Technical Report, Period Ending December 18, 2007: Report prepared by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished report, WAMEX 76811.

LAKE MINIGWAL

Previous Exploration

A large amount of historical exploration work has been undertaken in the area to the north of Lake Minigwal focusing on gold, nickel and uranium. The Company has reviewed multiple publicly available documents to develop an understanding of the geology and hydrogeology in the paleodrainage beneath the lake itself.

Mineral exploration has been undertaken surrounding the lake margins with minimal activity on or beneath the lake surface. There has been some drilling near the eastern portion of the lake (Uranerz, 1983); however, there was no reporting of lithology in these drill holes. Uranerz Pty Ltd (1987) focused on a tributary near Jasper Hill that flows in Lake Minigwal with a drill hole encountering shallow paleochannel sediments. An AEM (airborne electromagnetic) survey has been undertaken over the project area by Camuco Pty Ltd (2008): however, there were issues with near-surface conductivity masking. It was concluded that there is limited data from geophysical surveys and drilling activities that contribute to paleochannel interpretation at Lake Minigwal.

Geology

There is limited understanding of the deep stratigraphy beneath Lake Minigwal. In the available dataset, there are no drill holes that fully penetrate the Tertiary sequence with the deepest holes being about 60m bgl that were ceased in paleochannel clay. Granny Smith Mines (1999) noted that there are 120m deep paleochannels beneath Lake Carey near Wallaby deposit and it is assumed that this is the same paleochannel beneath Lake Minigwal.

Beneath 20 to 30m of alluvium and colluvium, there is a Tertiary-aged paleochannel sequence comprising dense plasticine clay (50 to 60m) and basal sands (10 to 20m thick) that are incised into the Archaean granite and greenstone basement. In places, there may be silcrete and sandy intervals within the plasticine clay. The basal sands are commonly fine to coarse-grained sand.

Hydrogeology

The upper alluvium and colluvium is considered a minor aquifer, which is present beneath the entire lake surface. There has been no direct hydraulic testing with bore yields to be low, less than 3 L/sec. In places, there may be discrete bodies of calcrete that form localised aquifers. Groundwater resources in this shallow aquifer may be directly abstracted from sandy intervals, but more likely via downward leakage.

The deeper paleochannel sand is an important regional aquifer that is widely developed by the mining industry to the north, in particular Granny Smith Mines at Lake Carey. Production bores are screened in the permeable basal sand and gravels. Long-term bore yields are commonly between 10 and 15 L/sec with up to 20 L/sec in the thickest thalweg sections

References

Camuco Pty Ltd, 2008, Annual Report for the Minigwal Project comprising ELs 39/1185, 39/1186, 39/1187, unpublished report, WAMEX A77594.

Granny Smith Mines, 1999, Lake Carey Project, E38/447, E38/448, E38/457, E39/387, E39/389 & E39/483, Mount Margaret Mineral Field, Western Australia, Sixth Annual Report on Exploration, Period ending 30th June 1999, Ref: M7959, unpublished report, WAMEX A59288.

Uranerz Pty Ltd, 1983, Final report on Exploration Licence 38/13, Rason Lake Area, Western Australia, Covering the Period 30 March 1983 to 4 November 1983, unpublished report, WAMEX A12985.

Uranerz Pty Ltd, 1987, Surrender Report on Exploration Licence 39/87, Lake Minigwal, Western Australia, Covering the period 23 March 1986 to 22 March 1987, unpublished report, WAMEX A20809.

LAKE NOONDIE

Previous Exploration

Previous diamond, gold and uranium exploration has been conducted in the vicinity of Lake Noondie. There has been limited exploration on the lake surface with most exploration associated with uranium exploration in the upper 10m. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities (Hemisphere, 2010, 2011; Mindax, 2008). The Company has reviewed multiple publicly available documents to provide an understanding of the geology and hydrogeology in the Lake Noondie paleodrainage.

Geology

There is little known about the stratigraphy in the Noondie Paleodrainage, as there have been no regional studies unlike the paleodrainages to the east (Johnson et al., 1999). The closest drill transect (Transect R) completed by the Water and River Commission (Johnson et al., 1999) is about 40km to the east. This drilling suggests the presence of a full paleochannel stratigraphy with a combined thickness of 130m.

The paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. Lake sediments are thin being less than 2 to 3m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30m thick). This shallow sedimentary sequence conceals a deeper sequence of plastic clay and basal sand. The paleochannel sands will occur in the deepest portion and may be 20 to 30m thick.

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer associated with Lake Noondie. Basal sands comprise fine to coarse-grained quartz sand that are confined beneath plastic clay and form a deeper aquifer. There has been no hydraulic testing of the shallow or deep aquifers at Lake Noondie; however, bore yields will be higher from the basal sands.

References

Hemisphere Resources Ltd., 2010, Combined reporting group C61/2009, Bulga Downs Project, Exploration Licences E57/720, E57/721, E57/722, E57/762, E57/763, E57/781 and E57/782, Western Australia, Annual Report for the year ended 13 April 2010, unpublished report, WAMEX A87235.

Hemisphere Resources Ltd., 2011, Combined reporting group C61/2009, Bulga Downs Project, Exploration Licences E57/720, E57/721, E57/722, E57/762, E57/763, E57/781 and E57/782, Western Australia, Annual Report for the year ended 13 April 2011, unpublished report, WAMEX A90598.

Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater resources of the Northern Goldfields, Western Australia: Western Australia Water and Rivers Commission, Hydrogeological Record Series, Report HG2, 57p.

Mindax Ltd, 2008, Lake Noondie Project, Combined Annual Report for Exploration Licenses E57/602 (Lake Noondie West), E57/603 (Lake Noondie East) and E57/619 (Bill Well), Black Range District, East Murchison Mineral Field for the period 1st January 2007 and 31st December 2007, unpublished report, WAMEX A77744.

LAKE RAESIDE

Previous Exploration

A large amount of historical exploration work has been undertaken in the vicinity of Lake Raeside focusing on gold, limestone, nickel and uranium. There has been limited exploration on the lake surface with most exploration associated with limestone and uranium exploration in the upper 10m at the lake margins. Soil sampling was undertaken on the lake, as well as a number of geophysical surveys and shallow drilling activities. The Company has reviewed multiple publicly available documents to develop an understanding of the geology and hydrogeology in the paleodrainage beneath the lake itself.

The Water and Rivers Commission completed a regional groundwater resource assessment of the paleodrainages in the Northern Goldfields in 1997 and 1998. As part of this assessment, a drilling transect (Transect Q) was installed about 5 km north of Lake Raeside along the Ida Valley Road that encountered a full paleochannel stratigraphy with a combined thickness of 130 m (Johnson et al., 1999).

Geology

The paleodrainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence. Lake sediments are thin being less than 2 to 3 m thick, which tend to interfinger and grade downward into an upper, iron-stained sequence of alluvium and colluvium (up to 30 m thick). This shallow sedimentary sequence conceals a deeper sequence of plastic clay and basal sand. The paleochannel sands occur in the deepest portion, may be 20 to 30 m thick, and are present beneath the current lake surface

Hydrogeology

The upper alluvium and colluvium is likely to be a minor aquifer, and in some places may form an aquitard. The presence of calcrete at the margins suggests that there may be calcrete aquifer horizons within the upper 10 m. Beneath the plastic clay, basal sands comprise fine to coarse-grained quartz sand that forms a potential deeper aquifer. There has been no hydraulic testing of the shallow or deep aquifers at Lake Raeside; however, bore yields will be higher from the basal sands.

References

Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater resources of the Northern Goldfields, Western Australia: Western Australia Water and Rivers Commission, Hydrogeological Record Series, Report HG2, 57p.

LAKE WAY

Previous Exploration

Significant historical exploration work has been completed in the Lake Way area focusing on nickel, gold and uranium. The Company has reviewed multiple publicly available documents including relevant information on the Lake Way's hydrogeology and geology.

Groundwater exploration was undertaken in the early 1990s by AGC Woodward Clyde to locate and secure a process water supply for WMC Resources Limited's Mt Keith nickel operation. There was a wide and extensive program of exploration over 40km of paleodrainage that focused on both the shallow alluvium and deeper paleochannel aquifers.

The comprehensive drilling program comprised 64 air-core drill holes totalling 4,336m and five test production bores (two of which were within SLP's exploration licences). The aquifers identified were a deep paleochannel sand unit encountered down the length of the Lake Way investigation area and a shallow mixed alluvial aquifer from surface to a depth of approximately 30m.

Geology

The Lake Way drainage is incised into the Archean basement and now in-filled with a mixed sedimentary sequence, the paleochannel sands occurring only in the deepest portion. The mixed sediments include sand, silts and clays of lacustrine, aeolin, fluvial and colluvial depositional origins. The surficial deposits also include chemical sediments comprising calcrete, silcrete and ferricrete. These sediments provide a potential reservoir for large quantities of groundwater.

The deep paleochannel sand aquifer is confined beneath plasticine clay up to 70m thick. The sand comprises medium to coarse grained quartz grains with little clay - it is approximately 30m thick and from 400m to 900m in width.

Hydrogeology

The shallow aquifer comprises a mixture of alluvium, colluvium and lake sediments extending beyond the lake playa and continuing downstream. Five test production bores were developed, of which two are within SLP's tenements. CRT bore yields ranged from 520 kL/day up to 840 kL/day in permeable coarse-grained sand.

References

AGC Woodward-Clyde Pty Ltd, 1992, Mt Keith Process Water Supply, Lake Way Area, Volume 1, Contained within WMC Resources, Partial Surrender Report for the period 8 December 1992 to 7 December 1995, unpublished report, WAMEX A48586.

Tenements

The GSLP tenements are detailed in the Table below:

 
       Project            Status          License       Area       Term       Grant      Date of First    Interest 
                                          Number       (km(2)                 Date      Relinquish-ment 
                                                          ) 
 Western Australia 
=====================  ==============  =========  =======================  ==========  =========================== 
 Lake 
 Wells 
  Central                 Granted        E38/2710       192.2    5 years    05-Sep-12      4-Sep-17         100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South                   Granted        E38/2821       131.5    5 years    19-Nov-13      18-Nov-18        100% 
  North                   Granted        E38/2824       198.2    5 years    04-Nov-13      3-Nov-18         100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  Outer East              Granted        E38/3055       298.8    5 years    16-Oct-15      16-Oct-20        100% 
  Single Block            Granted        E38/3056        3.0     5 years    16-Oct-15      16-Oct-20        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  Outer West              Granted        E38/3057       301.9    5 years    16-Oct-15      16-Oct-20        100% 
  North West              Granted        E38/3124       39.0     5 years    30-Nov-16      29-Nov-21        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  West                    Granted         L38/262       113.0    20 years   3-Feb-17       2-Feb-38         100% 
  East                    Granted         L38/263       28.6     20 years   3-Feb-17       2-Feb-38         100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South West              Granted         L38/264       32.6     20 years   3-Feb-17       2-Feb-38         100% 
  South                 Application       L38/287       95.8        -           -              -            100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South Western           Granted        E38/3247       350.3    5 years    25-Jan-18      24-Jan-23        100% 
  South                 Application      M38/1278       87.47       -           -              -            100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
 Lake 
 Ballard 
  West                    Granted         E29/912       607.0    5 years    10-Apr-15      10-Apr-20        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  East                    Granted         E29/913       73.2     5 years    10-Apr-15      10-Apr-20        100% 
  North                   Granted         E29/948       94.5     5 years    22-Sep-15      21-Sep-20        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South                   Granted         E29/958       30.0     5 years    20-Jan-16      19-Jan-21        100% 
  South East              Granted        E29/1011       68.2     5 years    11-Aug-17      10-Aug-22        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South East              Granted        E29/1020        9.3     5 years    21-Feb-18      20-Feb-23        100% 
  South East              Granted        E29/1021       27.9     5 years    21-Feb-18      20-Feb-23        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South East              Granted        E29/1022       43.4     5 years    21-Feb-18      20-Feb-23        100% 
 Lake 
 Irwin 
=========  ==========  ==============  =========  =======================  ==========  =========================== 
  West                    Granted        E37/1233       203.0    5 years    08-Mar-16      07-Mar-21        100% 
  Central                 Granted        E39/1892       203.0    5 years    23-Mar-16      22-Mar-21        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  East                    Granted        E38/3087       139.2    5 years    23-Mar-16      22-Mar-21        100% 
  North                   Granted        E37/1261       107.3    5 years    14-Oct-16      13-Oct-21        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  Central East            Granted        E38/3113       203.0    5 years    14-Oct-16      13-Oct-21        100% 
  South                   Granted        E39/1955       118.9    5 years    14-Oct-16      13-Oct-21        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  North West            Application      E37/1260       203.0       -           -              -            100% 
  South West            Application      E39/1956       110.2       -           -              -            100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
 Lake Minigwal 
  West                    Granted        E39/1893       246.2    5 years    01-Apr-16      31-Mar-21        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  East                    Granted        E39/1894       158.1    5 years    01-Apr-16      31-Mar-21        100% 
  Central                 Granted        E39/1962       369.0    5 years    8-Nov-16       7-Nov-21         100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  Central East            Granted        E39/1963       93.0     5 years    8-Nov-16       7-Nov-21         100% 
  South                   Granted        E39/1964       99.0     5 years    8-Nov-16       7-Nov-21         100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South West            Application      E39/1965       89.9        -           -              -            100% 
 Lake Way 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  Central                 Granted        E53/1878       217.0    5 years    12-Oct-16      11-Oct-21        100% 
  South                 Application      E53/1897       77.5        -           -              -            100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
 Lake Marmion 
  North                   Granted        E29/1000       167.4    5 years    03-Apr-17      02-Apr-22        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  Central                 Granted        E29/1001       204.6    5 years    03-Apr-17      02-Apr-22        100% 
  South                   Granted        E29/1002       186.0    5 years    15-Aug-17      14-Aug-22        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  West                    Granted        E29/1005       68.2     5 years    11-Jul-17      10-Jul-22        100% 
 Lake Noondie 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  North                 Application      E57/1062       217.0       -           -              -            100% 
  Central               Application      E57/1063       217.0       -           -              -            100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South                 Application      E57/1064       55.8        -           -              -            100% 
  West                  Application      E57/1065       120.9       -           -              -            100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  East                  Application       E36/932       108.5       -           -              -            100% 
 Lake Barlee 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  North                 Application       E49/495       217.0       -           -              -            100% 
  Central                 Granted         E49/496       220.1    5 years    17-Dec-17      16-Dec-22        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  South                   Granted        E77/2441       173.6    5 years    09-Oct-17      08-Oct-22        100% 
 Lake Raeside 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  North                 Application      E37/1305       155.0       -           -              -            100% 
 Northern Territory 
=====================  ==============  =========  =======================  ==========  =========================== 
 Lake 
 Lewis 
  South                   Granted        EL 29787       146.4    6 years    08-Jul-13      7-Jul-19         100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
  North                   Granted        EL 29903       125.1    6 years    21-Feb-14      20-Feb-19        100% 
====================  ==============  ==============  ========  =========  ==========  ================  ========= 
 
 

Competent Persons Statement

The information in this report that relates to Exploration Results, Exploration Targets or Mineral Resources 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.

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Salt Lake, which could cause actual results to differ materially from such statements. Salt Lake makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of that announcement.

APPIX 2A - LAKE RAESIDE BRINE CHEMISTRY ANALYSIS

 
 HOLE ID     East     North    From     To       K        Cl        Na        Ca        Mg       SO(4)     TDS 
                                 (m)    (m)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (g/L) 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700001    315501   6807912     0      1      2,270    138,200   82,000     1,020     5,420     10400     241 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700005    311513   6809765     0      1      1,440    73,000    44,000     1,500     3,390     8400      133 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700007    307959   6811061     0      1      2,180    115,350   68,700     1,060     5,330     11500     208 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700011    300035   6813662     0      1      2,240    149,850   87,900      603      8,690     17600     273 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700013    278641   6810996     0      1      3,140    167,950   96,900      409     12,400     27400     317 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700015    281725   6810666     0      1       950     55,550    34,100      600      3,130     8730      104 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 S700017    287751   6812747     0      1      2,230    124,500   74,100      789      6,510     15400     228 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 

APPIX 2B - LAKE NOONDIE BRINE CHEMISTRY ANALYSIS

 
 HOLE ID     East     North    From     To       K        Cl        Na        Ca        Mg       SO(4)     TDS 
                                 (m)    (m)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (g/L) 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700004    713808   6828889     0      1      2,630    131,000   78,600      785      5,310    13,700     232 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700008    720566   6832676     0      1      2,350    125,050   75,300      822      5,230    13,900     223 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700010    727256   6836907     0      1      2,390    125,050   75,400      796      4,950    14,300     222 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700012    734532   6837014     0      1      2,740    130,150   80,400      821      4,370    13,400     231 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700014    740408   6837916     0      1      2,030    121,050   71,500      802      5,330    12,900     212 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700016    741574   6840505     0      1      1,900    92,800    54,900      522      3,700     8,640     162 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700018    750994   6847653     0      1      2,340    135,400   76,600      754      5,870    14,200     234 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700020    754948   6851513     0      1      2,470    111,750   67,700      949      4,240    12,100     197 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700022    765001   6857294     0      1      2,600    128,550   73,600     1,050     4,810    10,200     222 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 N700024    781493   6855076     0      1      2,030    101,200   58,600     1,390     3,800     8,490     172 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 

APPIX 2C - LAKE MINIGWAL BRINE CHEMISTRY ANALYSIS

 
 HOLE ID     East     North    From     To       K        Cl        Na        Ca        Mg       SO(4)     TDS 
                                 (m)    (m)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (g/L) 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700002    462878   6753653     0      1      1,900    154,200   96,600      706      5,900    14,300     267 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700004    465178   6751680     0      1      2,160    168,450   104,000     658      5,710    12,900     288 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700006    516470   6735650     0      1      2,270    143,150   89,300      523      7,210    23,000     261 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700008    518949   6731636     0      1      1,850    138,950   87,100      594      7,580    20,500     250 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700010    520783   6728495     0      1      1,990    145,100   91,700      499      8,110    24,300     267 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700011    477839   6749646     0      1      2,470    176,750   106,000     539      7,030    15,700     311 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700013    482455   6738102     0      1      2,610    165,500   103,000     310      7,290    31,800     323 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700015    488600   6734506     0      1      2,040    126,450   75,300      648      6,120    19,200     237 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700017    507653   6736762     0      1      1,750    134,000   79,600      526      8,160    23,200     257 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700019    527552   6726613     0      1      1,750    149,850   84,800      549      7,890    18,300     274 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700023    505953   6742473     0      1      3,810    167,750   92,400      375     11,700    26,700     316 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700025    509570   6745818     0      1      2,850    151,400   80,300      456     10,900    23,900     285 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700027    504869   6753891     0      1      3,800    133,450   78,800      500      7,990    24,900     259 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 M700029    504869   6753891     0      1      3,740    149,300   82,700      402     12,500    32,100     292 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 

APPIX 2D - LAKE BARLEE BRINE CHEMISTRY ANALYSIS

 
 HOLE ID     East     North    From     To       K        Cl        Na        Ca        Mg       SO(4)     TDS 
                                 (m)    (m)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (g/L) 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700003    766001   6706841     0      1      1920     146800     81100      726      8180      13400    250500 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700005    764573   6716740     0      1      1680     145950     81500      677      8470      14200    250900 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700011    761574   6746205     0      1      1720     132450     78700     1000      5680      10900    228850 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700013    754538   6747013     0      1      1150      93300     54500      477      3890      7200     158200 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700017    758045   6747653     0      1      1400      98400     59000      978      3480      7680     169350 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700021    737684   6727502     0      1       860      65750     38800      554      3110      6060     113950 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 E700023    742095   6731966     0      1      1460     129100     76900      990      5400      11000    223650 
---------  -------  --------  ------  -----  --------  --------  --------  --------  --------  --------  ------- 
 

APPIX 2E - LAKE WAY BRINE CHEMISTRY ANALYSIS

"Lake Way" series Chemistry data extracted from AGC Woodward-Clyde Pty Ltd, 1992, Mt Keith Process Water Supply, Lake Way Area, Volume 1, Contained within WMC Resources, Partial Surrender Report for the period 8 December 1992 to 7 December 1995, unpublished report, WAMEX A48586.

 
    HOLE ID         Aquifer       East     North       K        Cl        Na        Ca        Mg       SO(4)     TDS 
                                                     (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (mg/L)    (g/L) 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 2/4    Paleochannel    255050   7020250    5,200    120,000   68,000      600      6,700     6,700     220 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 3/4    Paleochannel    247700   7032150    6,300    130,000   83,000      520      8,200     8,200     260 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 3/5    Paleochannel    247700   7032150    3,400    75,000    49,000      510      5,000     5,000     160 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 3/14   Paleochannel    245050   7029800    5,300    130,000   70,000      440      7,400     7,400     240 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 5/6    Paleochannel    241750   7035300    6,100    130,000   77,000      570      7,000     7,000     240 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 2/4        Clay        255050   7020250    3,800    78,000    49,000      930      3,400     3,400     150 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 2/6        Clay        254250   7019550    3,400    64,000    38,000     1,100     2,500     2,500     120 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 2/7        Clay        253300   7018850    3,000    56,000    37,000      930      2,900     2,900     120 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 3/1        Clay        248420   7032900    1,500    42,000    28,000      450      3,400     3,400      88 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 3/4        Clay        247700   7032150    2,200    49,000    31,000      750      3,900     3,900     110 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 Lake Way 5/7        Clay        242800   7034250    6,000    130,000   73,000      510      7,100     7,100     240 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700002        Surficial     237500   7031600    8,110    149,750   86,800      359      8,930    30,600     288 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700004        Surficial     235968   7036128    6,950    124,750   74,200      503      7,280    28,000     240 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700006        Surficial     237015   7039115    6,980    132,800   79,200      445      8,470    31,800     258 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700008        Surficial     240508   7036136    6,440    142,100   78,300      407     12,000    33,000     274 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700010        Surficial     241352   7031891    7,210    127,200   72,800      593      6,630    22,500     238 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700012        Surficial     241855   7026999    7,090    114,750   67,000      638      5,450    21,900     216 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700020        Surficial     245022   7027585    6,930    123,700   73,000      624      6,440    22,100     231 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
    Y700022        Surficial     246105   7024796    5,160    109,300   59,700      803      6,670    17,300     201 
--------------  --------------  -------  --------  --------  --------  --------  --------  --------  --------  ------- 
 

APPIX 3 - JORC TABLE ONE

Section 1: Sampling Techniques and Data

 
 Criteria                                JORC Code explanation                   Commentary 
 Sampling techniques                     Nature and quality of sampling (eg      Sampling was undertaken using test 
                                         cut channels, random chips, or          pits excavated into the playa surface 
                                         specific specialised industry           to a depth of approximately 
                                         standard measurement tools              1m. 
                                         appropriate to the minerals under 
                                         investigation, such as down hole 
                                         gamma sondes, or handheld XRF 
                                         instruments, etc). These examples 
                                         should not be taken as limiting 
                                         the broad meaning of sampling. 
                                         Include reference to measures taken 
                                         to ensure sample representivity and 
                                         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, reverse            Not Applicable 
                                         circulation, open-hole hammer, rotary 
                                         air blast, auger, Bangka, 
                                         sonic, etc) and details (eg core 
                                         diameter, triple 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 assessing       Brine samples were obtained from all 
                                         core and chip sample recoveries and     test pits 
                                         results assessed. 
                                         Measures taken to maximise sample 
                                         recovery and ensure representative 
                                         nature of the samples. 
                                         Whether a relationship exists between 
                                         sample recovery and grade and whether 
                                         sample bias may 
                                         have occurred due to preferential 
                                         loss/gain of fine/coarse material. 
======================================  ======================================  ====================================== 
 Logging                                 Whether core and chip samples have      All pits were geologically logged by 
                                         been geologically and geotechnically    a qualified geologist, noting 
                                         logged to a level                       moisture content of sediments, 
                                         of detail to support appropriate        lithology, colour, induration, 
                                         Mineral Resource estimation, mining     grainsize, matrix and structural 
                                         studies and metallurgical               observations. A digital drill 
                                         studies.                                log was developed specifically for 
                                         Whether logging is qualitative or       this project. 
                                         quantitative in nature. Core (or 
                                         costean, channel, etc) 
                                         photography. 
                                         The total length and percentage of 
                                         the relevant intersections logged. 
 Sub-sampling techniques and sample      If core, whether cut or sawn and        Geological logs are recorded in the 
 preparation                             whether quarter, half or all core       field based on inspection of 
                                         taken.                                  cuttings. Geological samples 
                                         If non-core, whether riffled, tube      are retained for each hole in 
                                         sampled, rotary split, etc and          archive. 
                                         whether sampled wet or dry.             Sub-sampling was not undertaken. 
                                         For all sample types, the nature,       Sample bottles are rinsed with brine 
                                         quality and appropriateness of the      which is discarded prior to sampling. 
                                         sample preparation technique.           All brine samples taken in the field 
                                         Quality control procedures adopted      are split into three sub-samples: 
                                         for all sub-sampling stages to          primary, potential 
                                         maximise representivity                 duplicate, and archive. 
                                         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 laboratory    The nature, quality and                 Primary samples were sent to Bureau 
 tests                                   appropriateness of the assaying and     Veritas Minerals Laboratory, Perth. 
                                         laboratory procedures used and          Brine samples were analysed using 
                                         whether the technique is considered     ICP-AES for K, Na, Mg, Ca, with 
                                         partial or total.                       chloride determined by Mohr 
                                         For geophysical tools, spectrometers,   titration and alkalinity determined 
                                         handheld XRF instruments, etc, the      volumetrically. Sulphate was 
                                         parameters used in                      calculated from the ICP-AES 
                                         determining the analysis including      sulphur analysis 
                                         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 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 to 
                                         The use of twinned holes.               prevent transposition 
                                         Documentation of primary data, data     errors and these data sets are 
                                         entry procedures, data verification,    subject to the quality control 
                                         data storage (physical                  described above. 
                                         and electronic) protocols.              Independent verification of 
                                         Discuss any adjustment to assay data.   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 mineralisation. 
 Data spacing and distribution           Data spacing for reporting of           Data spacing is variable and is not 
                                         Exploration Results.                    on an exact grid due to the irregular 
                                         Whether the data spacing and            nature of the salt 
                                         distribution is sufficient to           lake shape and difficulty obtaining 
                                         establish the degree of geological      access to some part of the salt lake. 
                                         and grade continuity appropriate for 
                                         the Mineral Resource and Ore Reserve 
                                         estimation procedure(s) 
                                         and classifications applied. 
                                         Whether sample compositing has been 
                                         applied. 
======================================  ======================================  ====================================== 
 Orientation of data in relation to      Whether the orientation of sampling     Not Applicable 
 geological structure                    achieves unbiased 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 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 and 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   Details are presented in the report. 
 status                                  and ownership including agreements or 
                                         material issues 
                                         with third parties such as joint 
                                         ventures, partnerships, overriding 
                                         royalties, native title 
                                         interests, historical sites, 
                                         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         Details are presented in the report. 
                                         exploration by other parties. 
 Geology                                 Deposit type, geological setting and    Salt Lake Brine Deposit 
                                         style of mineralisation. 
======================================  ======================================  ====================================== 
 Drill hole Information                      A summary of all information        Details are presented in the report. 
                                             material to the understanding of 
                                             the exploration results including 
                                             a tabulation of the following 
                                             information for all Material 
                                             drill holes: 
                                             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,       Details are presented in the report. 
                                         weighting averaging techniques, 
                                         maximum and/or minimum grade 
                                         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. 
                                         with respect to the drill hole angle 
                                         is known, its nature 
                                         should be reported. 
                                         If it is not known and only the down 
                                         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   All material exploration data 
                                         and material, should be reported        reported. 
                                         including (but not 
                                         limited to): geological observations; 
                                         geophysical survey results; 
                                         geochemical survey results; 
                                         bulk samples - size and method of 
                                         treatment; metallurgical test 
                                         results; bulk density, groundwater, 
                                         geotechnical and rock 
                                         characteristics; potential 
                                         deleterious or contaminating 
                                         substances. 
======================================  ======================================  ====================================== 
 Further work                            The nature and scale of planned         Aircore / RC drilling to defined 
                                         further work (eg tests for lateral      paleovalley structure and provide 
                                         extensions or depth extensions          brine samples with depth. 
                                         or large-scale step-out drilling).      Hydraulic testing be undertaken, for 
                                         Diagrams clearly highlighting the       instance pumping tests from bores 
                                         areas of possible extensions,           and/or trenches to 
                                         including the main geological           determine, aquifer properties, 
                                         interpretations and future drilling     expected production rates and 
                                         areas, provided this information is     infrastructure design (trench 
                                         not commercially sensitive.             and bore size and spacing). 
                                                                                 Diamond Core drilling to obtain 
                                                                                 sample for porosity determination. 
                                                                                 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. 
======================================  ======================================  ====================================== 
 

For further information please visit www.saltlakepotash.com.au or contact:

 
 Matt Syme/Sam Cordin             Salt Lake Potash Limited                    Tel: +61 8 9322 6322 
 Jo Battershill                   Salt Lake Potash Limited                    Tel: +44 (0) 20 7478 3900 
 Colin Aaronson/Richard Tonthat   Grant Thornton UK LLP (Nominated Adviser)   Tel: +44 (0) 20 7383 5100 
 Derrick Lee/Beth McKiernan       Cenkos Securities plc (Joint Broker)        Tel: +44 (0) 131 220 6939 
 Jerry Keen/Toby Gibbs            Shore Capital (Joint broker)                Tel: +44 (0) 20 7468 7967 
 

[1] Bell et al, 2012, WASANT Paleovalley Map - Distribution of Palaeovalley in Arid and Semi-arid WA-SA-NT. Geoscience Australia Thematic Map.

[2] Johnson, S.L., Commander, D.P., and O'Boy, C.A. 1999, Groundwater resources of the Northern Goldfields, Western Australia: Water and Rivers Commission, Hydrogeological Record Series, Report HG 2, 57p.

[3] DeBroekert and Sandiford (2005), Buried Inset-Valleys in the Eastern Yilgarn Craton, Western Australia: Geomorphology, Age, and Allogenic Control. The Journal of Geology, 2005, volume 113, p. 471-493

[4] http://www.ga.gov.au/scientific-topics/hazards/flood/wofs

[5] Johnson, (2007) Groundwater abstraction and aquifer response in the Roe Palaeodrainage (1990-2001). Department of Water Hydrogeological Record Series Report HG23 October 2007

[6] Bowler, J.M., 1986. Spatial variability and hydrologic evolution of Australian lake basins: analogues for Pleistocene hydrologic change and evaporite formation. Palaeogeography, Palaeoclimatology, Palaeoecology, 54, 21-41.

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