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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Salt Lake Potash Limited | LSE:SO4 | London | Ordinary Share | AU000000SO44 | ORD NPV (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 2.45 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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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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