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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Salt Lake Potash Limited | LSE:SO4 | London | Ordinary Share | AU000000SO44 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.45 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMSO4
RNS Number : 1362T
Salt Lake Potash Limited
18 March 2019
Hot Features
Premium
18 March 2019 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
SIGNIFICANT HIGH-GRADE SOP RESOURCE DELINEATED AT LAKE WAY
------------------------------------------------------------
The version of this announcement including diagrams can be viewed at www.saltlakepotash.com.au/asx-announcements/
Highlights:
-- Initial Mineral Resource Estimate for the whole of Lake Way contains 73 million tonnes of SOP, including:
o Measured Resource - Lake Way Playa 6.9Mt @ 15.4kg/m(3)
o Measured Resource - Williamson Pit 32Kt @ 25.5kg/m(3)
o Indicated Resource - Paleochannel 3.7Mt @ 13.6kg/m(3)
o Inferred Resource - Lake Way Playa & Paleovalley Sediment 62Mt @ 15.2kg/m(3)
-- Lake Way confirmed as very high-grade with consistent brine chemistry both laterally and at depth, with an average grade of 14.5kg of SOP per cubic metre of brine across the Lake Way tenements (Measured and Indicated)
-- The Company has successfully delineated a Paleochannel in excess of 30km in length along the eastern boundary of Lake Way, which supports the ability and optionality to produce brine from two separate sources (lake playa and paleochannel)
Test pumping of historical bores at Lake Way has provided important data that supports efficient production by pumping from the paleochannel resource
-- The Mineral Resource Estimate for the 'whole of lake' will enable the Company to finalise technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019
Salt Lake Potash Limited (the Company or Salt Lake Potash) (ASX/AIM:SO4) is pleased to advise of a significant extension of the Mineral Resource Estimate at Lake Way following completion of an exploration program across the 'whole of the lake'. The estimated total Mineral Resource Estimate at Lake Way has increased to 73 million tonnes (Mt) of SOP calculated using Total Porosity and 8.2Mt of SOP calculated using Drainable Porosity. Thirdly, the model is now being further refined by establishing a site evaporation trial, where a scaled down version of an evaporation pond system is established on site and brine is evaporated under actual field conditions. Both brine chemistry and salt production are closely monitored.
Table 1: Resource Table
Classification Bulk Volume Porosity (%) Brine Volume Average SOP (K(2) SO(4) ) Concentration (kg/m(3) ) SOP Tonnage - Total Porosity SOP Tonnage - Drainable Porosity(1)
(Million m(3) ) (Million m(3) ) (Mt) (Mt)
Measured (Lake) 1,060 43 456 15.4 6.9 1.8
----------------- ------------- ----------------- --------------------------------------------------- ----------------------------- ------------------------------------
Measured
(Williamson Pit) 1.26 25.5 0.03 0.03
----------------- -------------------------------- --------------------------------------------------- ----------------------------- ------------------------------------
Indicated
(Paleochannel) 686 40 274 13.6 3.7 1.4
----------------- ------------- ----------------- --------------------------------------------------- ----------------------------- ------------------------------------
Inferred 10,216 40 4,096 15.2 62.2 5.0
----------------- ------------- ----------------- --------------------------------------------------- ----------------------------- ------------------------------------
Total 11,963 4,826 72.83 8.2
----------------- ------------- ----------------- --------------------------------------------------- ----------------------------- ------------------------------------
1. An average Drainable Porosity ranging from 3-15% has been applied
Salt Lake Potash's Chief Executive Officer, Mr Tony Swiericzuk said:
"It is extremely pleasing to present the Lake Way Mineral Resource Estimate for the 'whole of lake" that confirms the significant size and very high-grade resource at Lake Way.
It reinforces our current review process to consider a larger scale scenario at Lake Way and we anticipate releasing the technical results of the larger scale scenario towards the end of Q2 2019."
Lake Way Project
Salt Lake Potash is focussed on the rapid development of the Lake Way Project, being a high grade salt-lake brine Sulphate of Potash (SOP) operation. Lake Way's location and logistical advantages make it the ideal Lake for the Company's first SOP operation.
Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km(2) . The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine. The Company's Memorandum of Understanding with Blackham (see ASX Announcement dated 12 March 2018) allows for an expedited path to development at Lake Way.
Introduction
The maiden Mineral Resource Estimate reported in July 2018 was limited to the area within the Blackham Tenement boundary. Subsequent to this, the Company has undertaken an extensive exploration program covering the remaining areas of Lake Way including the delineation of the Paleochannel which runs along the eastern boundary of the Lake Way Project.
Salt Lake Potash has now finalised the exploration program that has supported a 'whole of lake' Mineral Resource Estimate, covering the playa surface and the Paleochannel aquifers of Lake Way.
The Mineral Resource Estimate for the 'whole of lake' will enable Salt Lake Potash to finalise technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019.
Mineral Resource Estimate
The Company engaged an independent hydrogeological consultant with substantial salt lake brine expertise, Groundwater Science Pty Ltd, to complete the Mineral Resource Estimate for the Lake Way Project.
The Lake Way Mineral Resource Estimate describes a brine hosted resource. The minerals are dissolved in brine, and the brine is contained within pore spaces of the host sediment. A small portion of the resource is contained in the Williamson Pit Lake.
The Mineral Resource Estimate of 73Mt is hosted within approximately 15 billion cubic metres of sediment ranging in thickness from a few metres to over 100m, beneath 189km(2) of Playa Lake surface including the paleochannel basal sand unit of 20m thickness and 30km length.
The Mineral Resource Estimate for Lake Way is divided into resource classifications that are controlled by the host geological units:
-- Lake Bed Sediment -- Paleovalley Sediment -- Paleochannel Basal Sands
The mineral resource estimate is summarised in the Tables below. An overview of each resource classification is provided in the subsequent paragraphs. Details of the estimation methodology are provided in the body of this report.
The estimated SOP tonnage represents the SOP within the in-situ contained brine with no recovery factor applied. The amount of contained brine which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers.
Table 2: Measured Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity(1) Volume Tonnage
==================== ====================== ====================== ====================== ====================== ==================== ====================== ========================= ==================== ======================
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
==================== ====================== ====================== ====================== ====================== ==================== ====================== ========================= ==================== ======================
North
Lakebed
(0.4-8.0
m) 1,060 6.8 8.0 27.6 0.42 445 6.8 0.11 117 1.8
==================== ====================== ====================== ====================== ====================== ==================== ====================== ========================= ==================== ======================
Williamson
Pit 1.26 11.4 14.7 48.0 1.26 0.03
==================== ====================== ====================== ====================== =============================================================================================== ==================== ======================
Total 6.8 1.83
==================== ====================== ====================== ====================== ====================== ==================== ====================== ========================= ==================== ======================
Table 3: Indicated Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Basal Sands
(Paleochannel) 686 6.1 8.2 25.0 0.40 274 3.7 15 103 1.4
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Table 4: Inferred Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
South Lakebed
(0.4-8.0 m) 316 6.8 8.0 27.6 0.42 133 2.0 0.11 35 0.5
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Lakebed
(8m to Base) 9,900 6.8 8.0 27.6 0.40 3,960 60.0 0.03 297 4.5
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Total 62.0 5.0
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
1. The Drainable Porosity does not include the significant resource potentially available through the recharge cycle. Refer Appendix 1.
The northern section of Mineral Resource Estimate (including the Blackham tenements) has been classified into a Measured category for the upper 8m of lakebed sediments. The resources contained within the lakebed sediments below 8m, and the southern section of the lake at all depths, are all classified in the Inferred category. The Paleochannel running along the eastern boundary of the lake has been classified in the Indicated category.
The Company will continue the exploration program as it looks to increase the resource definition in the southern section of the lake and ultimately convert the Mineral Resource Estimate into Ore Reserves following further technical studies.
2018 Resource Estimate for Lake Way
In July 2018, the Company completed a scoping study for a 50,000tpa demonstration plant supported by an indicated resource for the 55.4km(2) area of the Blackham tenements on Lake Way totaling 1.9Mt of SOP with an excellent brine chemistry of 15.49Kg/m(3) K(2) SO(4) and a measured resource from the Williamson pit of 32kt with a highly concentrated chemistry of 25.5Kg/m(3) K(2) SO(4.)
The Resource was calculated on the shallow (6m average depth) Playa Lake Sediment only. This resource has now been extended to 8m depth and to include 87km(2) of Salt Lake Potash's tenement covering the open playa area of Lake Way and upgraded to measured. The Williamson Pit resource remains unchanged.
Williamson Pit - Measured Resource Estimate
The Measured Resource dissolved in the Williamson Pit Lake Comprises 32Kt SOP dissolved in 1.26Mm(3) brine at an average grade of 24.4kg/m(3) SOP.
Lakebed Sediment (North) - Measured Resource Estimate
The Measured Resource is hosted in the Lake Bed Sediments in the northern part of the lake where data density is sufficient to support the Measured Resource classification.
The resource comprises 6.9Mt SOP hosted in the total porosity of the sediment which includes 1.8Mt SOP within the drainable porosity of the sediment.
The resource is contained within the top 8m of sediment, which can reasonably be drained by pumping from trenches and occupies an area of 139.5km(2) of the Lake Way playa surface. Islands and a zone of dewatered sediment have been removed from the area used to calculate the resource.
Brine chemistry was defined by assay of brine samples taken from 9 hand dug pits, 13 Auger drillholes, and 49 excavated test pits. The average brine grade is 15.2kg/m(3) SOP.
Total Porosity was defined by laboratory determination of 16 intact samples obtained by hollow core auger drilling and 24 Shelby Tubes advanced during excavation of test pits. Total porosity averages 42%.
Drainable porosity was defined by laboratory determination of 24 intact samples obtained by hollow core auger drilling and Shelby Tubes advanced during excavation of test pits. Extended duration pumping trials were undertaken to provide field estimates of drainable porosity to validate the laboratory determination. Drainable porosity by all methods averaged 11%.
Lakebed Sediment (South) - Inferred Resource Estimate
The Inferred Resource is hosted in the Lake Bed Sediments in the southern part of the lake where data density is insufficient to support a higher classification. In this area continuity of brine grade and sediment porosity is assumed which constrains the resource classification to Inferred.
The resource comprises 2.1Mt SOP hosted in the total porosity of the sediment which includes 0.5Mt SOP within the drainable porosity of the sediment.
The resource is contained within the top 8m of sediment, which can reasonably be drained by pumping from trenches and occupies the 41.6km(2) area of the Lake Way playa surface. Islands on the Playa surface have been removed from the area used to calculate the resource.
Brine chemistry and sediment porosity was assumed to be equivalent to the average of the northern part of the lake.
Paleochannel Basal Sand - Indicated Resource Estimate
The Indicated Resource is hosted in the Basal Sands that infill the deepest 20m of the paleochannel.
The resource comprises 3.7Mt SOP hosted in the total porosity of the sediment which includes 1.4Mt SOP hosted in the drainable porosity of the sediment.
The geometry and volume of the basal sand was defined by detailed gravity and passive seismic geophysical survey, validated against the extensive historical drilling data set. The total sediment volume is 686 million cubic meters.
Total porosity and drainable porosity were benchmarked against comparable paleochannel sands and a value of 40% total porosity and 15% drainable porosity was applied.
Brine chemistry was defined by assay of multiple brine samples taken from two historic test bores that were pumped for 24 hours. The average brine grade is 13.6kg/m(3) SOP.
Paleovalley Sediment - Inferred Resource Estimate
The Inferred Resource is hosted in the predominately silt and clay sediments that infill the paleovalley from the base of the Lake Bed Sediments to basement or the Basal Sands.
The resource comprises 60Mt SOP hosted in the total porosity of the sediment which includes 4.5Mt SOP within the drainable porosity of the sediment. The proportion of the brine held in drainable porosity is much lower in this unit due to the fine-grained lithology.
The geometry and volume of the Paleovalley Sediment was defined by detailed gravity and passive seismic geophysical survey, validated against the extensive historical drilling data set. The total sediment volume is 9,900 million cubic meters.
Brine chemistry is assumed to be continuous from the surface of the playa to the base of the Paleovalley Sediment based on comparable assay results from the lake bed sediments and the paleochannel sands.
Porosity was estimated against comparable sediments, and 40% total porosity and 3% drainable porosity has been applied in the resource estimation.
Future Work
The Mineral Resource Estimate for the 'whole of lake' will enable Salt Lake Potash to finalise technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019.
The Company will continue the exploration program at Lake Way as it looks to increase the resource definition in the southern section of the lake and ultimately convert the Mineral Resource Estimate into Ore Reserves following further technical studies.
Construction of the first phase of the Lake Way Evaporation Ponds is progressing well. The first phase will enable de-watering of the Williamson Pit. The utilisation of the Williamson Pit brine will accelerate Salt Lake Potash's pathway to first production of SOP at Lake Way.
For further information please visit www.saltlakepotash.com.au or contact:
Tony Swiericzuk/Clint McGhie Salt Lake Potash Limited Tel: +61 8 6559 5800 Jo Battershill Salt Lake Potash Limited Tel: +44 (0) 20 7478 3900 Colin Aaronson/Richard Tonthat/Ben Roberts 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
Summary of Resource Estimate and Reporting Criteria
This ASX Announcement has been prepared in compliance with JORC Code 2012 Edition and the ASX Listing Rules. The following is a summary of the pertinent information used in the Mineral Resource Estimate with full details provided in the JORC Code Table 1 included as Appendix 4.
Geology and Geological Interpretation
The investigation area is in the Northern Goldfields Province on the Archaean Yilgarn Craton.
The province is characterised by granite-greenstone rocks that exhibit a prominent northwest tectonic trend and low to medium-grade metamorphism. The Archaean rocks are intruded by east-west dolerite dykes of Proterozoic age, and in the eastern area there are small, flat-lying outliers of Proterozoic and Permian sedimentary rocks. The basement rocks are generally poorly exposed owing to low relief, extensive superficial cover, and widespread deep weathering. A key characteristic of the goldfields is the occurrence of paleochannel aquifers. These palaeodrainages are incised into the Archean basement and in-filled with a mixed Tertiary and Quaternary sedimentary sequence.
The paleochannel sediments of Lake Way are characterised by a mixed sedimentary sequence including sand, silts and clays of lacustrine, aeolian, fluvial and colluvial depositional origins. These near-surface deposits also include chemically-derived sediments of calcrete, silcrete and ferricrete. Beneath eastern parts of the playa, there is a deep paleochannel that is infilled with Tertiary-aged palaeochannel clay and basal sands in the deepest portion.
The Sediments infilling the paleochannel are described below:
Lake Bed Sediment
Recent (Cainozoic), unconsolidated silt, sand and clay sediment containing variable abundance of evaporite minerals, particularly gypsum. The unit is ubiquitous across the salt lake surface. The thickness of the unit ranges from approximately 3 to 20m. This unit hosts the Measured and Inferred Resource.
The upper part of the unit comprises unconsolidated, gypsiferous sand and silt from surface to around 1.5m depth. The unit is widespread, homogeneous and continuous with the thickest parts in the centre and southern portion of the lake. This is underlain by well sorted, lacustrine silt and clay.
Palaeovalley Sediment
The Paleovalley sediment consists of Tertiary clay and silt that overlies basement or the Basal Sand.
Paleochannel Basal Sand
Tertiary, unconsolidated fine, medium to coarse grained sand interbedded with silt, clay and some lignite horizons.
Hydrological Setting
Surface Water
Lake Way receives episodic surface water inflow from West and East Creeks which lie to the north of the playa and other smaller creek lines to the west. The Playa is a terminal feature in the surface water system, i.e. there are no drainage lines that exit the playa.
Surface water recharge is a significant part of the water balance for salt-lake playa brine potash operations as described in Turk's (1972) description of the Bonneville Salt Flats (now Wendover Potash Mine) and EPM's (2013) proposed potash operation at Sevier Lake.
The morphology of the playa shape and surface is consistent with the classification system described by Bowler (1986). The northern part of the Playa exhibits morphology typical of significant surface water influence and periodic inundation (smooth playa edges, one island). The southern part of the playa exhibits morphology consistent with a groundwater dominated playa with rare inundation (irregular shoreline, numerous islands). The frequency of inundation across the lake may be influenced by prevailing south-easterly winds driving water to the north eastern end of the Lake.
The Lake Way catchment area is 3,767km(2) . The catchment was defined using Geoscience Australia's 1 second DEM and MapInfo Discover Hydrology Package.
A runoff model was developed for the Lake Way Catchment using the WaterCress software package (Groundwater Science 2018b). The model was constructed and calibrated to the adjacent and analogous Gascoyne River catchment, and then run using the catchment area defined for Lake Way and historic rainfall data from the Wiluna BOM station from 1907 to 2017.
The average annual rainfall for the Lake Way Catchment is 260mm/year. The run-off model estimates that on average 3.9% of rainfall runs off to the Lake. Most of the heavy rainfall occurs in December to March and as such 71% of significant runoff events (runoff depth >5mm) occur during this period. The average annual modelled run-off to the Playa is 38GL/year but this is highly variable and ranges from zero in years 1910 and 1936, up to a maximum of 314GL in 1936 and more recently 283GL in 1995.
Groundwater
The Lake is inferred to be a terminal groundwater sink on the basis of the large area of the lake and the shallow water table observed at all sites beneath the lake which will facilitate evaporative loss. Groundwater beneath the lake is hypersaline and comprises the brine potash resource.
The drilling undertaken at Lake Way has identified 2 aquifer units:
-- Cainozoic Playa Lake Sediments exhibit variable lithology comprising sand, silt and clay. Permeability is higher in the surface gypsiferous sands from which brine flows freely. The lake sediments beneath the surface sands are higher in clay content and rely on flow from macro and micro remnant structures.
-- Tertiary Palaeochannel basal sands comprising fine to coarse grained, well sorted sand. The extent of the paleochannel has been defined through the passive seismic geophysical survey and can be seen to be several hundred metres wide throughout.
Geological Interpretation
The geological model of the deposit was developed in Leapfrog by Zephyr Professional Ltd.
The basement topography model is based on interpretation of the passive seismic survey data tied to the historic drilling data set. The Basal Sand is then modelled to infill the channel to a depth of 20m above the channel thalweg.
The geological model provides the volumes that were then used to estimate dissolved mineral tonnage contained in the pore space of the host rock.
Drilling and Sampling Techniques
Auger Drilling
Thirteen auger holes were drilled to a maximum depth of 7m. The hollow stem auger method was applied, this enables a continuous core to be captured.
Drilling the top 1.5m was achieved with little difficulty however, as the hole got deeper the denser, stiffer clays made progress difficult leading to refusal at around 5m for most holes.
Once the holes were drilled the bores were completed with slotted PVC to just below the water table, gravel packed to 0.5mbgl and a bentonite seal to the surface. Before the installation of the Bentonite seal each piezometer was developed using a hand held Wattera development system.
Excavator Test Pits
Test pits were dug using an amphibious digger to a depth of approximately 4m or refusal.
Excavator Test Trenches
Test trenches were dug using an amphibious digger to a depth of approximately 4m or refusal. The trenches were nominally 100m long and the slopes were battered for stability.
Historic Production Bores
Two historic investigation bores were used to obtain brine samples and test the hydraulic parameters of the aquifer. These bores were installed by AGC Woodward Clyde in 1992 on behalf of WMC Engineering to identify a mine water supply.
Prior to testing, the integrity of the bores was checked by downhole camera survey of the bore holes.
Historic Drilling
An extensive historic drillhole dataset was obtained from WAMEX. Drill logs were re-interpreted to provide stratigraphic intersections to inform the geological model and provide control to the geophysical model described below.
Geophysics
A Horizontal to Vertical Spectral Ratio (HVSR) passive seismic survey was completed over 20 survey transects on the Salt Lake Potash tenements. The aim of the survey was to determine depth to bedrock, identify paleochannels and estimate their volumes.
The final HVSR passive seismic data has been processed and velocity analysis completed with amplitude-depth cross-sections generated for each survey transect. The data highlighted an interpreted fresh bedrock interface below Lake Way as an acoustic impedance contrast layer, as well as highlighting shallower layering within the unconsolidated sedimentary cover deposits (paleochannel sands). This is interpreted as the upper and lower extents of the paleochannel sands.
Brine samples
Brine samples were obtained from all test pits, test trenches, water bores and auger holes completed as piezometers. In all instances the brine sample represents a bulk average sample of the open interval of each drillhole and excavation.
Geological Samples
Geological samples were taken from each drilling and excavation method and geologically logged.
Porosity Samples
Porosity samples were obtained from test pit excavation by pushing Shelby Tubes into the sediment and nominally 1m depth intervals. These samples were sealed to prevent moisture loss and submitted to the laboratory for total and drainable porosity determination.
Hollow core auger samples were taken at nominally 1m depth intervals. These samples were sealed to prevent moisture loss and submitted to the laboratory for total and drainable porosity determination.
Hydraulic Testing
Trench Pumping Trials
Test Trenches were pumped for between 5 and 90 days. The brine drawdown around the trench was measured using piezometer areas extending 100m from the trench. This data was used to determine drainable porosity and aquifer hydraulic conductivity.
Brine samples were taken at regular intervals during pumping to assess the stability of brine composition over time.
Test Pit Recharge tests
The aquifer hydraulic conductivity at each test pit was tested by pumping brine out of the pits and then measuring the rate of water level recovery with a pressure transducer as the pits were refilled by brine inflow from the surrounding aquifer.
Auger Piezometer Slug Tests
Auger drillholes completed as piezometers were hydraulically tested by slug tests that comprise instantaneously introducing, then removing a slug (cylinder) of know volume from the piezometer. The rate of water level recovery following slug insertion and withdrawal is measured with a pressure transducer and the rate of recovery is analysed to determine hydraulic conductivity.
Historic Production Bores
Two historic investigation bores were test pumped to determine aquifer parameters. The bores were pumped by Global Groundwater Pty Ltd at a constant rate for 24 hours. Water level drawdown in the pumped bore, and in nearby observation bores was monitored manually and by data logger. The data was analysed to determine aquifer properties of transmissivity (Product of bulk average hydraulic conductivity and aquifer thickness), Storage coefficient and boundary conditions.
Sample Analysis Method
Brine Chemistry Determination
The Primary Laboratory was Bureau Veritas Minerals Laboratory in Perth. Duplicate samples were sent to the secondary laboratory; Intertek, Perth.
Porosity
Porosity determination was undertaken by Core Laboratories Australia Pty Ltd, Perth.
Total Porosity was determined gravimetrically by weighing before and after drying at 60 degrees to stable final weight.
Drainable Porosity was determined gravimetrically by re-saturating samples with formation brine and spinning in a centrifuge at 3,700 rpm until brine production stopped. The samples were weighed before and after re-saturation and centrifuge.
Verification and QA/QC
QA/QC of brine chemistry determination comprised
-- Duplicate samples send to a secondary laboratory -- Ionic ratio checks to identify outliers -- Charge Balance Check
Resource Estimation Methodology
The resource is calculated as the tonnage of minerals dissolved in the liquid brine contained in pores within the host rock. Tonnages are calculated as dissolved minerals in brine on a dry weight by volume basis e.g. kilograms potassium per cubic meter of brine. The potassium tonnage of the resource is then calculated as:
Rock volume x volumetric porosity = brine volume
Brine volume x concentration = tonnage.
Williamson Pit
The mineralisation contained within the Williamson Pit was previously reported in the Company's ASX Announcement dated 31 July 2018. That estimate remains unchanged and comprises 0.032Mt SOP dissolved in 1.26Mm(3) brine at an average grade of 24.4kg/m(3) SOP.
Lake Bed Sediment
Area
The lateral extent of the resource is defined by the tenement boundaries and the playa boundary as defined in Geoscience Australia's 1:250K topographic dataset.
The islands in the north and south of the playa have been removed from the resource.
The Williamson pit has resulted in a zone of dewatered material extending out some 500m from the mine pit. This area has been removed from the resource estimate.
The lake was then split into 2 areas, the north portion where almost all test work has been completed, and the south portion where little test work has been completed due to accessibility and the only very recent granting of the final Exploration lease on the lake. The North end of the lake is being reported here as a measured resource and the south as an inferred resource.
The total area of the North and South of the lake are 139.5 and 41.6km(2) respectively.
Thickness
The thickness of the resource estimate has been constrained to 8 m below ground surface on the basis that production trenches are unlikely to exceed that depth.
Porosity
Drainable porosity determined from field pumping trials averages 11% by volume. Drainable porosity determined from laboratory analysis of intact samples averages 10% by volume.
Total porosity determined from laboratory analysis of intact samples averages 42% by volume.
Table 5: Total Porosity and Drainable Porosity
Test Sample Total Drainable Test Sample Total Drainable
Pit Depth Porosity Porosity Pit Depth Porosity Porosity
or (m) (%) (%) or (m) (%) (%)
Trench Trench
ID ID
2.0 0.5
- -
LYAG01 3.0 45 10.3 LYTT010 4.0 38 3
===================== ====================== ======================= ===================== ==================== ====================== =======================
3.0 0.3
- -
LYAG01 4.0 35 8 LYTT014 0.8 52
===================== ====================== ======================= ===================== ==================== ====================== =======================
5.0 0.3
- -
LYAG01 6.0 39 7.4 LYTT014 0.6 46 11
===================== ====================== ======================= ===================== ==================== ====================== =======================
1.0 1.5
- -
LYAG02 2.0 29 9.3 LYTT015 2.0 41 5
===================== ====================== ======================= ===================== ==================== ====================== =======================
4.0 0.6
- -
LYAG02 5.0 53 11.1 LYTT017 1.1 50
===================== ====================== ======================= ===================== ==================== ====================== =======================
1.0 0.6
- -
LYAG06 2.0 45 14.6 LYTT019 1.1 48
===================== ====================== ======================= ===================== ==================== ====================== =======================
2.0 0.3
- -
LYAG06 3.0 42 10.4 LYTT019 0.6 26 16
===================== ====================== ======================= ===================== ==================== ====================== =======================
3.0 1.5
- -
LYAG06 4.0 42 11.5 LYTT019 2.0 47 13
===================== ====================== ======================= ===================== ==================== ====================== =======================
5.0 3.0
- -
LYAG06 6.0 42 10 LYTT019 4.0 35 8
===================== ====================== ======================= ===================== ==================== ====================== =======================
1.0 0.5
- -
LYAG07 2.0 43 14 LYTT020 1.0 54
===================== ====================== ======================= ===================== ==================== ====================== =======================
3.0 3.0
- -
LYAG07 4.0 41 8 LYTT020 4.0 50 6
===================== ====================== ======================= ===================== ==================== ====================== =======================
1.0 0.6
- -
LYAG08 2.0 35 9.4 LYTT021 1.1 50
===================== ====================== ======================= ===================== ==================== ====================== =======================
2.0 0.5
- -
LYAG08 3.0 32 10 LYTT024 0.9 50
===================== ====================== ======================= ===================== ==================== ====================== =======================
3.0 0.3
- -
LYAG08 4.0 26 8 LYTT026 0.6 39 10
===================== ====================== ======================= ===================== ==================== ====================== =======================
2.0 3.0
- -
LYAG15 3.0 33 7.4 LYTT026 4.0 47 24
===================== ====================== ======================= ===================== ==================== ====================== =======================
4.0 4.0
- -
LYAG15 5.0 36 8.8 LYTT029 5.0 38 5.2
===================== ====================== ======================= ===================== ==================== ====================== =======================
0.5 1.0
- -
LYTR01 1.5 48 14.2 LYTT029 4.0 47 3
===================== ====================== ======================= ===================== ==================== ====================== =======================
1.0 0
- -
LYTR01 1.2 37 26 LYTT032 0.5 38 13.8
===================== ====================== ======================= ===================== ==================== ====================== =======================
1.5 3.0
- -
LYTR01 3.0 48 1.5 LYTT035 3.5 43 5
===================== ====================== ======================= ===================== ==================== ====================== =======================
3.0 0
- -
LYTR01 4.0 36 5 LYTT035 0.5 39 12
===================== ====================== ======================= ===================== ==================== ====================== =======================
Average 42 10
=========================================== ====================== ======================= ===================== ==================== ====================== =======================
Solute Concentration
Brine chemistry has been interpolated using Ordinary Kriging with a grid size of 100m x 100m, a search distance of 6,000m and 2 search passes. Average concentrations have been calculated from the grid for the Measured Resource (North portion of the lake), this average has been used to calculate the Resource for the southern, inferred resource.
Treatment of Islands
The islands have been removed from the Lake Bed Sediment Resource. Experience at other lakes has consistently shown that shallow brine beneath islands is diluted, likely by infiltrating rainfall. Furthermore, brine harvesting by trenches is unlikely to be practical through the sand dunes and elevated topography of the islands.
Paleovalley Sediment
Area
The lateral extent of the resource is defined by the tenement boundaries and the playa edge. The total area is 181.1km(2) .
Volume
The volume of sediment infilling the paleovalley has been exported from the geological model. The Volume is 9,900Mm(3) . This yields an average sediment thickness of 54m for the sediment extending from 8m depth (base of lake bed sediment) to the top of basement or Paleochannel Basal Sand.
Porosity
The Total Porosity and Drainable Porosity has been estimated from lithology and benchmarking against other studies completed in comparable geological settings. Total porosity is applied as 40%. Drainable porosity is applied as a low value of 3% based on the fine-grained lithology of the host sediment which will retain much of the contained brine.
Solute Concentration
Solute concentration is inferred to be continuous from the Playa Surface to the base of the Paleovalley Sediment. The average value is 15.2kg/m(3) SOP.
Paleochannel Basal Sand
Area
The extent and thickness of the Paleochannel Basal Sand Resource is defined by the geological model. The total volume of the unit is estimated to be 686Mm(3) .
Porosity
The Total Porosity and Drainable Porosity has been estimated from lithology and benchmarking against other studies completed in comparable geological settings. Total porosity is applied as 40%. Drainable porosity is applied as 15%.
Solute Concentration
Solute concentration is derived as the average value of the two pumping test bores completed in the basal sand unit, LW5-7 and LW3-4. Multiple samples were taken from each bore during the 24 hour constant rate pumping test undertaken at each bore. The average SOP concentration is 13.6kg/m(3) SOP. No spatial interpolation was undertaken.
Classification Criteria
Williamson pit
The estimated resource hosted in the Williamson Pit mine lake has a very high degree of confidence, since the geometry of the mine pit was accurately surveyed and the concentration of the brine was samples at numerous locations and depths and is quite consistent.
The resource is reported as a Measured Resource on the basis that the estimate is adequate to support a mine plan (in this case pumping infrastructure and pumping rate).
Lake Bed Sediments (North)
The estimated resource in the northern part of the lake has a high degree of confidence.
The resource estimate and associated hydrological data set are considered adequate to support a mine plan. In this case the mine plan comprises design of a production trench network and construction of a groundwater flow simulation model to estimate and plan brine production rates. The resource is reported as a Measured Resource.
The thickness of the geological unit is well defined, being simply 8m; the assumed limit of excavation. The area is well defined by the extent of the playa surface.
Brine concentration is defined by a high density or data points and is quite consistent spatially. There is a high degree of confidence that the brine concentration is accurately defined.
Aquifer total porosity and drainable porosity are well defined by a large number of samples at a range of depths, and drainable porosity values are validated by extended pumping field trials that comprise the drainage of very large volumes of sediment.
Aquifer properties of hydraulic conductivity are well defined by a well distributed data set of test pits and extended duration pumping trials.
The lake water balance due to rainfall and inundation is understood from a reasonably constrained catchment run-off model.
The Measured Resource estimate is based on 49 test pits, 5 trench tests and 13 auger holes. Data points are distributed on an approximate 500m by 500m grid in the northwest and on a 5km x 5km grid for the remainder of the lake. There is irregularity due to greater density of pits around the proposed pond locations, the causeway, the Williamson Pit dewatered zone and tenure access constraints to the immediate east of the playa.
Lake Bed Sediments (South)
The estimated resource in the southern part of the lake has a low degree of confidence.
The resource estimate is based on assumed continuity of grade and porosity and is not adequate to support a mine plan. The resource is reported as an Inferred Resource.
The thickness of the geological unit is well defined, being simply 8m; the assumed limit of excavation.
The area is well defined by the extent of the playa surface.
Brine grade is assumed to be continuous and consistent from the north to the south of the lake. This assumption is not yet confirmed by test work.
Total Porosity and Drainable Porosity are assumed to be continuous and consistent from the north to the south of the lake. This assumption is based on lithology logged in historic drilling but is not yet confirmed by test work.
Hydraulic properties are assumed to are assumed to be continuous and consistent from the north to the south of the lake. This assumption is based on lithology logged in historic drilling but is not yet confirmed by test work.
The Inferred Resource Estimate is based on a very limited number of drillholes. The geology is defined by 10 historic drillholes oriented on a transect across the southern end of the Lake, and the geophysical survey. Brine Grade is assumed to be continuous from the data in the northern part of the Lake.
Potash Brine projects typically exhibit low spatial variability in brine grade since the brine resource is generated in-situ by evaporation of a fairly consistent groundwater source which is subject to sporadic mixing and dilution due to infiltration of rainwater, and subsequent re-concentration by evaporation. Drill spacing in the range of 2.5km to 10km is typical (Houston et al 2011).
Paleovalley Sediment
The estimated resource in Paleovalley sediment has a low degree of confidence. The Resource estimate is based on assumed continuity of grade and porosity and is not adequate to support a mine plan. The resource is reported as an Inferred Resource.
The volume of the geological unit is well defined by a geological model based on detailed geophysical survey validated to an extensive drilling data set.
The area is well defined by the extent of the playa surface.
Brine grade is assumed to be continuous and consistent from the Playa surface to the base of the geological unit. This assumption is supported by only a limited number of data points where brine chemistry at surface and at depth are available.
Total Porosity and Drainable Porosity values are based on lithology logged in historic drilling and on benchmarking of comparable projects in Tertiary paleochannels in Western Australia. The values are not yet confirmed by test work.
Hydraulic properties of the units inferred from the lithology of the unit, and the response to pumping of two test bores.
For this unit a mine plan comprises design of a production bore array to depressurise the underlying basal sand and induce downward vertical leakage from the paleovalley sediment. A groundwater flow simulation model calibrated to long term pumping trials will be needed to estimate and plan the rate at which vertical leakage of brine can be induced.
The Inferred Resource Estimate is based on a limited number of drillholes. The 49 test pits, 5 trench tests and 13 auger holes terminate above the top of the unit, and continuity of brine grade with depth is assumed based on consistent experience at other salt lake playas, and data demonstrating continuous brine grade in the underlying Basal Sand unit. The geological model that defines the volume is based on 224 historic drillholes and the geophysical survey.
Paleochannel Basal Sand
The estimated resource in Paleochannel Basal Sand has a moderate degree of confidence.
The data is adequate to allow confident interpretation of the geological framework which is based on a good density of drilling and geophysical data. The continuity of brine concentration between very widely spaced samples is however assumed. The estimate is adequate to apply modifying factors in a Feasibility Study but is not adequate to support a detailed mine plan. The resource is reported as an Indicated Resource.
Total Porosity and Drainable Porosity values are based on lithology logged in historic drilling and on benchmarking of comparable projects in Tertiary paleochannels in Western Australia. The values are not yet confirmed by test work.
Hydraulic properties of the units inferred from the lithology of the unit, and the response to pumping of two test bores.
The Indicated Resource Estimate is based on two data points that inform brine grade and hydrogeological properties. The geological model is based on a larger number of drillholes (23 of 224 drillholes are within the paleochannel extent) and the geophysical survey.
Results
The results of the Mineral Resource Estimate are summarised in the tables below.
Table 6: Measured Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== =====================
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== =====================
North
Lakebed
(0.4-8.0m) 1,060 6.8 8.0 27.6 0.42 445 6.8 0.11 117 1.8
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== =====================
Williamson
Pit 1.26 11.4 14.7 48.0 1.26 0.032
==================== ====================== ====================== ====================== ============================================================================================= ==================== =====================
Total 6.8 1.832
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== =====================
Table 7: Indicated Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mt) (Mm(3)
) ) ) ) ) )
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Basal
Sands 686 6.1 8.2 25.0 0.40 274 3.7 15 103 1.4
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Table 8: Inferred Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg So4 Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
South
Lakebed
(0.4-8.0m) 316 6.8 8.0 27.6 0.42 133 2.0 0.11 35 0.5
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Lakebed
(8m
to
Base) 9,900 6.8 8.0 27.6 0.40 3,960 60.0 0.03 297 4.5
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Total 62.0 5.0
==================== ====================== ====================== ====================== ====================== ==================== ====================== ======================= ==================== ======================
Note: 1) Conversion factor of K to SOP (K(2) SO(4) equivalent) is 2.23
2) Williamson Pit and Lakebed Sediment (North - Blackham tenements only) resource estimate reported previously as maiden resource 31 July 2018.
Cut-off Grades
Within the salt-lake extent no low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data. No aggregate intercepts have been calculated.
Mining and Metallurgical Methods and Parameters
It is assumed that the Brine resource will be mined by gravity drainage to a network of trenches excavated into the Playa Surface and an array of production bores completed in the paleochannel basal sand.
Validation test work has been completed to confirm the process flowsheet to be used at the Lake Way Project to recovery SOP from the Lake Brine (refer ASX Announcement 31 October 2018).
Environmental impacts are expected to be; localized reduction in saline groundwater level, surface disturbance associated with trench, bore, and pond construction and accumulation of salt tails. The project is in a remote area and these impacts are not expected to prevent project development.
The project is located with the Goldfields Groundwater Proclamation Area. A license to take groundwater will be required under the Rights in Water and Irrigation Act 1914. This Act is administered by the Government of Western Australia Department of Water and Environmental Regulation.
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.
Competent Person Statement
The information in this report that relates to Mineral Resources and Exploration Results for Lake Way is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. 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.
Production Target
The Lake Way Demonstration Plant Production Target stated in this report is based on the Company's Scoping Study as released to the ASX on 31 July 2018. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 and 5.17 was included in the Company's ASX Announcement released on 31 July 2018. The Company confirms that the material assumptions underpinning the Production Target referenced in the 31 July 2018 release continue to apply and have not materially changed.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain
Appendix 1: Extraction Method and Implication for Resource Estimate
Overview
Mining methods employed for brines is different to those required for mining solid minerals. The typical mining method for brines is to pump the brine resource from trenches or bores that are installed in the geological unit that hosts the brine. The rate that the brine can be pumped is controlled by the hydraulic conductivity (permeability) of the host rock. For the Lake Way Project, the mining methods for each host geological unit are summarised in the table below.
Table 9: Mining Method
Host Mining Controls
Unit Method on
the
mining
rate
and
resource
Williamson Pumping None
Pit from
Lake Pit
Lake
======================= ============================
Lake Pumping Hydraulic
Bed from conductivity
Sediment trenches of
lake
sediment,
Recharge
via
rainfall
and
inundation
Total
Porosity
======================= ============================
Paleovalley Vertical Vertical
Fill drainage hydraulic
to conductivity
Basal Drainable
Sand porosity,
and
compressible
storage.
======================= ============================
Basal Pumping Hydraulic
Sand from conductivity,
bores Total
porosity
Aquifer
Boundary
conditions
(vertical
and
lateral
inflow
under
pumping)
======================= ============================
Williamson Pit Lake
Brine from the Williamson Pit Lake will be pumped directly from the pit into the evaporation pond for processing. The mining rate is controlled only by the capacity of the pumping infrastructure.
Lake Bed Sediment
The shallow Lake Bed Sediments aquifer will be mined by pumping brine from a network of trenches excavated into the playa surface to a depth of nominally 6m, though trenches may be deepened over time.
The production of brine is cyclic as described below.
Stage 1 - Initial Resource
The initial brine resource comprises:
-- Brine dissolved in water held in Drainable Porosity, (5% of the total aquifer volume). -- Brine dissolved in water held in Retained Porosity, (35% of total aquifer volume).
The remaining volume is occupied by solid material (sand, silt and clay grains comprising 60% of the aquifer volume).
The combined porosity (Total Porosity) then comprises the total SOP brine resource held in the Lake Bed Sediments aquifer.
Stage 2 - Production Cycle
During production the brine drains under gravity toward the trench and is subsequently removed by pumping. This creates a hydraulic gradient toward the trench and brine is drawn some distance through the aquifer toward the trench (typically hundreds of meters depending on aquifer permeability).
Over time the aquifer immediately surrounding the trench is partially dewatered. This means that the drainable brine has been removed from the sediment, but the retained brine is still held in place by surface tension.
Stage 3 - Recharge Cycle
Western Australian Salt Lake playas receive some water input from rainfall and run-off annually. Direct rainfall lands on the playa each year, and most years, heavy, cyclonic rain events cause run-off from the surrounding catchment onto the Playa. This water infiltrates the playa surface and re-fills the drainable pores in the aquifer. The larger rainfall events usually occur from January through to March.
Stage 4 - Mixing Cycle
The water that has infiltrated and refilled the drainable porosity then mixes (by physical diffusion) with the brine held in retained porosity.
Through repeated production cycles the total brine resource is mined. The concentration of brine pumped from the production trenches will decline over time as the total resource is depleted over repeated production cycles.
The pumping rate is controlled by the hydraulic conductivity of the host sediment. The concentration of produced brine will change over time and will be controlled by the tonnage contained in total porosity and the mechanism of mixing between repeated production cycles.
Paleovalley Sediment
The paleovalley sediment is predominately fine grain and exhibits low permeability. The brine held in these sediments cannot be drained directly to bores because the permeability is too low to allow useful bore yields.
A proportion of the brine held in these sediments can be removed by underdrainage to the underlying Basal Sand unit.
Brine is removed from the Basal Sand unit by pumping from bores. This depressurises the Basal Sand unit and induces downward brine leakage from the overlying sediment. The rate of leakage will be very low; however, the areal extent is very large and significant volumes can be abstracted in this way.
Only a relatively small fraction of the total porosity can be removed from a fine-grained unit by this method.
Paleochannel Basal Sand
The brine will be produced by pumping from bores constructed into the Paleochannel Basal Sand. Pumping from a deep, confined aquifer results in reduced pressure in the aquifer and this induces brine flow toward the bores. Brine flow is sourced via downward vertical leakage from the overlying fine-grained silts and clays, and by lateral flow from the adjacent basement aquifer that surrounds the channel.
It is important to understand that the aquifer is not dewatered. This means that the pore spaces are not drained under gravity to be filled with air. The aquifer is only depressurised, and this results in flow through fully saturated pores toward the pumped bore.
Appendix 2: Location Details for Drill Holes / Test Pits
HOLE_ID EAST NORTH Hole Type
HA003 235863 7032512 Hand Auger
==================== ===================== =============================
HA006 235652 7033571 Hand Auger
==================== ===================== =============================
HA008 234918 7033057 Hand Auger
==================== ===================== =============================
HA010 235063 7034408 Hand Auger
==================== ===================== =============================
HA012 234299 7033837 Hand Auger
==================== ===================== =============================
HA013 234890 7035481 Hand Auger
==================== ===================== =============================
HA014 234458 7035223 Hand Auger
==================== ===================== =============================
HA017 234302 7035685 Hand Auger
==================== ===================== =============================
HA019 234752 7036712 Hand Auger
==================== ===================== =============================
HA021 233742 7036709 Hand Auger
==================== ===================== =============================
HA022 234734 7037719 Hand Auger
==================== ===================== =============================
HA024 233715 7039225 Hand Auger
==================== ===================== =============================
HA025 233868 7032968 Hand Auger
==================== ===================== =============================
HA029 231655 7036814 Hand Auger
==================== ===================== =============================
HA031 231874 7037525 Hand Auger
==================== ===================== =============================
LYTR001 233590 7036757 Test Trench
==================== ===================== =============================
LYTR002 235090 7035280 Test Trench
==================== ===================== =============================
LYTR003 230650 7041000 Test Trench
==================== ===================== =============================
LYTR004 232330 7035720 Test Trench
==================== ===================== =============================
LYTR005 238875 7035948 Test Trench
==================== ===================== =============================
LYTT002 229968 7036837 Test Pit
==================== ===================== =============================
LYTT003 230702 7036399 Test Pit
==================== ===================== =============================
LYTT004 231815 7035595 Test Pit
==================== ===================== =============================
LYTT005 232341 7035793 Test Pit
==================== ===================== =============================
LYTT006 232183 7035073 Test Pit
==================== ===================== =============================
LYTT007 231817 7034412 Test Pit
==================== ===================== =============================
LYTT012 233601 7037586 Test Pit
==================== ===================== =============================
LYTT013 233600 7034800 Test Pit
==================== ===================== =============================
LYTT014 233600 7034000 Test Pit
==================== ===================== =============================
LYTT015 233600 7033200 Test Pit
==================== ===================== =============================
LYTT016 234600 7032000 Test Pit
==================== ===================== =============================
LYTT017 235300 7032400 Test Pit
==================== ===================== =============================
LYTT018 235300 7033200 Test Pit
==================== ===================== =============================
LYTT019 236300 7033200 Test Pit
==================== ===================== =============================
LYTT020 234600 7033200 Test Pit
==================== ===================== =============================
LYTT021 234600 7034000 Test Pit
==================== ===================== =============================
LYTT022 235650 7034000 Test Pit
==================== ===================== =============================
LYTT023 235300 7034800 Test Pit
==================== ===================== =============================
LYTT024 234600 7034800 Test Pit
==================== ===================== =============================
LYTT025 234600 7035600 Test Pit
==================== ===================== =============================
LYTT026 234600 7036800 Test Pit
==================== ===================== =============================
LYTT027 235511 7040910 Test Pit
==================== ===================== =============================
LYTT028 237073 7040940 Test Pit
==================== ===================== =============================
LYTT028 237073 7040940 Test Pit
==================== ===================== =============================
LYTT030 230700 7041600 Test Pit
==================== ===================== =============================
LYTT031 229531 7041686 Test Pit
==================== ===================== =============================
LYTT032 229551 7040432 Test Pit
==================== ===================== =============================
LYTT033 230700 7040400 Test Pit
==================== ===================== =============================
LYTT034 230700 7039200 Test Pit
==================== ===================== =============================
LYTT035 230700 7037600 Test Pit
==================== ===================== =============================
LYTT036 231800 7037200 Test Pit
==================== ===================== =============================
LYTT037 238858 7037915 Test Pit
==================== ===================== =============================
LYTT039 240934 7032003 Test Pit
==================== ===================== =============================
LYTT041 242068 7026888 Test Pit
==================== ===================== =============================
LYTT042 244658 7026362 Test Pit
==================== ===================== =============================
LYTT043 243355 7028717 Test Pit
==================== ===================== =============================
LYTT045 241951 7033872 Test Pit
==================== ===================== =============================
LYTT048 235845 7038688 Test Pit
==================== ===================== =============================
LYTT049 236788 7034678 Test Pit
==================== ===================== =============================
LYPIEZ01 236853 7032051 Auger
==================== ===================== =============================
LYPIEZ03 238851 7037911 Auger
==================== ===================== =============================
LYPIEZ04 239481 7030505 Auger
==================== ===================== =============================
LYPIEZ06 238854 7035878 Auger
==================== ===================== =============================
LYPIEZ07 238747 7034697 Auger
==================== ===================== =============================
LYPIEZ08 235865 7038720 Auger
==================== ===================== =============================
LYPIEZ09 240944 7031987 Auger
==================== ===================== =============================
LYPIEZ11 243089 7032074 Auger
==================== ===================== =============================
LYPIEZ13 238602 7039558 Auger
==================== ===================== =============================
Historic Pumped
LW3-4 247448 7031876 bore
==================== ===================== =============================
Historic Pumped
LW5-7 242593 7034360 bore
==================== ===================== =============================
Note: All holes are vertical, with an RL of approximately 492m
Appendix 3: Brine Assay Results
Lake Bed Sediment
HOLE_ID K Cl Na Ca Mg SO4 pH SG
mg/L mg/L mg/L mg/L mg/L mg/L
HA003 7210 131450 77200 499 7510 26200 6.87 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
HA006 6910 128050 78600 528 7000 25500 6.9 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
HA008 7280 121350 73900 537 6530 28200 6.91 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
HA010 6350 112150 68100 621 6180 23900 6.99 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
HA012 6550 115700 68600 574 6690 25300 6.95 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
HA013 6070 108500 65900 623 6070 24000 7 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
HA014 6050 104250 63900 666 5620 23700 7.03 1.13
================== ==================== =================== ================== =================== =================== ================== ==================
HA017 3320 52500 33000 804 2790 14800 7.31 1.07
================== ==================== =================== ================== =================== =================== ================== ==================
HA017 6090 101600 63100 664 5450 24200 7.04 1.13
================== ==================== =================== ================== =================== =================== ================== ==================
HA019 6030 113600 67600 591 7010 25700 6.96 1.15
================== ==================== =================== ================== =================== =================== ================== ==================
HA021 5960 110250 65000 610 6150 23300 7.03 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
HA022 6550 111400 68500 636 6050 23600 7.02 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
HA024 6100 130850 75000 536 8650 25300 6.89 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
HA025 6810 126800 76500 519 7160 26300 6.96 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
HA029 6730 131200 79500 447 8070 33000 6.94 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
HA031 5910 117600 70200 615 6940 23400 6.98 1.15
================== ==================== =================== ================== =================== =================== ================== ==================
LYTR001 6300 125550 74000 534 7410 26300 6.19 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTR002 6270 118300 73600 526 7280 27300 6.23 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTR003 7060 130450 83900 476 7670 29700 6.57 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTR004 7115 129675 83050 502 7660 28900 6.62 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTR005 6620 144550 82500 411 9930 32400 6.54 1.19
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT002 7350 145050 90000 367 10900 38700 6.36 1.20
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT003 8160 151150 91400 305 12200 42600 6.5 1.21
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT004 6700 126350 76200 441 8090 29400 6.74 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT005 6760 122700 74500 553 7100 25100 6.79 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT006 6970 129000 78700 514 7500 26600 6.69 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT007 6600 130400 78100 484 8010 28900 6.53 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT012 6470 120100 74300 575 7240 25800 6.65 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT013 6510 117750 72500 562 7000 25400 6.92 1.15
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT014 6840 123700 76000 586 7020 26100 6.9 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT015 7150 128750 78900 517 7300 28000 6.88 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT016 6990 137650 86000 458 8290 29300 6.71 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT017 7150 129450 80300 498 7400 27200 6.88 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT018 7270 128050 78500 492 7340 28800 6.88 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT019 6800 121600 73500 532 7040 26600 6.88 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT020 6840 124050 74900 549 7020 26100 6.83 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT021 6390 117100 71600 571 6890 26000 6.86 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT022 6630 119150 74600 543 7010 26700 6.93 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT023 6510 123700 72000 556 6790 25100 6.85 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT024 6240 113400 70100 581 6850 26300 6.88 1.15
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT025 6330 115700 71500 559 6960 27300 6.85 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT026 7060 125450 77700 519 7030 26200 6.79 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT027 7080 133850 83300 390 9930 37800 6.89 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT028 6360 130350 80800 410 10200 36900 6.95 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT028 7210 145150 87000 358 11600 37800 6.83 1.20
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT030 7300 133500 81200 362 9150 33000 6.86 1.19
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT031 8760 147100 89700 347 11300 41100 6.82 1.21
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT032 7030 137850 81900 408 10400 29900 6.88 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT033 6930 131750 81300 444 10300 33600 6.79 1.13
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT034 7190 127750 78200 526 7630 26100 6.74 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT035 6740 134050 80600 418 11000 35400 6.75 1.19
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT036 6570 137350 81400 369 12700 38100 6.82 1.20
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT037 6780 150000 86100 371 10300 35400 6.7 1.20
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT039 7390 133450 78700 563 6670 23900 6.68 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT041 7660 135300 80700 577 6730 24400 6.79 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT042 7520 149250 86000 522 8340 23900 6.62 1.19
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT043 5980 110400 65200 726 5820 19700 6.59 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT045 7600 139300 79400 502 6740 24200 6.57 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT048 6910 131100 77300 501 7600 26500 6.55 1.17
================== ==================== =================== ================== =================== =================== ================== ==================
LYTT049 7160 139850 82000 485 7850 27600 6.57 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ01 6000 139715 82900 446 10100 26000 6.42 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ03 4560 97584 63400 439 7580 24700 6.97 1.14
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ04 6450 145100 82500 478 9340 26200 6.57 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ06 6140 137254 82900 416 9810 31500 6.59 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ07 6660 130087 82800 504 7710 27100 6.73 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ08 7030 136000 77400 473 8040 27800 6.48 1.18
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ09 6950 131300 75500 552 7420 24100 6.52 1.16
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ11 6590 115300 68200 679 5350 19400 6.7 1.15
================== ==================== =================== ================== =================== =================== ================== ==================
LYPIEZ13 7000 138485 85800 453 8800 31200 6.63 1.19
================== ==================== =================== ================== =================== =================== ================== ==================
Paleochannel Basal Sand
HOLE_ID K Cl Na Ca Mg SO4 pH SG
mg/L mg/L mg/L mg/L mg/L mg/L
LW3-4 6160 149053.85 83000 455 8290 25600 6.5 1.18
================== ======================= =================== ================== ================== =================== ================== ==================
LW3-4 5880 145796.24 78300 435 7900 23400 6.54 1.18
================== ======================= =================== ================== ================== =================== ================== ==================
LW5-7 6080 151515.16 78600 397 8360 26100 6.38 1.19
================== ======================= =================== ================== ================== =================== ================== ==================
LW5-7 6270 150501.68 84400 402 8520 26600 6.41 1.18
================== ======================= =================== ================== ================== =================== ================== ==================
Appendix 4: JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling Sampling
techniques * Nature and quality of sampling (e.g. cut channels, involved the
random chips, or specific specialised industry excavation of
standard measurement tools appropriate to the test pits over
minerals under investigation, such as downhole gamma the tenement
sondes, or handheld XRF instruments, etc.). These area to a
examples should not be taken as limiting the broad depth of 4mbgl
meaning of sampling. or
weathered
basement
* Include reference to measures taken to ensure sample whichever was
presentively and the appropriate calibration of any encountered
measurement tools or systems used. first. Five
trenches were
also dug to 4m
* Aspects of the determination of mineralisation that depth,
are Material to the Public Report.
A brine sample
and duplicate
* In cases where 'industry standard' work has been done, were taken
this would be relatively simple (e.g. 'reverse from each test
circulation drilling was used to obtain 1 m samples pit and trench
from which 3 kg was pulverised to produce a 30 g for analysis.
charge for fire assay'). In other cases, more
explanation may be required, such as where there is Samples were
coarse gold that has inherent sampling problems. taken manually
Unusual commodities or mineralisation types (e.g. by initially
submarine nodules) may warrant disclosure of detailed rinsing out
information. the bottle
with brine
from the pit
or
trench and
then placing
the bottle in
the test pit
or trench and
allowing it to
fill.
Samples were
analysed for
K, Mg, Ca, Na,
Cl, SO(4) ,
HCO(3) , NO(3)
, pH, TDS and
specific
gravity.
Each test pit
was
geologically
logged and a
sample taken
each 1m depth.
Shelby Tubes
were pushed
into the
sediment
during test
pit excavation
to obtain
intact samples
for porosity
determination.
Test pumping
entailed
pumping from
the trenches
and test pits
using a diesel
driven
submersible
pump coupled
to a level
switch.
Water levels
in the
piezometer,
test pits and
trenches were
logged
manually and
by pressure
transducer
with
barometric
pressure and
brine density
correction.
Auger drilling
comprised
hollow core
augers.
Samples were
taken from the
recovered
core.
============================================================= ============================
Drilling Test pits and
techniques * Drill type (e.g. core, reverse circulation, open-hole trenches were
hammer, rotary air blast, auger, Bangka, sonic, etc.) dug with an
and details (e.g. core diameter, triple or standard excavator.
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by Drillholes
what method, etc.). were drilled
by hollow core
auger. Auger
holes were
cased with
50mm PVC
slotted
liner to allow
hydraulic
testing and
repeated
sampling.
============================================================= ============================
Drill sample Samples from
recovery * Method of recording and assessing core and chip the test pits
sample recoveries and results assessed. were logged
each bucket
and a
* Measures taken to maximise sample recovery and ensure representative
representative nature of the samples. sample bagged.
100% of
* Whether a relationship exists between sample recovery excavated
and grade and whether sample bias may have occurred sample was
due to preferential loss/gain of fine/coarse available for
material. sampling. The
ability to see
the bulk
sample
facilitated
the selection
of a
representative
sample.
There is no
relationship
between sample
recovery and
grade and no
loss of
material as a
result
of excavation.
============================================================= ============================
Logging The geological
* Whether core and chip samples have been geologically logging is
and geotechnically logged to a level of detail to sufficient for
support appropriate Mineral Resource estimation, the purposes
mining studies and metallurgical studies. of identifying
variations in
sand/ clay
* Whether logging is qualitative or quantitative in and silt
nature. Core (or costean, channel, etc.) photography. fraction
within the top
4m. For a
* The total length and percentage of the relevant brine
intersections logged. abstraction
project, the
key parameters
are
the hydraulic
conductivity
and storage of
the host rock.
The logging is
qualitative.
The entire pit
depth was
logged in
every case.
============================================================= ============================
Sub-sampling Full core was
techniques * If core, whether cut or sawn and whether quarter, used for
and sample half or all core taken. porosity
preparation determination.
* If non-core, whether riffled, tube sampled, rotary Not
split, etc. and whether sampled wet or dry. applicable,
core drilling.
* For all sample types, the nature, quality and At all test
appropriateness of the sample preparation technique. pits brine
samples were
taken from the
* Quality control procedures adopted for all pit after
sub-sampling stages to maximise representivity of 24hours or
samples. once the pit
had filled
with brine.
* Measures taken to ensure that the sampling is The brine
representative of the insitu material collected, samples taken
including for instance results for field from the pits
duplicate/second-half sampling. are bulk
samples which
is an
* Whether sample sizes are appropriate to the grain appropriate
size of the material being sampled. approach given
the long-term
abstraction
technique of
using many
kilometres of
trenches to
abstract brine
from the upper
4m.
All the
samples taken
were
incorporated
into a
rigorous QA /
QC program in
which
Standards
and Duplicates
were taken.
The samples
were taken in
sterile
plastic
bottles of
250ml
capacity.
Excavated lake
bed samples
were sealed in
plastic bags.
For all brine
samples
(original or
check samples)
the samples
were labelled
with the
alphanumeric
code Y8001,
Y80002 ...
Lake bed
samples were
labelled with
the test pit
locator
LYTT01, LYTT02
etc. and the
depth
from which
they were
taken.
============================================================= ============================
Quality of The brine
assay data * The nature, quality and appropriateness of the samples were
and assaying and laboratory procedures used and whether sent to Bureau
laboratory the technique is considered partial or total. Veritas
tests Laboratories
in Perth, WA
* For geophysical tools, spectrometers, handheld XRF with the
instruments, etc., the parameters used in determining duplicates
the analysis including instrument make and model, being held by
reading times, calibrations factors applied and their Salt Lake
derivation, etc. Potash. Every
10th duplicate
was sent to
* Nature of quality control procedures adopted (e.g. Intertek, an
standards, blanks, duplicates, external laboratory alternate
checks) and whether acceptable levels of accuracy laboratory
(i.e. lack of bias) and precision have been for comparison
established. purposes.
No laboratory
analysis was
undertaken
with
geophysical
tools.
Soil samples
and laboratory
derived
hydraulic
conductivity,
total porosity
and drainable
porosity
samples were
analysed by
Core
Laboratories
in Perth WA.
All
laboratories
used are NATA
certified.
============================================================= ============================
Verification Not applicable
of sampling * The verification of significant intersections by due to
and assaying either independent or alternative company personnel. consistent
brine
concentration.
* The use of twinned holes.
No twin holes
drilled.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and All sampling
electronic) protocols. and assaying
is well
documented and
* Discuss any adjustment to assay data. contained on
Salt Lake
Potash's
internal
database.
No adjustments
have been made
to assay data.
============================================================= ============================
Location of All
data points * Accuracy and quality of surveys used to locate drill coordinates
holes (collar and down-hole surveys), trenches, mine were collected
workings and other locations used in Mineral Resource by handheld
estimation. GPS.
The grid
* Specification of the grid system used. system is the
Australian
National Grid
* Quality and adequacy of topographic control. Zone MGA 51
(GDA 94).
The is no
specific
topographic
control as the
lake surface
can
essentially be
considered
flat.
============================================================= ============================
Data spacing
and * Data spacing for reporting of Exploration Results. Data spacing
distribution is addressed
in the body
* Whether the data spacing and distribution is of the
sufficient to establish the degree of geological and Announcement.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and Sample
classifications applied. compositing
not applied.
* Whether sample compositing has been applied.
============================================================= ============================
Orientation The
of data in * Whether the orientation of sampling achieves unbiased orientation of
relation to sampling of possible structures and the extent to sampling was
geological which this is known, considering the deposit type. suited to the
structure geological
structure.
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is Geological
considered to have introduced a sampling bias, this influence on
should be assessed and reported if material. the brine is
limited to the
aquifer
parameters of
the host rock,
namely
the hydraulic
conductivity,
Total Porosity
and drainable
porosity.
============================================================= ============================
Sample Salt Lake
security * The measures taken to ensure sample security. Potash field
geologists
were
responsible
for bagging
and tagging
samples prior
to
shipping to
the BV lab in
Perth and the
Salt Lake
Potash
offices. The
security
measures for
the material
and type of
sampling at
hand was
appropriate.
============================================================= ============================
Audits or Data review is
reviews * The results of any audits or reviews of sampling summarised in
techniques and data. the report and
included an
assessment of
the quality of
assay
data and
laboratory
tests and
verification
of sampling
and assaying.
No audits of
sampling
techniques and
data have been
undertaken.
============================================================= ============================
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral The Lake Way
tenement and * Type, reference name/number, location and ownership Project
land tenure including agreements or material issues with third comprises
status parties such as joint ventures, partnerships, tenements held
overriding royalties, native title interests, by Salt Lake
historical sites, wilderness or national park and Potash and
environmental settings. Blackham
Resources
Limited
* The security of the tenure held at the time of (Blackham).
reporting along with any known impediments to Salt Lake
obtaining a licence to operate in the area. Potash holds
tenements
covering the
south east of
the lake,
including
granted
Exploration
licences
E53/1878,
E53/1897 and
Exploration
Licence
Applications
E53/2057,
E53/2059 and
E53/2060.
On the 9th
March 2018 Salt
Lake Potash and
Blackham
Resources Ltd
signed a gold
and brine
minerals
memorandum of
understanding.
Under this MOU
Blackham has
granted the
brine rights
on its Lake Way
tenement free
from
encumbrances to
Salt Lake
Potash.
Tenure granted
to Blackham
Resources Ltd.
and its
subsidiaries
that is covered
by the MOU
includes:
Exploration
licences
E53/1288,
E53/1862,
E53/1905,
E53/1952,
Mining
Licences,
M53/121,
M53/122,
M53/123,
M53/147,
M53/253,
M53/796,
M53/797,
M53/798,
M53/910,
and
Prospecting
Licences
P53/1642,
P53/1646,
P53/1666,
P53/1667,
P53/1668.
============================================================ =============================
Exploration There is a
done by other * Acknowledgment and appraisal of exploration by other database of
parties parties. approximately
6200 boreholes
across Lake
Way, of which
some 1000 are
within the
Blackham
tenement area.
The primary
source for the
information is
the publicly
available
Western
Australian
Mineral
Exploration
(WAMEX) report
data base.
Recent
sterilisation
drilling has
also been
undertaken by
Blackham to the
south and east
of
the Blackham
tenement area.
The majority of
previous work
has been
concerned with
investigating
the bedrock and
calcrete
for gold and
Uranium, it is
of limited
value in
defining the
stratigraphy of
the lakebed
sediments.
The data has
been shown to
be useful in
the
determination
of the depth to
base of lakebed
sediments and
has been used
to develop an
overall
estimate of the
volume of lake
bed sediments
that has been
applied to the
mineral
resource
calculations.
============================================================ =============================
Geology The deposit is
* Deposit type, geological setting and style of a salt-lake
mineralisation. brine deposit.
The lake
setting is
typical of a
Western
Australian
palaeovalley
environment.
Ancient
hydrological
systems have
incised
palaeovalleys
into Archaean
basement rocks,
which were then
infilled
by
Tertiary-aged
sediments
typically
comprising a
coarse-grained
fluvial basal
sand overlaid
by palaeovalley
clay with some
coarser grained
interbeds. The
clay is
overlaid by
recent
Cainozoic
material
including
lacustrine
sediment,
calcrete,
evaporite and
aeolian
deposits.
============================================================ =============================
Drill hole All drillhole
Information * A summary of all information material to the test pit and
understanding of the exploration results including a trench details
tabulation of the following information for all and locations
Material drill holes: of all data
points are
presented in
* easting and northing of the drill hole collar Appendices 2
and 3.
* elevation or RL (Reduced Level - elevation above sea All holes and
level in metres) of the drill hole collar test pits are
vertical.
* dip and azimuth of the hole
* downhole length and interception depth
* 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 Within the
aggregation * In reporting Exploration Results, weighting averaging salt-lake
methods techniques, maximum and/or minimum grade truncations extent no
(e.g. cutting of high grades) and cut-off grades are low-grade
usually Material and should be stated. cut-off or
high-grade
capping has
* Where aggregate intercepts incorporate short lengths been
of high grade results and longer lengths of low grade implemented
results, the procedure used for such aggregation due to the
should be stated and some typical examples of such consistent
aggregations should be shown in detail. nature of the
brine assay
data.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated. No aggregate
intercepts have
been
calculated.
============================================================ =============================
Relationship The chemical
between * These relationships are particularly important in the analysis from
mineralisation reporting of Exploration Results. each of the
widths and test pits has
intercept shown the that
lengths * If the geometry of the mineralisation with respect to the brine
the drill hole angle is known, its nature should be resource is
reported. consistent and
continuous
through the
* If it is not known and only the downhole lengths are full thickness
reported, there should be a clear statement to this of the Lake
effect (e.g. 'down hole length, true width not Playa sediments
known'). unit. The
unit is flat
lying.
The intersected
depth is
equivalent to
the vertical
depth and the
thickness of
mineralisation.
============================================================ =============================
Diagrams All location
* Appropriate maps and sections (with scales) and maps and
tabulations of intercepts should be included for any sections are
significant discovery being reported These should contained
include, but not be limited to a plan view of drill within the body
hole collar locations and appropriate sectional of the ASX
views. version of this
Announcement.
============================================================ =============================
Balanced All results have been
reporting * Where comprehensive reporting of all Exploration included in the body of
Results is not practicable, representative reporting the Announcement.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
============================================================ =============================
Other All material
substantive * Other exploration data, if meaningful and material, exploration
exploration should be reported including (but not limited to): data has been
data geological observations; geophysical survey results; reported.
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 Field trials of
* The nature and scale of planned further work (e.g. brine
tests for lateral extensions or depth extensions or harvesting will
large-scale step-out drilling). be undertaken.
Additional
drilling and
* Diagrams clearly highlighting the areas of possible testing will be
extensions, including the main geological undertaken to
interpretations and future drilling areas, provided upgrade the
this information is not commercially sensitive. Inferred and
Indicated
portions
of the
resource.
============================================================ =============================
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary
Database Cross-check of
integrity * Measures taken to ensure that data has not been laboratory
corrupted by, for example, transcription or keying assay reports
errors, between its initial collection and its use and database.
for Mineral Resource estimation purposes.
Extensive QA/QC
as described
* Data validation procedures used. in the report
============================================================ ==============================
Site visits A site visit was
* Comment on any site visits undertaken by the undertaken
Competent Person and the outcome of those visits. by the Competent
Person (CP)
from 29th to
* If no site visits have been undertaken indicate why 30th April 2018.
this is the case. The CP visit was
documented
in Letter Report
Salt Lake
Potash-18-1-L001
(Groundwater
Science, 2018).
============================================================ ==============================
Geological The shallow
interpretation * Confidence in (or conversely, the uncertainty of ) geological
the geological interpretation of the mineral deposit. profile
beneath the lake
is relatively
* Nature of the data used and of any assumptions made. homogenous. The
porosity
of the material
* The effect, if any, of alternative interpretations on is consistent
Mineral Resource estimation. with depth;
hence the
geological
* The use of geology in guiding and controlling Mineral interpretation
Resource estimation. has little
impact on the
resource except
* The factors affecting continuity both of grade and to define its
geology. thickness.
The islands are
is excluded
from the shallow
resource
estimate as
access is not
permitted.
Mining the
Williamson
Pit has resulted
in an area
of approximately
4km2 being
dewatered, this
area has
also been
excluded from
the
resource
estimate.
Confidence in
the geological
model and the
assumptions
are described in
the
Announcement.
============================================================ ==============================
Dimensions Addressed in the
* The extent and variability of the Mineral Resource body of
expressed as length (along strike or otherwise), plan the
width, and depth below surface to the upper and lower Announcement.
limits of the Mineral Resource.
============================================================ ==============================
Estimation and Addressed in the
modelling * The nature and appropriateness of the estimation body of
techniques technique(s) applied and key assumptions, including the
treatment of extreme grade values, domaining, Announcement.
interpolation parameters and maximum distance of There are no
extrapolation from data points. If a computer production
assisted estimation method was chosen include a records
description of computer software and parameters used. for
reconciliation.
There are no
* The availability of check estimates, previous assumptions
estimates and/or mine production records and whether made regarding
the Mineral Resource estimate takes appropriate recovery of
account of such data. by-products.
Deleterious
elements are
* The assumptions made regarding recovery of Salt (NaCl)
by-products. waste. NaCl
tonnage
has not been
* Estimation of deleterious elements or other non-grade estimated.
variables of economic significance (eg sulphur for
acid mine drainage characterisation).
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed.
* Any assumptions behind modelling of selective mining
units.
* Any assumptions about correlation between variables.
* Description of how the geological interpretation was
used to control the resource estimates.
* Discussion of basis for using or not using grade
cutting or capping.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available.
============================================================ ==============================
Moisture Not applicable
* Whether the tonnages are estimated on a dry basis or to brine
with natural moisture, and the method of resources.
determination of the moisture content. See discussion
of moisture
content under
Bulk Density.
============================================================ ==============================
Cut-off No cut-off
parameters * The basis of the adopted cut-off grade(s) or quality parameters were
parameters applied. used.
============================================================ ==============================
Mining factors The Brine resource will be
or assumptions * Assumptions made regarding possible mining methods, mined by gravity drainage
minimum mining dimensions and internal (or, if to a network of trenches
applicable, external) mining dilution. It is always excavated into the Playa
necessary as part of the process of determining Surface and an array bore
reasonable prospects for eventual economic extraction bores completed in the
to consider potential mining methods, but the paleochannel
assumptions made regarding mining methods and basal sand.
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this Validation test work has
should be reported with an explanation of the basis been completed to confirm
of the mining assumptions made. the process flowsheet to
be used at the Lake Way
Project
to recovery SOP from the
Lake Brine (refer ASX
Announcement
31 October 2018).
============================================================ ==============================
Metallurgical Validation test work has
factors or * The basis for assumptions or predictions regarding been completed to confirm
assumptions metallurgical amenability. It is always necessary as the process flowsheet to
part of the process of determining reasonable be used at the Lake Way
prospects for eventual economic extraction to Project
consider potential metallurgical methods, but the to recovery SOP from the
assumptions regarding metallurgical treatment Lake Brine (Refer ASX
processes and parameters made when reporting Mineral Announcement
Resources may not always be rigorous. Where this is 31 October 2018).
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
============================================================ ==============================
Environmental Environmental
factors or * Assumptions made regarding possible waste and process impacts are
assumptions residue disposal options. It is always necessary as expected to be;
part of the process of determining reasonable localized
prospects for eventual economic extraction to reduction in
consider the potential environmental impacts of the saline
mining and processing operation. While at this stage groundwater
the determination of potential environmental impacts, level, surface
particularly for a greenfields project, may not disturbance
always be well advanced, the status of early associated with
consideration of these potential environmental trench, bore,
impacts should be reported. Where these aspects have and pond
not been considered this should be reported with an construction and
explanation of the environmental assumptions made. accumulation of
salt tails.
The project is
in a remote
area and these
impacts are
not expected to
prevent project
development.
The project is
located with
the Goldfields
Groundwater
Proclamation
Area. A license
to take
groundwater will
be required
under the Rights
in Water and
Irrigation Act
1914. This Act
is administered
by the
Government of
Western
Australia
Department of
Water
and
Environmental
Regulation.
============================================================ ==============================
Bulk density Bulk density is
* Whether assumed or determined. If assumed, the basis not relevant
for the assumptions. If determined, the method used, to brine
whether wet or dry, the frequency of the measurements resource
, estimation.
the nature, size and representativeness of the Volumetric
samples. moisture content
or volumetric
porosity was
* The bulk density for bulk material must have been applied in the
measured by methods that adequately account for void resource
spaces (vugs, porosity, etc), moisture and estimate
differences between rock and alteration zones within as follows:
the deposit. Lake Bed
Sediment:
determined
* Discuss assumptions for bulk density estimates used Paleovalley
in the evaluation process of the different materials. Sediment:
Assumed
Paleochannel
Basal Sand:
Assumed
============================================================ ==============================
Classification Classification
* The basis for the classification of the Mineral of the mineral
Resources into varying confidence categories. resources into
varying
confidence
* Whether appropriate account has been taken of all categories is
relevant factors (ie relative confidence in described in
tonnage/grade estimations, reliability of input data, detail in the
confidence in continuity of geology and metal values, report.
quality, quantity and distribution of the data). The result
reflects the
view
* Whether the result appropriately reflects the of the Competent
Competent Person's view of the deposit. Person.
============================================================ ==============================
Audits or No audit or
reviews * The results of any audits or reviews of Mineral reviews were
Resource estimates. undertaken.
============================================================ ==============================
Discussion of Relative
relative * Where appropriate a statement of the relative accuracy and
accuracy/ accuracy and confidence level in the Mineral Resource confidence
confidence estimate using an approach or procedure deemed of the estimate
appropriate by the Competent Person. For example, the is described
application of statistical or geostatistical in detail in the
procedures to quantify the relative accuracy of the body of
resource within stated confidence limits, or, if such the
an approach is not deemed appropriate, a qualitative Announcement.
discussion of the factors that could affect the The estimated
relative accuracy and confidence of the estimate. tonnage
represents
the in-situ
* The statement should specify whether it relates to brine with no
global or local estimates, and, if local, state the recovery factor
relevant tonnages, which should be relevant to applied.
technical and economic evaluation. Documentation It will not be
should include assumptions made and the procedures possible to
used. extract all of
the contained
brine by pumping
* These statements of relative accuracy and confidence from trenches.
of the estimate should be compared with production The amount which
data, where available. can be extracted
depends on many
factors
including
the permeability
of the
sediments,
the drainable
porosity, and
the recharge
dynamics of
the aquifers.
No production
data are
available
for comparison.
============================================================ ==============================
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
MSCQVLBFKXFXBBV
(END) Dow Jones Newswires
March 18, 2019 03:01 ET (07:01 GMT)
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