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Salt Lake Potash Ltd (SO4)

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Wednesday 31 January, 2018

Salt Lake Potash Ltd

December 2017 Quarterly Report

RNS Number : 4368D
Salt Lake Potash Limited
31 January 2018
 



31 January 2018

 

AIM/ASX Code: SO4

 

SALT LAKE POTASH LIMITED

December 2017 Quarterly Report

The Board of Salt Lake Potash Limited (the Company or SLP) is pleased to present its Quarterly Report for the period ending 31 December 2017.

Highlights for the quarter and subsequently include:

LAKE WELLS

Evaporation Pond Testwork

Ø  The Company successfully completed field testing of its on-lake, unlined evaporation pond model, which will result in significant capital cost advantages for the Goldfields Salt Lakes Project (GSLP).

Ø  Comprehensive geological and geotechnical investigation confirms the widespread availability of ideal in-situ clay materials ideal for use in evaporation pond construction. Modelling based on geotechnical properties of the clays confirms the potential to build unlined, on-lake ponds with negligible seepage inefficiency.

Ø  Amec Foster Wheeler estimate that comparative costs for 400ha of on-lake ponds are $1.6m (unlined) and $42.2m (HDPE lined), highlighting a significant capex advantage for the Project.

Process Testwork

Ø  The Site Evaporation Trial (SET) at Lake Wells has now processed approximately 357 tonnes of brine and produced over 8 tonnes of harvest salts.

Ø  The Company continued process development testwork at globally recognised potash process consultants, Saskatchewan Research Council (SRC). SRC began a continuous locked cycle testing of the proposed Lake Wells process to demonstrate the Sulphate of Potash (SOP) production process from salt harvested from the SET.

Ø  The SRC locked cycle tests will also produce significant quantities of flotation product and SOP for further testing and marketing.

Surface Aquifer Characterisation and Deep Aquifer Exploration

Ø The Company continued sustained pump tests on test trenches across Lake Wells, providing reliable data for the surface aquifer hydrogeological model. 

Ø The Company completed an on-lake drill program to test deep aquifer characteristics and identify potential high yield portions of the basal aquifer.

Demonstration Plant

Ø  The Company and its consultants have substantially advanced the Demonstration Plant study for the GSLP.

LAKE IRWIN

Ø  An initial surface aquifer exploration program was completed at Lake Irwin, comprising a total of 27 shallow test pits and 2 test trenches. This work provides preliminary data for the geological and hydrological models of the surface aquifer of the Lake, as well as brine, geological and geotechnical samples. 

LAKE WAY

Ø  The Company conducted an initial reconnaissance surface sampling program at Lake Way in November 2017, with brine samples averaging 15kg/m3 of SOP equivalent. In conjunction with extensive historical exploration data, these results indicate excellent potential for Lake Way to host a large high-grade SOP brine resource.

REGIONAL LAKES

Ø  The Company undertook initial surface brine sampling of the near surface aquifer and reconnaissance of access and infrastructure at all remaining Lakes held under the GSLP.

The Company's primary focus is to construct a Demonstration Plant at the GSLP, intended to be the first salt-lake brine SOP production operation in Australia. While proceeding with the analysis of options to construct a SOP Demonstration Plant at Lake Wells, the Company is also exploring the other lakes in the GSLP.

GOLDFIELDS SALT LAKES PROJECT

The Company's primary focus is to construct a Demonstration Plant at the GSLP, intended to be the first salt-lake brine SOP production operation in Australia. While proceeding with the analysis of options to construct a SOP Demonstration Plant at Lake Wells, the Company is also exploring the other lakes in the GSLP.

The Company achieved a very important milestone of completing successful validation of the final major technical foundations for production of Sulphate of Potash (SOP) from the GSLP.

While proceeding with a Pre-Feasibility Study (PFS) for Lake Wells, the Company has also completed initial surface sampling and reconnaissance work across all of the other regional Lakes in the GSLP.

The GSLP's lakes have been selected for:

·     scale and potential brine volume;

·     known hypersaline brine characteristics;

·     potential for both shallow trench extraction and from deeper paleochannel aquifer bores;

·     large playa surface for cost-effective evaporation pond construction; and

·     proximity to the important transport and energy infrastructure and engineering expertise available in the Western Australian Goldfields.

While all of the lakes comprising the GSLP share the advantage of their location in the WA Goldfields, it is worth noting that several of the lakes are even closer to rail transport and the gas pipeline than Lake Wells. For example, Lake Ballard and Lake Marmion are located either side of the Goldfields Highway, gas pipeline and rail line, only 140km from the major mining service centre of Kalgoorlie.

There is substantial potential for integration, economies of scale, operating synergies and overhead sharing in the GSLP due to the number of highly prospective lakes. The flexibility of multi-lake production is also appealing for a natural production process which is subject to climate variability.

The Company will study these advantages more closely as it progresses the Goldfields Salt Lakes Project.

 

LAKE WELLS

Evaporation Ponds Construction Trial

The Company completed an evaporation pond construction trial at Lake Wells. The field trial involved construction and testing of four test ponds on the Lake Wells Playa, built solely from in-situ clay materials, using a standard 30t excavator, which operated efficiently and effectively on the lake playa. The trial achieved levels of brine seepage from the evaporation ponds well below the threshold for successful operation of halite evaporation ponds, and potentially also for the smaller potassium salt harvest ponds. (for complete details see Stock Exchange announcement dated 16 October 2017)

The capex savings from this construction method are substantial, compared to the alternative of plastic lined ponds. SLP's engineering consultant, Amec Foster Wheeler, estimates the cost of lined ponds to be approximately $10.50 per m2, up to 25 times higher than construction costs for unlined ponds.

The 25m x 25m test ponds were designed by SLP's geotechnical consultant, MHA Geotechnical (MHA), to test the constructability and operating performance of a number of pond wall designs and to provide reliable seepage data under site conditions. The observed brine loss in the test ponds was well within the parameters of the hydrodynamic model, indicating losses for a 400ha pond will be below 0.125mm/day.

The Company has identified several opportunities to improve the construction of commercial scale ponds using excavators, along with ancillary equipment to optimize drying and compaction of the clays utilized in pond wall construction. This should result in further improvements in the already very low seepage observed in the trial sized ponds.

SLP plans to now construct a Pilot scale pond system to further improve the pond design and construction model.

 

Test Pond Results

Test Pond 3 (TP3) represents the as-modelled embankment construction and is the most likely design for commercial scale embankments. A total of 32 piezometric standpipes and 12 water data loggers were installed in and around all four walls of TP3, along with water level measuring devices on the floor of the pond and in the surrounding trenches, to accurately measure the water levels both in the pond and within the embankments.

The embankment and key are constructed from clay which was air-dried prior to compaction to ensure target compaction and permeability are achieved.  After the embankment and key material is saturated, the seepage from the pond, net of brine evaporation (data from the control pond) represents seepage losses through and below the pond walls. Net seepage losses of less than 3mm per day at test pond scale would substantially validate the shallow lake lithology, geotechnical characteristics and pond construction model for production scale, clay lined, on-lake halite evaporation ponds.

TP3 was initially filled with lake brine to approximately 500mm on 29 August 2017. The small, plastic lined, control pond was also filled to provide an accurate measure of evaporation rates.

Water level and piezometer readings were taken twice daily since and on 18 September 2017 the ponds were topped up, TP3 to approximately 1,000mm in this case, to accelerate wall saturation.

From the initial brine fill, the average net seepage at TP3 equated to approximately 2.4mm per day. This figure includes "losses" to wall saturation as well as to seepage, indicating that steady state seepage losses were comfortably below the 3mm per day threshold modelled for this scale of pond.

Capital Cost Comparison

The Company's engineering consultants, Amec Foster Wheeler, generated scoping level cost estimates comparing two pond construction options for a 400ha halite pond. For ponds built on-lake on a relatively flat playa, with no provision for salt harvesting, and a 2.0m high wall, Amec Foster Wheeler estimate direct capital costs (accuracy of -10%/+30%) of:

·        Unlined -  A$1.6m

·        Lined - A$42.2m

The main costs of the lined ponds are the supply and installation of HDPE lining and placement and compaction of a sand bedding layer. If similar ponds were constructed off lake then clearing and levelling costs would be additional.

For either lined or unlined ponds, if salt harvesting is required a layer of halite must first be deposited and compacted, to provide a support base for harvesting equipment. As the Company does not plan to harvest halite from its ponds, these costs are not included in the Amec Foster Wheeler analysis.

Process Testwork

 

The Company continues a range of process development testwork to enhance the Lake Wells process model.

Site Evaporation Trial

A large scale, continuous Site Evaporation Trial (SET) at Lake Wells successfully completed 15 months of operation under site conditions and through all seasons, confirming the solar evaporation pathway for production of potassium rich harvest salts for processing into SOP. The objective of the SET was to refine process design criteria for the halite evaporation ponds and subsequent harvest salt ponds.

 

The SET has processed approximately 357 tonnes of Lake Wells brine and produced 8.1 tonnes of harvest salts.

The results of the SET are Australian first and have provided significant knowledge to the Company on the salt crystallisation pathway under site conditions in Australia. 

 

During the quarter, approximately 122t of Lake Wells brine was processed through both trains of the SET, producing approximately 2,600kg of harvest salt at average potassium grades within target parameters. Production levels increased as the temperature (evaporation rates) increased with daily evaporation reaching levels of above 16mm/day.

The large quantity of salt produced via the SET is available for larger scale production of commercial samples for potential customers and partners around the world.

 

Process Testwork -  Saskatchewan Research Council (SRC)

 

SRC has been engaged to carry out further optimisation tests to validate and duplicate the results achieved to date, followed by a locked-cycle continuous production test to quantify brine handling requirements and obtain product purity information on a continuous basis.

 

The locked-cycle test will also provide a significant quantity of flotation product to allow crystalliser vendor testing, design work, and product for testing and commercial purposes.

 

The locked-cycle testwork was completed in late December and final results will be available shortly.

 

Surface Aquifer Characterisation Program

The Company has completed a substantial program of work investigating the geological and hydrogeological attributes of the Shallow Lake Bed Sediment hosted brine resource at Lake Wells. The information and data generated will be utilised in the design of the brine extraction system for the GSLP Pilot Plant.

The total program includes 250 test pits and 10 trenches over the lake playa. The test pits are generally 1m wide x 1.5m long and 4.5m deep and confirm lithology and permeability of upper lake bed sediments and demonstrate spatial continuity of the surface aquifer. 

Long Term Test Pumping

The Company continued sustained pump tests on test trenches across Lake Wells. This work provides reliable data for the preparation of a surface aquifer hydrogeological model for Lake Wells. 

The testing was conducted as a "constant head test" whereby flow rate was adjusted to maintain a constant trench water level. Drawdown was observed at nearby observation bores placed at distances of 10m, 20m and 50m from the trench.

Trench dimensions and pumping test results are presented in Table 1. Trench length varied from 25m to 125m length. Trench depth was constrained by the capacity of the excavator and the stability of the ground conditions and ranged from 2m to 6m below ground surface. Aquifer properties were estimated from the trench test data by calibration of a flow model for each trench.

Flow rates toward the end of testing ranged from 13 to 517m3/day. Higher flow rates are associated with evaporite deposits in the Playa Sediments.

These results are very encouraging and continue to support the design of the SOP operation at Lake Wells.

Trench
ID

Average Depth

Trench Length

Test Duration

Total Volume Pumped

Average Pumping Rate

Final Pumping Rate

Calculated
Transmi-ssivity

Calc.
Specific Yield

Brine Chemistry

(m)

(m)

(days)

(m3)

(m3/day)

(m3/day)

(m2/day)


(K mg/L)

P1a

4.5

25

8.3

557

65

54

13.5

0.10

P1b

2

25

Not tested

P1c

4.5

50

7.3

673

170

127

96

0.07

5,673 

P1c

4.5

50

Long-term test in progress

P1e

3.5

125

25

1,878

105

82

24

0.13

5,600

P1g

4

10

9.6

199

21

21

26

0.28

4,620

P1h

6

125

Long-term test in progress

P2a

2.2

25

9.7

272

28

31

46

0.25

6,055

P2b

2.8

25

7

378

54

25

7

0.14

4,762

P2c

3.5

25

10

638

64

50

174

0.25

4,355

P3b

4

50

7

3,831

547

517

231

0.25

 4,311

P3c

4

50

10

95

13

13

1

0.14

 5,474

Table 1: Summary of Trench Test Pumping

Brine chemistry was consistent throughout the duration of the tests.

The Company is continuing extended pump tests on test trenches across Lake Wells with two long-term tests currently underway. These pumping tests will run for over 60 days to continue to validate the hydrology model and provide additional data on the draw down, recharge and brine concentration during extended pumping.

Deep Aquifer Exploration Program

During the quarter, an on-lake deep aquifer exploration diamond core drill program was undertaken, investigating paleochannel aquifer targets identified by geophysical survey. The results will provide further understanding of the characteristics of the paleochannel aquifer and identified locations for further test pumping bores to advance and refine the Lake Wells hydrogeological model.

Five observation bores ranging between 42m and 130m deep were completed across the Lake. The bores were constructed with 80mm PVC casing (internal diameter) through the paleochannel sediments to enable more investigations such as airlifting tests and possible downhole geophysical surveys.

The bores encountered the expected sequence of surficial alluvium to an average depth of 20m followed by up to 70m thick sequence of lacustrine clays before intersecting the paleochannel sediments. Some of the bores were targeted to drill through the paleochannel sediments into the Proterozoic Basement where it was fractured by geological faults.

The drilling results indicated that the modelled gravimetric and passive seismic interpretations were very accurate in locating the elevation of the basement as well as confirming the shape of the paleochannel. The addition of the airborne magnetic lineaments indicated zones where the basement underlying the paleochannel is weathered and fractured by faulting. This provided good targets to drill through the paleochannel sediments into the fractured basement. 

Airlift testing of the observation bores is underway with the purpose of measuring aquifer properties.

 

Demonstration Plant

As previously announced, Amec Foster Wheeler have been engaged to prepare an analysis of the alternatives for the Company to construct a Demonstration Plant at the GSLP.

International brine and salt processing experts Carlos Perucca Processing Consulting Ltd (CPPC) and AD Infinitum Ltd (AD Infinitum) are also engaged for the Study.

Substantial progress continues on pond and trench design, mass balance modelling, process flowsheet design, major equipment quotations, costings and transportation studies.

LAKE IRWIN

Surface Aquifer Exploration Program

An initial surface aquifer exploration program was undertaken at Lake Irwin, comprising a total of 27 test pits and 2 test trenches. The test trenches were 100m long and constructed to a depth of 4-5 meters.

This work provides preliminary data for the hydrogeological model for the surface aquifer of the Lake, geological and geotechnical information for the upper strata of the Lake and deeper brine samples than previously available.

 

The 27 test pits completed across both the north and south of Lake Irwin. The geology and associated hydrology of the shallow (recent lacustrine) sediments is similar to that identified at Lake Wells.

A surface layer (up to 0.8m thick) of evaporitic (crystallised gypsum) sand typically overlies a red clay unit that is up to several meters thick. Thin beds and lenses of evaporitic sand also tended to exist at various depths within the red clay unit.  Rapid inflow of brine occurred into the test pits and trenches from the surface, evaporitic sand unit and from the beds and lenses within the lower clay unit.

Bedded silica sands were identified at depths greater than two meters in the Northern lobe of the lake. Rapid inflow of brine was observed from this underlying, inferred fluvial (riverine) unit. This unit is very encouraging for future exploration programs. 

Brine was sampled during the excavation process. Potassium grades from 26 assays from the test pits ranged from 1,550 to 3,290mg/L. The data are presented as Appendix 4.


Number of Samples

K

(mg/L)

Mg

(mg/L)

SO4

(mg/L)

SOP*
Equivalent

(kg/m3)

Northern Lobe

4

3,033

5,760

22,650

6.76

Southern Lobe

22

2,102

2,725

11,012

4.69

* Conversion factor of K to SOP (K2SO4 equivalent) is 2.23

Table 2: Lake Irwin Brine Chemistry split between the Northern and Southern Lobes

Four large geotechnical samples of 20kg each were taken from the main identified aquifer units. These samples will be processed to assess geotechnical and hydrogeological parameters for the different geological units in the profile, continuing the Company's assessment of brine extraction potential via trenching, as well as assessing the suitability of the clay lithologies for pond construction. Initial visual interpretation during the excavation process indicated excellent stratigraphy and geotechnical potential similar to results at Lake Wells.

LAKE WAY

Reconnaissance and Pit Sampling Program

The Company conducted an initial reconnaissance surface sampling program at Lake Way in November 2017. A total of 8 pit samples were collected at Lake Way encountering brine at a standing water level from less than 1 metre from surface. The average brine chemistry of the samples was: 

Brine Chemistry

K

Mg

SO4

TDS

SOP*
Equivalent

(mg/L)

(mg/L)

(mg/L)

(mg/L)

(kg/m3)

 

Surface Sampling (average 8 samples)

6,859

7,734

25,900

243,000

15.25

* Conversion factor of K to SOP (K2SO4 equivalent) is 2.23

Table 3: Lake Way Brine Chemistry from Surface Sampling

Exploration History

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

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

Groundwater exploration was undertaken in the early 1990s by AGC Woodward Clyde[1] to locate and

secure a process water supply for WMC Resources Limited's Mt Keith nickel operation.  There was a wide and extensive program of exploration over 40 km of palaeodrainage that focused on both the shallow alluvium and deeper palaeochannel aquifers.

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

The shallow aquifer comprises a mixture of alluvium, colluvium and lake sediments extending beyond the lake playa and continuing downstream. Bore yields from Constant Rate Tests (CRT) in the shallow aquifer ranged from 60kL/day up to 590kL/day in permeable coarse-grained sand.

The deep palaeochannel sand aquifer is confined beneath plasticine clay up to 70m thick. The sand comprises medium to coarse grained quartz grains with little clay - it is approximately 30m thick and from 400m to 900m in width. Five test production bores were developed, of which two are within SLP's tenements. CRT bore yields ranged from 520kL/day up to 840kL/day in permeable coarse-grained sand.

The groundwater is hypersaline and saturated near the lake surface with concentrations declining away from the lake. In the production bores within the SLP tenement, the reported potassium concentration was up to 4,000 mg/L K in the shallow aquifer and up to 6,300 mg/L K in the deep aquifer.

 

Competent Persons Statement

The information in this report that relates to Exploration Results, or Mineral Resources for Lake Wells and Lake Irwin is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of  mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this Announcement that relates to Exploration Results for Lake Way is extracted from the report entitled 'Emerging World Class SOP Potential Supported By Lake Way' dated 12 December 2017.  The information in the original ASX Announcement that related to Exploration Results, for Lake Way is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of  mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement

The information in this report that relates to Process Testwork Results is based on, and fairly represents, information compiled by Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM, a 'Recognised Professional Organisation' (RPO) included in a list promulgated by the ASX from time to time. Mr Jones is a Director of Salt Potash Limited. Mr Jones 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 Jones consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.



 

Table 4 - Summary of Exploration and Mining Tenements

As at 31 December 2017, the Company holds interests in the following tenements:

Australian Projects:

Project

Status

Type of Change

License Number

Area       (km2)

Term

Grant Date

Date of First Relinquish-ment

Interest (%)

1-Oct-17

Interest

 (%)

31-Dec-17

Western Australia









Lake Wells










Central

Granted

-

E38/2710

192.2

5 years

05-Sep-12

4-Sep-17

100%

100%

South

Granted

-

E38/2821

131.5

5 years

19-Nov-13

18-Nov-18

100%

100%

North

Granted

-

E38/2824

198.2

5 years

04-Nov-13

3-Nov-18

100%

100%

Outer East

Granted

-

E38/3055

298.8

5 years

16-Oct-15

16-Oct-20

100%

100%

Single Block

Granted

-

E38/3056

3.0

5 years

16-Oct-15

16-Oct-20

100%

100%

Outer West

Granted

-

E38/3057

301.9

5 years

16-Oct-15

16-Oct-20

100%

100%

North West

Granted

-

E38/3124

39.0

5 years

30-Nov-16

29-Nov-21

100%

100%

West

Granted

-

L38/262

113.0

20 years

3-Feb-17

2-Feb-38

100%

100%

East

Granted

-

L38/263

28.6

20 years

3-Feb-17

2-Feb-38

100%

100%

South West

Granted

-

L38/264

32.6

20 years

3-Feb-17

2-Feb-38

100%

100%

South

Application

-

L38/287

95.8

-

-

-

100%

100%

South Western

Application

-

E38/3247

350.3

-

-

-

100%

100%

South

Application

Application Lodged

M38/1278

87.47

-

-

-

-

100%

Lake Ballard










West

Granted

-

E29/912

607.0

5 years

10-Apr-15

10-Apr-20

100%

100%

East

Granted

-

E29/913

73.2

5 years

10-Apr-15

10-Apr-20

100%

100%

North

Granted

-

E29/948

94.5

5 years

22-Sep-15

21-Sep-20

100%

100%

South

Granted

-

E29/958

30.0

5 years

20-Jan-16

19-Jan-21

100%

100%

South East

Granted

-

E29/1011

68.2

5 years

11-Aug-17

10-Aug-22

100%

100%

South East

Application

-

E29/1020

9.3

-

-

-

100%

100%

South East

Application

-

E29/1021

27.9

-

-

-

100%

100%

South East

Application

-

E29/1022

43.4

-

-

-

100%

100%

Lake Irwin










West

Granted

-

E37/1233

203.0

5 years

08-Mar-16

07-Mar-21

100%

100%

Central

Granted

-

E39/1892

203.0

5 years

23-Mar-16

22-Mar-21

100%

100%

East

Granted

-

E38/3087

139.2

5 years

23-Mar-16

22-Mar-21

100%

100%

North

Granted

-

E37/1261

107.3

5 years

14-Oct-16

13-Oct-21

100%

100%

Central East

Granted

-

E38/3113

203.0

5 years

14-Oct-16

13-Oct-21

100%

100%

South

Granted

-

E39/1955

118.9

5 years

14-Oct-16

13-Oct-21

100%

100%

North West

Application

-

E37/1260

203.0

-

-

-

100%

100%

South West

Application

-

E39/1956

110.2

-

-

-

100%

100%

Lake Minigwal










West

Granted

-

E39/1893

246.2

5 years

01-Apr-16

31-Mar-21

100%

100%

East

Granted

-

E39/1894

158.1

5 years

01-Apr-16

31-Mar-21

100%

100%

Central

Granted

-

E39/1962

369.0

5 years

8-Nov-16

7-Nov-21

100%

100%

Central East

Granted

-

E39/1963

93.0

5 years

8-Nov-16

7-Nov-21

100%

100%

South

Granted

-

E39/1964

99.0

5 years

8-Nov-16

7-Nov-21

100%

100%

South West

Application

-

E39/1965

89.9

-

-

-

100%

100%

Lake Way










Central

Granted

-

E53/1878

217.0

5 years

12-Oct-16

11-Oct-21

100%

100%

South

Application

-

E53/1897

77.5

-

-

-

100%

100%

Lake Marmion










North

Granted

-

E29/1000

167.4

5 years

03-Apr-17

02-Apr-22

100%

100%

Central

Granted

-

E29/1001

204.6

5 years

03-Apr-17

02-Apr-22

100%

100%

South

Granted

-

E29/1002

186.0

5 years

15-Aug-17

14-Aug-22

100%

100%

West

Granted

-

E29/1005

68.2

5 years

11-Jul-17

10-Jul-22

100%

100%

Lake Noondie










North

Application

-

E57/1062

217.0

-

-

-

100%

100%

Central

Application

-

E57/1063

217.0

-

-

-

100%

100%

South

Application

-

E57/1064

55.8

-

-

-

100%

100%

West

Application

-

E57/1065

120.9

-

-

-

100%

100%

East

Application

Application Lodged

E36/932

108.5

-

-

-

-

100%

Lake Barlee










North

Application

-

E49/495

217.0

-

-

-

100%

100%

Central

Granted

Granted

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

100%

South

Granted

Granted

E77/2441

173.6

5 years

09-Oct-17

08-Oct-22

100%

100%

Lake Raeside










North

Application

-

E37/1305

155.0

-

-

-

100%

100%

Northern Territory









Lake Lewis










South

Granted

-

EL 29787

146.4

6 years

08-Jul-13

7-Jul-19

100%

100%

North

Granted

-

EL 29903

125.1

6 years

21-Feb-14

20-Feb-19

100%

100%

 

 

 

 

 

 

 

 

APPENDIX 1 - LAKE WELLS DRILL LOCATION DATA

Hole_ID

Drilled Depth

 (m)

East

North

RL

Dip

Azimuth

(mAHD)

LWDD001

126.5

534271

7035995

443

-90

0

LWDD002

130.9

533930

7035793

443

-90

0

LWDD003

40.1

528670

7042963

443

-90

0

LWDD004

6

529637

7044808

443

-90

0

LWDD005

134.5

529382

7044461

443

-90

0

LWDD006

134.6

542285

6997220

443

-90

0

APPENDIX 2 - LAKE WELLS BRINE CHEMISTRY ANALYSIS

HOLE ID

From

 (m)

To

(m)

K

(mg/L)

Cl

(mg/L)

Na

(mg/L)

Ca

(mg/L)

Mg

(mg/L)

SO4

(mg/L)

TDS

(g/L)

LWDD001

0

126.5

4,260

147,700

86,200

538

6,690

19,600

274

LWDD001

0

126.5

4,270

148,050

86,500

545

6,670

19,800

273

LWDD001

0

126.5

4,280

148,250

88,800

551

6,770

20,000

278

LWDD002

0

130.9

4,580

149,150

89,500

557

6,840

20,400

278

LWDD003

0

40.1

3,560

145,450

87,100

532

7,440

22,000

276

LWDD006

0

134.6

4,380

140,850

83,000

675

6,520

18,100

259

LWDD006

0

134.6

4,220

138,050

85,200

665

6,590

18,600

258

Trench P1c

0

4.5

6,770

188,850

108,000

458

6,790

15,700

336

Trench P1c

0

4.5

6,990

190,300

110,000

469

6,940

16,300

337

Trench P1c

0

4.5

5,890

178,300

106,000

616

6,060

14,300

316

Trench P1c

0

4.5

7,000

190,650

112,000

448

7,030

16,600

338

Trench P1c

0

4.5

5,430

168,300

98,000

671

5,680

13,700

299

Trench P1h

0

6.0

5,030

160,200

95,900

660

6,040

14,500

290

Trench P1h

0

6.0

4,990

160,750

94,600

669

6,000

14,600

290

Trench P1h

0

6.0

5,000

159,150

95,800

710

6,080

14,700

288

Trench P1h

0

6.0

5,090

159,700

99,000

718

6,030

14,600

284

Trench P1h

0

6.0

4,950

159,850

95,300

720

5,980

14,600

286

Trench P1h

0

6.0

4,910

158,250

92,300

685

5,870

14,100

285

Trench P1h

0

6.0

4,600

148,400

86,400

726

5,480

13,700

266

Trench P1h

0

6.0

4,620

148,250

85,800

741

5,460

13,700

265

Trench P1h

0

6.0

4,560

150,350

87,200

769

5,430

13,700

265

Trench P1h

0

6.0

4,760

151,250

90,000

746

5,670

14,000

275

Trench P1h

0

6.0

4,900

154,400

90,600

707

5,730

14,100

278

Trench P1h

0

6.0

4,990

157,550

95,400

708

5,900

14,700

281

Trench P1h

0

6.0

5,060

160,750

95,100

683

6,060

14,600

286

Trench P1h

0

6.0

5,180

160,900

96,100

673

6,090

15,000

289

Trench P1h

0

6.0

5,120

161,800

96,700

660

6,090

14,900

290

Trench P1h

0

6.0

5,210

163,350

96,200

690

6,210

14,900

292

 

 

APPENDIX 3 - LAKE IRWIN TEST PIT LOCATION DATA

Hole_ID

East

North

EOH


Hole_ID

East

North

EOH

LITT001

399016

6880936

6.0


LITT015

399618

6873995

6.0

LITT002

398761

6880443

6.0


LITT016

399559

6873524

6.0

LITT003

398522

6879966

6.0


LITT017

399618

6873995

6.0

LITT004

398238

6879443

6.0


LITT018

390847

6885871

2.0

LITT005

397755

6879056

6.0


LITT019

390700

6885038

2.0

LITT006

397755

6878524

6.0


LITT020

390002

6885153

3.0

LITT007

397390

6877929

6.0


LITT021

389391

6885009

3.0

LITT008

397110

6877415

6.0


LITT022

388775

6884751

3.0

LITT009

400186

6877199

6.0


LITT023

388409

6884440

3.0

LITT010

400060

6876665

6.0


LITT024

364890

6904009

4.0

LITT011

399940

6876135

6.0


LITT025

364905

6904486

4.5

LITT012

399701

6875633

6.0


LITT026

364879

6903453

4.0

LITT013

399692

6875086

6.0


LITT027

364865

6903002

4.0

LITT014

399692

6874543

6.0






 

APPENDIX 4 - LAKE IRWIN BRINE CHEMISTRY ANALYSIS

HOLE ID

From

 (m)

To

(m)

K

(mg/L)

Cl

(mg/L)

Na

(mg/L)

Ca

(mg/L)

Mg

(mg/L)

SO4

(mg/L)

TDS

(g/L)

LITT001

0

6.0

2,410

91,150

54,700

1,240

2,230

9,930

163

LITT002

0

6.0

2,660

99,150

59,900

1,210

2,530

10,700

177

LITT003

0

6.0

2,550

99,650

61,300

1,180

2,600

11,600

178

LITT004

0

6.0

1,810

77,350

47,100

1,280

2,160

9,360

129

LITT005

0

6.0

1,620

69,600

42,100

1,300

2,050

8,970

125

LITT006

0

6.0

1,600

71,450

43,500

1,250

2,160

9,780

129

LITT007

0

6.0

2,360

102,750

62,800

1,050

3,020

11,700

185

LITT008

0

6.0

1,720

72,800

46,000

1,230

2,180

10,500

133

LITT009

0

6.0

1,940

81,150

48,900

1,420

2,200

9,570

144

LITT010

0

6.0

2,190

90,250

56,200

1,320

2,500

10,200

160

LITT011

0

6.0

2,330

92,250

56,000

1,260

2,430

9,840

166

LITT012

0

6.0

1,550

62,500

40,800

1,440

1,710

8,550

114

LITT013

0

6.0

1,700

70,200

44,700

1,410

1,870

8,640

127

LITT014

0

6.0

2,040

87,450

54,000

1,210

2,500

10,300

158

LITT015

0

6.0

2,020

84,500

52,200

1,320

2,310

9,330

151

LITT016

0

6.0

2,840

115,900

69,500

1,160

3,080

11,100

206

LITT018

0

2.0

1,550

78,800

49,300

1,200

2,820

10,700

144

LITT019

0

2.0

2,260

105,250

66,100

924

3,750

13,500

191

LITT020

0

3.0

2,260

105,250

67,500

911

3,810

13,800

191

LITT021

0

3.0

2,210

105,100

67,400

896

3,660

14,000

191

LITT022

0

3.0

2,240

111,950

70,200

858

3,990

14,500

196

LITT023

0

3.0

2,380

122,100

75,200

756

4,400

15,700

221

LITT024

0

4.0

2,820

149,500

91,900

498

6,020

21,200

273

LITT025

0

4.5

3,290

143,500

95,700

577

5,350

20,600

263

LITT026

0

4.0

2,910

149,850

94,600

449

6,270

23,700

278

LITT027

0

4.0

3,110

149,300

96,900

436

5,400

25,100

280

 

APPENDIX 5 - JORC TABLE ONE

Section 1: Sampling Techniques and Data

Criteria

JORC Code explanation

Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Lake Wells (drilling)

Geological samples were obtained from diamond core drilling.

Brine samples were obtained by airlifting PVC cased diamond core holes.

 

Lake Wells (trench testing) and Lake Irwin

Geological samples were obtained from the excavator bucket at regular depth intervals.

Brine samples were taken from the discharge of trench dewatering pumps.

 

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Lake Wells (drilling)

Diamond core drilling

 

Lake Wells (trench testing) and Lake Irwin

Excavation with a low ground pressure excavator.

 

 

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Lake Wells (drilling)

Geological sample recovery when diamond drilling was high. 

 

Lake Wells (trench testing) and Lake Irwin

Not applicable for trenching.

 

 

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

Lake Wells (drilling)

All drill holes were geologically logged qualitatively by a qualified geologist, noting in particular moisture content of sediments, lithology, colour, induration, grainsize and shape, matrix and structural observations. Flow rate data from airlifting was logged to note water inflow zones.

 

Lake Wells (trench testing) and Lake Irwin

All trenches and test pits were geologically logged qualitatively by a qualified geologist, noting in particular moisture content of sediments, lithology, colour, induration, grainsize and shape, matrix and structural observations. Flow rate data was logged to note water inflow zones.

 

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Lake Wells (drilling)

Brine samples were obtained during airlifting of cased diamond core holes.

Sample bottles are rinsed with brine which is discarded prior to sampling.

 

Lake Wells (trench testing) and Lake Irwin

Brine samples were taken from the discharge of trench dewatering pumps.

Sample bottles are rinsed with brine which is discarded prior to sampling.

All brine samples taken in the field are split into two sub-samples: primary and duplicate.  Reference samples were analysed at a separate laboratory for QA/QC.

Representative chip trays and bulk lithological samples are kept for records.

 

 

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Primary samples were sent to Bureau Veritas Minerals Laboratory, Perth. 

Brine samples were analysed using ICP-AES for K, Na, Mg, Ca, with chloride determined by Mohr titration and alkalinity determined volumetrically. Sulphate was calculated from the ICP-AES sulphur analysis.

 

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Data entry is done in the field to minimise transposition errors.

Brine assay results are received from the laboratory in digital format, these data sets are subject to the quality control described above.  All laboratory results are entered in to the company's database and validation completed.

Independent verification of significant intercepts was not considered warranted given the relatively consistent nature of the brine.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Trench and test pit co-ordinates were captured using hand held GPS.

Coordinates were provided in GDA 94_MGA Zone 51.

Topographic control is obtained using Geoscience Australia's 1-second digital elevation product.

 

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Lake Wells (drilling)

Drill hole spacing is shown on the attached map and varies due to irregular access along the lake edge.

 

Lake Wells (trench testing) and Lake Irwin

Trench hole spacing is shown on the attached maps and varies due to irregular access along the lake edge.

 

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Lake Wells (drilling)

All drill holes and pits were vertical. Geological structure is considered to be flat lying.

 

Lake Wells (trench testing) and Lake Irwin

Trenches and test pits were vertical. Geological structure is considered to be flat lying.

 

Sample security

The measures taken to ensure sample security.

All brine samples were marked and kept onsite before transport to the laboratory.

All remaining sample and duplicates are stored in the Perth office in climate-controlled conditions.

Chain of Custody system is maintained.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No audits were undertaken.

 

 

Section 2: Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

 

Lake Wells

Tenements excavated were granted exploration licences 38/2710, 38/2821, 38/2824, 38/3055, 38/3056 and 38/3057 in Western Australia.

 

Lake Irwin

Tenements sampled 37/1233, 38/3087 and 39/1892 in Western Australia.

Exploration Licenses are held by Piper Preston Pty Ltd (fully owned subsidiary of ASLP).

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Details are presented in the report.

 

Geology

Deposit type, geological setting and style of mineralisation.

Salt Lake Brine Deposit

 

 

 

 

 

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o   easting and northing of the drill hole collar

o   elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o   dip and azimuth of the hole

o   down hole length and interception depth

o   hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Details are presented in the report.

 

 

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Details are presented in the report.

 

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

Lake Wells (drilling)

The unit is flat lying and drill holes are vertical hence the intersected downhole depth is equivalent to the inferred thickness of mineralisation

 

Lake Wells (trench testing) and Lake Irwin

The unit is flat lying and trenches and pits are vertical hence the intersected downhole depth is equivalent to the inferred thickness of mineralisation.

 

 

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Addressed in the announcement.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All results have been included.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Gravity survey was completed by Atlas Geophysics using a Hi Target V100 GNSS receiver for accurate positioning and CG-5 Digital Automated Gravity Meter.   

Gravity data was gained using the contractors rapid acquisition, high accuracy UTV borne techniques.  The company's own in-house reduction and QA software was used to reduce the data on a daily basis to ensure quality and integrity.  All gravity meters were calibrated pre and post survey and meter drift rates were monitored daily.  3 to 5 % of the stations are repeated for quality control.

Western Geophysics were engaged to manage and process the gravity survey.  Processing the survey involved reducing the gravity data and integrating to the regional data to a residual anomaly which shows there is a semi-continuous distinct residual gravity low of negative 2 to 2.5 milligals present along eastern to central areas to the entire tenement area.

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Further trench testing and numerical hydrogeological modelling to be completed that incorporates the results of the test pumping.  The model will be the basis of the annual brine abstraction rate and mine life.

 

 

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

 

Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 207 383 5100

Nick Tulloch/Beth McKiernan

Cenkos Securities plc (Joint broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs  

Shore Capital (Joint broker)        

Tel: +44 (0 207 468 7967

 



[1] WMC Resource Limited report by AGC Woodward Pty Ltd, 1992, Mt Keith Project, Process Water Supply Study, Lake Way Area, Volume I and II, Report

2547.


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