Home » Posts tagged 'so4' (Page 2)

Tag Archives: so4

Salt Lake Potash #SO4 – March 2019 Quarterly Report & Appendix 5B Report

30th April 2019 / Leave a comment

The Board of Salt Lake Potash Limited (the Company or Salt Lake Potash) is pleased to present its Quarterly Report for the period ending 31 March 2019.

The Company is focussed on rapidly progressing the development of its Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

Highlights for the quarter and subsequently include:

Significant Increase in the high-grade SOP resource at Lake Way

Ø Mineral Resource Estimate for the whole of Lake Way contains 73 million tonnes (Mt) of SOP using Total Porosity and 8.2Mt of SOP calculated using Drainable Porosity, including:

o Measured – Lake Way Playa – 6.9Mt (total porosity) & 1.8Mt (drainable porosity) @ 15.4kg/m3

o Measured – Williamson Pit 32Kt (drainable porosity) @ 25.5kg/m3

o Indicated – Paleochannel 3.7Mt (total porosity) & 1.4Mt (drainable porosity) @ 13.6kg/m3

o Inferred – Lake Way Playa & Paleovalley Sediment 62.2Mt (total porosity) & 5.0Mt (drainable porosity) @ 15.2kg/m3

Ø Lake Way confirmed as very high-grade with consistent brine chemistry both laterally and at depth, with an average grade of 14.5kg of SOP per cubic metre of brine across the Lake Way tenements (Measured and Indicated)

Ø The Company has successfully delineated a Paleochannel in excess of 30km in length along the eastern boundary of Lake Way, which supports the ability and optionality to produce brine from two separate sources (lake playa and paleochannel)

Ø The Mineral Resource Estimate for the ‘whole of lake’ will enable the Company to progress technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019

Key Approval Obtained and Construction of initial Lake Way Ponds Commences

Ø Following receipt of the final approval from the Department of Water and Environmental Regulation (DWER), construction and operation of the First Phase of Lake Way Evaporation Ponds (Lake Way Ponds) immediately commenced

Ø Construction works for the Lake Way Evaporation ponds are progressing well with the Company having commenced 24/7 operations to rapidly progress development

Ø The first phase of the Lake Way Ponds will enable de-watering of the Lake Way Williamson Pit that contains the highest grade brine resource in Australia. Dewatering is expected to commence in Q2, 2019

Ø Onsite infrastructure for de-watering the Williamson Pit is under construction, including the placement and welding of piping

Ø The utilisation of the Williamson Pit brine will accelerate Salt Lake Potash’s pathway to first production of SOP at Lake Way

Binding Access Agreement Signed with Blackham Resources

Ø A binding Split Commodity and Access Agreement with Blackham Resources was executed for  the Lake Way Project, in line with the terms of the MOU

Ø Under the Agreement, Salt Lake Potash acquires the brine rights over Blackham’s tenure and Blackham will acquire gold rights over Salt Lake Potash’s tenure. Each company retains a royalty on their respective mineral resources

Ø The Agreement with Blackham facilitates an accelerated pathway to production through the utilisation of Blackham’s Mining Lease for early construction works and the de-watering and utilisation of the high grade Williamson Pit brine

Planned Activities for the Lake Way Project over the coming months

Ø Completion of initial Lake Way Ponds and commencement of dewatering the Williamson Pit

Ø Resource drilling and trenching in the southern section of Lake Way to enable the Company to upgrade the resource category in the lake bed sediments.

Ø Progress technical studies for a larger production scenario with an anticipated release date during Q2 2019

Ø Completion of pilot plant process testwork at Saskatchewan Research Council (SRC) to lockdown process flowsheet and produce SOP product samples for end user trials

Ø Ongoing discussions with Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC) to convert Native Title Land Access and Exploration Agreement for Lake Way into a Native Title Mining Agreement

OVERVIEW

Salt Lake Potash is the owner of nine large salt lakes in the Northern Goldfields Region of Western Australia.  This outstanding portfolio of assets has a number of important, favourable characteristics:

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

·     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;

·     Excellent evaporation conditions;

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

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

·     Potential for multi-lake production offers optionality and significant scale potential, operational flexibility, cost advantages and risk mitigation from localised weather events.

Salt Lake Potash’s immediate focus is on the rapid development of the Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash production operation in Australia. Lake Way’s location and logistical advantages make it the ideal location for the Company’s first SOP operation. Construction has commenced on Australia’s first commercial scale on-lake evaporation ponds.

The Company’s long term plan is to develop an integrated SOP operation, producing from a number (or all) of the lakes.  Salt Lake Potash will progressively explore each of the lakes with a view to estimating resources for each Lake, and determining the development potential. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

LAKE WAY PROJECT

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

Salt Lake Potash holds five Exploration Licences (two granted and three under application) and one application for a Mining Lease, covering most of Lake Way and select areas off-lake, including the paleochannel defined by previous exploration. The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine.

In April 2019, the Company entered into a binding Split Commodity and Access Agreement with Blackham in relation to the development of the Lake Way Project on terms in line with the previously executed MOU announced on 12 March 2018.

Lake Way has a number of compelling advantages which make it an ideal site for Salt Lake Potash’s initial SOP operation, including:

Ø  Utilisation of Blackham’s existing infrastructure (including camps, power and maintenance) to accelerate development.

Ø  The site has excellent freight solutions, being adjacent to the Goldfields Highway, which is permitted for heavy haulage, quad trailer road trains to the railhead at Leonora and then direct rail access to both Esperance and Fremantle Ports, or via other heavy haulage roads to Geraldton Port.

Ø  The Goldfields Gas Pipeline is adjacent to Salt Lake Potash’s tenements, running past the eastern side of the Lake.

Ø  Access to Blackham’s existing Mining Leases provides advanced permitting pathway for early development activity, including the construction of the initial Lake Way Evaporation Ponds.

Ø  Salt Lake Potash has commenced construction of the initial Lake Way Evaporation Ponds which will enable the Company to dewater the existing Williamson Pit. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP. This brine is 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  The presence of clays in the upper levels of the lake which are amenable to low cost, on-lake evaporation pond construction.

The Company is concurrently progressing the construction of the initial Lake Way Evaporation Ponds, whilst also rapidly advancing a ‘whole of lake’ scenario, including mineral resource estimates, permitting and approvals, pilot plant process testwork and assessment of infrastructure and logistical options.

The Mineral Resource Estimate for the ‘whole of lake’ reported in March 2019 will enable Salt Lake Potash to progress technical studies for a larger production scenario with an anticipated release date towards the end of the current quarter.  

Discussions are also ongoing with a number of offtake partners and the testwork currently underway at SRC will provide high-grade SOP product samples for testing by these partners.

Field Work

During the quarter, the Company completed an extensive field based program providing inputs for the ‘whole of lake’ Mineral Resource Estimate announced in March 2019.

Thirteen shallow bores were drilled to a maximum depth of 7m, and each hole was sampled for brine and completed as piezometers for use in future water level monitoring. Up to three insitu samples were taken from each bore and analysed in the lab for total porosity and specific yield. 

Trench 5 was excavated to a depth of 4m or refusal and to length of 110m.  The trench was test pumped for a total of 10 days and the brine drawdown around the trench was measured using piezometer areas extending 100m from the trench.  This data was used to determine drainable porosity and aquifer hydraulic conductivity.

Two historic investigation bores were test pumped to determine aquifer parameters.  The bores were pumped by Global Groundwater Pty Ltd at a constant rate for 24 hours.  Water level drawdown in the pumped bore, and in nearby observation bores was monitored manually and by data logger.  The data was analysed to determine aquifer properties of transmissivity (Product of bulk average hydraulic conductivity and aquifer thickness), Storage coefficient and boundary conditions.

Several additional lines of passive seismic survey were also completed during the Quarter.  The results were interpreted and incorporated into the overall dataset. Correlation of the passive seismic dataset with the historical drilling confirmed the presence of a significant paleochannel with several tributaries lying beneath the lake surface down the eastern side of the lake.  

Mineral Resource Estimate

In March 2019, the Company completed an extensive exploration program covering the remaining areas of Lake Way and reported a ‘whole of lake’ Mineral Resource Estimate, covering the playa surface and the Paleochannel aquifers of Lake Way. 

The Mineral Resource Estimate of 73Mt of SOP calculated using Total Porosity and 8.2Mt of SOP calculated using Drainable Porosity is hosted within approximately 15 billion cubic metres of sediment ranging in thickness from a few metres to over 100m, beneath 189km2 of Playa Lake surface including the paleochannel basal sand unit of 20m thickness and 30km length.

The Mineral Resource Estimate for Lake Way is divided into resource classifications that are controlled by the host geological units:

·     Lake Bed Sediment

·     Paleovalley Sediment

·     Paleochannel Basal Sands

The mineral resource estimate is summarised in the Tables below:

Table 1: Measured Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

North Lakebed

(0.4-8.0 m)

1,060

6.8

8.0

27.6

0.42

445

6.9

0.11

117

1.8

Williamson Pit

1.26

11.4

14.7

48.0

1.26

0.03

Total

6.9

1.83

 

Table 2: Indicated Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

Basal Sands

(Paleochannel)

686

6.1

8.2

25.0

0.40

274

3.7

15

103

1.4

 

Table 3: Inferred Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

South Lakebed

(0.4-8.0 m)

316

6.8

8.0

27.6

0.42

133

2.0

0.11

35

0.5

Lakebed

(8m to Base)

9,900

6.8

8.0

27.6

0.40

3,960

60.0

0.03

297

4.5

Total

62.0

5.0

(1) The Drainable Porosity does not include the significant resource potentially available through the recharge cycle. Refer Announcement dated 18 March 2019, Appendix 1.

The northern section of Mineral Resource Estimate (including the Blackham tenements) has been classified into a Measured category for the upper 8m of lakebed sediments. The resources contained within the lakebed sediments below 8m, and the southern section of the lake at all depths, are all classified in the Inferred category. The Paleochannel running along the eastern boundary of the lake has been classified in the Indicated category.

The Company will complete further drilling and trenching during the current quarter to increase the resource definition in the southern section of the lake and ultimately convert the Mineral Resource Estimate into Ore Reserves following further technical studies.

For further details on the Mineral Resource Estimate, refer to the Company’s Announcement dated 18 March 2019.

Civil Construction – On-Lake Infrastructure

Construction of the initial Lake Way Evaporation Ponds (Lake Way Ponds) commenced in March 2019 following receipt of the Part V works approval from the Department of Water and Environmental Regulation (DWER). The approval allows construction and operation of the Company’s initial phase commercial scale evaporation ponds for Lake Way and de-watering of the Williamson Pit. 

Salt Lake Potash is constructing Australia’s first commercial scale on-lake evaporation ponds for a Sulphate of Potash (SOP) project at Lake Way. The initial phase ponds will consist of:

·     Two evaporation ponds:

(i)   Kainite Harvest Pond 500m x 500m (25 Ha); and

(ii)  Halite Pond 2,000m x 500m (100 Ha);

·     A 2km long and 8m deep trench is also being constructed running parallel to the ponds which will provide additional brine feed into the pond network;

·     A 1.4km causeway from the Williamson Pit to the Kainite Harvest Pond; and

·     Associated piping and pumping infrastructure.

The initial Lake Way Ponds will have a volume of 1.8GL which will be capable of capturing the total Williamson Pit Measured Brine Resource (1.2GL @ 25kg/m3 SOP equivalent).

The construction of the initial Lake Way Ponds is on track to be completed by the end of Q2 2019. The de-watering of the 1.2GL of Williamson Pit brine is expected to commence towards the end of Q2 2019.

Construction works for the Lake Way Ponds are progressing well with the Company moving to 24/7 operations to rapidly progress development. The Company is undertaking a wet hire and self-perform model for the construction of the initial Lake Way Ponds. This construction model allowed fast track mobilisation and execution of the works, whilst providing the Company with critical hands on experience allowing testing and validating of all design criteria to de-risk the future on-lake construction.

The construction works for the pond bund walls involves the stripping of the sandy evaporite layer of material on the lake’s surface and constructing the bund walls from adjacent won lake material. A key trench is then constructed at the upstream toe of the embankment.

The works are being completed with a number of specialised pieces of civil earthmoving equipment suited to the unique conditions, including amphibious excavators and low ground pressure equipment.

The de-watering of the Williamson Pit will commence in Q2 2019 once the first phase of the evaporation ponds is complete. Onsite preparation works have commenced for de-watering activity including the placement and welding of piping.

The Company has also established support infrastructure on Lake Way, comprising a site office, crib room, and full mechanical workshop with canopy capable of undertaking repairs to our fleet of equipment onsite without the need for demobilization to external repair facilities.

The Company continues to progress the Early Contractor Involvement (ECI) process for the larger ‘whole of lake’ development. Initial proposals for various elements of the on-lake development work have been received and are in the process of review.

Continuous Site Evaporation Trial

The Company commenced a further site evaporation trial (SET), with the objective of replicating the proposed Lake Way evaporation process in a continuous manner to produce harvest salts representative of on-lake conditions. Furthermore, these SETs will provide valuable experience to operators of large-scale ponds and enable testing of the currently proposed control philosophy of the solar evaporation ponds. The harvest salts attained from these continuous SETs will provide feedstock for testwork to provide design inputs for the commercial processing plant equipment.

The continuous SETs are currently reaching a steady-state, running as expected and producing harvest salts confirming the viability of the proposed Lake Way pond system design.

Weather stations are being procured and installed to accurately log the weather conditions at Lake Way. This in conjunction with on-going PAN evaporation trails, at various Mg concentrations, will allow Salt Lake Potash to accurately build a profile of the weather conditions expected at Lake Way and firm up final design and operational requirements.

Process Testwork

During the quarter, the Company engaged the world’s leading potash processing laboratory, Saskatchewan Research Council (SRC), to establish a pilot plant based on the process flow sheet for the Lake Way Project. The pilot plant will validate and refine the Lake Way process flowsheet and also produce high-grade SOP product samples for offtake partners.

Bench testwork from the initial batch of harvest salts delivered to SRC is now complete, thus confirming the flow sheet for the first pilot run.

The second batch of harvest salts has arrived at SRC for further test work and production of SOP product samples. Pilot plant testwork at SRC is expected to be completed during Q2, 2019.

In parallel SRC will also produce a measured amount of schoenite salt, enabling the selected crystalliser supplier to finalise preliminary design.

Native Title

In December 2018, the Company signed a Native Title Land Access and Brine Minerals Exploration Agreement (the Agreement) with Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC) covering the Lake Way Project area.

TMPAC entered into the Agreement with Salt Lake Potash on behalf of the Wiluna People who are the recognised Native Title Holders of the land covering the Lake Way Project area. TMPAC also provided consent for the total area required for the construction and operation of the initial Lake Way Ponds.

Salt Lake Potash and TMPAC are finalising negotiations on the terms of a Native Title Mining Agreement required for the ongoing mining operation.

Approvals Advancing

The Company received final approval from the Department of Water and Environmental Regulation (DWER) for the Part V works approval in March 2019, for construction and operation of the initial evaporation ponds for Lake Way and de-watering of the Williamson Pit. 

The Department of Mines, Industry Regulation and Safety (DMIRS) has previously approved the Company’s Mining Proposal and Project Management Plan for the initial Lake Way Ponds, enabling an immediate start to construction.

A series of studies have continued to progress during the quarter in support of the ongoing environmental approvals. These include flora and fauna surveys, hydrological assessment, flood modelling and geotechnical investigations. Initial findings of these studies have indicated that:

·     The planned minimal clearing of native vegetation and fauna habitat will not cause adverse impacts to flora or fauna of high conservation significance;

·     Groundwater drawdown will not alter current groundwater levels;

·     Construction of ponds on the lake surface will result in negligible local increases in water levels (Knight Piesold, 2019); and

·     Underlying lake sediments show no significant sulfidic or sulphuric materials and/or monosulfidic black oozes, and the lake system has significant buffering capacity to neutralise potential impacts, if any.

During the quarter E53/1897 was granted, SO4’s granted tenure at Lake Way now covers approximately 278km2 with an additional 143km2 under application including Mining Lease Application M53/1102 applied for in March 2019. 

Access Agreement

In April 2019, the Company entered into a binding Split Commodity and Access Agreement (Agreement) with Blackham Resources Limited (Blackham) in relation to the development of the Lake Way Project on terms in line with the previously executed MOU announced on 12 March 2018.

The Agreement with Blackham facilitates an accelerated pathway to production through the utilisation of Blackham’s Mining Lease for early construction works and the de-watering and utilisation of the Williamson Pit brine.

Under the Agreement, Salt Lake Potash will acquire Blackham’s brine rights and Blackham will acquire gold rights to Salt Lake Potash’s Lake Way holdings, with each company retaining a royalty on their respective holdings.

The Agreement is binding on the parties with the key terms including:

·     Salt Lake Potash to acquire the Brine Rights over the Blackham tenements;

·     Blackham to acquire the Gold Rights over the Salt Lake Potash tenements;

·     Salt Lake Potash to receive a 2% royalty on all gold production from the Salt Lake Potash tenements;

·     Blackham to receive a 4% royalty on all Brine production (including SOP) from the Blackham tenements;

·     Salt Lake Potash to make a rehabilitation liability payment of $500,000 to Blackham by 30 June 2019. This amount is deductible from future brine royalties;

·     Salt Lake Potash is required to achieve the following construction and production milestones:

o  Completion of the de-watering of the Williamson Pit by 31 July 2019;

o  Commence the construction of the SOP processing plant by 30 June 2020; and

o  Achieve first commercial production of SOP by 31 December 2021

These dates may be extended by mutual agreement.

The following Conditions Precedent must be satisfied within 2 months of the date of the Agreement (or such later date as may be agreed by the parties):

·     the Minister consenting (to the extent required):

o  to Blackham granting the Brine Rights to Salt Lake Potash;

o  to Salt Lake Potash granting the Gold Rights to Blackham.

·     Blackham obtaining any approvals necessary to proceed with the Agreement, including the release of various encumbrances relating to the Brine Rights.

Corporate

During the Quarter, the Company appointed Mr Matthew Bungey as Project Director – Strategy and Funding. Mr Bungey’s initial focus is on advancing various funding alternatives for the Lake Way Project including debt financing, strategic partners and royalty financing.

Mr Bungey is an experienced advisor across M&A and financing, most recently as Managing Director with Barclays Bank in London. He has been involved in tens of billions of dollars of executed M&A transactions across the resources and agriculture sectors. Mr Bungey has also been involved in numerous financings and is a Board member of BGC Australia. Prior to banking he worked as a Chemical Engineer in the mining sector.

Discussions with a number of financiers regarding project financing are progressing well.

For further information please visit www.so4.com.au or contact:

 

Tony Swiericzuk / Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 7540 366000

Colin Aaronson / Richard Tonthat / Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee / Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Rupert Fane / Ingo Hofmaier / Ernest Bell

Hannam & Partners (Joint Broker)

Tel: +44 (0) 20 7907 8500

 

Forward Looking Statements

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

Competent Persons Statement

The information in this Announcement that relates to Mineral Resources is extracted from the report entitled ‘Significant High-Grade SOP Resource Delineated at Lake Way’ dated 18 March 2019. This announcement is available to view on www.so4.com.au. The information in the original Announcement that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited 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

Appendix 1 – Summary of Exploration and Mining Tenements

As at 31 March 2019, the Company holds interests in the following tenements:

 

Project

Status

Type of Change

License Number

Interest (%)

1-Jan-19

Interest (%)

31-Mar-19

Western Australia

Lake Way

Central

Granted

–

E53/1878

100%

100%

East

Application

–

E53/2057

100%

100%

South

Granted

Granted

E53/1897

100%

100%

South

Application

–

E53/2059

100%

100%

South

Application

–

E53/2060

100%

100%

Central

Application

Application

M53/1102

–

100%

Lake Wells

Central

Granted

–

E38/2710

100%

100%

South

Granted

–

E38/2821

100%

100%

North

Granted

–

E38/2824

100%

100%

Outer East

Granted

–

E38/3055

100%

100%

Single Block

Granted

–

E38/3056

100%

100%

Outer West

Granted

–

E38/3057

100%

100%

North West

Granted

–

E38/3124

100%

100%

West

Granted

–

L38/262

100%

100%

East

Granted

–

L38/263

100%

100%

South West

Granted

–

L38/264

100%

100%

South

Granted

–

L38/287

100%

100%

South Western

Granted

–

E38/3247

100%

100%

South

Granted

–

M38/1278

100%

100%

Central

Application

Application

E38/3380

–

100%

Lake Ballard

West

Granted

–

E29/912

100%

100%

East

Granted

–

E29/913

100%

100%

North

Granted

–

E29/948

100%

100%

South

Granted

–

E29/958

100%

100%

South East

Granted

–

E29/1011

100%

100%

South East

Granted

–

E29/1020

100%

100%

South East

Granted

–

E29/1021

100%

100%

South East

Granted

–

E29/1022

100%

100%

South

Application

Application

E29/1067

–

100%

South

Application

Application

E29/1068

–

100%

North

Application

Application

E29/1070

–

100%

Lake Irwin

West

Granted

–

E37/1233

100%

100%

Central

Granted

–

E39/1892

100%

100%

East

Granted

–

E38/3087

100%

100%

North

Granted

–

E37/1261

100%

100%

Central East

Granted

–

E38/3113

100%

100%

South

Granted

–

E39/1955

100%

100%

North West

Granted

–

E37/1260

100%

100%

South West

Granted

–

E39/1956

100%

100%

Lake Minigwal

West

Granted

–

E39/1893

100%

100%

East

Granted

–

E39/1894

100%

100%

Central

Granted

–

E39/1962

100%

100%

Central East

Granted

–

E39/1963

100%

100%

South

Granted

–

E39/1964

100%

100%

South West

Granted

–

E39/1965

100%

100%

Lake Marmion

North

Granted

–

E29/1000

100%

100%

Central

Granted

–

E29/1001

100%

100%

South

Granted

–

E29/1002

100%

100%

West

Granted

–

E29/1005

100%

100%

West

Application

Application

E29/1069

–

100%

Lake Noondie

North

Granted

–

E57/1062

100%

100%

Central

Granted

–

E57/1063

100%

100%

South

Granted

–

E57/1064

100%

100%

West

Granted

–

E57/1065

100%

100%

East

Granted

–

E36/932

100%

100%

Lake Barlee

North

Granted

–

E30/495

100%

100%

Central

Granted

–

E30/496

100%

100%

South

Granted

–

E77/2441

100%

100%

Lake Raeside

North

Granted

–

E37/1305

100%

100%

Lake Austin

North

Application

–

E21/205

100%

100%

West

Application

–

E21/206

100%

100%

East

Application

–

E58/529

100%

100%

South

Application

–

E58/530

100%

100%

South West

Application

–

E58/531

100%

100%

Lake Moore

Granted

–

E59/2344

100%

100%

Northern Territory

Lake Lewis

South

Granted

–

EL 29787

100%

100%

North

Granted

–

EL 29903

100%

100%

 

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Salt Lake Potash Limited

ABN

Quarter ended (“current quarter”)

98 117 085 748

31 March 2019

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

(2,235)

(5,489)

(a)   exploration & evaluation

(b)   development

(1,129)

(1,129)

(c)   production

–

–

(d)   staff costs

(1,100)

(2,573)

(e)   administration and corporate costs

(458)

(965)

1.3

Dividends received (see note 3)

–

–

1.4

Interest received

62

115

1.5

Interest and other costs of finance paid

–

–

1.6

Income taxes paid

–

–

1.7

Research and development refunds

–

–

1.8

Other (provide details if material)
– Business Development

(254)

(780)

1.9

Net cash from / (used in) operating activities

(5,114)

(10,821)

2.

Cash flows from investing activities

(56)

(315)

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

(56)

(315)

3.

Cash flows from financing activities

–

13,000

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

(30)

(745)

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

(30)

12,255

4.

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

12,028

5,709

4.1

Cash and cash equivalents at beginning of period

4.2

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

(5,114)

(10,821)

4.3

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

(56)

(315)

4.4

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

(30)

12,255

4.5

Effect of movement in exchange rates on cash held

–

–

4.6

Cash and cash equivalents at end of period

6,828

6,828

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

1,635

2,901

5.2

Call deposits

5,193

9,127

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)

6,828

12,028

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

(169)

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 salaries, 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

2,500

9.2

Development

2,000

9.3

Production

–

9.4

Staff costs

1,500

9.5

Administration and corporate costs

400

9.6

Other (provide details if material)
– Business Development

– Exercise of Unlisted Options


100
(300)

9.7

Total estimated cash outflows

6,200

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 Appendix 1

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 2019

(Director/Company secretary)

Print name:       Clint McGhie

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

Brand CEO Alan Green talks Salt Lake Potash #SO4, Enquest Retail Bond #ENQ1, Fidelity Global Tech Fund & Bluefield Solar Income #BSIF on Vox Markets podcast

24th April 2019 / Leave a comment

Brand CEO Alan Green discusses Salt Lake Potash #SO4, Enquest Retail Bond #ENQ1, Fidelity Global Tech Fund & Bluefield Solar Income #BSIF with Justin Waite on the Vox Markets podcast.

Salt Lake Potash #SO4 – Appointment of Hannam & Partners as Joint Broker

18th April 2019 / Leave a comment

Salt Lake Potash Limited (ASX: SO4 / AIM: SO4) advises that it has appointed H&P Advisory Limited (“Hannam & Partners”) as its Joint Broker alongside Cenkos Securities plc, with immediate effect. 

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

 

Salt Lake Potash Limited

 

Jo Battershill

Tel: +44 (0) 20 7478 3905

 

Cenkos Securities plc

(Joint Broker)

 

Derrick Lee

Tel: +44 (0) 20 7397 8900

 

Grant Thornton UK LLP

(Nominated Adviser)

 

Colin Aaronson / Ben Roberts

Tel: +44 (0) 20 7383 5100

 

Hannam & Partners

(Joint Broker)

 

Rupert Fane / Ingo Hofmaier / Ernest Bell

Tel: +44 (0) 20 7907 8500

 

Salt Lake Potash #SO4 & Blackham Resources Execute Binding Access Agreement

8th April 2019 / Leave a comment

Highlights:

·      Salt Lake Potash has executed a binding Split Commodity and Access Agreement with Blackham Resources in relation to the Lake Way Project

·      Under the Agreement, Salt Lake Potash will acquire the brine rights over Blackham’s tenure and Blackham will acquire gold rights over Salt Lake Potash’s tenure. Each company retains a royalty on their respective mineral resources

·      The Agreement with Blackham facilitates an accelerated pathway to production through the utilisation of Blackham’s Mining Lease for early construction works and the de-watering and utilisation of the Williamson Pit brine

·      The construction of the evaporation pond at Lake Way is progressing well with 24-hour operations at site now underway

Salt Lake Potash Limited (Salt Lake Potash or the Company) is pleased to announce that the Company has entered into a binding Split Commodity and Access Agreement (Agreement) with Blackham Resources Limited (Blackham) in relation to the development of the Lake Way Project on terms in line with the previously executed MOU announced on 12 March 2018.

Under the Agreement, Salt Lake Potash will acquire Blackham’s brine rights and Blackham will acquire gold rights to Salt Lake Potash’s Lake Way holdings, with each company retaining a royalty on their respective holdings.

Key Terms

The Agreement is binding on Salt Lake Potash and Blackham with the key terms including:

·      Salt Lake Potash to acquire the Brine Rights over the Blackham tenements;

·      Blackham to acquire the Gold Rights over the Salt Lake Potash tenements;

·      Salt Lake Potash to receive a 2% royalty on all gold production from the Salt Lake Potash tenements;

·      Blackham to receive a 4% royalty on all Brine production (including SOP) from the Blackham tenements;

·      Salt Lake Potash to make a rehabilitation liability payment of $500,000 to Blackham by 30 June 2019. This amount is deductible from future brine royalties;

·      Salt Lake Potash is required to achieve the following construction and production milestones:

o  Completion of the de-watering of the Williamson Pit by 31 July 2019;

o  Commence the construction of the SOP processing plant by 30 June 2020; and

o  Achieve first commercial production of SOP by 31 December 2021

These dates may be extended by mutual agreement.

The following Conditions Precedent must be satisfied within 2 months of the date of the Agreement (or such later date as may be agreed by the parties):

·      the Minister consenting (to the extent required):

o  to Blackham granting the Brine Rights to Salt Lake Potash;

o  to Salt Lake Potash granting the Gold Rights to Blackham.

·      Blackham obtaining any approvals necessary to proceed with the Agreement, including the release of various encumbrances relating to the Brine Rights.

Lake Way Project

Salt Lake Potash is focussed on the rapid development of the Lake Way Project, being a high grade salt-lake brine Sulphate of Potash (SOP) operation. Lake Way’s location and logistical advantages make it the ideal Lake for the Company’s first SOP operation.

Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2. The northern end of the Lake is largely covered by a number of Mining Leases held by Blackham, the owner of the Wiluna Gold Mine. The Agreement with Blackham allows for an expedited pathway to development at Lake Way.

Construction Update

Salt Lake Potash commenced the construction of the first phase of the Lake Way Evaporation Ponds at the start of March 2019 (see announcement dated 6 March 2019). The first phase of evaporation ponds will enable the de-watering of the Williamson Pit.

Construction works for the Lake Way Evaporation ponds are progressing well with the Company moving into 24 hour operations and are on target for completion in Q2 2019.

The de-watering of the Williamson Pit will commence in Q2 2019 once the first phase of the evaporation ponds is complete. Onsite preparation works have commenced for de-watering activity including preparation and welding of pipeline. 

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

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/
Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint Broker)

Tel: +44 (0) 20 7468 7967

 

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 – Investor Presentation 2019

5th April 2019 / Leave a comment

Salt Lake Potash #SO4 – Investor Presentation March 2019

Salt Lake Potash aims to produce premium Sulphate of Potash via the Brine Process, which is clean, green and energy efficient.

The presentation explains the differences between the Mannheim Process and the Brine Process. Link to the presentation here.

Salt Lake Potash (SO4) – Company Presentation

25th March 2019 / Leave a comment

The Company is pleased to advise that a new corporate presentation is now available to view on the Company’s website at: 

https://www.saltlakepotash.com.au/company-presentations/

 

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

 

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/
Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint Broker)

Tel: +44 (0) 20 7468 7967

 

 

 

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 Ltd (SO4) – Significant High-Grade SOP Resource Delineated at Lake Way

18th March 2019 / Leave a comment

The version of this announcement including diagrams can be viewed at www.saltlakepotash.com.au/asx-announcements/

 

Highlights:

– Initial Mineral Resource Estimate for the whole of Lake Way contains 73 million tonnes of SOP, including:

  • Measured Resource – Lake Way Playa 6.9Mt @ 15.4kg/m3
  • Measured Resource – Williamson Pit 32Kt @ 25.5kg/m3
  • Indicated Resource – Paleochannel 3.7Mt @ 13.6kg/m3
  • Inferred Resource – Lake Way Playa & Paleovalley Sediment 62Mt @ 15.2kg/m3

– Lake Way confirmed as very high-grade with consistent brine chemistry both laterally and at depth, with an average grade of 14.5kg of SOP per cubic metre of brine across the Lake Way tenements (Measured and Indicated)

– The Company has successfully delineated a Paleochannel in excess of 30km in length along the eastern boundary of Lake Way, which supports the ability and optionality to produce brine from two separate sources (lake playa and paleochannel)

– Test pumping of historical bores at Lake Way has provided important data that supports efficient production by pumping from the paleochannel resource

– The Mineral Resource Estimate for the ‘whole of lake’ will enable the Company to finalise technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019

Salt Lake Potash Limited (the Company or Salt Lake Potash) (ASX/AIM:SO4) is pleased to advise of a significant extension of the Mineral Resource Estimate at Lake Way following completion of an exploration program across the ‘whole of the lake’. The estimated total Mineral Resource Estimate at Lake Way has increased to 73 million tonnes (Mt) of SOP calculated using Total Porosity and 8.2Mt of SOP calculated using Drainable Porosity. Thirdly, the model is now being further refined by establishing a site evaporation trial, where a scaled down version of an evaporation pond system is established on site and brine is evaporated under actual field conditions. Both brine chemistry and salt production are closely monitored.

Table 1: Resource Table

Classification

Bulk Volume

(Million m3)

Porosity (%)

Brine Volume

(Million m3)

Average SOP (K2SO4) Concentration (kg/m3)

SOP Tonnage – Total Porosity

(Mt)

SOP Tonnage – Drainable Porosity1

(Mt)

Measured (Lake)

1,060

43

456

15.4

6.9

1.8

Measured (Williamson Pit)

1.26

25.5

0.03

0.03

Indicated

(Paleochannel)

686

40

274

13.6

3.7

1.4

Inferred

10,216

40

4,096

15.2

62.2

5.0

Total

11,963

4,826

72.83

8.2

1.     An average Drainable Porosity ranging from 3-15% has been applied

 

Salt Lake Potash’s Chief Executive Officer, Mr Tony Swiericzuk said:

“It is extremely pleasing to present the Lake Way Mineral Resource Estimate for the ‘whole of lake” that confirms the significant size and very high-grade resource at Lake Way.

It reinforces our current review process to consider a larger scale scenario at Lake Way and we anticipate releasing the technical results of the larger scale scenario towards  the end of Q2 2019.”

Lake Way Project

Salt Lake Potash is focussed on the rapid development of the Lake Way Project, being a high grade salt-lake brine Sulphate of Potash (SOP) operation. Lake Way’s location and logistical advantages make it the ideal Lake for the Company’s first SOP operation.

Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2. The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine. The Company’s Memorandum of Understanding with Blackham (see ASX Announcement dated 12 March 2018) allows for an expedited path to development at Lake Way.

Introduction

The maiden Mineral Resource Estimate reported in July 2018 was limited to the area within the Blackham Tenement boundary. Subsequent to this, the Company has undertaken an extensive exploration program covering the remaining areas of Lake Way including the delineation of the Paleochannel which runs along the eastern boundary of the Lake Way Project. 

Salt Lake Potash has now finalised the exploration program that has supported a ‘whole of lake’ Mineral Resource Estimate, covering the playa surface and the Paleochannel aquifers of Lake Way.

The Mineral Resource Estimate for the ‘whole of lake’ will enable Salt Lake Potash to finalise technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019. 

Mineral Resource Estimate

The Company engaged an independent hydrogeological consultant with substantial salt lake brine expertise, Groundwater Science Pty Ltd, to complete the Mineral Resource Estimate for the Lake Way Project. 

The Lake Way Mineral Resource Estimate describes a brine hosted resource.  The minerals are dissolved in brine, and the brine is contained within pore spaces of the host sediment.  A small portion of the resource is contained in the Williamson  Pit Lake.

The Mineral Resource Estimate of 73Mt is hosted within approximately 15 billion cubic metres of sediment ranging in thickness from a few metres to over 100m, beneath 189km2 of Playa Lake surface including the paleochannel basal sand unit of 20m thickness and 30km length.

The Mineral Resource Estimate for Lake Way is divided into resource classifications that are controlled by the host geological units:

  • Lake Bed Sediment
  • Paleovalley Sediment
  • Paleochannel Basal Sands

The mineral resource estimate is summarised in the Tables below.  An overview of each resource classification is provided in the subsequent paragraphs.  Details of the estimation methodology are provided in the body of this report.

The estimated SOP tonnage represents the SOP within the in-situ contained brine with no recovery factor applied. The amount of contained brine which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers.

Table 2: Measured Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity1

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

North Lakebed

(0.4-8.0 m)

1,060

6.8

8.0

27.6

0.42

445

6.8

0.11

117

1.8

Williamson Pit

1.26

11.4

14.7

48.0

1.26

0.03

Total

6.8

1.83

Table 3: Indicated Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

Basal Sands

(Paleochannel)

686

6.1

8.2

25.0

0.40

274

3.7

15

103

1.4

Table 4: Inferred Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

South Lakebed

(0.4-8.0 m)

316

6.8

8.0

27.6

0.42

133

2.0

0.11

35

0.5

Lakebed

(8m to Base)

9,900

6.8

8.0

27.6

0.40

3,960

60.0

0.03

297

4.5

Total

62.0

5.0

1.      The Drainable Porosity does not include the significant resource potentially available through the recharge cycle. Refer Appendix 1.

The northern section of Mineral Resource Estimate (including the Blackham tenements) has been classified into a Measured category for the upper 8m of lakebed sediments. The resources contained within the lakebed sediments below 8m, and the southern section of the lake at all depths, are all classified in the Inferred category. The Paleochannel running along the eastern boundary of the lake has been classified in the Indicated category.

The Company will continue the exploration program as it looks to increase the resource definition in the southern section of the lake and ultimately convert the Mineral Resource Estimate into Ore Reserves following further technical studies.

2018 Resource Estimate for Lake Way

In July 2018, the Company completed a scoping study for a 50,000tpa demonstration plant supported by an indicated resource for the 55.4km2 area of the Blackham tenements on Lake Way totaling 1.9Mt of SOP with an excellent brine chemistry of 15.49Kg/m3 K2SO4 and a measured resource from the Williamson pit of 32kt with a highly concentrated chemistry of 25.5Kg/m3 K2SO4.

The Resource was calculated on the shallow (6m average depth) Playa Lake Sediment only. This resource has now been extended to 8m depth and to include 87km2 of Salt Lake Potash’s tenement covering the open playa area of Lake Way and upgraded to measured.  The Williamson Pit resource remains unchanged.

Williamson Pit – Measured Resource Estimate

The Measured Resource dissolved in the Williamson Pit Lake Comprises 32Kt SOP dissolved in 1.26Mm3 brine at an average grade of 24.4kg/m3 SOP.

Lakebed Sediment (North) – Measured Resource Estimate

The Measured Resource is hosted in the Lake Bed Sediments in the northern part of the lake where data density is sufficient to support the Measured Resource classification.

The resource comprises 6.9Mt SOP hosted in the total porosity of the sediment which includes 1.8Mt SOP within the drainable porosity of the sediment. 

The resource is contained within the top 8m of sediment, which can reasonably be drained by pumping from trenches and occupies an area of 139.5km2 of the Lake Way playa surface.  Islands and a zone of dewatered sediment have been removed from the area used to calculate the resource.

Brine chemistry was defined by assay of brine samples taken from 9 hand dug pits, 13 Auger drillholes, and 49 excavated test pits.  The average brine grade is 15.2kg/m3 SOP.

Total Porosity was defined by laboratory determination of 16 intact samples obtained by hollow core auger drilling and 24 Shelby Tubes advanced during excavation of test pits. Total porosity averages 42%.

Drainable porosity was defined by laboratory determination of 24 intact samples obtained by hollow core auger drilling and Shelby Tubes advanced during excavation of test pits.  Extended duration pumping trials were undertaken to provide field estimates of drainable porosity to validate the laboratory determination.  Drainable porosity by all methods averaged 11%.

Lakebed Sediment (South) – Inferred Resource Estimate

The Inferred Resource is hosted in the Lake Bed Sediments in the southern part of the lake where data density is insufficient to support a higher classification.  In this area continuity of brine grade and sediment porosity is assumed which constrains the resource classification to Inferred. 

The resource comprises 2.1Mt SOP hosted in the total porosity of the sediment which includes 0.5Mt SOP within the drainable porosity of the sediment. 

The resource is contained within the top 8m of sediment, which can reasonably be drained by pumping from trenches and occupies the 41.6km2 area of the Lake Way playa surface.  Islands on the Playa surface have been removed from the area used to calculate the resource.

Brine chemistry and sediment porosity was assumed to be equivalent to the average of the northern part of the lake.

Paleochannel Basal Sand – Indicated Resource Estimate

The Indicated Resource is hosted in the Basal Sands that infill the deepest 20m of the paleochannel. 

The resource comprises 3.7Mt SOP hosted in the total porosity of the sediment which includes 1.4Mt SOP hosted in the drainable porosity of the sediment. 

The geometry and volume of the basal sand was defined by detailed gravity and passive seismic geophysical survey, validated against the extensive historical drilling data set. The total sediment volume is 686 million cubic meters.

Total porosity and drainable porosity were benchmarked against comparable paleochannel sands and a value of 40% total porosity and 15% drainable porosity was applied. 

Brine chemistry was defined by assay of multiple brine samples taken from two historic test bores that were pumped for 24 hours. The average brine grade is 13.6kg/m3 SOP.

Paleovalley Sediment – Inferred Resource Estimate

The Inferred Resource is hosted in the predominately silt and clay sediments that infill the paleovalley from the base of the Lake Bed Sediments to basement or the Basal Sands. 

The resource comprises 60Mt SOP hosted in the total porosity of the sediment which includes 4.5Mt SOP within the drainable porosity of the sediment.  The proportion of the brine held in drainable porosity is much lower in this unit due to the fine-grained lithology.

The geometry and volume of the Paleovalley Sediment was defined by detailed gravity and passive seismic geophysical survey, validated against the extensive historical drilling data set. The total sediment volume is 9,900 million cubic meters.

Brine chemistry is assumed to be continuous from the surface of the playa to the base of the Paleovalley Sediment based on comparable assay results from the lake bed sediments and the paleochannel sands.

Porosity was estimated against comparable sediments, and 40% total porosity and 3% drainable porosity has been applied in the resource estimation.

Future Work

The Mineral Resource Estimate for the ‘whole of lake’ will enable Salt Lake Potash to finalise technical studies for a larger production scenario with an anticipated release date towards the end of Q2 2019.

The Company will continue the exploration program at Lake Way as it looks to increase the resource definition in the southern section of the lake and ultimately convert the Mineral Resource Estimate into Ore Reserves following further technical studies.

Construction of the first phase of the Lake Way Evaporation Ponds is progressing well. The first phase will enable de-watering of the Williamson Pit. The utilisation of the Williamson Pit brine will accelerate Salt Lake Potash’s pathway to first production of SOP at Lake Way.

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

 

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

 

 

Summary of Resource Estimate and Reporting Criteria

This ASX Announcement has been prepared in compliance with JORC Code 2012 Edition and the ASX Listing Rules.  The following is a summary of the pertinent information used in the Mineral Resource Estimate with full details provided in the JORC Code Table 1 included as Appendix 4.

Geology and Geological Interpretation

The investigation area is in the Northern Goldfields Province on the Archaean Yilgarn Craton.

The province is characterised by granite-greenstone rocks that exhibit a prominent northwest tectonic trend and low to medium-grade metamorphism. The Archaean rocks are intruded by east-west dolerite dykes of Proterozoic age, and in the eastern area there are small, flat-lying outliers of Proterozoic and Permian sedimentary rocks. The basement rocks are generally poorly exposed owing to low relief, extensive superficial cover, and widespread deep weathering.  A key characteristic of the goldfields is the occurrence of paleochannel aquifers. These palaeodrainages are incised into the Archean basement and in-filled with a mixed Tertiary and Quaternary sedimentary sequence.

The paleochannel sediments of Lake Way are characterised by a mixed sedimentary sequence including sand, silts and clays of lacustrine, aeolian, fluvial and colluvial depositional origins. These near-surface deposits also include chemically-derived sediments of calcrete, silcrete and ferricrete. Beneath eastern parts of the playa, there is a deep paleochannel that is infilled with Tertiary-aged palaeochannel clay and basal sands in the deepest portion.

The Sediments infilling the paleochannel are described below:

Lake Bed Sediment

Recent (Cainozoic), unconsolidated silt, sand and clay sediment containing variable abundance of evaporite minerals, particularly gypsum. The unit is ubiquitous across the salt lake surface. The thickness of the unit ranges from approximately 3 to 20m. This unit hosts the Measured and Inferred Resource.

The upper part of the unit comprises unconsolidated, gypsiferous sand and silt from surface to around 1.5m depth. The unit is widespread, homogeneous and continuous with the thickest parts in the centre and southern portion of the lake. This is underlain by well sorted, lacustrine silt and clay.

Palaeovalley Sediment

The Paleovalley sediment consists of Tertiary clay and silt that overlies basement or the Basal Sand.

Paleochannel Basal Sand

Tertiary, unconsolidated fine, medium to coarse grained sand interbedded with silt, clay and some lignite horizons. 

Hydrological Setting

 

Surface Water

Lake Way receives episodic surface water inflow from West and East Creeks which lie to the north of the playa and other smaller creek lines to the west. The Playa is a terminal feature in the surface water system, i.e. there are no drainage lines that exit the playa.

Surface water recharge is a significant part of the water balance for salt-lake playa brine potash operations as described in Turk’s (1972) description of the Bonneville Salt Flats (now Wendover Potash Mine) and EPM’s (2013) proposed potash operation at Sevier Lake.

The morphology of the playa shape and surface is consistent with the classification system described by Bowler (1986).  The northern part of the Playa exhibits morphology typical of significant surface water influence and periodic inundation (smooth playa edges, one island). The southern part of the playa exhibits morphology consistent with a groundwater dominated playa with rare inundation (irregular shoreline, numerous islands). The frequency of inundation across the lake may be influenced by prevailing south-easterly winds driving water to the north eastern end of the Lake.

The Lake Way catchment area is 3,767km2. The catchment was defined using Geoscience Australia’s 1 second DEM and MapInfo Discover Hydrology Package.

A runoff model was developed for the Lake Way Catchment using the WaterCress software package (Groundwater Science 2018b). The model was constructed and calibrated to the adjacent and analogous Gascoyne River catchment, and then run using the catchment area defined for Lake Way and historic rainfall data from the Wiluna BOM station from 1907 to 2017.

The average annual rainfall for the Lake Way Catchment is 260mm/year.  The run-off model estimates that on average 3.9% of rainfall runs off to the Lake. Most of the heavy rainfall occurs in December to March and as such 71% of significant runoff events (runoff depth >5mm) occur during this period. The average annual modelled run-off to the Playa is 38GL/year but this is highly variable and ranges from zero in years 1910 and 1936, up to a maximum of 314GL in 1936 and more recently 283GL in 1995.

Groundwater

The Lake is inferred to be a terminal groundwater sink on the basis of the large area of the lake and the shallow water table observed at all sites beneath the lake which will facilitate evaporative loss. Groundwater beneath the lake is hypersaline and comprises the brine potash resource.

The drilling undertaken at Lake Way has identified 2 aquifer units:

·      Cainozoic Playa Lake Sediments exhibit variable lithology comprising sand, silt and clay. Permeability is higher in the surface gypsiferous sands from which brine flows freely.  The lake sediments beneath the surface sands are higher in clay content and rely on flow from macro and micro remnant structures.

·      Tertiary Palaeochannel basal sands comprising fine to coarse grained, well sorted sand. The extent of the paleochannel has been defined through the passive seismic geophysical survey and can be seen to be several hundred metres wide throughout. 

Geological Interpretation

 

The geological model of the deposit was developed in Leapfrog by Zephyr Professional Ltd.

The basement topography model is based on interpretation of the passive seismic survey data tied to the historic drilling data set. The Basal Sand is then modelled to infill the channel to a depth of 20m above the channel thalweg.

The geological model provides the volumes that were then used to estimate dissolved mineral tonnage contained in the pore space of the host rock.

Drilling and Sampling Techniques

Auger Drilling

Thirteen auger holes were drilled to a maximum depth of 7m.  The hollow stem auger method was applied, this enables a continuous core to be captured.

Drilling the top 1.5m was achieved with little difficulty however, as the hole got deeper the denser, stiffer clays made progress difficult leading to refusal at around 5m for most holes.

Once the holes were drilled the bores were completed with slotted PVC to just below the water table, gravel packed to 0.5mbgl and a bentonite seal to the surface.  Before the installation of the Bentonite seal each piezometer was developed using a hand held Wattera development system. 

Excavator Test Pits

Test pits were dug using an amphibious digger to a depth of approximately 4m or refusal.

Excavator Test Trenches

Test trenches were dug using an amphibious digger to a depth of approximately 4m or refusal.  The trenches were nominally 100m long and the slopes were battered for stability.

Historic Production Bores

Two historic investigation bores were used to obtain brine samples and test the hydraulic parameters of the aquifer. These bores were installed by AGC Woodward Clyde in 1992 on behalf of WMC Engineering to identify a mine water supply.

Prior to testing, the integrity of the bores was checked by downhole camera survey of the bore holes.

Historic Drilling

An extensive historic drillhole dataset was obtained from WAMEX.  Drill logs were re-interpreted to provide stratigraphic intersections to inform the geological model and provide control to the geophysical model described below.

Geophysics

A Horizontal to Vertical Spectral Ratio (HVSR) passive seismic survey was completed over 20 survey transects on the Salt Lake Potash tenements. The aim of the survey was to determine depth to bedrock, identify paleochannels and estimate their volumes.

The final HVSR passive seismic data has been processed and velocity analysis completed with amplitude-depth cross-sections generated for each survey transect. The data highlighted an interpreted fresh bedrock interface below Lake Way as an acoustic impedance contrast layer, as well as highlighting shallower layering within the unconsolidated sedimentary cover deposits (paleochannel sands). This is interpreted as the upper and lower extents of the paleochannel sands.

Brine samples

Brine samples were obtained from all test pits, test trenches, water bores and auger holes completed as piezometers.  In all instances the brine sample represents a bulk average sample of the open interval of each drillhole and excavation.

Geological Samples

Geological samples were taken from each drilling and excavation method and geologically logged.

Porosity Samples

Porosity samples were obtained from test pit excavation by pushing Shelby Tubes into the sediment and nominally 1m depth intervals.  These samples were sealed to prevent moisture loss and submitted to the laboratory for total and drainable porosity determination.

Hollow core auger samples were taken at nominally 1m depth intervals.  These samples were sealed to prevent moisture loss and submitted to the laboratory for total and drainable porosity determination.

Hydraulic Testing

Trench Pumping Trials

Test Trenches were pumped for between 5 and 90 days. The brine drawdown around the trench was measured using piezometer areas extending 100m from the trench.  This data was used to determine drainable porosity and aquifer hydraulic conductivity.

Brine samples were taken at regular intervals during pumping to assess the stability of brine composition over time.

Test Pit Recharge tests

The aquifer hydraulic conductivity at each test pit was tested by pumping brine out of the pits and then measuring the rate of water level recovery with a pressure transducer as the pits were refilled by brine inflow from the surrounding aquifer. 

Auger Piezometer Slug Tests

Auger drillholes completed as piezometers were hydraulically tested by slug tests that comprise instantaneously introducing, then removing a slug (cylinder) of know volume from the piezometer.  The rate of water level recovery following slug insertion and withdrawal is measured with a pressure transducer and the rate of recovery is analysed to determine hydraulic conductivity.

Historic Production Bores

Two historic investigation bores were test pumped to determine aquifer parameters.  The bores were pumped by Global Groundwater Pty Ltd at a constant rate for 24 hours.  Water level drawdown in the pumped bore, and in nearby observation bores was monitored manually and by data logger.  The data was analysed to determine aquifer properties of transmissivity (Product of bulk average hydraulic conductivity and aquifer thickness), Storage coefficient and boundary conditions.

Sample Analysis Method

Brine Chemistry Determination

The Primary Laboratory was Bureau Veritas Minerals Laboratory in Perth. Duplicate samples were sent to the secondary laboratory; Intertek, Perth.

Porosity

Porosity determination was undertaken by Core Laboratories Australia Pty Ltd, Perth.

Total Porosity was determined gravimetrically by weighing before and after drying at 60 degrees to stable final weight.

Drainable Porosity was determined gravimetrically by re-saturating samples with formation brine and spinning in a centrifuge at 3,700 rpm until brine production stopped. The samples were weighed before and after re-saturation and centrifuge.

Verification and QA/QC

QA/QC of brine chemistry determination comprised

·      Duplicate samples send to a secondary laboratory

·      Ionic ratio checks to identify outliers

·      Charge Balance Check

Resource Estimation Methodology

The resource is calculated as the tonnage of minerals dissolved in the liquid brine contained in pores within the hostrock. Tonnages are calculated as dissolved minerals in brine on a dry weight by volume basis e.g. kilograms potassium per cubic meter of brine. The potassium tonnage of the resource is then calculated as:

Rock volume x volumetric porosity = brine volume

Brine volume x concentration = tonnage.

Williamson Pit

The mineralisation contained within the Williamson Pit was previously reported in the Company’s ASX Announcement dated 31 July 2018.  That estimate remains unchanged and comprises 0.032Mt SOP dissolved in 1.26Mm3 brine at an average grade of 24.4kg/m3 SOP.

Lake Bed Sediment

Area

The lateral extent of the resource is defined by the tenement boundaries and the playa boundary as defined in Geoscience Australia’s 1:250K topographic dataset.

The islands in the north and south of the playa have been removed from the resource.

The Williamson pit has resulted in a zone of dewatered material extending out some 500m from the mine pit.  This area has been removed from the resource estimate.

The lake was then split into 2 areas, the north portion where almost all test work has been completed, and the south portion where little test work has been completed due to accessibility and the only very recent granting of the final Exploration lease on the lake. The North end of the lake is being reported here as a measured resource and the south as an inferred resource.

The total area of the North and South of the lake are 139.5 and 41.6km2 respectively.

Thickness

The thickness of the resource estimate has been constrained to 8 m below ground surface on the basis that production trenches are unlikely to exceed that depth.

Porosity

Drainable porosity determined from field pumping trials averages 11% by volume.  Drainable porosity determined from laboratory analysis of intact samples averages 10% by volume.

Total porosity determined from laboratory analysis of intact samples averages 42% by volume.

Table 5: Total Porosity and Drainable Porosity

Test Pit or Trench ID

Sample Depth (m)

Total Porosity (%)

Drainable Porosity (%)

Test Pit or Trench ID

Sample Depth (m)

Total Porosity (%)

Drainable Porosity (%)

LYAG01

2.0 – 3.0

45

10.3

LYTT010

0.5 – 4.0

38

3

LYAG01

3.0 – 4.0

35

8

LYTT014

0.3 – 0.8

52

LYAG01

5.0 – 6.0

39

7.4

LYTT014

0.3 – 0.6

46

11

LYAG02

1.0 – 2.0

29

9.3

LYTT015

1.5 – 2.0

41

5

LYAG02

4.0 – 5.0

53

11.1

LYTT017

0.6 – 1.1

50

LYAG06

1.0 – 2.0

45

14.6

LYTT019

0.6 – 1.1

48

LYAG06

2.0 – 3.0

42

10.4

LYTT019

0.3 – 0.6

26

16

LYAG06

3.0 – 4.0

42

11.5

LYTT019

1.5 – 2.0

47

13

LYAG06

5.0 – 6.0

42

10

LYTT019

3.0 – 4.0

35

8

LYAG07

1.0 – 2.0

43

14

LYTT020

0.5 – 1.0

54

LYAG07

3.0 – 4.0

41

8

LYTT020

3.0 – 4.0

50

6

LYAG08

1.0 – 2.0

35

9.4

LYTT021

0.6 – 1.1

50

LYAG08

2.0 – 3.0

32

10

LYTT024

0.5 – 0.9

50

LYAG08

3.0 – 4.0

26

8

LYTT026

0.3 – 0.6

39

10

LYAG15

2.0 – 3.0

33

7.4

LYTT026

3.0 – 4.0

47

24

LYAG15

4.0 – 5.0

36

8.8

LYTT029

4.0 – 5.0

38

5.2

LYTR01

0.5 – 1.5

48

14.2

LYTT029

1.0 – 4.0

47

3

LYTR01

1.0 – 1.2

37

26

LYTT032

0 – 0.5

38

13.8

LYTR01

1.5 – 3.0

48

1.5

LYTT035

3.0 – 3.5

43

5

LYTR01

3.0 – 4.0

36

5

LYTT035

0 – 0.5

39

12

Average

42

10

 

Solute Concentration

Brine chemistry has been interpolated using Ordinary Kriging with a grid size of 100m x 100m, a search distance of 6,000m and 2 search passes. Average concentrations have been calculated from the grid for the Measured Resource (North portion of the lake), this average has been used to calculate the Resource for the southern, inferred resource.

Treatment of Islands

The islands have been removed from the Lake Bed Sediment Resource.  Experience at other lakes has consistently shown that shallow brine beneath islands is diluted, likely by infiltrating rainfall.  Furthermore, brine harvesting by trenches is unlikely to be practical through the sand dunes and elevated topography of the islands.

Paleovalley Sediment

Area

The lateral extent of the resource is defined by the tenement boundaries and the playa edge. The total area is 181.1km2.

Volume

The volume of sediment infilling the paleovalley has been exported from the geological model. The Volume is 9,900Mm3. This yields an average sediment thickness of 54m for the sediment extending from 8m depth (base of lake bed sediment) to the top of basement or Paleochannel Basal Sand.

Porosity

The Total Porosity and Drainable Porosity has been estimated from lithology and benchmarking against other studies completed in comparable geological settings. Total porosity is applied as 40%.  Drainable porosity is applied as a low value of 3% based on the fine-grained lithology of the host sediment which will retain much of the contained brine.

Solute Concentration

Solute concentration is inferred to be continuous from the Playa Surface to the base of the Paleovalley Sediment.  The average value is 15.2kg/m3 SOP.

Paleochannel Basal Sand

Area

The extent and thickness of the Paleochannel Basal Sand Resource is defined by the geological model. The total volume of the unit is estimated to be 686Mm3.

Porosity

The Total Porosity and Drainable Porosity has been estimated from lithology and benchmarking against other studies completed in comparable geological settings.  Total porosity is applied as 40%.  Drainable porosity is applied as 15%. 

Solute Concentration

Solute concentration is derived as the average value of the two pumping test bores completed in the basal sand unit, LW5-7 and LW3-4. Multiple samples were taken from each bore during the 24 hour constant rate pumping test undertaken at each bore. The average SOP concentration is 13.6kg/m3 SOP. No spatial interpolation was undertaken.

Classification Criteria

Williamson pit

The estimated resource hosted in the Williamson Pit mine lake has a very high degree of confidence, since the geometry of the mine pit was accurately surveyed and the concentration of the brine was samples at numerous locations and depths and is quite consistent. 

The resource is reported as a Measured Resource on the basis that the estimate is adequate to support a mine plan (in this case pumping infrastructure and pumping rate).

Lake Bed Sediments (North)

The estimated resource in the northern part of the lake has a high degree of confidence.

The resource estimate and associated hydrological data set are considered adequate to support a mine plan.  In this case the mine plan comprises design of a production trench network and construction of a groundwater flow simulation model to estimate and plan brine production rates. The resource is reported as a Measured Resource.

The thickness of the geological unit is well defined, being simply 8m; the assumed limit of excavation. The area is well defined by the extent of the playa surface.

Brine concentration is defined by a high density or data points and is quite consistent spatially.  There is a high degree of confidence that the brine concentration is accurately defined.

Aquifer total porosity and drainable porosity are well defined by a large number of samples at a range of depths, and drainable porosity values are validated by extended pumping field trials that comprise the drainage of very large volumes of sediment.

Aquifer properties of hydraulic conductivity are well defined by a well distributed data set of test pits and extended duration pumping trials.

The lake water balance due to rainfall and inundation is understood from a reasonably constrained catchment run-off model.

The Measured Resource estimate is based on 49 test pits, 5 trench tests and 13 auger holes. Data points are distributed on an approximate 500m by 500m grid in the northwest and on a 5km x 5km grid for the remainder of the lake.  There is irregularity due to greater density of pits around the proposed pond locations, the causeway, the Williamson Pit dewatered zone and tenure access constraints to the immediate east of the playa.

Lake Bed Sediments (South)

The estimated resource in the southern part of the lake has a low degree of confidence. 

The resource estimate is based on assumed continuity of grade and porosity and is not adequate to support a mine plan.  The resource is reported as an Inferred Resource.

The thickness of the geological unit is well defined, being simply 8m; the assumed limit of excavation.

The area is well defined by the extent of the playa surface.

Brine grade is assumed to be continuous and consistent from the north to the south of the lake.  This assumption is not yet confirmed by test work.

Total Porosity and Drainable Porosity are assumed to be continuous and consistent from the north to the south of the lake.  This assumption is based on lithology logged in historic drilling but is not yet confirmed by test work.

Hydraulic properties are assumed to are assumed to be continuous and consistent from the north to the south of the lake.  This assumption is based on lithology logged in historic drilling but is not yet confirmed by test work.

The Inferred Resource Estimate is based on a very limited number of drillholes. The geology is defined by 10 historic drillholes oriented on a transect across the southern end of the Lake, and the geophysical survey. Brine Grade is assumed to be continuous from the data in the northern part of the Lake.  

Potash Brine projects typically exhibit low spatial variability in brine grade since the brine resource is generated in-situ by evaporation of a fairly consistent groundwater source which is subject to sporadic mixing and dilution due to infiltration of rainwater, and subsequent re-concentration by evaporation. Drill spacing in the range of 2.5km  to 10km is typical (Houston et al 2011).

Paleovalley Sediment

The estimated resource in Paleovalley sediment has a low degree of confidence.  The Resource estimate is based on assumed continuity of grade and porosity and is not adequate to support a mine plan. The resource is reported as an Inferred Resource.

The volume of the geological unit is well defined by a geological model based on detailed geophysical survey validated to an extensive drilling data set.

The area is well defined by the extent of the playa surface.

Brine grade is assumed to be continuous and consistent from the Playa surface to the base of the geological unit.  This assumption is supported by only a limited number of data points where brine chemistry at surface and at depth are available.

Total Porosity and Drainable Porosity values are based on lithology logged in historic drilling and on benchmarking of comparable projects in Tertiary paleochannels in Western Australia. The values are not yet confirmed by test work.

Hydraulic properties of the units inferred from the lithology of the unit, and the response to pumping of two test bores.

For this unit a mine plan comprises design of a production bore array to depressurise the underlying basal sand and induce downward vertical leakage from the paleovalley sediment. A groundwater flow simulation model calibrated to long term pumping trials will be needed to estimate and plan the rate at which vertical leakage of brine can be induced.

The Inferred Resource Estimate is based on a limited number of drillholes. The 49 test pits, 5 trench tests and 13 auger holes terminate above the top of the unit, and continuity of brine grade with depth is assumed based on consistent experience at other salt lake playas, and data demonstrating continuous brine grade in the underlying Basal Sand unit.  The geological model that defines the volume is based on 224 historic drillholes and the geophysical survey.

Paleochannel Basal Sand

The estimated resource in Paleochannel Basal Sand has a moderate degree of confidence. 

The data is adequate to allow confident interpretation of the geological framework which is based on a good density of drilling and geophysical data.  The continuity of brine concentration between very widely spaced samples is however assumed.   The estimate is adequate to apply modifying factors in a Feasibility Study but is not adequate to support a detailed mine plan. The resource is reported as an Indicated Resource.

Total Porosity and Drainable Porosity values are based on lithology logged in historic drilling and on benchmarking of comparable projects in Tertiary paleochannels in Western Australia. The values are not yet confirmed by test work.

Hydraulic properties of the units inferred from the lithology of the unit, and the response to pumping of two test bores.

The Indicated Resource Estimate is based on two data points that inform brine grade and hydrogeological properties.  The geological model is based on a larger number of drillholes (23 of 224 drillholes are within the paleochannel extent) and the geophysical survey.

Results

The results of the Mineral Resource Estimate are summarised in the tables below.

 

Table 6: Measured Resource

Total Volume

Brine Concentration

Mineral Tonnage Calculated from
Total Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

North Lakebed

(0.4-8.0m)

1,060

6.8

8.0

27.6

0.42

445

6.8

0.11

117

1.8

Williamson Pit

1.26

11.4

14.7

48.0

1.26

0.032

Total

6.8

1.832

Table 7: Indicated Resource

Total Volume

Mineral Tonnage Calculated from Total Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mt)

(Mm3)

Basal Sands

686

6.1

8.2

25.0

0.40

274

3.7

15

103

1.4

Table 8: Inferred Resource

Total Volume

Mineral Tonnage Calculated from Total Porosity

K

Mg

So4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(Mt)

(Mm3)

(Mt)

South Lakebed

(0.4-8.0m)

316

6.8

8.0

27.6

0.42

133

2.0

0.11

35

0.5

Lakebed

(8m to Base)

9,900

6.8

8.0

27.6

0.40

3,960

60.0

0.03

297

4.5

Total

62.0

5.0

 

  Note:              1) Conversion factor of K to SOP (K2SO4 equivalent) is 2.23

                   2) Williamson Pit and Lakebed Sediment (North – Blackham tenements only) resource estimate reported previously as maiden resource 31 July 2018.

 

Cut-off Grades

Within the salt-lake extent no low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data. No aggregate intercepts have been calculated.

Mining and Metallurgical Methods and Parameters

It is assumed that the Brine resource will be mined by gravity drainage to a network of trenches excavated into the Playa Surface and an array of production bores completed in the paleochannel basal sand. 

Validation test work has been completed to confirm the process flowsheet to be used at the Lake Way Project to recovery SOP from the Lake Brine (refer ASX Announcement 31 October 2018).

Environmental impacts are expected to be; localized reduction in saline groundwater level, surface disturbance associated with trench, bore, and pond construction and accumulation of salt tails. The project is in a remote area and these impacts are not expected to prevent project development.

The project is located with the Goldfields Groundwater Proclamation Area. A license to take groundwater will be required under the Rights in Water and Irrigation Act 1914.  This Act is administered by the Government of Western Australia Department of Water and Environmental Regulation.

 

Forward Looking Statements

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

Competent Person Statement

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

Production Target

The Lake Way Demonstration Plant Production Target stated in this report is based on the Company’s Scoping Study as released to the ASX on 31 July 2018. The information in relation to the Production Target that the Company is required to include in a public report in accordance with ASX Listing Rule 5.16 and 5.17 was included in the Company’s ASX Announcement released on 31 July 2018. The Company confirms that the material assumptions underpinning the Production Target referenced in the 31 July 2018 release continue to apply and have not materially changed.

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain

 

Appendix 1: Extraction Method and Implication for Resource Estimate

Overview

Mining methods employed for brines is different to those required for mining solid minerals. The typical mining method for brines is to pump the brine resource from trenches or bores that are installed in the geological unit that hosts the brine.  The rate that the brine can be pumped is controlled by the hydraulic conductivity (permeability) of the host rock.  For the Lake Way Project, the mining methods for each host geological unit are summarised in the table below.

Table 9: Mining Method

Host Unit

Mining Method

Controls on the mining rate and resource

Williamson Pit Lake

Pumping from Pit Lake

None

Lake Bed Sediment

Pumping from trenches

Hydraulic conductivity of lake sediment,

Recharge via rainfall and inundation

Total Porosity

Paleovalley Fill

Vertical drainage to Basal Sand

Vertical hydraulic conductivity

Drainable porosity, and compressible storage.

Basal Sand

Pumping from bores

Hydraulic conductivity,

Total porosity

Aquifer Boundary conditions (vertical and lateral inflow under pumping)

 

Williamson Pit Lake

Brine from the Williamson Pit Lake will be pumped directly from the pit into the evaporation pond for processing.  The mining rate is controlled only by the capacity of the pumping infrastructure.

Lake Bed Sediment

The shallow Lake Bed Sediments aquifer will be mined by pumping brine from a network of trenches excavated into the playa surface to a depth of nominally 6m, though trenches may be deepened over time.

The production of brine is cyclic as described below.

Stage 1 – Initial Resource

The initial brine resource comprises:

·      Brine dissolved in water held in Drainable Porosity, (5% of the total aquifer volume).

·      Brine dissolved in water held in Retained Porosity, (35% of total aquifer volume).

The remaining volume is occupied by solid material (sand, silt and clay grains comprising 60% of the aquifer volume).

The combined porosity (Total Porosity) then comprises the total SOP brine resource held in the Lake Bed Sediments aquifer.

Stage 2 – Production Cycle

During production the brine drains under gravity toward the trench and is subsequently removed by pumping.  This creates a hydraulic gradient toward the trench and brine is drawn some distance through the aquifer toward the trench (typically hundreds of meters depending on aquifer permeability).

Over time the aquifer immediately surrounding the trench is partially dewatered.  This means that the drainable brine has been removed from the sediment, but the retained brine is still held in place by surface tension.

Stage 3 – Recharge Cycle

Western Australian Salt Lake playas receive some water input from rainfall and run-off annually.  Direct rainfall lands on the playa each year, and most years, heavy, cyclonic rain events cause run-off from the surrounding catchment onto the Playa.  This water infiltrates the playa surface and re-fills the drainable pores in the aquifer.  The larger rainfall events usually occur from January through to March.

Stage 4 – Mixing Cycle

The water that has infiltrated and refilled the drainable porosity then mixes (by physical diffusion) with the brine held in retained porosity.

Through repeated production cycles the total brine resource is mined.  The concentration of brine pumped from the production trenches will decline over time as the total resource is depleted over repeated production cycles.

The pumping rate is controlled by the hydraulic conductivity of the host sediment.  The concentration of produced brine will change over time and will be controlled by the tonnage contained in total porosity and the mechanism of mixing between repeated production cycles.

Paleovalley Sediment

The paleovalley sediment is predominately fine grain and exhibits low permeability.  The brine held in these sediments cannot be drained directly to bores because the permeability is too low to allow useful bore yields.

A proportion of the brine held in these sediments can be removed by underdrainage to the underlying Basal Sand unit.

Brine is removed from the Basal Sand unit by pumping from bores.  This depressurises the Basal Sand unit and induces downward brine leakage from the overlying sediment.  The rate of leakage will be very low; however, the areal extent is very large and significant volumes can be abstracted in this way.

Only a relatively small fraction of the total porosity can be removed from a fine-grained unit by this method.

Paleochannel Basal Sand

The brine will be produced by pumping from bores constructed into the Paleochannel Basal Sand. Pumping from a deep, confined aquifer results in reduced pressure in the aquifer and this induces brine flow toward the bores.  Brine flow is sourced via downward vertical leakage from the overlying fine-grained silts and clays, and by lateral flow from the adjacent basement aquifer that surrounds the channel.

It is important to understand that the aquifer is not dewatered.  This means that the pore spaces are not drained under gravity to be filled with air. The aquifer is only depressurised, and this results in flow through fully saturated pores toward the pumped bore.

 

Appendix 2: Location Details for Drill Holes / Test Pits

HOLE_ID

EAST

NORTH

Hole Type

HA003

235863

7032512

Hand Auger

HA006

235652

7033571

Hand Auger

HA008

234918

7033057

Hand Auger

HA010

235063

7034408

Hand Auger

HA012

234299

7033837

Hand Auger

HA013

234890

7035481

Hand Auger

HA014

234458

7035223

Hand Auger

HA017

234302

7035685

Hand Auger

HA019

234752

7036712

Hand Auger

HA021

233742

7036709

Hand Auger

HA022

234734

7037719

Hand Auger

HA024

233715

7039225

Hand Auger

HA025

233868

7032968

Hand Auger

HA029

231655

7036814

Hand Auger

HA031

231874

7037525

Hand Auger

LYTR001

233590

7036757

Test Trench

LYTR002

235090

7035280

Test Trench

LYTR003

230650

7041000

Test Trench

LYTR004

232330

7035720

Test Trench

LYTR005

238875

7035948

Test Trench

LYTT002

229968

7036837

Test Pit

LYTT003

230702

7036399

Test Pit

LYTT004

231815

7035595

Test Pit

LYTT005

232341

7035793

Test Pit

LYTT006

232183

7035073

Test Pit

LYTT007

231817

7034412

Test Pit

LYTT012

233601

7037586

Test Pit

LYTT013

233600

7034800

Test Pit

LYTT014

233600

7034000

Test Pit

LYTT015

233600

7033200

Test Pit

LYTT016

234600

7032000

Test Pit

LYTT017

235300

7032400

Test Pit

LYTT018

235300

7033200

Test Pit

LYTT019

236300

7033200

Test Pit

LYTT020

234600

7033200

Test Pit

LYTT021

234600

7034000

Test Pit

LYTT022

235650

7034000

Test Pit

LYTT023

235300

7034800

Test Pit

LYTT024

234600

7034800

Test Pit

LYTT025

234600

7035600

Test Pit

LYTT026

234600

7036800

Test Pit

LYTT027

235511

7040910

Test Pit

LYTT028

237073

7040940

Test Pit

LYTT028

237073

7040940

Test Pit

LYTT030

230700

7041600

Test Pit

LYTT031

229531

7041686

Test Pit

LYTT032

229551

7040432

Test Pit

LYTT033

230700

7040400

Test Pit

LYTT034

230700

7039200

Test Pit

LYTT035

230700

7037600

Test Pit

LYTT036

231800

7037200

Test Pit

LYTT037

238858

7037915

Test Pit

LYTT039

240934

7032003

Test Pit

LYTT041

242068

7026888

Test Pit

LYTT042

244658

7026362

Test Pit

LYTT043

243355

7028717

Test Pit

LYTT045

241951

7033872

Test Pit

LYTT048

235845

7038688

Test Pit

LYTT049

236788

7034678

Test Pit

LYPIEZ01

236853

7032051

Auger

LYPIEZ03

238851

7037911

Auger

LYPIEZ04

239481

7030505

Auger

LYPIEZ06

238854

7035878

Auger

LYPIEZ07

238747

7034697

Auger

LYPIEZ08

235865

7038720

Auger

LYPIEZ09

240944

7031987

Auger

LYPIEZ11

243089

7032074

Auger

LYPIEZ13

238602

7039558

Auger

LW3-4

247448

7031876

Historic Pumped bore

LW5-7

242593

7034360

Historic Pumped bore

Note: All holes are vertical, with an RL of approximately 492m

 

Appendix 3: Brine Assay Results

Lake Bed Sediment

HOLE_ID

K

mg/L

Cl

mg/L

Na

mg/L

Ca

mg/L

Mg

mg/L

SO4

mg/L

pH

 

SG

 

HA003

7210

131450

77200

499

7510

26200

6.87

1.16

HA006

6910

128050

78600

528

7000

25500

6.9

1.16

HA008

7280

121350

73900

537

6530

28200

6.91

1.16

HA010

6350

112150

68100

621

6180

23900

6.99

1.14

HA012

6550

115700

68600

574

6690

25300

6.95

1.14

HA013

6070

108500

65900

623

6070

24000

7

1.14

HA014

6050

104250

63900

666

5620

23700

7.03

1.13

HA017

3320

52500

33000

804

2790

14800

7.31

1.07

HA017

6090

101600

63100

664

5450

24200

7.04

1.13

HA019

6030

113600

67600

591

7010

25700

6.96

1.15

HA021

5960

110250

65000

610

6150

23300

7.03

1.14

HA022

6550

111400

68500

636

6050

23600

7.02

1.14

HA024

6100

130850

75000

536

8650

25300

6.89

1.17

HA025

6810

126800

76500

519

7160

26300

6.96

1.16

HA029

6730

131200

79500

447

8070

33000

6.94

1.17

HA031

5910

117600

70200

615

6940

23400

6.98

1.15

LYTR001

6300

125550

74000

534

7410

26300

6.19

1.17

LYTR002

6270

118300

73600

526

7280

27300

6.23

1.16

LYTR003

7060

130450

83900

476

7670

29700

6.57

1.18

LYTR004

7115

129675

83050

502

7660

28900

6.62

1.18

LYTR005

6620

144550

82500

411

9930

32400

6.54

1.19

LYTT002

7350

145050

90000

367

10900

38700

6.36

1.20

LYTT003

8160

151150

91400

305

12200

42600

6.5

1.21

LYTT004

6700

126350

76200

441

8090

29400

6.74

1.17

LYTT005

6760

122700

74500

553

7100

25100

6.79

1.16

LYTT006

6970

129000

78700

514

7500

26600

6.69

1.17

LYTT007

6600

130400

78100

484

8010

28900

6.53

1.17

LYTT012

6470

120100

74300

575

7240

25800

6.65

1.16

LYTT013

6510

117750

72500

562

7000

25400

6.92

1.15

LYTT014

6840

123700

76000

586

7020

26100

6.9

1.16

LYTT015

7150

128750

78900

517

7300

28000

6.88

1.17

LYTT016

6990

137650

86000

458

8290

29300

6.71

1.18

LYTT017

7150

129450

80300

498

7400

27200

6.88

1.17

LYTT018

7270

128050

78500

492

7340

28800

6.88

1.17

LYTT019

6800

121600

73500

532

7040

26600

6.88

1.16

LYTT020

6840

124050

74900

549

7020

26100

6.83

1.16

LYTT021

6390

117100

71600

571

6890

26000

6.86

1.16

LYTT022

6630

119150

74600

543

7010

26700

6.93

1.16

LYTT023

6510

123700

72000

556

6790

25100

6.85

1.16

LYTT024

6240

113400

70100

581

6850

26300

6.88

1.15

LYTT025

6330

115700

71500

559

6960

27300

6.85

1.16

LYTT026

7060

125450

77700

519

7030

26200

6.79

1.16

LYTT027

7080

133850

83300

390

9930

37800

6.89

1.18

LYTT028

6360

130350

80800

410

10200

36900

6.95

1.18

LYTT028

7210

145150

87000

358

11600

37800

6.83

1.20

LYTT030

7300

133500

81200

362

9150

33000

6.86

1.19

LYTT031

8760

147100

89700

347

11300

41100

6.82

1.21

LYTT032

7030

137850

81900

408

10400

29900

6.88

1.18

LYTT033

6930

131750

81300

444

10300

33600

6.79

1.13

LYTT034

7190

127750

78200

526

7630

26100

6.74

1.17

LYTT035

6740

134050

80600

418

11000

35400

6.75

1.19

LYTT036

6570

137350

81400

369

12700

38100

6.82

1.20

LYTT037

6780

150000

86100

371

10300

35400

6.7

1.20

LYTT039

7390

133450

78700

563

6670

23900

6.68

1.16

LYTT041

7660

135300

80700

577

6730

24400

6.79

1.17

LYTT042

7520

149250

86000

522

8340

23900

6.62

1.19

LYTT043

5980

110400

65200

726

5820

19700

6.59

1.14

LYTT045

7600

139300

79400

502

6740

24200

6.57

1.18

LYTT048

6910

131100

77300

501

7600

26500

6.55

1.17

LYTT049

7160

139850

82000

485

7850

27600

6.57

1.18

LYPIEZ01

6000

139715

82900

446

10100

26000

6.42

1.18

LYPIEZ03

4560

97584

63400

439

7580

24700

6.97

1.14

LYPIEZ04

6450

145100

82500

478

9340

26200

6.57

1.18

LYPIEZ06

6140

137254

82900

416

9810

31500

6.59

1.18

LYPIEZ07

6660

130087

82800

504

7710

27100

6.73

1.18

LYPIEZ08

7030

136000

77400

473

8040

27800

6.48

1.18

LYPIEZ09

6950

131300

75500

552

7420

24100

6.52

1.16

LYPIEZ11

6590

115300

68200

679

5350

19400

6.7

1.15

LYPIEZ13

7000

138485

85800

453

8800

31200

6.63

1.19

 

Paleochannel Basal Sand

HOLE_ID

K

mg/L

Cl

mg/L

Na

mg/L

Ca

mg/L

Mg

mg/L

SO4

mg/L

pH

 

SG

 

LW3-4

6160

149053.85

83000

455

8290

25600

6.5

1.18

LW3-4

5880

145796.24

78300

435

7900

23400

6.54

1.18

LW5-7

6080

151515.16

78600

397

8360

26100

6.38

1.19

LW5-7

6270

150501.68

84400

402

8520

26600

6.41

1.18

 

 

 

Appendix 4: JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria

JORC Code explanation

Commentary

Sampling techniques

·     Nature and quality of sampling (e.g.  cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole 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 presentively 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 (e.g.  ‘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 (e.g.  submarine nodules) may warrant disclosure of detailed information.

Sampling involved the excavation of test pits over the tenement area to a depth of 4mbgl or weathered basement whichever was encountered first.  Five trenches were also dug to 4m depth,

 

A brine sample and duplicate were taken from each test pit and trench for analysis.

 

Samples were taken manually by initially rinsing out the bottle with brine from the pit or trench and then placing the bottle in the test pit or trench and allowing it to fill.

 

Samples were analysed for K, Mg, Ca, Na, Cl, SO4, HCO3, NO3, pH, TDS and specific gravity.

 

Each test pit was geologically logged and a sample taken each 1m depth.

 

Shelby Tubes were pushed into the sediment during test pit excavation to obtain intact samples for porosity determination.

 

Test pumping entailed pumping from the trenches and test pits using a diesel driven submersible pump coupled to a level switch.

 

Water levels in the piezometer, test pits and trenches were logged manually and by pressure transducer with barometric pressure and brine density correction.

 

Auger drilling comprised hollow core augers. Samples were taken from the recovered core.

Drilling techniques

·     Drill type (e.g.  core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g.  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.).

Test pits and trenches were dug with an excavator.

 

Drillholes were drilled by hollow core auger.  Auger holes were cased with 50mm PVC slotted liner to allow hydraulic testing and repeated sampling.

 

 

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.

Samples from the test pits were logged each bucket and a representative sample bagged.

 

100% of excavated sample was available for sampling.  The ability to see the bulk sample facilitated the selection of a representative sample.

 

There is no relationship between sample recovery and grade and no loss of material as a result of excavation.

 

Logging

·     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.

The geological logging is sufficient for the purposes of identifying variations in sand/ clay and silt fraction within the top 4m.  For a brine abstraction project, the key parameters are the hydraulic conductivity and storage of the host rock.

The logging is qualitative.

The entire pit depth was logged in every case.

 

 

Sub-sampling 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 insitu 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.

Full core was used for porosity determination.

 

Not applicable, core drilling.

 

At all test pits brine samples were taken from the pit after 24hours or once the pit had filled with brine.  The brine samples taken from the pits are bulk samples which is an appropriate approach given the long-term abstraction technique of using many kilometres of trenches to abstract brine from the upper 4m.

 

All the samples taken were incorporated into a rigorous QA / QC program in which Standards and Duplicates were taken. The samples were taken in sterile plastic bottles of 250ml capacity.

 

Excavated lake bed samples were sealed in plastic bags.  For all brine samples (original or check samples) the samples were labelled with the alphanumeric code Y8001, Y80002 …

 

Lake bed samples were labelled with the test pit locator LYTT01, LYTT02 etc. and the depth from which they were taken.

 

 

Quality of 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 (e.g.  standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e.  lack of bias) and precision have been established.

The brine samples were sent to Bureau Veritas Laboratories in Perth, WA with the duplicates being held by Salt Lake Potash.  Every 10th duplicate was sent to Intertek, an alternate laboratory for comparison purposes.

 

No laboratory analysis was undertaken with geophysical tools.

 

Soil samples and laboratory derived hydraulic conductivity, total porosity and drainable porosity samples were analysed by Core Laboratories in Perth WA.  All laboratories used are NATA certified.

 

Verification 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.

Not applicable due to consistent brine concentration.

 

No twin holes drilled.

 

All sampling and assaying is well documented and contained on Salt Lake Potash’s internal database.

 

No adjustments have been made to assay data.

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.

All coordinates were collected by handheld GPS.

 

The grid system is the Australian National Grid Zone MGA 51 (GDA 94).

 

The is no specific topographic control as the lake surface can essentially be considered flat.

 

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 addressed in the body of the Announcement.

 

Sample compositing not applied.

 

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.

The orientation of sampling was suited to the geological structure.

 

Geological influence on the brine is limited to the aquifer parameters of the host rock, namely the hydraulic conductivity, Total Porosity and drainable porosity.

 

Sample security

·     The measures taken to ensure sample security.

Salt Lake Potash field geologists were responsible for bagging and tagging samples prior to shipping to the BV lab in Perth and the Salt Lake Potash offices.  The security measures for the material and type of sampling at hand was appropriate.

Audits or reviews

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

Data review is summarised in the report and included an assessment of the quality of assay data and laboratory tests and verification of sampling and assaying.  No audits of sampling techniques and data have been undertaken.

 

Section 2 Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral 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.

The Lake Way Project comprises tenements held by Salt Lake Potash and Blackham Resources Limited (Blackham).

Salt Lake Potash holds tenements covering the south east of the lake, including granted Exploration licences E53/1878, E53/1897 and Exploration Licence Applications E53/2057, E53/2059 and E53/2060.

On the 9th March 2018 Salt Lake Potash and Blackham Resources Ltd signed a gold and brine minerals memorandum of understanding.  Under this MOU Blackham has granted the brine rights on its Lake Way tenement free from encumbrances to Salt Lake Potash.

Tenure granted to Blackham Resources Ltd. and its subsidiaries that is covered by the MOU includes:

Exploration licences E53/1288, E53/1862, E53/1905, E53/1952,

Mining Licences, M53/121, M53/122, M53/123, M53/147, M53/253, M53/796, M53/797, M53/798, M53/910, and

Prospecting Licences P53/1642, P53/1646, P53/1666, P53/1667, P53/1668.

Exploration done by other parties

·     Acknowledgment and appraisal of exploration by other parties.

There is a database of approximately 6200 boreholes across Lake Way, of which some 1000 are within the Blackham tenement area.  The primary source for the information is the publicly available Western Australian Mineral Exploration (WAMEX) report data base.

Recent sterilisation drilling has also been undertaken by Blackham to the south and east of the Blackham tenement area.

The majority of previous work has been concerned with investigating the bedrock and calcrete for gold and Uranium, it is of limited value in defining the stratigraphy of the lakebed sediments. 

The data has been shown to be useful in the determination of the depth to base of lakebed sediments and has been used to develop an overall estimate of the volume of lake bed sediments that has been applied to the mineral resource calculations.

Geology

·     Deposit type, geological setting and style of mineralisation.

The deposit is a salt-lake brine deposit.

 

The lake setting is typical of a Western Australian palaeovalley environment. Ancient hydrological systems have incised palaeovalleys into Archaean basement rocks, which were then infilled by Tertiary-aged sediments typically comprising a coarse-grained fluvial basal sand overlaid by palaeovalley clay with some coarser grained interbeds. The clay is overlaid by recent Cainozoic material including lacustrine sediment, calcrete, evaporite and aeolian deposits. 

Drill hole 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:

·     easting and northing of the drill hole collar

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

·     dip and azimuth of the hole

·     downhole length and interception depth

·     hole length.

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

All drillhole test pit and trench details and locations of all data points are presented in Appendices 2 and 3.

 

All holes and test pits are vertical.

Data aggregation methods

·     In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g.  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.

Within the salt-lake extent no low-grade cut-off or high-grade capping has been implemented due to the consistent nature of the brine assay data.

 

No aggregate intercepts have been calculated.

 

 

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 downhole lengths are reported, there should be a clear statement to this effect (e.g.  ‘down hole length, true width not known’).

The chemical analysis from each of the test pits has shown the that the brine resource is consistent and continuous through the full thickness of the Lake Playa sediments unit. The unit is flat lying. 

The intersected depth is equivalent to the vertical depth and the 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.

All location maps and sections are contained within the body of the ASX version of this 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 in the body of the Announcement.

 

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 has been reported.

Further work

·     The nature and scale of planned further work (e.g.  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.

Field trials of brine harvesting will be undertaken.

Additional drilling and testing will be undertaken to upgrade the Inferred and Indicated portions of the resource.

 

 

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria

JORC Code explanation

Commentary

Database integrity

·     Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

·     Data validation procedures used.

Cross-check of laboratory assay reports and database.

 

Extensive QA/QC as described in the report

Site visits

·     Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

·     If no site visits have been undertaken indicate why this is the case.

A site visit was undertaken by the Competent Person (CP) from 29th to 30th April 2018. The CP visit was documented in Letter Report Salt Lake Potash-18-1-L001 (Groundwater Science, 2018).

 

Geological interpretation

·     Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.

·     Nature of the data used and of any assumptions made.

·     The effect, if any, of alternative interpretations on Mineral Resource estimation.

·     The use of geology in guiding and controlling Mineral Resource estimation.

·     The factors affecting continuity both of grade and geology.

The shallow geological profile beneath the lake is relatively homogenous.  The porosity of the material is consistent with depth; hence the geological interpretation has little impact on the resource except to define its thickness.

The islands are is excluded from the shallow resource estimate as access is not permitted.  Mining the Williamson Pit has resulted in an area of approximately 4km2 being dewatered, this area has also been excluded from the resource estimate.

Confidence in the geological model and the assumptions are described in the Announcement.

Dimensions

·     The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

Addressed in the body of the Announcement.

Estimation and modelling techniques

·     The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

·     The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

·     The assumptions made regarding recovery of by-products.

·     Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).

·     In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

·     Any assumptions behind modelling of selective mining units.

·     Any assumptions about correlation between variables.

·     Description of how the geological interpretation was used to control the resource estimates.

·     Discussion of basis for using or not using grade cutting or capping.

·     The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

Addressed in the body of the Announcement.

There are no production records for reconciliation.

There are no assumptions made regarding recovery of by-products.

Deleterious elements are Salt (NaCl) waste.  NaCl tonnage has not been estimated.

 

Moisture

·     Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

Not applicable to brine resources. See discussion of moisture content under Bulk Density.

Cut-off parameters

·     The basis of the adopted cut-off grade(s) or quality parameters applied.

No cut-off parameters were used.

Mining factors or assumptions

·     Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

The Brine resource will be mined by gravity drainage to a network of trenches excavated into the Playa Surface and an array bore bores completed in the paleochannel basal sand. 

 

Validation test work has been completed to confirm the process flowsheet to be used at the Lake Way Project to recovery SOP from the Lake Brine (refer ASX Announcement 31 October 2018).

 

Metallurgical factors or assumptions

·     The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

Validation test work has been completed to confirm the process flowsheet to be used at the Lake Way Project to recovery SOP from the Lake Brine (Refer ASX Announcement 31 October 2018).

 

Environmental factors or assumptions

·     Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

Environmental impacts are expected to be; localized reduction in saline groundwater level, surface disturbance associated with trench, bore, and pond construction and accumulation of salt tails. The project is in a remote area and these impacts are not expected to prevent project development.

The project is located with the Goldfields Groundwater Proclamation Area. A license to take groundwater will be required under the Rights in Water and Irrigation Act 1914.  This Act is administered by the Government of Western Australia Department of Water and Environmental Regulation.

 

Bulk density

·     Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

·     The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

·     Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

Bulk density is not relevant to brine resource estimation.

Volumetric moisture content or volumetric porosity was applied in the resource estimate as follows:

Lake Bed Sediment: determined

Paleovalley Sediment: Assumed

Paleochannel Basal Sand: Assumed

Classification

·     The basis for the classification of the Mineral Resources into varying confidence categories.

·     Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

·     Whether the result appropriately reflects the Competent Person’s view of the deposit.

Classification of the mineral resources into varying confidence categories is described in detail in the report.

The result reflects the view of the Competent Person.

Audits or reviews

·     The results of any audits or reviews of Mineral Resource estimates.

No audit or reviews were undertaken.

Discussion of relative accuracy/ confidence

·     Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

·     The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

·     These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

Relative accuracy and confidence of the estimate is described in detail in the body of the Announcement.

The estimated tonnage represents the in-situ brine with no recovery factor applied. It will not be possible to extract all of the contained brine by pumping from trenches. The amount which can be extracted depends on many factors including the permeability of the sediments, the drainable porosity, and the recharge dynamics of the aquifers.

No production data are available for comparison.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

Salt Lake Potash Limited (SO4) announces interim results for the half-year

14th March 2019 / Leave a comment

AIM and ASX listed company Salt Lake Potash Limited (“SO4” or the “Company”), announces its interim results for the half-year ended 31 December 2018.

 

The full version of the Interim Financial Report can be viewed at www.saltlakepotash.com.au.

OPERATING AND FINANCIAL REVIEW

The Company is focussed on rapidly progressing the development of its Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia. Lake Way’s location and logistical advantages make it the ideal location for the Company’s first SOP operation.

The Company’s long term plan is to develop an integrated SOP operation, producing from a number (or all) of its nine salt lakes.  Salt Lake Potash will progressively explore each of the lakes with a view to estimating resources for each lake, and determining the development potential. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

HIGHLIGHTS

Highlights during and subsequent to the half-year ended 31 December 2018 included:

Key Appointments Enhance Senior Project Development Team

  • Highly regarded mining executive Tony Swiericzuk commenced as Managing Director and Chief Executive Officer of Salt Lake Potash effective 5 November 2018
  • Three proven mining executives join Salt Lake Potash as leaders in the project development team:
    • Peter Cardillo as Project Director – Processing and NPI
    • Lloyd Edmunds as Project Director – Civil
    • Stephen Cathcart as Project Director – Technical
  • These appointments, along with other recent additions to the project execution team, bring diversified technical/studies, approvals, construction, operations and process infrastructure experience to the Company as it moves into rapid project development phase

Key Approval Obtained and Construction of Lake Way Ponds Commences

  • Mining Proposal and Project Management Plans for the First Phase of the Lake Way Evaporation Ponds (Lake Way Ponds) approved by the Department of Mines, Industry Regulation and Safety (DMIRS)
  • Approval received from Department of Water and Environmental Regulation (DWER) for construction and operation of the Lake Way Ponds and de-watering of the Williamson Pit
  • Site support infrastructure is in place and construction of the Lake Way Ponds has now commenced

Native Title Land Access and Exploration Agreement Executed for Lake Way

  • Salt Lake Potash and Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC) have entered into a Native Title Land Access and Exploration Agreement for Lake Way
  • TMPAC consent was received for the on-lake construction of the pond system for the dewatering of the Williamson Pit at Lake Way (Lake Way Ponds)
  • ‘Whole of Lake’ Resource Program for Lake Way Advancing
  • Work well advanced to enable the Company to report a Mineral Resource Estimate for the lake bed brine and the paleochannel aquifer for the 100% owned Salt Lake tenements
  • ‘Whole of Lake’ Mineral Resource Estimate will enable the Company to examine larger production scenarios

Field Trials at Lake Way Confirm Salt Production Process

  • Comprehensive field evaporation trials at Lake Way are successfully producing substantial volumes of potassium Harvest Salts validating the modelled salt production process
  • Field evaporation trials have produced over 2 tonnes of high grade Harvest Salts at Lake Way
  • Over 100,000l of brine from both high grade Lake Way playa brine and the super high-grade Williamson Pit brine have been extracted for the field trial and evaporated separately. Both brines have rapidly produced quality harvest salts amenable for conversion to Sulphate of Potash (SOP)
  • Potassium Harvest Salts produced from the field trial will be processed at Saskatchewan Research Council (SRC), where a pilot plant will duplicate and refine the Lake Way process flow sheet, as well as producing further product samples for offtake partners

LAKE WAY PROJECT

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

Salt Lake Potash holds five Exploration Licences (two granted and three under application) covering most of Lake Way and select areas off-lake, including the paleochannel defined by previous exploration. The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine.

The Company’s Memorandum of Understanding with Blackham (see ASX Announcement dated 12 March 2018) allows for an expedited path to development at Lake Way.

Lake Way has a number of compelling advantages which make it an ideal site for Salt Lake Potash’s initial SOP operation, including:

Ø Utilisation of Blackham’s existing infrastructure (including camps, power and maintenance) to accelerate development.

Ø The site has excellent freight solutions, being adjacent to the Goldfields Highway, which is permitted for heavy haulage, quad trailer road trains to the railhead at Leonora and then direct rail access to both Esperance and Fremantle Ports, or via other heavy haulage roads to Geraldton Port.

Ø The Goldfields Gas Pipeline is adjacent to Salt Lake Potash’s tenements, running past the eastern side of the Lake.

Ø Access to Blackham’s existing Mining Leases provides advanced permitting pathway for early development activity, including the construction of the Williamson Ponds.

Ø Salt Lake Potash will construct the Williamson Ponds and dewater the existing Williamson Pit on Lake Way. The pit contains an estimated 1.2GL of brine at the exceptional grade of 25kg/m3 of SOP. This brine is 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 The presence of clays in the upper levels of the lake which are amenable to low cost, on-lake evaporation pond construction.

The Company is concurrently progressing the construction of the First Phase of the Lake Way Evaporation Ponds (Lake Way Ponds), whilst also rapidly advancing a ‘whole of lake’ scenario, including mineral resource estimates, permitting and approvals, pilot plant process testwork and assessment of infrastructure and logistical options.

Discussions are also ongoing with a number of offtake partners and the pilot plant process testwork currently underway will provide high-grade SOP product samples for testing by these partners.

Having completed a placement to raise $13.0 million during the period and built a team with the capability and track record of successfully developing and constructing numerous resource projects, the Company is well placed to take advantage of the benefits of the Lake Way Project and its broader portfolio of nine salt lakes.

Approvals Advancing

The Company’s Mining Proposal and Project Management Plans for the first phase of the Lake Way Ponds were approved by Department of Mines, Industry Regulation and Safety (DMIRS) during the period, and subsequent to the period end, the Company also received approval from Department of Water and Environmental Regulation (DWER) for the Part V works approval for construction and operation of the Lake Way Ponds and de-watering of the Williamson Pit.  These works include the construction of operational scale evaporation ponds and associated infrastructure including pond trenching to provide brine conditioning to manage the brine extracted from the Williamson Pit.

Salt Lake Potash has previously received environmental approval from the DMIRS to construct ponds totalling up to 133Ha (the Williamson Ponds), as well as ancillary infrastructure.

The Lake Way Ponds will be the first operational scale SOP evaporation ponds built on a salt lake in Australia – an important part of the staged de-risking and development at Lake Way and across the Company’s portfolio of salt lakes in the Northern Goldfields Region.

A series of studies commenced during the period in support of the ongoing environmental approvals. These include flora and fauna surveys, climatology and hydrologic assessment, flood modelling and geotechnical investigations.

Native Title Land Access and Exploration Agreement

In December 2018, the Company signed a Native Title Land Access and Brine Minerals Exploration Agreement (the Agreement) with Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC) covering the Lake Way Project area.

TMPAC entered into the Agreement with Salt Lake Potash on behalf of the Wiluna People who are the recognised Native Title Holders of the land covering the Lake Way Project area. TMPAC also provided consent for the total area required for the construction and operation of the Williamson Ponds.

The signing of the Agreement with TMPAC and receipt of TMPAC’s consent for the Williamson Ponds is a major milestone in the development of the Lake Way Project and positions Salt Lake Potash to accelerate the works program for the Williamson Ponds.

Mineral Resource Program

The Company reported a maiden Mineral Resource Estimate for Lake Way (Blackham tenements only) in July 2018.

Total Mineral Resource Estimate (Blackham tenements only)  

Sediment Hosted Brine – Indicated (94%)

Playa Area

Lakebed Sediment Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(km2)

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(kt)

(Mm3)

(kt)

55.4

290

6.9

7.6

28.3

0.43

125

1,900

0.11

31.9

490

Williamson Pit Brine – Measured (6%)

Brine Volume (Mm3)

Potassium Conc.   (kg/m3)

Magnesium Conc.   (kg/m3)

Sulphate Conc.
(kg/m3)

SOP Tonnage (kt)

1.26

11.4

14.47

48

32

Work progressed during the period to enable the Company to estimate a ‘whole of lake’ Mineral Resource Estimate, including the remaining playa surface covered by Salt Lake Potash’s tenements and the paleochannel aquifer, which were not considered as part of the initial Mineral Resource estimate and provide significant short term upside to increase resources at Lake Way.

Estimation of a ‘whole of lake’ resources will enable the Company to consider larger production scenarios for Lake Way.

Civil Construction – On-Lake Infrastructure

During the period, the Company progressed on-lake development with completion of the detailed design for the first phase of Lake Way Evaporation Ponds (Lake Way Ponds) that will enable the dewatering of the high grade Lake Way Williamson Pit brine. This early works program will allow the fast-tracking of harvest salts in readiness for process plant commissioning.

Detailed engineering works during the period for the Lake Way Ponds included further analysis of strength and permeability characteristics of lakebed sediments, and geotechnical parameters for final pond analysis and design. Other geotechnical design work undertaken included Cone Penetration Test (CPT) data analysis, trafficability assessment, access road analysis, seepage models, borrow pit assessments and development of the pond construction methodology.

Surveying contractor, AAM Group set out the Williamson Pond design in readiness for construction commencement and also completed the Light Detection and Ranging (LiDAR) topographical survey flyover for the larger ‘whole of lake’ scenario.

The Company mobilised initial construction equipment to Lake Way in December 2018, with site support infrastructure at Lake Way installed enabling an immediate start on the construction works. 

Salt Lake Potash is undertaking a wet hire and self-perform model for the construction of the Lake Way Ponds. This construction model allows a fast track mobilisation and execution of the works, whilst providing the Company with critical hands on experience allowing testing and validating of all design criteria to de-risk the future on-lake construction.

The construction of the initial Lake Way ponds is planned to be completed by the end of Q2 2019. The de-watering of the 1.2GL of Williamson Pit brine is expected to commence towards the end of Q2 2019.

The Company has also sort Expressions of Interest (EOI) from key civil contractors to participate in an Early Contractor Involvement (ECI) process for the larger ‘whole of lake’ development. To date, the Company has received positive feedback and acceptance from a number of major civil contractors.

Process Testwork

Comprehensive field evaporation trials at Lake Way continued to successfully produce substantial volumes of potassium Harvest Salts validating the modelled salt production process.

The Lake Way Site Evaporation Trial (SET) was established in May/June 2018 and initial brine feed was gradually introduced from both the Williamson Pit and the Lake Way playa. 

The Lake Way SET has already produced over 2 tonnes of Potassium Harvest Salts (1.8 tonnes Lake Way Playa and 0.4 tonnes of Williamson Pit) and a further 5 tonnes are forecast to be harvested during ongoing evaporation trials.

From the test work to date, the Williamson Pit and the Lake Way Playa brines have produced excellent high grade Harvest Potassium Salts with an exceptional K grade of up to 10% and an overall high average K grade of 6.8%. This aligns very well with the grades that were observed during the Lake Wells SET’s.

This provides the Company with confidence that the Lake Way production model, process flowsheet and Harvest Salt product will produce a final high grade SOP product in line with the world leading SOP product of 53% K2O produced at Lake Wells.

The Company has engaged the world’s leading potash processing laboratory, Saskatchewan Research Council (SRC), to establish a pilot plant based on the process flow sheet for the Lake Way Project. The initial batch of harvest salts from Lake Way has been delivered to SRC and testwork is underway.

The pilot plant will validate and refine the Lake Way process flowsheet and also produce high-grade SOP product samples for offtake partners.

CORPORATE

During the period, the Company completed a placement to existing and new institutional and sophisticated investors in Australia and overseas for 31.0 million new ordinary shares of the Company, to raise gross proceeds of $13,000,000 (Placement).

The cornerstone investor for the Placement was a significant international investment fund. Directors and senior management subscribed for a total of 2.4 million shares in the Placement, including 950,000 shares by the CEO, Mr Tony Swiericzuk, and 750,000 shares by the Company’s Chairman, Mr Ian Middlemas, which were issued in January 2019 following shareholder approval.

Proceeds from the Placement are being used to fund construction of the Lake Way Ponds and dewatering of the Williamson Pit, as well as ongoing development of on-lake infrastructure, exploration and feasibility studies, and general working capital.

Having successfully raised the funds for project development at Lake Way, the Company significantly accelerated its activity and expenditure.

Results of Operations

Net loss after tax for the half year ended 31 December 2018 was $5,809,606 (31 December 2017: $5,354,804).

(i)         Exploration and evaluation expenses were $4,696,515 (31 December 2017: $4,549,568), which is attributable to the Group’s accounting policy of expensing exploration and evaluation expenditure incurred by the Group subsequent to the acquisition of the rights to explore and up to the final investment decision to commence construction for each separate area of interest; and

(ii)        Business development expenses increased to $481,343 (31 December 2017: $374,784) which is attributable to additional business development and investor relations activities required to support the growth and development of the Lake Way Project and the Company’s broader portfolio of Lakes.

 

Financial Position

At 31 December 2018, the Company had cash reserves of $12.0 million (30 June 2018: $5.7 million) and net assets of $13.5 million (30 June 2018: $7.0 million). The Company is in a financial position to conduct its current and planned exploration and development activities.

SIGNIFICANT POST BALANCE DATE EVENTS

Other than as disclosed below, at the date of this report there were no significant events occurring after balance date requiring disclosure.

On 9 January 2019, the Company successfully completed the final tranche of its $13,000,000 capital raising. The final tranche has resulted in 750,000 shares being issued to Chairman Mr Ian Middlemas and 950,000 shares being issued to CEO Mr Tony Swiericzuk at $0.42 following shareholder approval on 20 December 2018. These funds will contribute to the construction of the Williamson Ponds and dewatering of the Williamson Pit, as well as ongoing development of on-lake infrastructure, exploration and feasibilities studies, and general working capital.

AUDITOR’S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, Ernst & Young, to provide the directors of Salt Lake Potash Limited with an Independence Declaration in relation to the review of the half year financial report. This Independence Declaration is attached to and forms part of this Directors’ Report. 

Signed in accordance with a resolution of the Directors.

TONY SWIERICZUK

CEO & Managing Director

14 March 2019

 

Competent Persons Statement

The information in this announcement that relates to Process Testwork Results is extracted from the report entitled ‘Field Trials at Lake Way Confirm Salt Production Process’ dated 29 January 2019. This announcement is available to view on www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Process Testwork Results was based on, and fairly represents, information compiled by Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM. Mr Jones is a Director of Salt Lake 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’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. Salt Lake Potash Limited 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 Announcement that relates to Mineral Resources is extracted from the report entitled ‘Scoping Study for Low Capex, High Margin Demonstration Plant at Lake Way’ dated 31 July 2018. This announcement is available to view on www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited 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.

 

DIRECTORS’ DECLARATION

 

In the opinion of the Directors of Salt Lake Potash Limited:

1.     the interim consolidated financial statements comprising the statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and notes set out on pages 13 to 21 are in accordance with the Corporations Act 2001 including:

 

i)              giving a true and fair view of the financial position of the consolidated entity as at 31 December 2018 and of its performance and cash flows for the six months ended on that date; and

 

ii)             complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001; and

 

2.     there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

 

Signed in accordance with a resolution of Directors:

 

 

TONY SWIERICZUK

CEO & Managing Director

 

14 March 2019

 

CONSOLIDATED STATEMENT OF PROFIT

OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

 

31 December 2018

31 December 2017

Notes

$

$

Finance income

38,800

145,705

Research and development rebate

–

456,709

Exploration and evaluation expenses

(4,696,515)

 (4,549,568)

Corporate and administrative expenses

(626,786)

 (448,894)

Business development expenses

(481,343)

 (374,784)

Share based payments expenses

(43,762)

 (583,972)

Loss before tax

(5,809,606)

(5,354,804)

Income tax expense

–

–

Loss for the period

(5,809,606)

(5,354,804)

Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising during the period

–

–

Other comprehensive (loss)/ income for the period, net of tax

–

–

Total comprehensive loss for the period

(5,809,606)

(5,354,804)

Basic and diluted loss per share attributable to the ordinary equity holders of the company (cents per share)

(3.18)

(3.10)

 

The above Consolidated Statement of Profit or Loss and other Comprehensive Income
should be read in conjunction with the accompanying notes.

 

 

CONSOLIDATED STATEMENT OF

FINANCIAL POSITION

AS AT 31 DECEMBER 2018

 

Notes

 

31 December
2018
$

 

30 June
2018
$

ASSETS

Current Assets

Cash and cash equivalents

12,028,224

5,709,446

Trade and other receivables

211,633

227,273

Total Current Assets

12,239,857

5,936,719

Non-Current Assets

Security deposits

65,583

–

Property, plant and equipment

601,155

535,344

Exploration and evaluation expenditure

3

2,276,736

2,276,736

Total Non-Current Assets

2,943,474

2,812,080

TOTAL ASSETS

15,183,331

8,748,799

LIABILITIES

Current Liabilities

Trade and other payables

1,470,984

1,620,527

Finance lease

11,829

11,829

Provisions

4

103,827

57,462

Total Current Liabilities

1,586,640

1,689,818

Non-Current Liabilities

Finance lease

33,077

38,992

Provisions

4

24,327

–

Total Non-Current Liabilities

57,404

38,992

TOTAL LIABILITIES

1,644,044

1,728,810

NET ASSETS

13,539,287

7,019,989

EQUITY

Contributed equity

5

135,205,595

123,501,153

Shares to be issued

6

715,000

–

Reserves

7

2,015,348

2,105,886

Accumulated losses

(124,396,656)

(118,587,050)

TOTAL EQUITY

13,539,287

7,019,989

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

 

 

CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

 

 

 

 

 

CONSOLIDATED

Contributed Equity
$

Share- Based Payment Reserve
$

 

 

Shares to be Issued
$

Accumulated Losses
$

Total Equity
$

Balance at 1 July 2018

123,501,153

2,105,886

–

(118,587,050)

7,019,989

Net loss for the period

–

–

–

(5,809,606)

(5,809,606)

Total comprehensive loss for the period

–

–

–

(5,809,606)

(5,809,606)

Transactions with owners, recorded directly in equity

Shares issued from placement

12,285,000

–

715,000

–

13,000,000

Shares issued in lieu of fees

134,300

–

–

–

134,300

Share based payment expense

–

(90,538)

–

–

(90,538)

Share issue costs

(714,858)

–

–

–

(714,858)

Balance at 31 December 2018

135,205,595

2,015,348

715,000

(124,396,656)

13,539,287

Balance at 1 July 2017

123,484,561

821,824

–

(107,259,942)

17,046,443

Net loss for the period

–

–

–

(5,354,804)

(5,354,804)

Total comprehensive loss for the period

–

–

–

(5,354,804)

(5,354,804)

Transactions with owners, recorded directly in equity

Shares issued in lieu of fees

18,476

–

–

–

18,476

Share based payment expense

–

583,972

–

–

583,972

Share issue costs

(1,884)

–

–

–

(1,884)

Balance at 31 December 2017

123,501,153

1,405,796

–

(112,614,746)

12,292,203

 

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

 

 

CONSOLIDATED STATEMENT OF

CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

31 December

2018
$

31 December

2017
$

Cash flows from operating activities

Payments to suppliers and employees

(5,768,638)

 (5,594,353)

Research and development rebate received

–

 456,709

Exploration investment scheme received

–

30,000

Interest received

52,851

133,705

Net cash outflow from operating activities

(5,715,787)

 (4,973,939)

Cash flows from investing activities

Payments for property, plant and equipment

(244,662)

 (83,030)

Net cash outflow from investing activities

(244,662)

 (83,030)

Cash flows from financing activities

Finance lease payments

(5,914)

–

Proceeds from the issue of shares

13,000,000

–

Transaction costs from the issue of shares

(714,858)

(40,222)

Net cash inflow/(outflow) from financing activities

12,279,228

(40,222)

Net increase/(decrease) in cash and cash equivalents held

6,318,778

(5,097,191)

Cash and cash equivalents at the beginning of the half year

5,709,446

15,596,759

Cash and cash equivalents at the end of the half year

12,028,224

10,499,568

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

 

 

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

 

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)        Statement of Compliance

 

The interim condensed consolidated financial statements of the Group for the half year ended 31 December 2018 were authorised for issue in accordance with the resolution of the directors on 7 March 2019.

 

The interim condensed consolidated financial statements for the half year reporting period ended 31 December 2018 have been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

 

This half year financial report does not include all the notes of the type normally included in an annual financial report.  Accordingly, this report is to be read in conjunction with the annual report of Salt Lake Potash Limited for the year ended 30 June 2018 and any public announcements made by Salt Lake Potash Limited and its controlled entities during the half year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

(b)        Basis of Preparation of Half Year Financial Report

 

The financial statements have been prepared on an accruals basis and are based on historical cost. All amounts are presented in Australian dollars.

 

The interim condensed consolidated financial statements for the half year have been prepared on a going concern basis which assumes the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

For the half year ended 31 December 2018, the Consolidated Entity incurred a net loss of $5,809,606 (31 December 2017: $5,354,804) and experienced net cash outflows from operating and investing activities of $5,960,449 (2017: $5,056,969). As at 31 December 2018, the Group had cash and cash equivalents of $12,028,224 (30 June 2018: $5,709,446) and net current assets of $10,653,217 (2017: $4,246,901).

The Company is rapidly progressing the development of the Lake Way Project and plans to raise additional funding, which may include debt and/or equity, within the next 12 months to fund these activities. The Company has sufficient funds to meet currently committed expenditure but in order to progress development and construction, it requires additional funds.

The Directors are confident that they will be able to raise additional funding as and when required to enable the Consolidated Entity to meet its obligations as and when they fall due, and have been involved in a number of recent successful capital raisings to fund development activities for the Company and other listed resource companies. Accordingly, they consider that it is appropriate to prepare the financial statements on the going concern basis.

Should the Consolidated Entity be unable to raise additional funding as and when required, uncertainty would exist that may cast doubt on the ability of the Consolidated Entity to continue as a going concern. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities that might be necessary should the Consolidated Entity be unable to continue as a going concern.

(c)        New Accounting Standards

 

In the current period, the Group has adopted all of the new and revised standards, interpretations and amendments that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2018. The adoption of new and revised standards and amendments has not affected the amounts reported for the current or prior half-year periods, however the Company has set out below the main changes due to the adoption of AASB 9.

 

AASB 9 Financial Instruments

 

The Company has adopted AASB 9 from 1 July 2018 which have resulted in changes to accounting policies and the analysis for possible adjustments to amounts recognised in the Interim Financial Reports. In accordance with the transitional provisions in AASB 9, the reclassifications and adjustments are not reflected in the balance sheet as at 30 June 2018 but recognised in the opening balance sheet as at 1 July 2018. As per the new impairment model introduced by AASB 9, the Company has not recognised a loss allowance on trade and other receivables.

 

i)              Classification and Measurement

 

On 1 July 2018, the Company has assessed which business models apply to the financial instruments held by the Company and have classified them into the appropriate AASB 9 categories. The main effects resulting from this reclassification are shown in the table below.

On adoption of AASB 9, the Company classified financial assets and liabilities as subsequently measured at either amortised cost or fair value, depending on the business model for those assets and on the asset’s contractual cash flow characteristics. There were no changes in the measurement of the Company’s financial instruments.

 

There was no impact on the statement of comprehensive income or the statement of changes in equity on adoption of AASB 9 in relation to classification and measurement of financial assets and liabilities.

 

The following table summarises the impact on the classification and measurement of the Group’s financial instruments at 1 July 2018:

 

Presented in statement of financial position

Financial Asset

AASB 139

AASB 9

Reported $

Restated $

Cash and cash equivalents

Bank deposits

Loans and receivables

Amortised Cost

No change

No change

Trade and other receivables/payables

Loans and receivables

Loans and receivables

Amortised Cost

No change

No change

 

 

ii)             Impairment

 

AASB 9 introduces a new expected credit loss (“ECL”) impairment model that requires the Company to adopt an ECL position across the Company’s financial assets at 1 July 2018. The Company’s receivables balance consists of GST refunds from the Australian Tax Office and interest receivables from recognised Australian banking institutions. While cash and cash equivalents are also subject to the impairment requirements of AASB 9, an impairment loss would be considered immaterial.

 

The loss allowances for financial assets are based on the assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Given the Company’s receivables are from the Australian Tax Office and recognised Australian banking institutions, the Company has assessed that the risk of default is minimal and as such, no impairment loss has been recognised against these receivables as at 31 December 2018.

 

The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

 

(d)        Issued Standards and Interpretations not early adopted

 

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the Company for the reporting period ended 31 December 2018. Those which may be relevant to the Company are set out below, and are not expected to have any significant impact on the Company’s financial statements.

 

AASB 16 Leases

 

AASB 16 Leases will replace existing accounting requirements for leases under AASB 117 Leases. Under current requirements, leases are classified based on their nature as either finance leases which are recognised on the Statement of Financial Position, or operating leases, which are not recognised on the Statement of Financial Position.

 

Under AASB 16 Leases, the Company’s accounting for operating leases as a lessee will result in the recognition of a right-of-use (ROU) asset and an associated lease liability on the Statement of Financial Position. The lease liability represents the present value of future lease payments, with the exception of short-term and low value leases. An interest expense will be recognised on the lease liabilities and a depreciation charge will be recognised for the ROU assets. There will also be additional disclosure requirements under the new standard.

 

The Company will initially apply AASB 16 on 1 July 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 July 2019, with no restatement of comparative information.

 

When applying the modified retrospective approach to leases previously classified as operating leases under AASB 117, the Company can elect, on a lease-by-lease basis, whether to apply a number of practical expedients on transition. The Company is assessing the potential impact of using these practical expedients.

 

The Company is yet to complete its assessment of the impact of AASB 16, however given the limited number of leases it has at 31 December 2018, the impact is not expected to be significant. The actual impact of applying AASB 16 on the financial statements in the period of initial application will depend however on future economic conditions, including the Company’s borrowing rate, the composition of the Company’s lease portfolio, the extent to which the Company elects to use practical expedients and recognition exemptions, and the new accounting policies, which are subject to change until the Company presents its first financial statements that include the date of initial application.

 

2.       OPERATING SEGMENTS

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Consolidated Entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

 

The Consolidated Entity operates in one segment, being mineral exploration. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Consolidated Entity.

 

3.       EXPLORATION AND EVALUATION

31 December

2018
$

30 June

 2018
$

(a)             Areas of Interest

SOP Project

2,276,736

2,276,736

Carrying amount at end of period 1

2,276,736

2,276,736

(b)             Reconciliation

Carrying amount at start of period

2,276,736

2,276,736

Impairment losses

–

–

Carrying amount at end of period 1

2,276,736

2,276,736

 

Note:

1 The ultimate recoupment of costs carried forward for exploration and evaluation is dependent on the successful development and commercial exploitation or sale of the respective areas of interest.

SOP Project

Salt Lake holds a number of large salt lake brine projects (Projects) in Western Australia and the Northern Territory, each having potential to produce highly sought after Sulphate of Potash (SOP) for domestic and international fertiliser markets.

 

4.       PROVISIONS

31 December

2018
$

30 June

 2018
$

(a)             Current Liabilities – Provisions

Onerous lease

67,607

–

Annual leave

36,220

57,462

Total Current Liabilities

103,827

57,462

(b)             Non-Current Liabilities

 

Onerous lease

24,327

–

Total Non-Current Liabilities

24,327

–

 

Onerous lease

During the period, the Company relocated its head office to accommodate a larger work force as the Company rapidly pursues development of the Lake Way Project. Due to this, a pre-existing lease is currently vacant as the Company considers options to sublet the leasehold area. The Company has recognised a Provision for Onerous Lease over the remaining term of the lease contract as identified above, less the amount the Company expects to receive through sub-letting.

 

5.       CONTRIBUTED EQUITY

31 December

2018
$

30 June

 2018
$

(a)   Share Capital

204,568,200 (30 June 2018:175,049,596) Ordinary Shares

135,205,595

123,501,153

135,205,595

123,501,153

(b)   Movement in Share Capital during the past six months

 

Number of Ordinary Shares

Issue Price

$

$

1 Jul 18

Opening Balance

175,049,596

123,501,153

16 Nov 18

Placement

29,035,714

0.42

12,195,000

20 Nov 18

Placement

214,286

0.42

90,000

31 Dec 18

Share issue1

268,604

0.50

134,300

Nov 18 to Dec 18

Placement costs

–

–

(714,858)

31 Dec 18

Closing balance

204,568,200

–

135,205,595

Note:

1.   Issued to employees and consultants of the Company in lieu of fees.

 

6.       SHARES TO BE ISSUED

31 December

2018
$

30 June

 2018
$

Shares to be issued

715,000

–

715,000

–

 

The Company completed the second tranche of a placement on 9 January 2019 with the issue of shares to Directors of the Company following shareholder approval. Shares to be issued represents the subscriptions funds received in respect of the placement before the balance date.

 

7.       RESERVES

Notes

31 December

2018
$

30 June

 2018
$

Share-based payment reserve

7(a)

2,015,348

2,105,886

2,015,348

2,105,886

 

(a)   Movement in share-based payment reserve during the past six months

 

Date

Details

Number of Performance Rights

Number of Performance Shares

Number of Unlisted Options

$

1 Jul 18

Opening Balance

5,400,000

22,500,000

4,400,000

2,105,886

2 Nov 18

Issue of Performance Rights

7,266,258

–

–

–

2 Nov 18

Issue of Incentive Options

–

–

5,000,000

–

31 Dec 18

Issue of Performance Rights

10,781,258

–

–

–

31 Dec 18

Issue of Incentive Options

–

–

2,450,000

–

31 Dec 18

Cancellation/Expiry of Performance Rights

(2,352,500)

–

–

(984,383)

31 Dec 18

Expiry of Performance Shares

–

(5,000,000)

–

–

Jul – Dec 18

Share Based Payments Expense

–

–

–

893,845

31 Dec 2018

Closing Balance

21,095,016

17,500,000

11,850,000

2,015,348

 

8.       SHARE-BASED PAYMENTS

For the six months end 31 December 2018, the Group recognised $43,762 in share-based payments expenses in the statement of profit or loss (31 December 2017: $583,972) following the issue of shares to employees and consultants in lieu of payment of remuneration and fees totalling $134,300, and expensing the fair value of equity instruments (options and performance rights) over the vesting period totalling $893,845. This expense was partially offset by the expiry/cancellation of unvested performance rights and performance shares totalling ($984,383).

(a)   Options

 

During the current period 7,450,000 incentive options were granted consisting of 5,000,000 granted on 2 November 2018 (Series 1 – Series 3) and 2,450,000 granted on 31 December 2018 (Series 4 – Series 6). The fair value of the equity-settled incentive options granted is estimated as at the date of grant using the Binomial option valuation model taking into account the terms and conditions upon which the options were granted.

Inputs

Series 1

Series 2

Series 3

Exercise price

$0.60

$1.00

$1.20

Grant date share price

$0.470

$0.470

$0.470

Dividend yield 1

–

–

–

Volatility 2

70%

70%

70%

Risk-free interest rate

2.32%

2.32%

2.32%

Grant date

2-Nov-18

2-Nov-18

2-Nov-18

Expiry date

1-Nov-23

1-Nov-23

1-Nov-23

Expected life of option 3

5.00 years

5.00 years

5.00 years

Fair value at grant date

$0.253

$0.200

$0.181

 

Inputs

Series 4

Series 5

Series 6

Exercise price

$0.60

$1.00

$1.20

Grant date share price

$0.460

$0.460

$0.460

Dividend yield 1

–

–

–

Volatility 2

70%

70%

70%

Risk-free interest rate

2.10%

2.10%

2.10%

Grant date

31-Dec-18

31-Dec-18

31-Dec-18

Expiry date

1-Nov-23

1-Nov-23

1-Nov-23

Expected life of option 3

4.84 years

4.84 years

4.84 years

Fair value at grant date

$0.240

$0.187

$0.169

Notes:

1   The dividend yield reflects the assumption that the current dividend payout will remain unchanged.

2   The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may not necessarily be the actual outcome.

3   The expected life of the options is based on the expiry date of the options as there is limited track record of the early exercise of options.

(b)   Performance Rights

 

During the current period 18,047,516 performance rights were granted consisting of 7,266,258 granted on 2 November 2018 (Series 1 – Series 5) and 10,781,258 granted on 31 December 2018 (Series 6 – Series 15). The fair value of performance rights granted is estimated as at the date of grant based on the underlying share price. The table below lists the inputs to the valuation model used for the performance rights granted by the Group:

Inputs

Series 1

Series 2

Series 3

Series 4

Series 5

Milestones

Short Term Incentive

Trench/Pond Construction

Plant Construction

Plant Commissioning

Nameplate Capacity

Exercise price

–

–

–

–

–

Grant date share price

$0.470

$0.470

$0.470

$0.470

$0.470

Grant date

2-Nov-18

2-Nov-18

2-Nov-18

2-Nov-18

2-Nov-18

Expiry date

31-Jul-19

1-Nov-20

1-Nov-21

1-Nov-22

1-Nov-23

Expected life 1

0.74 years

2.00 years

3.00 years

4.00 years

5.00 years

Fair value at grant date 2

$0.470

$0.470

$0.470

$0.470

$0.470

 

Inputs

Series 6

Series 7

Series 8

Series 9

Series 10

Milestones

Short Term Incentive

Trench/Pond Construction

Plant Construction

Plant Commissioning

Nameplate Capacity

Exercise price

–

–

–

–

–

Grant date share price

$0.460

$0.460

$0.460

$0.460

$0.460

Grant date

31-Dec-18

31-Dec-18

31-Dec-18

31-Dec-18

31-Dec-18

Expiry date

31-Jul-19

1-Nov-20

1-Nov-21

1-Nov-22

1-Nov-23

Expected life 1

0.58 years

1.84 years

2.84 years

3.84 years

4.84 years

Fair value at grant date 2

$0.460

$0.460

$0.460

$0.460

$0.460

Inputs

Series 11

Series 12

Series 13

Series 14

Series 15

Milestones

Advanced Schedule

Reduced Capex

Lake Way Application

Lake Wells Application

Financing Milestone

Exercise price

–

–

–

–

–

Grant date share price

$0.460

$0.460

$0.460

$0.460

$0.460

Grant date

31-Dec-18

31-Dec-18

31-Dec-18

31-Dec-18

31-Dec-18

Expiry date

31-Dec-21

31-Dec-21

31-Dec-19

31-Dec-20

30-Jun-20

Expected life 1

3.00 years

3.00 years

1.00 years

2.00 years

1.50 years

Fair value at grant date 2

$0.460

$0.460

$0.460

$0.460

$0.460

 

Notes:
1  The expected life of the Performance Rights is based on the expiry date of the performance rights as there is limited track record of the early conversion of performance rights.
2  The fair value of Performance Rights granted is estimated as at the date of grant based on the underlying share price (being the closing share price at the date of issuance).

9.       COMMITMENTS AND CONTINGENCIES

Management have identified the following material commitments for the consolidated group as at 31 December 2018:

31 December

 2018

30 June

 2018

$

$

Finance lease commitments

Within one year

11,829

11,829

Later than one year but not later than five years

33,077

38,992

44,906

50,821

Operating lease commitments

Within one year

408,184

200,018

Later than one year but not later than five years

374,011

113,419

782,195

313,437

Exploration commitments

Within one year

3,817,500

1,896,500

Later than one year but not later than five years

–

–

3,817,500

1,896,500

 

10.     DIVIDENDS PAID OR PROVIDED FOR

No dividend has been paid or provided for during the half year ended 31 December 2018 (31 December 2017: nil).

 

11.     FINANCIAL INSTRUMENTS

Fair Value Measurement

 

At 31 December 2018, the Group had no material financial assets and liabilities that are measured at fair value on a recurring basis and at 31 December 2018, the carrying amount of financial assets and financial liabilities for the Group is considered to approximate their fair values. 

 

12.     SUBSEQUENT EVENTS AFTER BALANCE DATE

Other than as disclosed below, at the date of this report there were no significant events occurring after balance date requiring disclosure.

 

On 9 January 2019, the Company successfully completed the final tranche of its $13,000,000 capital raising. The final tranche has resulted in 750,000 shares being issued to Chairman Mr Ian Middlemas and 950,000 shares being issued to CEO Mr Tony Swiericzuk at $0.42 following shareholder approval on 20 December 2018. These funds will contribute to the construction of the Williamson Ponds and dewatering of the Williamson Pit, as well as ongoing development of on-lake infrastructure, exploration and feasibilities studies, and general working capital.

 

 

 

The full version of the Interim Financial Report for the Half-Year Ended 31 December 2018 Report is available on the Company’s website at www.saltlakepotash.com.au

 

 

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

Tony Swierizcuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

Shore Capital (Joint Broker)

Tel: +44 (0) 20 7468 7967

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR GLGDXLUBBGCS

Salt Lake Potash #SO4 – Jo Battershill discusses the new commercial scale Sulphate of Potash Evaporation Ponds on the Vox Markets podcast

11th March 2019 / Leave a comment

Vox Markets podcast – Jo Battershill, Corporate Executive of Salt Lake Potash #SO4 and Justin Waite discuss why the start of the construction on Australia’s First Commercial Scale Sulphate of Potash Evaporation Ponds is significant. Interview starts at 10 minutes 57 seconds.

Salt Lake Potash #SO4 -Construction Begins on Australia’s First Commercial Scale SOP Evaporation Ponds

6th March 2019 / Leave a comment

SALT LAKE POTASH LIMITED

 

Construction Begins on Australia’s First Commercial Scale SOP Evaporation Ponds

 

Highlights:

  • Following receipt of the final approval from the Department of Water and Environmental Regulation (DWER), construction and operation of the First Phase of Lake Way Evaporation Ponds (Lake Way Ponds) at Wiluna, Western Australia has begun
  • Site support infrastructure for construction of the Lake Way Ponds is in place
  • The Lake Way Ponds will be the first Commercial Scale on-lake Sulphate of Potash (SOP) evaporation ponds in Australia. The first phase will enable de-watering of the Lake Way Williamson Pit that contains the highest grade brine resource in Australia
  • The initial ponds will have the capacity to hold the Measured Resource of 1.2GL of Williamson Pit brine at an average SOP grade 25kg/m3 which contains an equivalent of 32,000 tonnes premium SOP
  • The utilisation of the Williamson Pit brine will accelerate Salt Lake Potash’s pathway to first production of SOP at Lake Way

Salt Lake Potash Limited (Salt Lake Potash or the Company) is pleased to announce that all permits have been received from the Department of Water and Environmental Regulation (DWER) for the Lake Way Ponds at Lake Way and construction has now commenced.   

Salt Lake Potash’s Chief Executive Officer, Mr Tony Swiericzuk said: “It is a very exciting time for Salt Lake Potash as we begin construction on Australia’s first commercial scale on-lake evaporation pond system.

This is a key milestone for not only Salt Lake Potash but also for the creation of the new SOP industry within Australia.

We will continue to progress works at Lake Way on both the construction of the first phase of evaporation ponds and also on the exploration of the “whole of lake” development options which we believe will underpin a globally significant SOP operation.”

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

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 6559 5800

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 754 036 6000

Colin Aaronson/Richard Tonthat/
Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint Broker)

Tel: +44 (0) 20 7468 7967

 

Background

Salt Lake Potash’s immediate focus is on the rapid development of the Lake Way Project, intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia. Lake Way’s location and logistical advantages make it the ideal location for the Company’s first SOP operation.

Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna. The surface area of the Lake is over 270km2. The northern end of the Lake is largely covered by a number of Mining Leases, held by Blackham Resources Limited (Blackham), the owner of the Wiluna Gold Mine. The Company’s Memorandum of Understanding with Blackham (see ASX Announcement dated 12 March 2018) allows for an expedited path to development at Lake Way.

Lake Way Evaporation Ponds – Overview

The Company has now received final approval from DWER for the construction and operation of the initial evaporation ponds for Lake Way and de-watering of the Williamson Pit. 

Site support infrastructure at Lake Way has been installed enabling an immediate start on the construction works. 

Salt Lake Potash is constructing Australia’s first commercial scale on-lake evaporation ponds for a Sulphate of Potash (SOP) project at Lake Way. The initial ponds will consist of:

·      Two evaporation ponds:

(i)   Kainite Harvest Pond 500m x 500m (25 Ha); and

(ii)   Halite Pond 2,000m x 500m (100 Ha);

       ·      A 2km long and 4m deep trench will also be constructed running parallel to the ponds which will provide additional
brine feed into the pond network;

       ·      A 1.4km causeway from the Williamson Pit to the Kainite Harvest Pond; and

       ·      Associated piping and pumping infrastructure.

Design

The design of the evaporation ponds has been led by Knight Piesold, a leading global engineering and consulting firm with extensive experience in evaporation pond design.

Both evaporation ponds will include 2m high perimeter berms with internal baffles to extend the flow path of the brine movement within the pond to optimise the evaporation process.

Construction

Salt Lake Potash is undertaking a wet hire and self-perform model for the construction of the Lake Way Ponds. This construction model allows fast track mobilisation and execution of the works, whilst providing the Company with critical hands on experience allowing testing and validating of all design criteria to de-risk the future on-lake construction.

The construction works for the pond berms involves the stripping of the sandy evaporite layer of material on the lake’s surface. A key trench will then be constructed at the upstream toe of the embankment. An excavator will borrow lakebed clays from adjacent to the embankment and spread the material within the embankment footprint to form the pond berm.

The fill will be progressively spread, air dried, rotated and mixed to bring the moisture content to an optimum level. Dewatering of the borrow pits will be conducted throughout the construction process to manage saturation levels of the fill.

The works are being completed with a number of specialized pieces of civil earthmoving equipment suited to the unique conditions, including amphibious excavators and low ground pressure equipment.

The Company has also established support infrastructure on Lake Way, comprising a site office, crib room, and full mechanical workshop with canopy capable of undertaking repairs to our fleet of equipment onsite without the need for demobilization to external repair facilities.

The initial Lake Way ponds will have a volume of 1.8GL which will be capable of capturing the total Williamson Pit Measured Brine Resource (1.2GL @ 25kg/m3 SOP equivalent).

On-going Work Program

The construction of the initial Lake Way ponds is planned to be completed by the end of Q2 2019. The de-watering of the 1.2GL of Williamson Pit brine is expected to commence towards the end of Q2 2019.

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. 

Competent Person Statement

The information in this Announcement that relates to Mineral Resources is extracted from the report entitled ‘Scoping Study for Low Capex, High Margin Demonstration Plant at Lake Way’ dated 31 July 2018. This announcement is available to view on www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Mineral Resources was based on, and fairly represents, information compiled by Mr Ben Jeuken, who is a member of the Australian Institute of Mining and Metallurgy and a member of the International Association of Hydrogeologists. Mr Jeuken is employed by Groundwater Science Pty Ltd, an independent consulting company. Mr Jeuken has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Salt Lake Potash Limited 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.

Post navigation

← Older posts Newer posts →
I would like to receive Brand Communications updates and news...
Free Stock Updates & News
I agree to have my personal information transfered to MailChimp ( more information )
Join over 3.000 visitors who are receiving our newsletter and learn how to optimize your blog for search engines, find free traffic, and monetize your website.
We hate spam. Your email address will not be sold or shared with anyone else.