Thought for the Day: Catenae Innovation #CTEA – Golden Building Blocks

Thought for the Day:

The market seems to have completely missed the significance of the recent placing at Catenae Innovation #CTEA . Between them, the board have spent over £110k buying shares (over £300k including the last placing), institutional investor Miton bought more stock to maintain their current holding AND after spending £75k of his own money in the placing, CEO Tony Sanders now owns 3.38% of the company. For any retail investor seeking a blockchain investment proposition, these are golden building blocks that simply cannot be ignored; it is a huge vote of confidence in the company and its future.

Cadence Minerals Plc – Macarthur Minerals (TSX-V: MMS) Signs 10 Year Iron Ore Off-Take Agreement for the Lake Giles Iron Project in Australia With Glencore International A.G.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today from Macarthur Minerals (TSX-V: MMS) (“Macarthur”) that it has entered into a binding Life-of-Mine Off-Take Agreement (“Agreement”) with Glencore International A.G. (“Glencore”) for sale of iron ore to be produced from the Lake Giles Iron Project (“Project”) at Lake Giles in the Yilgarn region of Western Australia from the commencement of commercial production.

Highlights:

  • Glencore secures life-of-mine of the project with commercial terms for approximately 4m tonnes per annum average for the first 10 years, with the option to extend for a following 10 years for all tonnes of future Lake Giles iron ore production.
  • Glencore agrees to release up to 70% of their off-take volume where Macarthur secures project financing from a Strategic Industry Investor, subject to their securing off-take of the product produced.
  • This Agreement with Glencore positions Macarthur to go forward to complete their project financing.
  • The Agreement is currently valued at approximately US$4bn in revenue over the first 10-year term ensuring Macarthur long term revenue and consistent sales per year.
  • Terms and conditions have been competitively negotiated reflecting strong forward demand.

 

High grade iron ore prices:

Metallurgical test work on the Lake Giles’s Moonshine Magnetite Project indicates that an export product of high margin +65% Fe can be achieved. ).  In its announcement, Macarthur states that the current market price for 65% Fe product is quoted at US$98/tonne (A$140 per tonne). Macarthur also states that the value of the initial 10-year Glencore off-take at current market price for Moonshine iron ore would be ~US$4bn.

Cadence holds approximately 10% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=6303739202199099&qm_symbol=MMS

Cadence Minerals Chairman Andrew Suckling commented: “It is gratifying to see that the confidence of the Cadence management team in its investment strategy into Macarthur Minerals means that our company can now participate in a transformational take off agreement between Macarthur and Glencore, one of the largest mining conglomerates in the world.”

“We congratulate the Macarthur Minerals management team on achieving this key milestone.”

 

This news release is not for distribution to United States Services or for Dissemination in the United States. 

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling  
Kiran Morzaria  
   
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce  
James Sinclair-Ford  
   
Hannam & Partners LLP (Joint Broker)                                 +44 (0) 207 907 8500
Neil Passmore  
Giles Fitzpatrick  
   
Novum Securities Limited (Joint Broker)                                 +44 (0) 207 399 9400
Jon Belliss  

 

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

  

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

 

Cadence Minerals #KDNC – Bacanora Lithium #BCN says an additional exploration licence has been granted for Zinnwald lithium project

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement yesterday by Bacanora Lithium (AIM:BCN) (“Bacanora”) that its 50%-owned subsidiary, Deutsche Lithium GmbH, (‘Deutsche Lithium’), has been granted an additional Exploration Licence (‘the Altenberg Licence’) covering approximately 42km² in the Erzgebirge (Ore Mountain) region of Saxony, Germany. The Altenberg Licence, which completely encloses Deutsche Lithium’s existing Zinnwald Lithium Project (‘Zinnwald’), has the potential to significantly increase the life of mine at Zinnwald.

The Altenberg Licence forms part of the same geological unit that hosts the historic Li-Sn-W deposits at Zinnwald and Falkenhain, where Deutsche Lithium has existing mining and exploration licences.  The deposits on the Altenberg Licence have been explored and mined historically for tin, tungsten and lithium. Historical exploration data indicates additional exploration targets are present within the Altenberg Licence that could host lithium, tin and tungsten mineralisation.

Deutsche Lithium plans to investigate the deposits on the Altenberg Licence over the next five years and to combine its exploration and development with its Zinnwald and Falkenhain licences. The 5-year Exploration Licence was issued to Deutsche Lithium by Sächsisches Oberbergamt, the Saxony State Mining Authority.

Bacanora believes this work has the potential to increase the resource base already delineated at Zinnwald, which currently comprises 142,240 tonnes of contained Li (NI43 101, Measured + Indicated + Inferred).  A Feasibility Study (‘FS’) focused on developing a strategy to produce higher value downstream lithium products from the Zinnwald concentrates for the European battery and automotive sectors remains on track for completion in Q2 2019. In tandem with the FS, the Company is in discussi

ons with financial advisors and potential strategic partners with regards to a potential spin-off and separate listing of Deutsche Lithium.  This is being considered to assist in the funding of the construction of a high value lithium operation at Zinnwald.

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/14009146.html

Cadence Minerals CEO Kiran Morzaria commented: “To echo the words of Bacanora CEO Peter Secker – ‘lying on the same geological play as other mines in the area, the Altenberg Licence is an excellent addition to our existing Zinnwald lithium project.

“Cadence are also pleased to note Bacanora’s comments that with the FS at Zinnwald on course to be completed in Q2.’”

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

– Ends –

For further information:

For further information:

Cadence Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker) +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Novum Securities Limited (Joint Broker) +44 (0) 207 399 9400
Jon Belliss

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Next Online Surges

Next plc NXT  appears to find it amazing that  profits for the year to January 2019 are exactly in line with the guidance which the company gave in er… January 2019. There would have been something strange, most people would have thought, had they been different. As with most  senior executives they must also claim that the year was challenging because without that they can not claim how well they have done. The online business did do well, increasing full price sales by 14.8% but only at the continuing expense of retail sales which fell by 7.3%. The final ordinary dividend was raised by 4.4% to 110p per share. the High Street looks set to remain challenging but the Online business will continues to save the day by increasing its contribution to sales and profits of the Group.   For the year ahead  Earnings Per Share are expected to grow by +3.6%.

Halma Group plc HLMA updates that it has made good progress from the period since the 1st October to date. Widespread revenue growth has been seen geographically, with the USA and the UK showing the strongest growth.  Mainland Europe and Asia Pacific have been more moderate.

Renishaw plc RSW as announced in the half year results on the 31st January, Renishaw experienced a slow down in demand in Asia for its encoder products and from large end-user manufacturers of consumer electronic products.There has been no improvement since then and based on recent order trends and customer feedback, the company now expects these conditions to continue through the remainder of this financial year. Rest assured though that despite this early warning the Board remains confident in the future prospects of the Group.

Safestyle UK plc SFE Found 2018 challenging  with significant business disruption caused by an aggressive new market entrant but by the year end on the 31st December., the company had achieved a substantial recovery. Phase two of the recovery plan which is well underway, involves returning the Group to profitability. An encouraging start has been made to 2019 and the Group expects to return to profitability in 2019 as well as generating positive cashflow.

Beachfront villas & houses for sale in Greece;   http://www.hiddengreece.net

Ian Pollard – Kingfisher #KGF Not So Chirpy

Kingfisher plc KGF claims that its engine has now been largely rebuilt and it is confident in delivering significant financial benefits but only over time. And looking at results for the year to the 31st January, that time sees nowhere near having arrived. Growth in sales, margin and returns is being targeted but only over the medium term which appears to indicate that there is not much promise for the short term. Underperformance in France and other parts of the business needs addressing which is an admission that it has not not been so far. The closure is being considered of 15 poorly performing stores across the business over the next 2 years; as well as the closure of 19 Screwfix outlets in Germany, where the heart of industrial Europe is alleged to beat strong. As for the recent past, there is little wonder that the immediate future looks grim.

Total sales for the year fell by 1.6% on a like for like basis, Uunderlying profit before tax was down 13% or 52.6% on a statutory basis. Underlying basic earnings per share fell by 6.%. Mercifully the dividend remained unchanged.

TI Fluid Systems plc TIFS had a great year in 2018 with strong organic growth and solid profit margins. Final results for the year to the 31st  December showed profits growing by 24.9m. to 140.1m.. whilst a final dividend is proposed of 5.94 euro cents per share. The groups approach to continued and disciplined organic growth has, it says, positioned it well for 2019 and beyond.

SDL plc SDL reports a solid improvement in the Group’s financial performance compared to 2017, with all divisions performing well. Revenue for the year to 31st December rose by 12.6% and on an adjusted basis, basic earnings per share gre by 23.7% and operating profit by 20.8%. The company believes that Brexit brings risks and opportunities which it can manage.

Tasty plc TAST Revenue fell by  6% to £47.28m in the year to the 30th December due to site closures and like-for-like decline. Three restaurants were sold and one closed  in 2018. There is no intention to open any new restaurants in 2019 and management claims it will be focused on restructuring and improving profitability from the existing portfolio.

Ten Entertainment Group TEG has had another good year and is facing excellent future growth prospects. Sales in the first 11 weeks of the current year have started positively, with like-for-like sales up 5.1%. to date. Total sales in 2018 rose by 7.5%, adjusted EBITDA by 8% and earnings per share by 16.6%. A final dividend is announced  of 7.7p per share making 11p per share for the full year

 Beachfront villas & houses for sale in Greece;   http://www.hiddengreece.net

Brand CEO Alan Green discusses LocoSoco Group #LOCO, Petrel Resources #PET & iEnergizer #IBPO on Vox Markets podcast

Brand CEO Alan Green discusses Wiener Borse listed LocoSoco Group Plc #LOCO, plus Petrel Resources #PET & iEnergizer #IBPO with Justin Waite on the Vox Markets podcast. The interview starts at 23 minutes 13 seconds.

NB: In this podcast, Alan discusses LocoSoco Group Plc, and refers to LocoCoin as a crypto currency. We need to clarify this: LocoCoin is NOT a crypto currency, but is the entity that will undertake and manage the cashback rewards system and investment side of LocoSoco’s offering. The business has yet to commence and will only commence as and when appropriate legal advice has been taken to ensure full compliance with any regulatory and legal requirements. 

Cadence Minerals #KDNC – Macarthur Minerals (TSX-V: MMS) Announces US$6m Financing to Complete Moonshine Magnetite and Ularring Hematite Iron Ore Bankable Feasibility Study.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note that Macarthur Minerals (TSX-V: MMS) (“Macarthur”) has announced the issuance of a private placement offering (the “Offering”) of up to US$6 million of secured Convertible Note (“Note”).

The proceeds from the offering will be used to complete a Bankable Feasibility Study (“BFS”) on Macarthur’s Moonshine Magnetite and Ularring Hematite iron ore deposits in Western Australia. The BFS will include a 54-hole drill program.

Macarthur owns 100% of the Moonshine Magnetite Project, with an Inferred and Indicated Mineral Resource Estimate consisting of 1,316 million tonnes (Mt) @ 30.1% Iron (Fe). Initial metallurgical test work from core at Moonshine indicated that a very high-grade iron ore product ranging from 68.5%-69.1% Fe, can be achieved as an export quality target.

The Inferred Mineral Resource estimate for the Moonshine Magnetite Project was initially prepared by CSA Global Pty Ltd (NI43-101 Technical Report filed December 17, 2009, titled “NI43-101 Technical Report on Lake Giles Iron Ore Project: Western Australia”) and was updated by Snowden Mining Industry Consultants (NI43-101 Technical Report filed March 25, 2011, titled “Macarthur Minerals Limited: Moonshine and Moonshine North Prospects, Lake Giles Iron Project, Western Australia, NI43-101 Technical Report – Preliminary Assessment”).

Macarthur also owns the Ularring Hematite Project, with a Mineral Resource Estimate consisting of Indicated 54.46 Mt @ 47.2% Fe and Inferred 25.99Mt @ 45.4% Fe, previously announced on August 16, 2012 (NI 43-101 Technical Report filed October 1, 2012, titled “NI 43-101 Report, Macarthur Minerals Limited, Pre-Feasibility Study, Ularring Hematite Project, Western Australia”). The Pre-feasibility Study focused on utilising all Probable Mineral Reserve of 42.95Mt @ 47% Fe hematite, producing a 60.1% Fe sinter fines product.

Cadence holds approximately 10% of the issued equity interest in Macarthur, which is an Australian mining exploration company focused primarily on iron ore, nickel, lithium and gold in Western Australia. It also has a lithium project in Nevada, USA.

The full release can be found at: https://web.tmxmoney.com/article.php?newsid=6810804576807869&qm_symbol=MMS

Cadence Minerals CEO Kiran Morzaria commented: “As a major shareholder in the Company, Cadence Minerals are delighted that Macarthur Minerals has seized the initiative to progress the Moonshine Magnetite and Ularring Hematite Iron Ore projects with a US$6m offering. Existing data indicates solid potential for a quality iron ore product at both projects.” 

“To quote Macarthur CEO Cameron McCall: ‘what makes this project unique is the close proximity to existing under-utilized rail and port infrastructure. The recent disruption in supply in the iron ore market creates a market that is seeking high grade low impurity products, and the Moonshine Magnetite product is ideally suited to fill this supply void and to meet this shift in product preference by the major Chinese and global markets.’ In summary, we at Cadence believe that securing funding at this juncture further strengthens the Macarthur investment proposition.”

This news release is not for distribution to United States Services or for Dissemination in the United States.

– Ends –

 

For further information:

Cadence Minerals plc                                                    +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)                                 +44 (0) 207 220 1666
James Joyce
James Sinclair-Ford
Hannam & Partners LLP (Joint Broker)                                 +44 (0) 207 907 8500
Neil Passmore
Giles Fitzpatrick
Novum Securities Limited (Joint Broker)                                 +44 (0) 207 399 9400
Jon Belliss

 

 

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identified by their use of terms and phrases such as ”believe” ”could” “should” ”envisage” ”estimate” ”intend” ”may” ”plan” ”will” or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors.  Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

Ian Pollard – Polypipe #POLY Breaks More Records

Polypipe Group plc PLP  delighted to report another record performance and claims significant strategic progress for 2018 together with a continued focus on organic growth ahead of the market. Revenue rose by 5.2%, profit before tax by 4.7% and underlying basic earnings per share by 4.4% The dividend is to be increased by 4.5% and the balance sheet is robust.

Learning Technologies Group plc LTG   Profit came in ahead of expectations for the year to the 31st December, with  EBIT up by 104% to £27.2m. Revenue rose by 83% with half of it coming from the US. and the full year dividend is to be increased by 67%. In the five years since the company was listed on the London Stock Exchange  a compound annual growth rate of 48% in adjusted diluted EPS has been achieved. A good start has been made to 2019.

EasyJet EZY has abandoned talks to join to join the consortium which would have bid for Alitalia although it said at the time that it was not certain that a bid for Alitalia would materialise. The Italian government has now given Delta Airlines and the Italian State Railway, the two remaining members of the consortium, until the end of this month to come up with a rescue plan for AlItalia.

Softcat plc SCT produced a very strong performance over the six months to the 31st January characterised by additional market share gains and a 36.4% rise for the shareholders, in the interim dividend. Revenue for the half year rose by 21%, diluted earnings per share by 40,8% and gross profit by 26.5% The company is debt free and has a cash balance of £52.8m. It is anticipated that the outcome for the full year will be marginally ahead of previous expectations.

Bonmarche Holdings BON the main aim of Bonmarche during the winter “sale” period covering January and February 2019, was to recover from the third quarter sales experience which was below expectations and in that it has succeeded. Autumn/winter season stock levels are now 40% lower than at this time last year but that has only been achieved at the cost of heavy discounting. And now things have got worse. Trading since the beginning of March has become significantly weaker, reversing sales gains which had been made in the previous months.It is now anticipating that the  the underlying  loss for the year will be far greater than the anticipated £4.0m. and current estimates are that it will rise to between £5.0m and £6.0m.

ASOS plc ASC for the 3 months to the end of February total retail sales rose by 11%, The UK outperformed  with growth of 14% and France and Germany both proved to be challenging. For 2019 unchanged sales growth of 15% is expected.

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LocoSoco Group #LOCO podcast – Director Alex Marks talks to Alan Green

Alex Marks is Director at LocoSoco group Plc, epic code #LOCO, a UK company that listed on the Austrian stock exchange (Wiener Borse) last month. LocoSoco is focused on enabling local businesses and their communities to realise their economic potential through sharing in and reinvesting some of the value generated from their everyday transactions. In this podcast with Alan Green, Alex discusses the business model, how members earn commission, the social enterprise phenomenon and recent board appointments.

LocoSoco website link here

Wiener Borse LOCO quote page here

LocoSoco company page here

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

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

 

Highlights:

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

o  Measured Resource – Lake Way Playa 6.9Mt @ 15.4kg/m3

o  Measured Resource – Williamson Pit 32Kt @ 25.5kg/m3

o  Indicated Resource – Paleochannel 3.7Mt @ 13.6kg/m3

o  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 porewithin 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.

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