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Salt Lake Potash #SO4 June 2018 Quarterly Report

30th July 2018 / Leave a comment

The Board of Salt Lake Potash Limited (the Company or SLP) is pleased to present its Quarterly Report for the period ending 30 June 2018.

The Company’s primary focus is progressing the development of a Demonstration Plant at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

Highlights for the quarter and subsequently include:

LAKE WAY

Demonstration Plant Scoping Study

Ø The Company and its consultants have substantially advanced the Scoping Study for a 50,000tpa Demonstration Plant at Lake Way, with completion expected shortly. 

Process Testwork

Ø A range of process development testwork is continuing, including process pathway modelling by international experts and a bulk sample evaporation trial processing both Lake Way representative brine and Williamson Pit brine. 

Geotechnical Investigations

Ø An initial geological and geotechnical investigation by the Company and Knight Piesold confirmed the availability of in-situ clays amenable for on-lake evaporation pond construction.

LAKE WELLS

Process Testwork

Ø The Company completed pilot scale crystalliser validation testwork at a leading crystalliser vendor in the United States, processing approximately 400 kg of crystalliser feed salt (schoenite concentrate), produced from previous Lake Wells development work at Saskatchewan Research Council (SRC). The testwork successfully produced high quality SOP crystals, representative of a full scale plant product.

LAKE BALLARD

Ø The Company’s Section 18 application over the Lake Ballard and Lake Marmion projects was granted, and the Company mobilised an amphibious excavator to complete the surface aquifer exploration program.

 

LAKE IRWIN

Ø A surface aquifer exploration program was completed at Lake Irwin, comprising of 56 shallow test pits and 5 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. 

The Goldfields Salt Lakes Project

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

The GSLP has a number of important, favourable characteristics:

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

Ø Over 3,300km2 of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø Excellent evaporation conditions;

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

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

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

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

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

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

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

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

The Company and its consultants have substantially advanced the Lake Way Project Scoping Study, with completion expected in the coming weeks. 

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2.

SLP holds two Exploration Licences (one granted and one under application) covering most of the Lake, including the paleochannel defined by previous exploration. The Northern end of the Lake is largely covered by a number of Mining Leases (MLs), held by Blackham Resources Limited, the owner of the Wiluna Gold Mine.

The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed, high quality infrastructure in place.

The Goldfields Highway is a high quality sealed road permitted to carry quad road trains and passes 2km from the Lake. The Goldfields Gas Pipeline is adjacent to SLP’s tenements, running past the eastern side of the Lake.

SLP’s MOU with Blackham provides the basis to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way, including initially a 50,000tpa Demonstration Plant.

Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

Ø Substantial likely capital and operating savings from sharing overheads and infrastructure with the Wiluna Gold Mine, including the accommodation camp, flights, power, maintenance, infrastructure and other costs.

Ø The site has excellent potential freight solutions, adjacent to the Goldfields Highway, which is permitted for heavy haulage, 4 trailer road trains to the railhead at Leonora, or via other heavy haulage roads to Geraldton Port.

Ø A Demonstration Plant would likely be built on Blackham’s existing Mining Licences.

Ø SLP would dewater the existing Williamson Pit on Lake Way, prior to Blackham mining, planned for early 2019. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP. This brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages over 14kg/m3.

Ø The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.

Ø There would be substantial savings to both parties from co-operating on exploration activities on each other’s ground.

Ø The presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

 

Geological Interpretation

Significant historical exploration work has been undertaken 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 Department of Mines and Petroleum’s WAMEX database. The database contains more than 6,200 mineral exploration drill holes across the Lake Way area, about 1,000 of which are on the Blackham area.

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

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

Geology

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

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

Hydrogeology

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

Mineral Resource

The Scoping Study will include the estimate of an initial Mineral Resource on Blackham’s MLs, to support the Demonstration Plant’s brine extraction model. The work includes the collation of extensive historical geological and hydrogeological data.

Process Testwork

The Company has continued a range of process development testwork to provide and validate inputs to the Lake Way Scoping Study production model. The testwork incorporates brines from the Lake itself, as well as the super-concentrated brines from the Williamson Pit.

Initial brine evaporation modelling, conducted by international solar pond experts, Ad Infinitum, indicates the salts produced at Lake Way will be comparable to those produced at Lake Wells and therefore suitable for conversion into SOP. 

International laboratory and testing company, Bureau Veritas (BV), has completed a series of laboratory-scale brine evaporation trials at their Perth facility, under simulated average Lake Way climate conditions. The aim of the BV trials is to monitor the chemical composition of the brine and salts produced through the evaporation process to confirm:

·        Concentration thresholds in the brine chemistry which can be used to maximise the recovery of potassium in the harvest salts and minimise the quantity of dilutive salts fed to a process plant;

·        The quantity and composition of harvest salts which will form the plant feed in commercial production; and

·        The potential for any internal evaporation pond recycle streams that may improve harvest salt recovery.

The laboratory testwork confirmed the modelled brine evaporation pathways. The Williamson pit brine follows a similar evaporation pathway to Lake Way lake brine with similar brine chemistry and salts produced.

The strongly correlated evaporation pathway of the Williamson Pit brine and the Lake Way brine provides an advantage incorporating the Williamson Pit brine into a long-term development model.

LAKE WELLS

Process Testwork

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

A large scale, continuous Site Evaporation Trial (SET) at Lake Wells was successfully completed over 18 months of operation under site conditions and through all seasons.

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. 

The SET processed approximately 412 tonnes of Lake Wells brine and produced 10.3 tonnes of harvest salts. Site-produced harvest salts have been used in a range of subsequent process development testwork programs.

The Company has used the harvest salts produced by the SET to perform comprehensive process development testwork at Saskatchewan Research Council (SRC). Most recently, SRC completed locked cycle testwork utilising 1,000kg of harvest salts from Lake Wells SET to produce 400kg of flotation concentrate. Approximately 350kg of the flotation concentrate (crystalliser feed salt) was provided to a globally recognized crystalliser vendor for crystalliser equipment and design testwork.

Mass (kg)

K
(%)

SO4
(%)

Mg
(%)

Cl
(%)

Na
(ppm)

H20
(%)

Crystalliser Feed Salt

356.1

19.3

49.8

6.12

0.34

0.19

24.2

Table 1: Crystalliser Feed Salts

Solubility software modelling was performed to confirm the crystalliser process conditions and expected outcomes prior to any testwork being performed. The testwork consisted of two main phases; an initial glassware test to validate the conditions and a subsequent small scale pilot test to produce a larger product sample.

In both tests parameters such as temperature, slurry composition and brine chemistry were monitored to validate the modelled process.

The glassware and continuous pilot crystalliser tests have confirmed the production of high quality potassium sulphate via the crystallisation process.

K
(%)

K2SO4            (%) equivalent)

Mg
(%)

Cl
(ppm)

Na
(ppm)

Pilot Crystalliser test results

44.5

99%

< 0.25

< 100

< 300

Table 2: Continuous Pilot Crystalliser 

LAKE BALLARD

The Company mobilised an amphibious excavator on the Lake to complete a surface aquifer exploration program. The Company received confirmation from the Minister for Finance, Energy and Aboriginal Affairs that the Company’s Section 18 application over the Lake Ballard and Lake Marmion projects had been granted.

 

The objective of the program is to gather geological and hydrological data about the shallow brine aquifer hosted by the Quaternary Alluvium stratigraphic sequence in the upper levels of the Lake. The program is to evaluate the geology of the shallow Lake Bed Sediments, and to undertake pumping trials to provide estimates of the potential brine yield from trenches in the shallow sediment. The excavator program will also provide important geological and geotechnical information for potential construction of trenches and on-lake brine evaporation ponds.

LAKE IRWIN

Surface Aquifer Exploration Program

Following the initial trench development in 2017, the Company returned to Lake Irwin with the amphibious excavator to undertake a program of test pits and additional trench excavation.

The completed program included 56 test pits and 5 trenches across the lake surface covering both the northern and southern lobes, to provide geological information. Twelve of these pits were slug tested to obtain bulk hydraulic conductivity parameters for the lakebed sediments. The Company plans to run long-term pump tests across the Lake to determine hydraulic conductivity and specific yield.

Geological Interpretation

Lake Irwin (LI) is made up of two distinct areas, Lake Irwin North and South, linked by a very narrow channel. The geology of lake Irwin south comprises a variable thickness of evaporitic (gypsum) sand overlying lacustrine clays to maximum excavation depth.

Based on work completed to date, the thickness of the evaporitic sand layer tended to be greatest in open lake areas and around the margins of islands. Thick evaporitic beds in open lake areas extend from surface to well below the static brine level. The underlying clay is generally red-brown in colour and relatively firm.

Inflow into test pits at Lake Irwin south was generally moderate to high and primarily originating from the surface evaporite sands and some deeper granular/pebble gypsum beds.

The shallow geology of the majority of LI North was similar to that in the narrow channels of LI South. A thin surface crust of halite dominated salt overlying a bed of dark brown clay to sandy clay which, in turn, overlies a red-brown lacustrine clay to maximum excavation depth.  The upper red-brown clay unit often contained a significant portion of large (50-150mm), matrix supported gypsum crystals.

The absence of a significant evaporite sand layer in the northern sediment resulted in slower fill rates in the pits and trenches.

At the northwestern corner of the lake the sedimentary sequence contained fluvial sediments characterised by very soft, unstable, weakly bedded, upward fining clayey sands to sandy clays with intervening beds of pure clay. This material was interpreted to be ox-bow and floodplain sediments marginal to the main river channel. Initial flow into the pits from this looser, sandy material was high.

Underlying these fluvial sediments is a sequence of hard, very dense, clayey coarse sands with occasional beds of rounded pebbles. This coarse-grained material represents the main river channel where it entered the lake. Brine flow in these areas was medium to low.

 

Competent Persons Statement

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.

 

The information in this Announcement that relates to Exploration Results for Lake Way is extracted from the report entitled ‘Initial Results Confirm Lake Way Potential’ dated 26 April 2018 and ‘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

 

Table 3 – Summary of Exploration and Mining Tenements

As at 30 June 2018, 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-Apr-18

 Interest

 (%)

30-Jun-18

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

Granted

–

E38/3247

350.3

5 years

25-Jan-18

24-Jan-23

100%

100%

South

Application

–

M38/1278

87.47

–

–

–

100%

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

Granted

–

E29/1020

9.3

5 years

21-Feb-18

20-Feb-23

100%

100%

South East

Granted

–

E29/1021

27.9

5 years

21-Feb-18

20-Feb-23

100%

100%

South East

Granted

–

E29/1022

43.4

5 years

21-Feb-18

20-Feb-23

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

Granted

Granted

E39/1965

89.9

5 years

3-May-18

2-Jun-23

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

–

E36/932

108.5

–

–

–

100%

100%

Lake Barlee

North

Application

–

E49/495

217.0

–

–

–

100%

100%

Central

Granted

–

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

100%

South

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%

Lake Austin

North

Application

–

E21/205

117.8

–

–

–

–

100%

West

Application

–

E21/206

192.2

–

–

–

–

100%

East

Application

–

E58/529

213.9

–

–

–

–

100%

South

Application

–

E58/530

217.0

–

–

–

–

100%

South West

Application

–

E58/531

96.1

–

–

–

–

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%

 

 

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

Matt Syme/Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

 

 

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.

Salt Lake Potash #SO4 – Notice of GM

11th May 2018 / Leave a comment

Salt Lake Potash Limited #SO4 wishes to advise that a General Meeting of the Company will be held at the Conference Room, Ground Floor, BGC Centre, 28 The Esplanade, Perth, Western Australia on Monday 11 June 2018 at 10:00am (WST).

The business of the meeting will be to approve the adoption of a new Company Constitution and seek approval to vary the terms of existing Performance Rights and Performance Shares.

The Company’s primary focus is to construct a Demonstration Plant, before expanding to full-scale production at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine SOP production operation in Australia.

The Company has selected GSLP’s lakes 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 proceeding with pre-feasibility study technical work for Lake Wells, the Company has also completed initial work across all of the other regional lakes in the GSLP.

As a result of the Company’s work on regional lakes, the Company identified an opportunity at Lake Way. This lead to the Company executing a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a SOP operation based at Lake Way, near Wiluna.

The strategic decision to shift focus to Lake Way resulted in the Company’s resources being focused on Lake Way. The Directors of the Company believe that of participants of the Performance Rights Plan and the Vendors should be not be directly affected by decision of the Company to shift to Lake Way and seek approval for an extension on the pre-feasibility study and definitive feasibility study milestones by six months.

Equally, the proposed variations will ensure that the Company can explore and exploit the valuable commercial opportunity under the MOU, without the additional burden of attempting to complete the pre-feasibility study and definitive feasibility study before the original expiry dates.

The Company is also proposing to adopt the new Company Constitution to reflect changes to the Australian Corporations Act, the ASX Listing Rules and other regulatory requirements since the Company adopted its current Constitution in 2006.

The Notice of General Meeting was sent to shareholders today and is available for download on the Company’s website: www.saltlakepotash.com.au 

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

Matt Syme/Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

Salt Lake Potash #SO4 announces March 2018 Quarterly Report

30th April 2018 / Leave a comment

The Board of Salt Lake Potash Limited (the Company or SLP) is pleased to present its Quarterly Report for the period ending 31 March 2018.

The Company’s primary focus is to construct a Demonstration Plant at the Goldfields Salt Lakes Project (GSLP), intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

Highlights for the quarter and subsequently include:

LAKE WAY

MOU with Blackham Resources to access Lake Way

Ø The Company entered into a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a SOP operation based at Lake Way, near Wiluna.

Surface Sampling Program

Ø A preliminary surface sampling program on Blackham’s tenements confirms the average SOP grade of over 14kg/m3, making Lake Way one of Australia’s highest grade SOP brine sources.

Geotechnical Investigations

Ø An initial geological and geotechnical investigation by the Company and Knight Piesold confirmed the availability of in-situ clays amendable for on-lake evaporation pond construction. A total of 24 auger holes were excavated across Blackham’s tenements and laboratory tested.

Surface Aquifer Exploration

Ø Review and modelling of the large volume of historical exploration data for Lake Way confirms the likelihood of a large hypersaline brine pool on both Blackham and SLP’s tenements.

Ø The Company is in the process of mobilising a drill rig and an amphibious excavator on the Lake to complete an initial surface aquifer exploration program.

Ø The surface aquifer program will include the construction of test pits and trenches for long-term pump testing.

Process Testwork

Ø The Company has commenced a range of process development testwork including process pathway modelling by international experts, a bulk sample evaporation trial and site-based evaporation trial at Lake Way. 

 

First MOU for an Offtake Agreement with Mitsubishi

Ø The Company executed its first MOU for an Offtake Agreement with Mitsubishi, for the sales and offtake rights for up to 50% of the SOP production, from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets. 

LAKE WELLS

Process Testwork

Ø  The Saskatchewan Research Council (SRC) completed locked cycle testwork utilising 1T of harvest salts from Lake Wells SET to produce 400kg of flotation concentrate. The flotation concentrate is scheduled for crystalliser design testwork in the USA.

Ø  The Site Evaporation Trial (SET) at Lake Wells was decommissioned after completing over 18 months of operation under site conditions and through all seasons. The SET processed approximately 412 tonnes of brine and produced over 10 tonnes of harvest salts.

LAKE IRWIN

Ø  A surface aquifer exploration program was continued at Lake Irwin, with additional 29 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. 

GSLP’s World Class Scale Revealed with an Initial Exploration Target Estimation

The Company released an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company’s GSLP. The ninth lake, Lake Wells, already having a Mineral Resource reported in accordance with the JORC code.

The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 – 7.1kg/m3 (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. The total playa area of the lakes is approximately 3,312km2.

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

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

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

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

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

Ø  Over 3,300km2 of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø  Excellent evaporation conditions;

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

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

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

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

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

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

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

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2.

The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed, high quality infrastructure in place.

The Goldfields Highway is a high quality sealed road permitted to carry quad road trains and passes 2km from the Lake. The Goldfields Gas Pipeline is adjacent to SLP’s tenements, running past the eastern side of the Lake.

SLP has entered an MOU with Blackham to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way, including initially a 50,000tpa Demonstration Plant (see announcement dated 12 March 2018).

Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

Ø  Substantial likely capital and operating savings from sharing overheads and infrastructure with the Wiluna Gold Mine, including the accommodation camp, flights, power, maintenance, infrastructure and other costs.

Ø  The site has an excellent freight solution, adjacent to the Goldfields Highway, which is permitted for heavy haulage 4 trailer road trains to the railhead at Leonora.

Ø  A Demonstration Plant would likely be built on Blackham’s existing Mining Licences, already subject of a Native Title Agreement.

Ø  SLP would dewater the existing Williamson Pit on Lake Way, prior to Blackham mining, planned for early 2019. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP. This brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages over 14kg/m3.

Ø  The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.

Ø  There would be substantial savings to both parties from co-operating on exploration activities on each other’s ground.

Ø  The presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

SLP will complete a Scoping Study for a potential SOP operation at Lake Way, including a Demonstration Plant, by mid-2018, in time to allow a decision on dewatering the Williamson Pit. There is substantial historical data available for Lake Way and, along with the extensive, high quality technical work undertaken at SLP’s other lakes, which has substantial application at Lake Way, a Scoping Study can be undertaken in a much shorter timeframe than would normally be the case.

Surface Sampling Program

The Company has now completed initial surface sampling program at Lake Way, substantially covering the Lake surface. A total of 23 pit samples have been collected encountering brine at a standing water level generally less than 1 metre from surface.

The average brine chemistry of the samples was: 

Total
Samples

K

Mg

SO4

TDS

SOP*
Equivalent

Program

Location

(mg/L)

(mg/L)

(mg/L)

(mg/L)

(kg/m3)

March 2018

Blackham

15

6,447

6,680

25,613

231,000

14.38

November 2017

SLP

8

6,859

7,734

25,900

243,000

15.25

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

[1] Previously reported in ASX release dated 12/12/2017

The brine chemistry at Lake Way is very consistent over the lake surface. The SOP grades are amongst the highest achieved in Australia to date.

Geotechnical Investigations

To gain an understanding of ground conditions for trenching and pond construction, a preliminary geotechnical investigation program was undertaken within the Blackham Mining Tenements, in conjunction with leading international geotechnical consultants, Knight Piesold. 

A total of 24 hand auger boreholes were drilled to depths of up to 3.2 metres, and the encountered soils were logged and sampled.

Lake Way ground conditions consists of a thin surface layer of evaporite sands, overlying sandy and silty clays. Firm clays were encountered at 1m to 2m depth, generally increasing in strength with depth, becoming hard from 2m to 3m. Shallow groundwater was encountered on average 0.2m below the lake surface.

A testing program was undertaken at a NATA accredited geotechnical laboratory, using specific test methods appropriate for saline conditions, to characterise soils and assess preliminary soil parameters.  

Summary test results are presented below.

Particle Size Distribution Analysis

Sample Number

Lithological Unit

Clay and Silt

Sand and Gravel

601

Mixed soils above 1.5m

26%

74%

602

Clay 1.2m to 2.25m depth

71%

29%

603

Mixed soils above 1.5m

47%

53%

604

Mixed soils above 1.5m

47%

53%

Table 2: Particle Size Distribution Analysis

 

Hydrometer Analysis

Sample Number

Lithological Unit

Clay

Silt

Sand

600

Mixed soils above 1.8m

58%

20%

22%

605

Mixed soils above 0.5m

29%

30%

41%

606

Mixed soils above 1.8m

28%

27%

45%

Table 3: Hydrometer Analysis

 

Properties of Upper Clays

Remoulded Permeability (m/s)

5×10-10

Maximum Dry Density (t/m3)

1.75

Optimum Water Content (%)

18

Cohesion c’ (kPa)

1

Angle of Shear Resistance ф ‘ (Deg)

37

Table 4: Properties of Upper Clays

Erodibility characteristics were tested and an Emerson class number of 6 was measured for all samples. This indicates non-dispersive soils that are not prone to erosion when used to form embankments.

Based on the preliminary geotechnical work to date, Knight Piesold have concluded that:

–     the in-situ clay materials can be expected to provide natural low permeability layers to control seepage of on-lake ponds.

–     the clays are suitable for embankment construction purposes, with adequate moisture control and borrow pit dewatering.

–     A key advantage of Lake Way is the presence of a drier clay zone surrounding the Williamson Pit, which has the potential to provide borrow materials and construction schedule benefits for the upcoming pond construction programs.

Knight Piesold is now preparing an options study to evaluate design concepts for large-scale pond systems and provide earthworks quantities and costs. Seepage assessments and flood studies are underway. In parallel, design work is being undertaken for a dewatering pond to hold the Williamson Pit brine.

Surface Aquifer Characterisation

Lake Way and its surrounds have been the subject of a substantial amount of historical exploration for gold, nickel, uranium and other minerals, as well as for process water for mining operations. A total of over 2,800 holes have been drilled in and around the Lake previously, providing a very large database of geotechnical information.

SLP have commenced compiling, digitising and interpreting the historical exploration database to extract relevant data and provide initial basement geometry for the Lake area, to assist estimation of an initial JORC compliant resource.

The Company is also in the process of mobilising a small track-mounted drill rig and an amphibious excavator to complete an initial surface aquifer exploration program. This work will provide critical data for the hydrogeological model for the surface aquifer of the Lake, as well as geological and geotechnical information for infrastructure design and construction.

The surface aquifer program will include the construction of test pits and trenches for long-term pump testing. 

The drill campaign is also intended to sterilise (for gold exploration) sufficient areas for siting brine extraction trenches and evaporation ponds.

 

Process Testwork

The Company has commenced a range of process development testwork to provide and validate inputs to the Lake Way Scoping Study production model. Naturally, this includes testing brines from the Lake itself, as well as the super-concentrated brines from the Williamson Pit.

The testwork aims to confirm the modelled brine evaporation pathways firstly under laboratory simulated conditions and then from a site-based trial of sufficient scale to test on-lake evaporation conditions.

Initial brine evaporation modelling, conducted by internationally renowned solar pond experts, Ad Infinitum, indicates the salts produced at Lake Way will be comparable to those produced at Lake Wells and therefore suitable for conversion into SOP. 

International laboratory and testing company, Bureau Veritas (BV), has commenced a series of laboratory-scale brine evaporation trials at their Perth facility, under simulated average Lake Way climate conditions. The aim of the BV trials is to monitor the chemical composition of the brine and salts produced through the evaporation process to confirm:

·        Concentration thresholds in the brine chemistry which can be used to maximise the recovery of potassium in the harvest salts and minimise the quantity of dilutive salts fed to a process plant;

·        The quantity and composition of harvest salts which will for the plant feed in commercial production; and

·        The potential for any internal evaporation pond recycle streams that may improve harvest salt recovery.

Two tests – one for Williamson Pit brine and one for normal Lake Way brine – are currently underway, each evaporating 150kg of brine on a load cell to monitor evaporative loss. The temperature of the brine and air flow across the brine surface is controlled by using infra-red lamps and fans to simulate Lake Way average weather conditions.

A Site Evaporation Trial (SET), as successfully operated at Lake Wells previously, is under construction at Lake Way and will be filled with first brine over the next week. The SET will gather specific evaporation data on concentrated brines under actual conditions, providing refinements to the commercial scale pond modelling.

The Site Evaporation Trial is also designed to produce sufficient harvest salt for confirmatory process testwork and initial customer samples.

 

GOLDFIELDS SALT LAKES PROJECT

MOU for Offtake with Mitsubishi

The Company executed a MOU for an Offtake Agreement with Mitsubishi for the sales and offtake rights for up to 50% of the SOP production from a Demonstration Plant at the GSLP, for distribution into Asia and Oceania and potentially other markets. 

Salt Lake Potash is progressing its GSLP development strategy, initially involving construction of a Demonstration Plant producing up to 50,000tpa of high quality SOP, with it plans to distribute production through a small number of global distribution partnerships.

The Mitsubishi MOU is non-binding and sets out the key terms for a subsequent formal Offtake Agreement as the Demonstration Plant is developed. As well as quantities and target markets, the MOU’s other terms include:

·     Market pricing and commission mechanisms;

·     Specifications and delivery parameters;

·     Mitsubishi to provide strategic advice on marketing within the region; and

·     The parties to continue discussions regarding funding requirements for the GSLP.

Mitsubishi Australia Limited is a wholly owned subsidiary of Mitsubishi Corporation. Mitsubishi is one of the world’s largest trading and investment enterprises that develops and operates businesses across virtually every industry, including industrial finance, energy, metals, machinery, chemicals, and daily living essentials. Its current activities expand far beyond its traditional trading operations to include investments and business management in diverse fields including natural resources development, manufacturing of industrial goods, retail, new energy, infrastructure, finance and new technology-related businesses.

Exploration Target

The Company completed an initial estimate of Exploration Targets for eight of the nine lakes comprising the Company’s GSLP. The ninth lake, Lake Wells, already having a Mineral Resource reported in accordance with the JORC code.

The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 – 7.1kg/m3 (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. The total playa area of the lakes is approximately 3,312km2.

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

Area

Average Grade (kg/m3)

Stored (Mt)

Drainable (Mt)

Lake

(km2)

SOP (min)

SOP (max)

SOP (min)

SOP (max)

SOP (min)

SOP (max)

Ballard

626

3.5

4.7

42

53

3.1

18

Barlee

350

1.9

4.3

10

21

0.8

8.1

Irwin

306

4.8

8.1

25

43

1.9

15

Marmion

339

3.0

5.1

20

34

1.6

11

Minigwal

567

3.8

8.3

45

98

3.4

31

Noondie

386

4.2

6.0

35

50

2.8

16

Raeside

89

2.1

7.0

6

20

0.4

5.4

Way

172

5.6

15.5

28

54

2.7

19

Wells

477

8.7

8.8

801

851

92

292

Total

3,312

4.4

7.1

290

458

26

153

1.     Incorporating Lake Wells’ stored Mineral Resource Estimate previously reported.

2.     Lake Wells Mineral stored Mineral Resource Estimate converted to drainable equivalent.

Table 5: GSLP Exploration Target

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

LAKE WELLS

Process Testwork 

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

 

Site Evaporation Trial

The large scale, continuous Site Evaporation Trial (SET) at Lake Wells successfully completed over 18 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 SET was decommissioned after achieving its objective of refining process design criteria for the halite evaporation ponds and subsequent harvest salt ponds.

The SET processed approximately 412 tonnes of Lake Wells brine and produced 10.3 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. 

Process Development

The Saskatchewan Research Council (SRC) completed a locked-cycle, continuous production test on 1T of harvest salt generated by the Lake Wells SET during the quarter. The aims of the test were to operate the proposed pre-crystallisation portion of the GSLP Flowsheet on a continuous basis, over a number of weeks, to quantify brine handling requirements in the process flowsheet and obtain product purity information.

The locked-cycle test produced 400kg of flotation concentrate (Schoenite) for crystalliser vendor testing and 3kg of SOP for marketing purposes. The product quality produced by SRC from the locked-cycle test was exceptional, exceeding quality benchmarks for commercial SOP. 

The 400kg of flotation concentrate has been shipped to a leading crystalliser vendor in the United States for batch design testwork and product characterisation. The testwork is expected to be completed in the June quarter.

 

LAKE IRWIN

Surface Aquifer Exploration Program

Following the initial trench development in 2017, the Company returned to Lake Irwin with the amphibious excavator to undertake a program of test pits and additional trench excavation.

A total of 29 additional pits were excavated across the lake surface to provide geological control, 12 of these pits were slug tested to obtain bulk hydraulic conductivity parameters for the lakebed sediments.

Two additional trenches were excavated at the western and eastern ends of the Lake respectively to a length of approximately 100m and a depth of 4m. These two new trenches together with the existing trenches will be test pumped during the next quarter to determine hydraulic conductivity and specific yield.

 

LAKE BALLARD

During the quarter, the Company received confirmation from the Minister for Finance, Energy and Aboriginal Affairs that the Company’s Section 18 application over the Lake Ballard and Lake Marmion projects had been granted. The granting of the Section 18 allows SLP to recommence exploration activities at the Lake.  

 

Competent Persons Statement

The information in this report that relates to Exploration Results for 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 ‘Initial Results Confirm Lake Way Potential’ dated 26 April 2018 and ‘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 Exploration Targets or Mineral Resources is extracted from the report entitled ‘Exploration Targets Reveal World Class Scale Potential’ dated 28 March 2018 The information in the original ASX Announcement that related to Exploration Targets or Mineral Resources is based on information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of  mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jeuken consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 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 6 – Summary of Exploration and Mining Tenements

As at 31 March 2018, the Company holds interests in the following tenements:

Australian Projects:

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

Granted

Granted

E38/3247

350.3

5 years

25-Jan-18

24-Jan-23

100%

100%

South

Application

–

M38/1278

87.47

–

–

–

100%

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

Granted

Granted

E29/1020

9.3

5 years

21-Feb-18

20-Feb-23

100%

100%

South East

Granted

Granted

E29/1021

27.9

5 years

21-Feb-18

20-Feb-23

100%

100%

South East

Granted

Granted

E29/1022

43.4

5 years

21-Feb-18

20-Feb-23

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

–

E36/932

108.5

–

–

–

100%

100%

Lake Barlee

North

Application

–

E49/495

217.0

–

–

–

100%

100%

Central

Granted

–

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

100%

South

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%

Lake Austin

West

Application

Application Lodged

E21/205

117.8

–

–

–

–

100%

West

Application

Application Lodged

E21/206

192.2

–

–

–

–

100%

West

Application

Application Lodged

E58/529

213.9

–

–

–

–

100%

West

Application

Application Lodged

E58/530

217.0

–

–

–

–

100%

West

Application

Application Lodged

E58/531

96.1

–

–

–

–

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 IRWIN TEST PIT LOCATION DATA

Hole_ID

East

North

EOH

Hole_ID

East

North

EOH

LITT028

370167

6905453

6.0

LITT043

369662

6904489

6.0

LITT029

370157

6905023

6.0

LITT044

369176

6904645

6.0

LITT030

370131

6904535

6.0

LITT045

368564

6904252

6.0

LITT031

370311

6904080

6.0

LITT046

368059

6904105

2.0

LITT032

370711

6903601

6.0

LITT047

367550

6903968

2.0

LITT033

371017

6903199

6.0

LITT048

367055

6903816

3.0

LITT034

370781

6902715

6.0

LITT049

366565

6903685

3.0

LITT035

370842

6902214

6.0

LITT050

366090

6903526

3.0

LITT036

371196

6901816

6.0

LITT051

365629

6903326

3.0

LITT037

371632

6901572

6.0

LITT052

365153

6903175

4.0

LITT038

371799

6901412

6.0

LITT053

364294

6904675

4.5

LITT039

371956

6901902

6.0

LITT054

363879

6904397

4.0

LITT040

371672

6902319

6.0

LITT055

363459

6904124

4.0

LITT041

371415

6902727

6.0

LITT056

362109

6903462

6.0

LITT042

370518

6905194

6.0

 

APPENDIX 2 – 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)

LITT045

0

6.0

3,040

155,150

95,200

490

5,830

21,800

243

LITT046

0

6.0

3,410

153,600

96,800

481

5,300

22,000

243

LITT047

0

6.0

3,200

153,050

97,200

462

6,050

23,500

244

LITT048

0

6.0

3,160

153,250

95,700

465

6,470

24,500

244

LITT049

0

6.0

3,070

153,750

96,900

455

6,780

24,800

247

LITT050

0

6.0

3,050

152,550

96,000

450

6,240

24,500

254

LITT051

0

6.0

3,240

156,550

98,200

448

5,930

23,900

248

LITT052

0

6.0

3,150

155,700

98,200

444

6,270

24,500

247

LITT053

0

6.0

3,430

161,950

101,000

452

6,550

23,400

254

LITT054

0

6.0

3,360

153,400

97,100

512

5,480

21,700

242

LITT055

0

6.0

3,290

155,150

98,300

514

5,660

21,200

244

LITT056

0

6.0

3,770

160,050

98,900

430

6,000

23,600

251

 

 

APPENDIX 3 – 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 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 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 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 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 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 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 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 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 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.

 

 

Name of entity

Salt Lake Potash Limited

ABN

Quarter ended (“current quarter”)

98 117 085 748

31 March 2018

Consolidated statement of cash flows

Current quarter $A’000

Year to date              (9 months)
$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(1,193)

(4,503)

(a)   exploration & evaluation

(b)   development

–

–

(c)   production

–

–

(d)   staff costs

(597)

(1,958)

(e)   administration and corporate costs

(238)

(820)

1.3

Dividends received (see note 3)

–

–

1.4

Interest received

61

194

1.5

Interest and other costs of finance paid

–

–

1.6

Income taxes paid

–

–

1.7

Research and development refunds

–

457

1.8

Other (provide details if material)
– Business Development

– GST refunds (paid)

– Exploration Incentive Scheme

(264)

66

–

(604)

104

30

1.9

Net cash from / (used in) operating activities

(2,165)

(7,100)

2.

Cash flows from investing activities

(35)

(122)

2.1

Payments to acquire:

(a)   property, plant and equipment

(b)   tenements (see item 10)

–

–

(c)   investments

–

–

(d)   other non-current assets

–

–

2.2

Proceeds from the disposal of:

–

–

(a)   property, plant and equipment

(b)   tenements (see item 10)

–

–

(c)   investments

–

–

(d)   other non-current assets

–

–

2.3

Cash flows from loans to other entities

–

–

2.4

Dividends received (see note 3)

–

–

2.5

Other (provide details if material)

–

–

2.6

Net cash from / (used in) investing activities

(35)

(122)

3.

Cash flows from financing activities

–

–

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

–

–

3.3

Proceeds from exercise of share options

–

–

3.4

Transaction costs related to issues of shares, convertible notes or options

–

(75)

3.5

Proceeds from borrowings

–

–

3.6

Repayment of borrowings

–

–

3.7

Transaction costs related to loans and borrowings

–

–

3.8

Dividends paid

–

–

3.9

Other (provide details if material)

–

–

3.10

Net cash from / (used in) financing activities

–

(75)

4.

Net increase / (decrease) in cash and cash equivalents for the period

10,500

15,597

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

(2,165)

(7,100)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

(35)

(122)

4.4

Net cash from / (used in) financing activities (item 3.10 above)

–

(75)

4.5

Effect of movement in exchange rates on cash held

–

–

4.6

Cash and cash equivalents at end of period

8,300

8,300

5.

Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

2,300

2,500

5.2

Call deposits

6,000

8,000

5.3

Bank overdrafts

–

–

5.4

Other (provide details)

–

–

5.5

Cash and cash equivalents at end of quarter (should equal item 4.6 above)

8,300

10,500

6.

Payments to directors of the entity and their associates

Current quarter
$A’000

6.1

Aggregate amount of payments to these parties included in item 1.2

(140)

6.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

–

6.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payments include director and consulting fees, superannuation and provision of corporate, administration services, and a fully serviced office.

7.

Payments to related entities of the entity and their associates

Current quarter
$A’000

7.1

Aggregate amount of payments to these parties included in item 1.2

–

7.2

Aggregate amount of cash flow from loans to these parties included in item 2.3

–

7.3

Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

Not applicable.

8.

Financing facilities available
Add notes as necessary for an understanding of the position

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

8.1

Loan facilities

–

–

8.2

Credit standby arrangements

–

–

8.3

Other (please specify)

–

–

8.4

Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Not applicable

9.

Estimated cash outflows for next quarter

$A’000

9.1

Exploration and evaluation

1,500

9.2

Development

–

9.3

Production

–

9.4

Staff costs

750

9.5

Administration and corporate costs

200

9.6

Other (provide details if material)
– Business Development


200

9.7

Total estimated cash outflows

2,650

10.

Changes in tenements
(items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

Refer to Table 6

10.2

Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

1        This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2        This statement gives a true and fair view of the matters disclosed.

Sign here:         ……………………………………………………                        Date: 30 April 2018

(Director/Company secretary)

Print name:       Sam Cordin

Notes

1.       The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2.       If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.       Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

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

Matt Syme/Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

 

Salt Lake Potash #SO4 – Initial Results Confirm Lake Way Potential

25th April 2018 / Leave a comment

Salt Lake Potash Limited (SLP or the Company) is pleased to provide an update on the Company’s Lake Way project since following execution of an MOU with Blackham Resources Limited’s (Blackham) outlining the potential to incorporate Blackham’s Mining Lease tenure into the development of a Sulphate of Potash (SOP) operation.

Highlights of work completed include:

Surface Sampling Program

  • A preliminary surface sampling program on Blackham’s tenements confirms the Lake’s average SOP grade of over 14kg/m3, making Lake Way one of Australia’s highest grade SOP brine sources.

Geotechnical Investigations

  • An initial geological and geotechnical investigation by the Company and Knight Piesold confirmed the availability of in-situ clays amendable for on-lake evaporation pond construction. A total of 24 auger holes were excavated across Blackham’s tenements and laboratory tested.

Surface Aquifer Exploration

  • Review and modelling of the large volume of historical exploration data for Lake Way confirms the likelihood of a large hypersaline brine pool on both Blackham and SLP’s tenements.
  • The Company is in the process of mobilising a drill rig and an amphibious excavator on the Lake to complete an initial surface aquifer exploration program.
  • The surface aquifer program will include the construction of test pits and trenches for long-term pump testing.

Process Testwork

  • The Company has commenced a range of process development testwork including process pathway modelling by international experts, a bulk sample evaporation trial and site-based evaporation trial at Lake Way.

Salt Lake Potash #SO4 CEO Matt Syme said: “These initial results are very pleasing and support the Company’s view that Lake Way is an ideal site for our SOP Demonstration Plant and subsequent expansions. It appears to have the best combination in Australia of scale, brine chemistry, playa surface, shallow clays for pond construction, permitting pathway and infrastructure access, which should result in substantial time and cost advantages.”

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2.

The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed, high quality infrastructure in place.

The Goldfields Highway is a high quality sealed road permitted to carry quad road trains and passes 2km from the Lake. The Goldfields Gas Pipeline is adjacent to SLP’s tenements, running past the eastern side of the Lake.

SLP has entered an MOU with Blackham to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way including, initially, a 40-50,000tpa Demonstration Plant (see announcement dated 12 March 2018).

Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

  • Substantial likely capital and operating savings from sharing overheads and infrastructure with the Wiluna Gold Mine, including the accommodation camp, flights, power, maintenance, infrastructure and other costs.
  • The site has an excellent freight solution, adjacent to the Goldfields Highway, which is permitted for heavy haulage 4 trailer road trains to the railhead at Leonora.
  • A Demonstration Plant would likely be built on Blackham’s existing Mining Licences, already subject of a Native Title Agreement.
  • SLP would dewater the existing Williamson Pit on Lake Way, prior to Blackham mining, planned for early 2019. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP. This brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages over 14kg/m3.
  • The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.
  • There would be substantial savings to both parties from co-operating on exploration activities on each other’s ground.
  • The presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

SLP will complete a Scoping Study for a potential SOP operation at Lake Way, including a Demonstration Plant, by mid-2018, in time to allow a decision on dewatering the Williamson Pit under the MOU. There is substantial historical data available for Lake Way and, along with the extensive, high quality technical work undertaken at SLP’s other lakes, which has substantial application at Lake Way, a Scoping Study can be undertaken in a much shorter timeframe than would normally be the case.

Surface Sampling Program

The Company has now completed initial surface sampling program at Lake Way, substantially covering the Lake surface. A total of 23 pit samples have been collected encountering brine at a standing water level generally less than 1 metre from surface.

The average brine chemistry of the samples was:

The brine chemistry at Lake Way is very consistent over the lake surface. The SOP grade are amongst the highest achieved in Australia to date.

Geotechnical Investigations

To gain an understanding of ground conditions for trenching and pond construction, a preliminary geotechnical investigation program was undertaken within the Blackham Mining Tenements, in conjunction with leading international geotechnical consultants, Knight Piesold.

A total of 24 hand auger boreholes were drilled to depths of up to 3.2 metres, and the encountered soils were logged and sampled.

Lake Way ground conditions consists of a thin surface layer of evaporite sands, overlying sandy and silty clays. Firm clays were encountered at 1m to 2m depth, generally increasing in strength with depth, becoming hard from 2m to 3m. Shallow groundwater was encountered on average 0.2m below the lake surface.

A testing program was undertaken at a NATA accredited geotechnical laboratory, using specific test methods appropriate for saline conditions, to characterise soils and assess preliminary soil parameters.

Summary test results are presented below.

Erodibility characteristics were tested and an Emerson class number of 6 was measured for all samples. This indicates non-dispersive soils that are not prone to erosion when used to form embankments.

Based on the preliminary geotechnical work to date, Knight Piesold have concluded that:

  • The in-situ clay materials can be expected to provide natural low permeability layers to control seepage of on-lake ponds.
  • The clays are suitable for embankment construction purposes, with adequate moisture control and borrow pit dewatering.
  • A key advantage of Lake Way is the presence of a drier clay zone surrounding the Williamson Pit, which has the potential to provide borrow materials and construction schedule benefits for the upcoming pond construction programs.

Knight Piesold is now preparing an options study to evaluate design concepts for large-scale pond systems and provide earthworks quantities and costs. Seepage assessments and flood studies are underway. In parallel, design work is being undertaken for a dewatering pond to hold the Williamson Pit brine.

Surface Aquifer Characterisation

Lake Way and its surrounds have been the subject of a substantial amount of historical exploration for gold, nickel, uranium and other minerals, as well as for process water for mining operations. A total of over 2,800 holes have been drilled in and around the Lake previously, providing a very large database of geotechnical information.

SLP have commenced compiling, digitising and interpreting the historical exploration database to extract relevant data and provide initial basement geometry for the Lake area, to assist estimation of an initial JORC compliant resource.

The Company is also in the process of mobilising a small track-mounted drill rig and an amphibious excavator to complete an initial surface aquifer exploration program. This work will provide critical data for the hydrogeological model for the surface aquifer of the Lake, as well as geological and geotechnical information for infrastructure design and construction.

The surface aquifer program will include the construction of test pits and trenches for long-term pump testing.

The drill campaign is also intended to sterilise (for gold exploration) sufficient areas for siting brine extraction trenches and evaporation ponds.

Process Testwork

The Company has commenced a range of process development testwork to provide and validate inputs to the Lake Way Scoping Study production model. Naturally, this includes testing brines from the Lake itself, as well as the super-concentrated brines from the Williamson Pit.

The testwork aims to confirm the modelled brine evaporation pathways firstly under laboratory simulated conditions and then from a site-based trial of sufficient scale to test on-lake evaporation conditions.

Initial brine evaporation modelling, conducted by internationally renowned solar pond experts, Ad Infinitum, indicates the salts produced at Lake Way will be comparable to those produced at Lake Wells and therefore suitable for conversion into SOP.

International laboratory and testing company, Bureau Veritas (BV), has commenced a series of laboratory-scale brine evaporation trials at their Perth facility, under simulated average Lake Way climate conditions. The aim of the BV trials is to monitor the chemical composition of the brine and salts produced through the evaporation process to confirm:

  • Concentration thresholds in the brine chemistry which can be used to maximise the recovery of potassium in the harvest salts and minimise the quantity of dilutive salts fed to a process plant;
  • The quantity and composition of harvest salts which will for the plant feed in commercial production; and
  • The potential for any internal evaporation pond recycle streams that may improve harvest salt recovery.

Two tests – one for Williamson Pit brine and one for normal Lake Way brine – are currently underway, each evaporating 150kg of brine on a load cell to monitor evaporative loss. The temperature of the brine and air flow across the brine surface is controlled by using infra-red lamps and fans to simulate Lake Way average weather conditions.

A Site Evaporation Trial (SET), as successfully operated at Lake Wells previously, is under construction at Lake Way and will be filled with first brine over the next week. The SET will gather specific evaporation data on concentrated brines under actual conditions, providing refinements to the commercial scale pond modelling.

The Site Evaporation Trial is also designed to produce sufficient harvest salt for confirmatory process testwork and initial customer samples.

Competent Persons Statement

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

Forward Looking Statements

This announcement may include forward-looking statements. These forward-looking statements are based on Salt Lake Potash Limited’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 Potash Limited, which could cause actual results to differ materially from such statements. Salt Lake Potash Limited 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.

APPENDIX 1 – BRINE CHEMISTRY ANALYSIS

APPENDIX 2 – JORC TABLE ONE

Section 1: Sampling Techniques and Data

 

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

Matt Syme/Sam Cordin

 Salt Lake Potash Limited Tel: +61 8 9322 6322
Jo Battershill

Salt Lake Potash Limited

 Tel: +44 (0) 20 7478 3900
Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

 Tel: +44 (0) 20 7383 5100
Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939
Jerry Keen/Toby Gibbs

 

 Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

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.

Salt Lake Potash #SO4 – Exploration targets reveal World Class scale potential

28th March 2018 / Leave a comment

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

The total “stored” Exploration Target for the GSLP is 290Mt – 458Mt of contained Sulphate of Potash (SOP) with an average SOP grade of 4.4 – 7.1kg/m3 (including Lake Wells’ Mineral Resource of 80-85Mt). On a “drainable” basis the total Exploration Target ranges from 26Mt – 153Mt of SOP. The total playa area of the lakes is approximately 3,312km2.

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

Area

Average Grade (kg/m3)

Stored (Mt)

Drainable (Mt)

Lake

(km2)

SOP (min)

SOP (max)

SOP (min)

SOP (max)

SOP (min)

SOP (max)

Ballard

626

3.5

4.7

42

53

3.1

18

Barlee

350

1.9

4.3

10

21

0.8

8.1

Irwin

306

4.8

8.1

25

43

1.9

15

Marmion

339

3.0

5.1

20

34

1.6

11

Minigwal

567

3.8

8.3

45

98

3.4

31

Noondie

386

4.2

6.0

35

50

2.8

16

Raeside

89

2.1

7.0

6

20

0.4

5.4

Way

172

5.6

15.5

28

54

2.7

19

Wells

477

8.7

8.8

801

851

92

292

Total

3,312

4.4

7.1

290

458

26

153

1.     Incorporating Lake Wells’ stored Mineral Resource Estimate previously reported.

2.     Lake Wells Mineral stored Mineral Resource Estimate converted to drainable equivalent.

Table 1: GSLP Exploration Target

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

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

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

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

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

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

Ø  Over 3,300km2 of playa surface, with in-situ clays suitable for low cost on-lake pond construction;

Ø  Excellent evaporation conditions;

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

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

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

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

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

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

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

THE GOLDFIELDS SALT LAKES PROJECT

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

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

Paleochannel Hosted Brine Aquifers

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

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

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

Large Playa Surface

The lakes included in the GSLP have a surface area averaging 370km2 and totaling over 3,300km2. This large surface area and the occurrence of impermeable clays near the surface, provides the potential for constructing low cost, on-lake, unlined evaporation ponds.

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

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

Excellent Evaporation Conditions

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

Access to Transport, Energy and Other Infrastructure

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

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

Lake

Railhead

Straight-line Distance to Rail line
(km)

Likely Road Haul Distance
(km)

Lake Wells

Malcolm

270

318

Lake Way

Leonora

230

281

Lake Irwin

Leonora

85

170

Lake Ballard

Menzies

2

20

Lake Marmion

Menzies

20

47

Lake Minigwal

Kookynie

130

172

Lake Raeside

Leonora

20

20

Lake Noondie

Leonora

110

198

Lake Barlee

Menzies

130

133

Average

111

151

Table 2: Transportation Distances of the GSLP

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

Multi-Lake Production

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

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

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

Technical Validation Already Undertaken at Lake Wells

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

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

Lowest Quartile Capex and Opex

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

Stage 1

Stage 2

Annual Production (tpa) – steady state

200,000

400,000

Capital Cost * 

A$191m

A$39m

Operating Costs **

A$241/t

A$185/t

* Capital Costs based on an accuracy of -10%/+30% before contingencies and growth allowance but including EPCM. Stage 1 Capital Costs include most of the main capital items for 400,000tpa production.

** Operating Costs based on an accuracy of ±30% including transportation & handling (FOB Esperance) but before royalties and depreciation.

Table 3: Lake Wells Scoping Study

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

Production of Valuable Co-Products

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

Kieserite (MgSO4.H2O) and Epsom salts (MgSO4.7H2O) are valuable fertiliser products for both the domestic and export markets, with particular application in the tropical crop regions in South East Asia, South America and Africa.

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

Exploration Targets for MgSO4.7H2O (Epsom Salt) were calculated at the each lake, except Lake Wells, as follows:

Stored (Mt)

Drainable (Mt)

Average Grade (kg/m3)

Lake

MgSO4 (min)

MgSO4 (max)

MgSO4 (min)

MgSO4 (max)

MgSO4 (min)

MgSO4 (max)

Ballard

667

949

51

320

58

82

Barlee

158

431

13

163

31

84

Irwin

145

304

11

106

27

57

Marmion

355

712

27

235

53

107

Minigwal

668

1,462

50

469

57

124

Noondie

308

488

23

154

37

58

Raeside

86

358

6

98

30

126

Way

151

339

15

125

49

105

Total

2,538

5,043

196

1,670

46

92

MgSO4 = the molar mass of MgSO4.7H20 based on a conversion ratio of 10.14 of Mg to MgSO4.7H2O.

Table 4: Magnesium Sulphate Exploration Target

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

APPENDIX 1 – EXPLORATION TARGET METHODOLOGY AND RESULTS

GSLP Exploration Targets:

Exploration Target calculated using Total Porosity:

Lake

Playa Area

Estimated
Paleochannel Length

Sediment Volume

Brine Volume

Average Potassium Concentration
kg/m3

SOP Tonnage
Mt

Km2

Km

Mm3

Mm3

Lower Estimate

Upper Estimate

Lower Estimate

Upper Estimate

Ballard

626

55

26,370

11,487

1.6

2.1

42

53

Barlee

350

60

11,455

5,107

0.8

1.9

10

21

Irwin

306

22

11,942

5,236

2.1

3.6

25

43

Marmion

339

35

15,294

6,626

1.3

2.3

20

34

Minigwal

567

100

27,166

11,716

1.7

3.7

45

98

Noondie

386

75

19,412

8,345

1.9

2.7

35

50

Raeside

89

35

6,775

2,844

0.9

3.1

6

20

Way

172

25

8,044

3,475

3.6

7.0

28

54

Wells

477

60

24,723

9,639

3.9

80

85

Total

3,312

467

151,181

64,474

290

458

Table 5: Exploration Target calculated using Total Porosity

Exploration Target calculated using Drainable Porosity:

Lake

Sediment Volume

Weighted Average
Drainable Porosity 1

Brine Volume

Average Potassium Concentration

SOP Tonnage

Mm3

kg/m3

Mt

Mm3

Sy
Lower

Sy
Upper

Lower Estimate

Upper Estimate

Lower Estimate

Upper Estimate

Lower Estimate

Upper Estimate

Ballard

26,370

0.03

0.15

882

3,913

1.6

2.1

3.1

18

Barlee

11,455

0.04

0.17

404

1,931

0.8

1.9

0.8

8

Irwin

11,942

0.03

0.15

408

1,844

2.1

3.6

1.9

15

Marmion

15,294

0.03

0.14

501

2,192

1.3

2.3

1.6

11

Minigwal

27,166

0.03

0.14

877

3,783

1.7

3.7

3.4

31

Noondie

19,412

0.03

0.14

619

2,645

1.9

2.7

2.8

16

Raeside

6,775

0.03

0.11

198

778

0.9

3.1

0.4

5

Way

8,044

0.04

0.15

299

1,196

2.8

7.1

2.7

19

Wells2

24,723

0.04

0.14

1,074

3,355

3.9

9

29

Total

151,181

0.03

0.14

5,262

21,637

26

153

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

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

Table 6: Exploration Target calculated using Drainable Porosity

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

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

Scope

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

The Exploration Targets are reported in accordance with

•          the JORC Code 2012,

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

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

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

Data sources

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

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

·      All public geology and hydrogeology reports, maps and data;

·      Company hydrogeological reports obtained from the Western Australia Department of Water and Environmental Regulation via freedom of information request;

·      Surface brine samples from test pits; and

·      Test Pits, test excavation, and geophysical survey, undertaken by SLP.

Geology

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

Geological Unit

Inferred age

Description

Hydrogeological Attributes

Lake surface and islands

Recent

Clay sediments with some sandy, evaporite and calcrete horizons containing variable abundance of evaporite minerals, particularly gypsum.

Minor aquifer.

Highly variable permeability and moderate drainable porosity.

Alluvium

Cainozoic

Unconsolidated silt, sand and clay sediments.

Minor aquifer. 

Moderate permeability and moderate drainable porosity

Paleovalley clay

Tertiary (Miocene)

Stiff to plastic clay.  Minor silt and sand interbeds

Aquitard.

Low permeability and low drainable porosity

Basal sand

Tertiary (Eocene)

Typically fining upwards sequence of sand with silt, clay and lignitic interbeds.

Major aquifer. 

High to moderate permeability and High to moderate drainable porosity

Table 7: Geological Units

Geological Model

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

Area

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

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

Thickness

Lake Sediments (Upper Alluvium)

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

Alluvium

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

Paleochannel Clay

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

Basal Sand

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

Brine Concentration

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

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

Hydrogeological Attributes

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

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

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

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

Geological Unit

Hydrogeological Properties

Lake Sediments

Highly variable aquifer dependent on lithology and evaporite formation

Alluvium

Highly variable aquifer dependent on lithology and evaporite formation

Paleovalley Clay

Aquitard low permeability

Basal Sand

Aquifer high permeability

Table 8: Hydrogeological Attributes

Porosity

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

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

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

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

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

Geological Unit

Total Porosity (%)

Drainable Porosity (%)

0.46

0.04-0.2

0.46

0.04-0.2

0.4

0.01-0.05

0.4

0.1-0.2

Table 9: Porosity Estimates

 

Project

WA Salt Lake 1
Mineral Resource Estimate

WA Salt Lake 2
Mineral Resource Estimate

WA Salt Lake 3
Mineral Resource Estimate

WA Salt Lake 4
Exploration Target

GSLP

Lake Sediments and Alluvium

Total Porosity

0.39

0.47

0.45

0.42-0.53

0.46

Drainable Porosity

0.16

0.17

0.064

0.13-0.15

0.04-0.20

Clay

Total Porosity

0.47

0.5

–

0.4

Drainable Porosity

0.06

0.03

–

0.01-0.05

Basal Sand

Total Porosity

0.4

0.4

–

0.4

Drainable Porosity

0.23

0.28

–

0.1-0.20

Source: Company releases

Table 10: Porosity Benchmarks

Brine Hydrology and Water Balance

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

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

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

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

Neighbouring properties and temporal effects

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

Treatment of Islands

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

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

Mineralisation Extent

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

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

 

APPENDIX 2 – GSLP GEOLOGICAL AND HYDROGEOLOGICAL DATA REVIEW 

LAKE BALLARD

Previous Exploration

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

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

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

Geology

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

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

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

Hydrogeology

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

References

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

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

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

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

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

LAKE BARLEE

Previous Exploration

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

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

Geology

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

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

Hydrogeology

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

References

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

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

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

LAKE IRWIN

Previous Exploration

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

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

Geology

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

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

Hydrogeology

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

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

References

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

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

LAKE MARMION

Previous Exploration

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

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

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

Geology

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

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

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

Hydrogeology

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

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

References

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LAKE MINIGWAL

Previous Exploration

Geology

Hydrogeology

References

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

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

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

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

LAKE NOONDIE

Previous Exploration

Geology

Hydrogeology

References

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

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

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

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

LAKE RAESIDE

Previous Exploration

Geology

Hydrogeology

References

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

LAKE WAY

Previous Exploration

Geology

Hydrogeology

References

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

 

 

Tenements

The GSLP tenements are detailed in the Table below:

Project

Status

License Number

Area       (km2)

Term

Grant Date

Date of First Relinquish-ment

Interest

Western Australia

Lake Wells

Central

Granted

E38/2710

192.2

5 years

05-Sep-12

4-Sep-17

100%

South

Granted

E38/2821

131.5

5 years

19-Nov-13

18-Nov-18

100%

North

Granted

E38/2824

198.2

5 years

04-Nov-13

3-Nov-18

100%

Outer East

Granted

E38/3055

298.8

5 years

16-Oct-15

16-Oct-20

100%

Single Block

Granted

E38/3056

3.0

5 years

16-Oct-15

16-Oct-20

100%

Outer West

Granted

E38/3057

301.9

5 years

16-Oct-15

16-Oct-20

100%

North West

Granted

E38/3124

39.0

5 years

30-Nov-16

29-Nov-21

100%

West

Granted

L38/262

113.0

20 years

3-Feb-17

2-Feb-38

100%

East

Granted

L38/263

28.6

20 years

3-Feb-17

2-Feb-38

100%

South West

Granted

L38/264

32.6

20 years

3-Feb-17

2-Feb-38

100%

South

Application

L38/287

95.8

–

–

–

100%

South Western

Granted

E38/3247

350.3

5 years

25-Jan-18

24-Jan-23

100%

South

Application

M38/1278

87.47

–

–

–

100%

Lake Ballard

West

Granted

E29/912

607.0

5 years

10-Apr-15

10-Apr-20

100%

East

Granted

E29/913

73.2

5 years

10-Apr-15

10-Apr-20

100%

North

Granted

E29/948

94.5

5 years

22-Sep-15

21-Sep-20

100%

South

Granted

E29/958

30.0

5 years

20-Jan-16

19-Jan-21

100%

South East

Granted

E29/1011

68.2

5 years

11-Aug-17

10-Aug-22

100%

South East

Granted

E29/1020

9.3

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

E29/1021

27.9

5 years

21-Feb-18

20-Feb-23

100%

South East

Granted

E29/1022

43.4

5 years

21-Feb-18

20-Feb-23

100%

Lake Irwin

West

Granted

E37/1233

203.0

5 years

08-Mar-16

07-Mar-21

100%

Central

Granted

E39/1892

203.0

5 years

23-Mar-16

22-Mar-21

100%

East

Granted

E38/3087

139.2

5 years

23-Mar-16

22-Mar-21

100%

North

Granted

E37/1261

107.3

5 years

14-Oct-16

13-Oct-21

100%

Central East

Granted

E38/3113

203.0

5 years

14-Oct-16

13-Oct-21

100%

South

Granted

E39/1955

118.9

5 years

14-Oct-16

13-Oct-21

100%

North West

Application

E37/1260

203.0

–

–

–

100%

South West

Application

E39/1956

110.2

–

–

–

100%

Lake Minigwal

West

Granted

E39/1893

246.2

5 years

01-Apr-16

31-Mar-21

100%

East

Granted

E39/1894

158.1

5 years

01-Apr-16

31-Mar-21

100%

Central

Granted

E39/1962

369.0

5 years

8-Nov-16

7-Nov-21

100%

Central East

Granted

E39/1963

93.0

5 years

8-Nov-16

7-Nov-21

100%

South

Granted

E39/1964

99.0

5 years

8-Nov-16

7-Nov-21

100%

South West

Application

E39/1965

89.9

–

–

–

100%

Lake Way

Central

Granted

E53/1878

217.0

5 years

12-Oct-16

11-Oct-21

100%

South

Application

E53/1897

77.5

–

–

–

100%

Lake Marmion

North

Granted

E29/1000

167.4

5 years

03-Apr-17

02-Apr-22

100%

Central

Granted

E29/1001

204.6

5 years

03-Apr-17

02-Apr-22

100%

South

Granted

E29/1002

186.0

5 years

15-Aug-17

14-Aug-22

100%

West

Granted

E29/1005

68.2

5 years

11-Jul-17

10-Jul-22

100%

Lake Noondie

North

Application

E57/1062

217.0

–

–

–

100%

Central

Application

E57/1063

217.0

–

–

–

100%

South

Application

E57/1064

55.8

–

–

–

100%

West

Application

E57/1065

120.9

–

–

–

100%

East

Application

E36/932

108.5

–

–

–

100%

Lake Barlee

North

Application

E49/495

217.0

–

–

–

100%

Central

Granted

E49/496

220.1

5 years

17-Dec-17

16-Dec-22

100%

South

Granted

E77/2441

173.6

5 years

09-Oct-17

08-Oct-22

100%

Lake Raeside

North

Application

E37/1305

155.0

–

–

–

100%

Northern Territory

Lake Lewis

South

Granted

EL 29787

146.4

6 years

08-Jul-13

7-Jul-19

100%

North

Granted

EL 29903

125.1

6 years

21-Feb-14

20-Feb-19

100%

 

Competent Persons Statement

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

Forward Looking Statements

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

 

APPENDIX 2A – LAKE RAESIDE BRINE CHEMISTRY ANALYSIS

HOLE ID

East

North

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)

S700001

315501

6807912

0

1

2,270

138,200

82,000

1,020

5,420

10400

241

S700005

311513

6809765

0

1

1,440

73,000

44,000

1,500

3,390

8400

133

S700007

307959

6811061

0

1

2,180

115,350

68,700

1,060

5,330

11500

208

S700011

300035

6813662

0

1

2,240

149,850

87,900

603

8,690

17600

273

S700013

278641

6810996

0

1

3,140

167,950

96,900

409

12,400

27400

317

S700015

281725

6810666

0

1

950

55,550

34,100

600

3,130

8730

104

S700017

287751

6812747

0

1

2,230

124,500

74,100

789

6,510

15400

228

APPENDIX 2B – LAKE NOONDIE BRINE CHEMISTRY ANALYSIS

HOLE ID

East

North

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)

N700004

713808

6828889

0

1

2,630

131,000

78,600

785

5,310

13,700

232

N700008

720566

6832676

0

1

2,350

125,050

75,300

822

5,230

13,900

223

N700010

727256

6836907

0

1

2,390

125,050

75,400

796

4,950

14,300

222

N700012

734532

6837014

0

1

2,740

130,150

80,400

821

4,370

13,400

231

N700014

740408

6837916

0

1

2,030

121,050

71,500

802

5,330

12,900

212

N700016

741574

6840505

0

1

1,900

92,800

54,900

522

3,700

8,640

162

N700018

750994

6847653

0

1

2,340

135,400

76,600

754

5,870

14,200

234

N700020

754948

6851513

0

1

2,470

111,750

67,700

949

4,240

12,100

197

N700022

765001

6857294

0

1

2,600

128,550

73,600

1,050

4,810

10,200

222

N700024

781493

6855076

0

1

2,030

101,200

58,600

1,390

3,800

8,490

172

APPENDIX 2C – LAKE MINIGWAL BRINE CHEMISTRY ANALYSIS

HOLE ID

East

North

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)

M700002

462878

6753653

0

1

1,900

154,200

96,600

706

5,900

14,300

267

M700004

465178

6751680

0

1

2,160

168,450

104,000

658

5,710

12,900

288

M700006

516470

6735650

0

1

2,270

143,150

89,300

523

7,210

23,000

261

M700008

518949

6731636

0

1

1,850

138,950

87,100

594

7,580

20,500

250

M700010

520783

6728495

0

1

1,990

145,100

91,700

499

8,110

24,300

267

M700011

477839

6749646

0

1

2,470

176,750

106,000

539

7,030

15,700

311

M700013

482455

6738102

0

1

2,610

165,500

103,000

310

7,290

31,800

323

M700015

488600

6734506

0

1

2,040

126,450

75,300

648

6,120

19,200

237

M700017

507653

6736762

0

1

1,750

134,000

79,600

526

8,160

23,200

257

M700019

527552

6726613

0

1

1,750

149,850

84,800

549

7,890

18,300

274

M700023

505953

6742473

0

1

3,810

167,750

92,400

375

11,700

26,700

316

M700025

509570

6745818

0

1

2,850

151,400

80,300

456

10,900

23,900

285

M700027

504869

6753891

0

1

3,800

133,450

78,800

500

7,990

24,900

259

M700029

504869

6753891

0

1

3,740

149,300

82,700

402

12,500

32,100

292

 

APPENDIX 2D – LAKE BARLEE BRINE CHEMISTRY ANALYSIS

HOLE ID

East

North

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)

E700003

766001

6706841

0

1

1920

146800

81100

726

8180

13400

250500

E700005

764573

6716740

0

1

1680

145950

81500

677

8470

14200

250900

E700011

761574

6746205

0

1

1720

132450

78700

1000

5680

10900

228850

E700013

754538

6747013

0

1

1150

93300

54500

477

3890

7200

158200

E700017

758045

6747653

0

1

1400

98400

59000

978

3480

7680

169350

E700021

737684

6727502

0

1

860

65750

38800

554

3110

6060

113950

E700023

742095

6731966

0

1

1460

129100

76900

990

5400

11000

223650

APPENDIX 2E – LAKE WAY BRINE CHEMISTRY ANALYSIS

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

HOLE ID

Aquifer

East

North

K

(mg/L)

Cl

(mg/L)

Na

(mg/L)

Ca

(mg/L)

Mg

(mg/L)

SO4

(mg/L)

TDS

(g/L)

Lake Way 2/4

Paleochannel

255050

7020250

5,200

120,000

68,000

600

6,700

6,700

220

Lake Way 3/4

Paleochannel

247700

7032150

6,300

130,000

83,000

520

8,200

8,200

260

Lake Way 3/5

Paleochannel

247700

7032150

3,400

75,000

49,000

510

5,000

5,000

160

Lake Way 3/14

Paleochannel

245050

7029800

5,300

130,000

70,000

440

7,400

7,400

240

Lake Way 5/6

Paleochannel

241750

7035300

6,100

130,000

77,000

570

7,000

7,000

240

Lake Way 2/4

Clay

255050

7020250

3,800

78,000

49,000

930

3,400

3,400

150

Lake Way 2/6

Clay

254250

7019550

3,400

64,000

38,000

1,100

2,500

2,500

120

Lake Way 2/7

Clay

253300

7018850

3,000

56,000

37,000

930

2,900

2,900

120

Lake Way 3/1

Clay

248420

7032900

1,500

42,000

28,000

450

3,400

3,400

88

Lake Way 3/4

Clay

247700

7032150

2,200

49,000

31,000

750

3,900

3,900

110

Lake Way 5/7

Clay

242800

7034250

6,000

130,000

73,000

510

7,100

7,100

240

Y700002

Surficial

237500

7031600

8,110

149,750

86,800

359

8,930

30,600

288

Y700004

Surficial

235968

7036128

6,950

124,750

74,200

503

7,280

28,000

240

Y700006

Surficial

237015

7039115

6,980

132,800

79,200

445

8,470

31,800

258

Y700008

Surficial

240508

7036136

6,440

142,100

78,300

407

12,000

33,000

274

Y700010

Surficial

241352

7031891

7,210

127,200

72,800

593

6,630

22,500

238

Y700012

Surficial

241855

7026999

7,090

114,750

67,000

638

5,450

21,900

216

Y700020

Surficial

245022

7027585

6,930

123,700

73,000

624

6,440

22,100

231

Y700022

Surficial

246105

7024796

5,160

109,300

59,700

803

6,670

17,300

201

APPENDIX 3 – 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.

Sampling was undertaken using test pits excavated into the playa surface to a depth of approximately 1m.

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).

Not Applicable

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.

Brine samples were obtained from all test pits

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.

All pits were geologically logged by a qualified geologist, noting moisture content of sediments, lithology, colour, induration, grainsize, matrix and structural observations. A digital drill log was developed specifically for this project.

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.

Geological logs are recorded in the field based on inspection of cuttings. Geological samples are retained for each hole in archive.

Sub-sampling was not undertaken.

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

All brine samples taken in the field are split into three sub-samples: primary, potential duplicate, and archive.

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 to prevent transposition errors and these data sets are subject to the quality control described above.

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.

Hole 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 3-second digital elevation product.

Topographic control is not considered critical as the salt lakes are generally flat lying and the water table is taken to be the top surface of mineralisation.

Data spacing and distribution

Data spacing for reporting of 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.

Data spacing is variable and is not on an exact grid due to the irregular nature of the salt lake shape and difficulty obtaining access to some part of the salt lake.

 

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.

Not Applicable

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.

Data review is summarised in Quality of assay data and laboratory tests and Verification of sampling and assaying. No audits were undertaken.

Section 2: Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure 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.

 

Details are presented in the report.

 

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’).

The brine resource is inferred to be consistent and continuous through the full thickness of the sediments.

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.

All material exploration data reported.

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.

Aircore / RC drilling to defined paleovalley structure and provide brine samples with depth.

Hydraulic testing be undertaken, for instance pumping tests from bores and/or trenches to determine, aquifer properties, expected production rates and infrastructure design (trench and bore size and spacing).

Diamond Core drilling to obtain sample for porosity determination.

Lake recharge dynamics be studied to determine the lake water balance and subsequent production water balance. For instance, simultaneous data recording of rainfall and subsurface brine level fluctuations to understand the relationship between rainfall and lake recharge, and hence the brine recharge dynamics of the lake.

 

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

Matt Syme/Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

  

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

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

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

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

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

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

Salt Lake Potash #SO4 – MOU With Blackham Resources For Potential Development Of Lake Way

12th March 2018 / Leave a comment

Salt Lake Potash (SLP) is pleased to announce that the Company has entered a Memorandum of Understanding (MOU) with Blackham Resources Limited (Blackham) to investigate the potential development of a Sulphate of Potash (SOP) operation based at Lake Way, near Wiluna.

SLP holds approximately 290km2 of tenure over the Lake Way Paleochannel, as part of the Goldfields Salt Lakes Project (GSLP). Blackham is the owner of the Matilda-Wiluna Gold Operation and holds approximately 64km2 at the Northern End of the Lake. This surrounds the former Williamson Pit, last mined in 2006 and now filled with brine at an exceptional grade of 25kg/m3 of SOP.

Under the MOU, SLP will acquire Blackham’s brine rights and Blackham will acquire gold rights to SLP’s Lake Way holdings, with each company retaining a royalty on their respective holdings. The parties will also co-operate to exchange data and facilitate activities on each other properties.

SLP will investigate the development of an SOP operation at Lake Way, including initially a 40-50,000tpa Demonstration Plant. SLP will sole fund the evaluation and development of any SOP operation at Lake Way. Lake Way has some compelling advantages which make it potentially an ideal site for an SOP operation, including:

  • Substantial capital and operating savings from sharing overheads and infrastructure with the Wiluna Gold Mine, benefits which both Companies would capture. This includes potentially the accommodation camp, flights, power, maintenance, infrastructure and other costs.
  • The site has an excellent freight solution, located 2km from Goldfields Highway, which is permitted for heavy haulage 4 trailer road trains to the railhead at Leonora. It is also adjacent to the Goldfields Gas Pipeline.
  • A Demonstration Plant would likely be built on Blackham’s existing Mining Licences, already subject of a Native Title Agreement.
  • SLP would dewater the existing Williamson Pit, prior to Blackham mining, planned for early 2019. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP (Refer Appendix 1 for Williamson Pit brine samples details). This brine is potentially the ideal starter feed for evaporation ponds, having already evaporated from the normal Lake Way brine grade, which averages around 14kg/m3.
  • The high grade brines at Lake Way will result in lower capital and operating costs due to lower extraction and evaporation requirements.
  • There would be substantial savings to both parties from co-operating on activities on each other’s ground.
  • Historical exploration and initial sampling indicate the presence of clays in the upper levels of the lake which should be amenable to low cost, on-lake evaporation pond construction.

SLP will complete a Scoping Study for a potential SOP operation at Lake Way, including a Demonstration Plant, by mid-2018, in time to allow a decision on dewatering the Williamson Pit. There is substantial historical data available for Lake Way and the companies have already undertaken preliminary sampling in the Blackham area. Along with the extensive, high quality technical work undertaken at SLP’s other lakes, which has substantial application at Lake Way, a Scoping Study can be reliably undertaken in a much shorter timeframe than would normally be the case.

SLP CEO Matt Syme said “We are pleased to reach this agreement with Blackham which could potentially bring very substantial benefit to both companies, and adds significant value from mineral rights to which neither company ascribed value as a standalone. Lake Way appears to be an ideal site for our SOP Demonstration Plant and subsequent expansions. We expect it would result in material time and cost savings for us and also bring significant benefits to the Wiluna Community. It appears to have the best combination in Australia of scale, brine chemistry, permitting and infrastructure access and justifies the effort to prove its potential. Work will continue in parallel at Lake Wells, where our Mining Lease Application is in progress.”

 

LAKE WAY

Lake Way is located in the Goldfields region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 200km2.

Lake Way was identified due to its strategic location and significant infrastructure advantages. The Wiluna region is an historic mining precinct dating back to the late 19th century. It has been a prolific nickel and gold mining region and therefore has well developed, high quality infrastructure in place.

The Goldfields Highway is a high quality sealed road permitted to carry quad road trains and passes 2km from the Lake. The Goldfields Gas Pipeline is adjacent to SLP’s tenements, running past the eastern side of the Lake.

As described in SLP’s ASX Announcement dated 12 December 2017, Lake Way has been extensively explored and mined previously. A paleochannel has been well defined along the Eastern edge of the lake, including brine sampling at depth and test pumping of the basal aquifer.

 

Competent Persons Statement

The information in this report that relates 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.

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.

APPENDIX 1 – BRINE CHEMISTRY ANALYSIS

PIT SAMPLE

East

North

Depth (m)

K

(mg/L)

Cl

(mg/L)

Na

(mg/L)

Ca

(mg/L)

Mg

(mg/L)

SO4

(mg/L)

TDS

(g/L)

Y800006

233338

7035669

1

11,400

180,250

106,000

173

14,400

47,700

371

Y800008

233338

7035669

20

11,400

181,300

106,000

175

14,400

48,000

371

Y800010

233338

7035669

35

11,300

180,800

107,000

174

14,700

48,300

373

Y800012

233334

7035874

1

11,100

179,050

106,000

171

14,200

47,100

368

Y800014

233334

7035874

20

11,400

171,150

107,000

180

14,400

47,100

378

Y800016

233334

7035874

35

11,500

182,000

111,000

179

14,700

49,200

373

Y800018

233335

7036022

1

11,300

179,400

106,000

177

14,300

47,400

367

Y800020

233335

7036022

20

11,400

181,150

107,000

177

14,500

48,300

375

Y800022

233335

7036022

35

11,400

181,150

107,000

179

14,800

48,900

376

 

APPENDIX 2 – 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.

Brine samples were collected from Williamson Pit at various depths.

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).

Not applicable

 

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.

Not applicable

 

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.

Not applicable

 

 

 

 

 

 

 

 

 

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.

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.

 

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.

Sample co-ordinates were captured using hand held GPS.

Coordinates were provided in GDA 94_MGA Zone 51.

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.

Data spacing reported in Appendix 1

 

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.

Not Applicable

 

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.

Data review is summarised in Quality of assay data, laboratory tests and Verification of sampling and assaying. No audits were undertaken.

Section 2: Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure 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.

 

Pit samples were taken from M53/253 owned by Blackham Resources Limited (held by Nova Energy Ltd) under the permission of Blackham Resources Limited.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Addressed in the announcement dated 12 December 2017.

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.

Not Applicable

 

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.

No low grade cut-off or high grade capping has been implemented.

 

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’).

Not applicable

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.

Not Applicable

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.

Addressed in the announcement.

 

 

 

 

 

 

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.

Addressed in the announcement.

 

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

Matt Syme/Sam Cordin

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

 

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.

Salt Lake Potash #SO4 – December 2017 Quarterly Report

31st January 2018 / Leave a comment

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

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