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Salt Lake Potash #SO4 Enhances Senior Project Development Team

Salt Lake Potash Limited (Salt Lake Potash or Company) is pleased to announce that the Company has made several key executive appointments as development activities at the Goldfields Salt Lakes Potash Project start to rapidly increase.

  • Peter Cardillo as Project Director – Processing and NPI
  • Lloyd Edmunds as Project Director – Civil
  • Stephen Cathcart as Project Director – Technical
  • Appointments bring diversified technical, construction, operations and process infrastructure experience to the Company as it moves into rapid project development phase

Peter Cardillo has commenced in the role of Project Director – Processing and Non Process Infrastructure (NPI), and is responsible for the delivery of the SOP Process Plant and associated support NPI. He is a mechanical engineer with a history spanning 35yrs in the construction and project delivery of steel production plants, petrochemical facilities, materials handling and iron ore processing infrastructure. Mr Cardillo has substantial experience in the creation and management of multi-disciplinary teams associated with the successful development of process plant projects for companies such as Fortescue and BHP. He has a B.Eng (Mechanical – Honours) from the University of Wollongong.

Lloyd Edmunds joins as Project Director – Civil. He is responsible for the construction of lake infrastructure necessary for the delivery of harvest salts to the processing facility. Mr Edmunds is a civil engineer with more than 15yrs experience in construction management on large scale infrastructure projects working in key roles for leading project services firms in the resources sector for clients such as Adani, John Holland Group and Fortescue. He has a B.Eng (Civil) from University of Technology Sydney.

Stephen Cathcart joins the Company as Project Director – Technical, overseeing the Resource Definition, Studies and Approval functions. He is a respected senior mining executive with more than 25yrs experience working in operations management, integrated planning and technical services for companies such as Fortescue, BHP, Sons of Gwalia and Newcrest Mining. He has a B.Eng Science (Mining) from University of Queensland and an MBA from Curtin University.

Salt Lake Potash Chief Executive Officer, Tony Swiericzuk, said“I am excited that Stephen, Peter and Lloyd have chosen to join the Salt Lake Potash team as we work to realise the outstanding potential of the Goldfields Salt Lakes Project. Having previously worked closely together on project development and ramp-up at FMG and having achieved great successes, it is exciting to again share the opportunity to develop another outstanding project.  These appointments, which complement our existing team, will be instrumental in the rapid advancement of the Project and achieving our goal of developing the first salt lake SOP operation in Australia.”

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

Tony Swiericzuk

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 754 036 6000

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0) 20 7383 5100

Derrick Lee/Beth McKiernan

Cenkos Securities plc (Joint Broker)

Tel: +44 (0) 131 220 6939

Jerry Keen/Toby Gibbs

 

Shore Capital (Joint broker)

Tel: +44 (0) 20 7468 7967

Salt Lake Potash #SO4 completes first tranche of placement & receives DMIRS approval for Lake Way pond system

Salt Lake Potash Limited (the Company or Salt Lake) is pleased to announce that it has completed the first tranche of its placement to institutional and sophisticated investors of 31.0 million shares at an issue price of $0.42 per share, to raise gross proceeds of $13.0 million (Placement), announced 9 November 2018. The placement saw strong demand from institutional and sophisticated investors, an endorsement of the recent appointment of Tony Swiericzuk as CEO to lead the development of the Company’s world class Goldfields Salt Lakes Sulphate of Potash project.

The Company recently received approval from the Department of Mines, Industry Regulation and Safety for a pond system to dewater the Williamson Pit at Lake Way. With the placement complete the Company is now in a strong position to commence these on-lake activities at Lake Way in the coming weeks.

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

The first tranche of the Placement, comprising 29.3 million shares to Institutional and Sophisticated investors to raise gross proceeds of A$12.3 million, was completed today.

The second tranche of the Placement, comprising 1.7 million shares intended to be subscribed for by Directors, including 950,000 shares by the CEO, Mr Tony Swiericzuk, and 750,000 shares by the Company’s Chairman, Mr Ian Middlemas, will be issued subject to shareholder approval.

An Appendix 3B and Section 708A Notice is attached as required under the listing rules of the ASX.

As announced on 16 November 2018, application has been made for the admission to trading on AIM of the balance of the first tranche of the Placement, being 214,286 Salt Lake Potash Limited ordinary shares, with admission expected to take place on or around 22 November 2018

Shareholder Meeting

A General Meeting of the Company will be held at the Conference Room, Ground Floor, BGC Centre, 28 The Esplanade, Perth, Western Australia on Thursday 20 December 2018 at 10:00am (WST). The Meeting will consider the second tranche of the Placement as well as ratifying the first tranche of Placement shares and prior issue of options in order to refresh the Company’s placement capacity under ASX LR7.1 and LR7.1A.

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

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

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Salt Lake Potash #SO4 – Statement Regarding Online Article

Salt Lake Potash Limited (Salt Lake or the Company) is aware of an online article published by Cube Investments dated 10 November 2018 that includes a number of staged production targets and financial forecast information (including NPVs) for the Company’s Lake Way Project.

In July 2018, the Company completed a Scoping Study on the development of a 50,000tpa sulphate of potash (SOP) Demonstration Plant at Lake Way that supports a low capex, highly profitable, staged development model.

The Company has not reported NPV, IRR or EBITDA in respect of the Demonstration Plant at Lake Way, nor has it completed a Scoping Study (or other feasibility study) for any higher level of production at Lake Way.

The Company advises that it has not paid for, participated in or assisted with the drafting or reviewing of this article. The opinions in the article, including published targets and forecast financial information, are entirely those of the author only and are not endorsed by the Company.

The article was also republished by Brand Communications which is retained by the Company to provide online public and investor relations support. The Company did not approve the republication of the Cube Investments article, nor was it advised that the article would be republished. Investors and shareholders should not rely on the article as the basis for any investment decision in relation to Salt Lake shares.

The Company has requested the immediate removal of the article from the Brand Communications site. The Company will ensure that there are improved procedures in place to ensure that in future all material published on its behalf are approved by the Company.

Investors and shareholders should refer to the Company’s announcements, including the Lake Way Demonstration Plant Scoping Study dated 31 July 2018, when making an assessment of the Company and its projects.

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

 

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0)207 383 5100

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.

Salt Lake Potash #SO4 – Admission of Placement Shares

Salt Lake Potash Limited (“Salt Lake” or “the Company”) has applied for the admission to trading on AIM of a 29,035,714 million ordinary shares in the Company (“Ordinary Shares”) issued as part of the first tranche of the placement announced 9 November 2018. Admission of these Ordinary Shares is expected to take place on 19 November 2018

Application will be made for the admission of the balance of the first tranche, being 214,286 Ordinary Shares, with admission expected to take place on or around 22 November 2018.

Total Voting Rights

For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (“DTRs”), following admission of the 29,035,714 million Ordinary Shares, Salt Lake will have 204,085,310 Ordinary Shares in issue with voting rights attached. Following the subsequent admission of 214,286 Ordinary Shares, the Company will have 204,299,596 Ordinary Shares in issue with voting rights attached. Salt Lake holds no shares in treasury. These figures of 204,085,310  and 204,299,596 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

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

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel

Salt Lake Potash #SO4 – New issue announcement, application for quotation of additional securities and agreement

Salt Lake Potash Limited (“the Company”) today released the following announcement on the Australian Securities Exchange (“ASX”), as required under the listing rules of the ASX.

The 29,035,714 million ordinary shares in the Company (“Ordinary Shares”) issued today form part of the first tranche of the placement to institutional and sophisticated investors of 31.0 million  shares at an issue price of A$0.42 per share, to raise gross proceeds of A$13.0 million, announced 9 November 2018. The balance of the first tranche, being 214,286 shares, is expected to be issued next week.

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

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0)207 383 5100

For the full Appendix 3B announcement, link here

Salt Lake Potash #SO4 announces a A$13.0m Placement to Institutional & Sophisticated Investors to Fund Project Development

Salt Lake Potash Limited (the Company or Salt Lake) is pleased to announce that it has received strong commitments from both existing and new institutional and sophisticated investors in Australia and overseas to subscribe for 31.0 million new ordinary shares of the Company (Ordinary Shares), to raise gross proceeds of $13,000,000 (Placement). There was very strong demand for the Placement, an endorsement of the recent appointment of Tony Swiericzuk as CEO and also of the Company’s world class Sulphate of Potash project.

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

The cornerstone investor for the Placement is a significant international investment fund. Directors and senior management intend to subscribe for a total of 2.4 million shares in the Placement, including 952,381 shares by the CEO, Mr Tony Swiericzuk, and 750,000 shares by the Company’s Chairman, Mr Ian Middlemas, which will be issued subject to shareholder approval.

Commenting on the Placement, SO4’s CEO, Tony Swiericzuk, said: “We are very pleased to have received such strong support from new and existing shareholders to fund the construction of the initial on-lake infrastructure at Lake Way. These activities are on the critical path to enabling SO4 to become the first Australian commercial producer of SOP in a global sector with outstanding potential. This strong support from investors endorses our view that the Goldfields Salt Lakes Project has enormous potential for value creation and we now look forward to rapidly delivering on this potential for all shareholders and stakeholders.”

Argonaut Securities Pty Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Manager to the Placement.

The issue price of A$0.42 represents a 13.4% discount to the last closing price of $0.485 on ASX.

The Placement will be completed in two tranches as follows:

(a)      29,250,000 shares will be issued on 16 November 2018 under Listing Rule 7.1 (11,745,041 shares) and Listing Rule 7.1A (17,504,959 shares).  Following the issue of these shares the Company will have 7,612,398 remaining issue capacity under Listing Rule 7.1 and no remaining issue capacity under Listing Rule 7.1A.

(b)      1,702,381 shares intended to be subscribed for by Directors will be issued on or about Thursday 20 December 2018 subject to shareholder approval. A notice of general meeting will be sent to shareholders shortly.

Related Party transaction

The proposed participation in the Placement by Tony Swiericzuk, and Ian Middlemas constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The independent directors, having consulted the Company’s nominated adviser, Grant Thornton UK LLP, consider that the terms of the transaction are fair and reasonable insofar as the Company’s shareholders are concerned.

Settlement and dealings

Application will be made to the AIM Market of the London Stock Exchange (“AIM”) for 29,250,000 Ordinary Shares, pursuant to the Placement, which rank pari passu with the Company’s existing issued Ordinary Shares, to be admitted to trading. Dealings on AIM are expected to commence at 8:00am on or around 16 November 2018 (“Admission”).

Total Voting Rights

For the purposes of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (“DTRs”), following Admission, Salt Lake will have 204,299,596 Ordinary Shares in issue with voting rights attached. Salt Lake holds no shares in treasury. This figure of 204,299,596 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.

Information required under ASX Listing Rule 3.10.5A:

(a)      Dilution to existing shareholders as a result of the issue under Listing Rule 7.1A is 9.1%, dilution to existing shareholders as a result of the issue under Listing Rule 7.1 is 6.3% and the total dilution to existing shareholders is 14.3%. Details regarding the participation of existing and new shareholders is not able to be determined yet and will be provided at completion;

(b)      The Company will issue 17,504,959 shares under Listing Rule 7.1A because the Placement was considered to be a more efficient mechanism for raising funds. The Placement did not expose the Company to additional costs, a protracted process and market volatility that may have been experienced with a pro-rata issue or other type of issue in which existing ordinary shareholders would have been eligible to participate;

(c)      No underwriting arrangements are in place for the Placement under rule 7.1A; and

(d)      A fee of up to 6% may be paid to the Brokers/Advisors in connection with the Placement under rule 7.1A.

The voluntary halt of trading of the Company’s shares on ASX was lifted prior to the opening of trade on 9 November 2018, following an announcement to the market regarding the above. 

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

Tony Swiericzuk/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/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

 

Forward Looking Statements

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

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

Salt Lake Potash #SO4 – Appointment of Managing Director and CEO

Further to its announcement of 22 October 2018, Salt Lake Potash Limited (“the Company”) is pleased to advise that Mr Tony Swiericzuk has commenced as Managing Director and Chief Executive Officer effective today.

Further information as required by Rule 17 and Schedule 2 paragraph (g) of the AIM Rules for Companies, is set out below:

Tony James Swiericzuk, aged 45, is or has been a director of the following companies in the last five years:

Current Directorships/Partnerships

Past Directorships

N/A

FMG South America Pte Ltd

FMG Colombia Operations Pte Ltd

Colombia Fortescue SAS

FMG Ecaudor Operations Pte Ltd

FMG Ecuador Tenements Pte Ltd

 

There is no further information required to be disclosed pursuant to Schedule Two, paragraph (g) of the AIM rules.

Mr Swiericzuk has no shareholding in the Company but holds an indirect interest in 5 million incentive options and 7,266,258 performance rights. A copy of the Appendix 3X – Initial Directors Interest Notice lodged on ASX today is copied below.

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

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat
/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0)207 383 5100

 

Appendix 3X

Initial Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available.  Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity       Salt Lake Potash Limited

ABN                        98 117 085 748

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act. 

Name of Director

Tony Swiericzuk

Date of appointment

5 November 2018

Part 1 – Director’s relevant interests in securities of which the director is the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Number & class of securities

Nil

Part 2 – Director’s relevant interests in securities of which the director is not the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Name of holder & nature of interest

Note: Provide details of the circumstances giving rise to the relevant interest.

 

Mr Tony James Swiericzuk & Ms Beverley Jean Eaton Swiericzuk <Bevton Family A/C>

Number & class of Securities

 

 

 

1,000,000 incentive options (exercise price $0.60, vesting 4 November 2019, expiry date 1 November 2023)

2,000,000 incentive options (exercise price $1.00, vesting 4 November 2020, expiry date 1 November 2023)

2,000,000 incentive options (exercise price $1.20, vesting 4 November 2020, expiry date 1 November 2023)

7,266,258 unlisted performance rights (subject to various performance conditions to be satisfied prior to the relevant expiry dates between 31 July 2019 and 1 November 2023)

Part 3 – Director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract

Not applicable

Nature of interest

 

 

Not applicable

Name of registered holder

(if issued securities)

 

Not applicable

No. and class of securities to which interest relates

 

Not applicable

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

Salt Lake Potash #SO4 share options package for new CEO Tony Swiericzuk

Salt Lake Potash Limited #SO4 today released the following announcement on the Australian Securities Exchange (“ASX”), as required under the listing rules of the ASX.

The securities were issued to Mr Tony Swiericzuk (or his nominee) prior to his appointment as Managing Director & CEO on 5 November 2018.

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

Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Colin Aaronson/Richard Tonthat
/Ben Roberts

Grant Thornton UK LLP (Nominated Adviser)

Tel: +44 (0)207 383 5100

 

 

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement,

application for quotation of additional securities

and agreement

Information or documents not available now must be given to ASX as soon as available.  Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96  Origin: Appendix 5  Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

 SALT LAKE POTASH LIMITED

ABN

 98 117 085 748

We (the entity) give ASX the following information.

Part 1 ‑ All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1

+Class of +securities issued or to be issued

a)  Performance rights

b)  Incentive Options

c)  Incentive Options

d)  Incentive Options

2

Number of +securities issued or to be issued (if known) or maximum number which may be issued

a)  7,266,258

b)  1,000,000

c)  2,000,000

d)  2,000,000

3

Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

a)   Performance rights which are subject to various performance conditions to be satisfied prior to the relevant expiry dates between 31 July 2019 and 1 November 2023

b)   Incentive Options exercise price $0.60, expiry date 1 November 2023

c)   Incentive Options exercise price $1.00, expiry date 1 November 2023

d)   Incentive Options exercise price $1.20, expiry date 1 November 2023

4

Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?

If the additional +securities do not rank equally, please state:

·    the date from which they do

·    the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

·    the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

No – unlisted

5

Issue price or consideration

Nil



6

Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

a)  Issue of performance rights to the proposed new Managing Director pursuant to his service agreement with the Company and the Salt Lake Potash Limited Performance Rights Plan.

b)  – d) Issue of Incentive Options to the proposed new Managing Director pursuant to his service agreement with the Company.



6a

Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

If Yes, complete sections 6b – 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i



6b

The date the security holder resolution under rule 7.1A was passed



6c

Number of +securities issued without security holder approval under rule 7.1



6d

Number of +securities issued with security holder approval under rule 7.1A



6e

Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)

Nil



6f

Number of +securities issued under an exception in rule 7.2



6g

If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3?  Include the +issue date and both values.  Include the source of the VWAP calculation.

Not Applicable



6h

If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements



6i

Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements

7

+Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12).  For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.

8

Number and +class of all +securities quoted on ASX (including the +securities in section 2 if applicable)

9

Number and +class of all +securities not quoted on ASX (including the +securities in section 2 if applicable)

 

 

 

250,000

 

 

500,000

 

 

750,000

 

 

400,000

 

 

1,000,000

 

 

 

2,000,000

 

 

 

2,000,000

 

 

 

12,666,258

Class A Performance Shares

 

Class B Performance Shares

 

Class C Performance Shares

 

Incentive Options exercise price $0.40, expiry date 29 April 2019

 

Incentive Options exercise price $0.50, expiry date 29 April 2020

 

Incentive Options exercise price $0.60, expiry date 29 April 2021

 

Incentive Options exercise price $0.40, expiry date 30 June 2021

 

Incentive Options exercise price $0.50, expiry date 30 June 2021

 

Incentive Options exercise price $0.60, expiry date 30 June 2021

 

Incentive Options exercise price $0.70, expiry date 30 June 2021

 

Incentive Options exercise price $0.60, expiry date 1 November 2023

 

Incentive Options exercise price $0.60, expiry date 1 November 2023

 

Incentive Options exercise price $0.60, expiry date 1 November 2023

 

Performance rights which are subject to various performance conditions to be satisfied prior to the relevant expiry dates between 31 December 2018 and 1 November 2023

10

Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)

Part 2 ‑ Pro rata issue

11

Is security holder approval required?

12

Is the issue renounceable or non-renounceable?

13

Ratio in which the +securities will be offered

14

+Class of +securities to which the offer relates

15

+Record date to determine entitlements

16

Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?

17

Policy for deciding entitlements in relation to fractions

18

Names of countries in which the entity has security holders who will not be sent new offer documents

Note: Security holders must be told how their entitlements are to be dealt with.

Cross reference: rule 7.7.

19

Closing date for receipt of acceptances or renunciations

20

Names of any underwriters

21

Amount of any underwriting fee or commission

22

Names of any brokers to the issue

23

Fee or commission payable to the broker to the issue

24

Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of security holders

25

If the issue is contingent on security holders’ approval, the date of the meeting

26

Date entitlement and acceptance form and offer documents will be sent to persons entitled

27

If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders

28

Date rights trading will begin (if applicable)

29

Date rights trading will end (if applicable)

30

How do security holders sell their entitlements in full through a broker?

31

How do security holders sell part of their entitlements through a broker and accept for the balance?

32

How do security holders dispose of their entitlements (except by sale through a broker)?

33

+Issue date

 

Part 3 ‑ Quotation of securities

You need only complete this section if you are applying for quotation of securities

34

Type of +securities

(tick one)

(a)

+Securities described in Part 1

(b)

All other +securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

 

Additional securities forming a new class of securities

 

Tick to indicate you are providing the information or documents

35

If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

36

If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

37

A copy of any trust deed for the additional +securities

 

Entities that have ticked box 34(b)

38

Number of +securities for which +quotation is sought

39

+Class of +securities for which quotation is sought

40

Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?

If the additional +securities do not rank equally, please state:

·    the date from which they do

·    the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

·    the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

Not Applicable

41

Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another +security, clearly identify that other +security)

Not Applicable

Number

+Class

42

Number and +class of all +securities quoted on ASX (including the +securities in clause 38)

 

Quotation agreement

 

1              +Quotation of our additional +securities is in ASX’s absolute discretion.  ASX may quote the +securities on any conditions it decides. 

 

2              We warrant the following to ASX.

 

·              The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

 

·              There is no reason why those +securities should not be granted +quotation.

 

·              An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

·              Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.

·              If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.

 

3              We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

 

4              We give ASX the information and documents required by this form.  If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins.  We acknowledge that ASX is relying on the information and documents.  We warrant that they are (will be) true and complete.

 

Sign here:              …………………………………………………..     Date: 2 November 2018

                                (Director/Company secretary)

Print name:            Clint McGhie

== == == == ==

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12  Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

Insert number of fully paid +ordinary securities on issue 12 months before the +issue date or date of agreement to issue

175,049,596

Add the following:

•    Number of fully paid +ordinary securities issued in that 12 month period under an exception in rule 7.2

•    Number of fully paid +ordinary securities issued in that 12 month period with shareholder approval

•    Number of partly paid +ordinary securities that became fully paid in that 12 month period

Note:

•    Include only ordinary securities here – other classes of equity securities cannot be added

•    Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed

•    It may be useful to set out issues of securities on different dates as separate line items

 

 

Nil

Subtract the number of fully paid +ordinary securities cancelled during that 12 month period

Nil

“A”

175,049,596

Step 2: Calculate 15% of “A”

“B”

0.15

[Note: this value cannot be changed]

Multiply “A” by 0.15

26,257,439

Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used

Insert number of +equity securities issued or agreed to be issued in that 12 month period not countingthose issued:

•    Under an exception in rule 7.2

•    Under rule 7.1A

•    With security holder approval under rule 7.1 or rule 7.4

Note:

•    This applies to equity securities, unless specifically excluded – not just ordinary securities

•    Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed

•    It may be useful to set out issues of securities on different dates as separate line items

 

1,100,000 Incentive Options (28 November 2017)

 

800,000 Incentive Options (22 December 2017)

 

5,000,000 Incentive Options (2 November 2018)

“C”

6,900,000

Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1

“A” x 0.15

Note: number must be same as shown in Step 2

26,257,439

Subtract “C”

Note: number must be same as shown in Step 3

6,900,000

Total [“A” x 0.15] – “C”

19,357,439

 [Note: this is the remaining placement capacity under rule 7.1]

Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

“A”

Note: number must be same as shown in Step 1 of Part 1

175,049,596

Step 2: Calculate 10% of “A”

“D”

0.10

Note: this value cannot be changed

Multiply “A” by 0.10

17,504,959

Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used

Insert number of +equity securities issued or agreed to be issued in that 12 month period under rule 7.1A

Notes:

•    This applies to equity securities – not just ordinary securities

•    Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed

•    Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained

•    It may be useful to set out issues of securities on different dates as separate line items

Nil

“E”

Nil

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

“A” x 0.10

Note: number must be same as shown in Step 2

17,504,959

Subtract “E”

Note: number must be same as shown in Step 3

Nil

Total [“A” x 0.10] – “E”

17,504,959

Note: this is the remaining placement capacity under rule 7.1A

Salt Lake Potash (SO4) – September 2018 Quarterly Report and Appendix 5B

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

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

Highlights for the quarter and subsequently include:

APPOINTMENT OF MANAGING DIRECTOR / CEO

  • Highly regarded mining executive Tony Swiericzuk appointed as Managing Director and Chief Executive Officer of Salt Lake Potash effective 5 November 2018.
  • Mr Swiericzuk recently spent 9 years with Fortescue Metals Group, including as Director Business Development and Exploration, General Manager Christmas Creek Mine and General Manager Port.
  • Mr Swiericzuk’s initial focus will be the rapid development of Australia’s first SOP operation.

LAKE WAY

Maiden Resource for Lake Way

  • Measured mineral resource estimate of 32,000t SOP for the Williamson Pit Brine. The resource grade of 25kg/m3of SOP is easily the highest grade SOP brine resource in Australia.
  • Indicated resource estimate of 1,900,000t SOP calculated from Total Porosity (Stored) and 490,000t calculated from Drainable Porosity reported for the Blackham Resources tenements.

Scoping Study for Low Capex, High Margin Demonstration Plant

  • The Company completed a Scoping Study on the development of a 50,000tpa SOP Demonstration Plant at Lake Way that supports a low capex, highly profitable, staged development model, with total capital costs of approximately A$49m and average cash operating costs (FOB) of approximately A$387/t.
  • The Demonstration Plant is intended to validate the technical and commercial viability of brine SOP production from the GSLP, providing the basis to build a world class, low cost, long life SOP operation across the 9 lakes in the GSLP.

Process Testwork

  • Completed validation testwork that confirmed the process flowsheet to be used in the Lake Way Demonstration Plant Scoping Study.
  • A bulk field evaporation trial processing both Lake Way and Williamson Pit brine is ongoing, to confirm the modelled evaporation parameters and produce harvest salt samples for SOP production.

Geotechnical Investigations

  • The Company significantly progressed the design of the Williamson Ponds to dewater the Williamson Pit at Lake Way.

Approval to Construct Williamson Ponds

  • The Department of Mines, Industry Regulation and Safety (DMIRS) gave environmental approval for the pond system to dewater the Williamson Pit at Lake Way.

LAKE WELLS

MOU with Australian Potash to study sharing infrastructure and other costs at Lake Wells

  • The Company and Australian Potash Limited (ASX: APC) entered into a Memorandum of Understanding and Co-operation Agreement to undertake a joint study of the potential benefits of development cost sharing for each Company’s projects at Lake Wells.

Granting of Mining Lease

  • The Company’s first Mining Lease at Lake Wells covering 87.4 km2 was granted, a significant milestone in the Project’s development pathway.

LAKE BALLARD

  • A fieldwork programme of 38 test pits was completed over the extent of the lake area.  The test pits enabled geology, brine chemistry and hydraulic parameters to be understood. 
  • Commenced site evaporation trials to confirm pathway for salt production in field conditions.

SOP SAMPLE PRODUCTION

  • SOP granulation testwork produced initial samples for marketing and product quality assessment.
  • Testwork began in SLP’s in-house laboratory to replicate process flowsheet on larger batch scale. 

 

APPOINTMENT OF MANAGING DIRECTOR / CEO

Subsequent to the end of the quarter, the Company appointed Tony Swiericzuk as Managing Director and Chief Executive Officer (CEO), effective 5 November 2018.

Mr Swiericzuk is a Mining Engineer with outstanding credentials as a builder and operator of mining projects, having recently been General Manager of the Christmas Creek Mine from 2012 to 2017. He oversaw the construction, commissioning and ramp-up of this project from 15Mtpa to 60Mtpa in his initial 2 year period, then proceeded to optimise the operation and help drive FMG to become the world’s lowest cost iron ore producer.

In his initial years at FMG Mr Swiericzuk was General Manager Port Operations in Port Hedland and managed the ramp up from 20Mtpa to 60Mtpa from 2009 to 2011.

Mr Swiericzuk has the ideal operating and commercial experience to rapidly deliver on the exceptional potential of the Goldfields Salt Lakes Project (GSLP). The GSLP is a technically advanced, sustainable and highly scalable project to produce sought-after chlorine free fertilisers for the export and domestic markets.

Mr Swiericzuk’s diverse background in large scale logistics operations will be a substantial benefit to the development of the GSLP and he also intends to utilise the tried and proven methods which were essential in making FMG the lowest cost iron ore producer in the world.

Current CEO of the Company, Mr Matthew Syme, was integral to Mr Swiericzuk’s appointment and will remain a director and consultant to the Company, ensuring a seamless handover.

THE GOLDFIELDS SALT LAKES PROJECT

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

The GSLP has a number of important, favourable characteristics:

  • Very large paleochannel hosted brine aquifers at each Lake, with chemistry amenable to production of salts by solar evaporation for SOP production, extractable from both low cost trenches and deeper bores;
  • Over 3,300km2 of playa surface, with in-situ clays suitable for low cost on-lake pond construction;
  • Excellent evaporation conditions;
  • Excellent access to transport, energy and other infrastructure in the major Goldfields mining district;
  • Lowest quartile capex and opex potential based on the Lake Wells Scoping Study;
  • Clear opportunity to reduce transport costs by developing lakes closer to infrastructure and by capturing economies of scale;
  • Multi-lake production offers operational flexibility and diversification of risk from localised weather events;
  • The very high level of technical validation already undertaken at Lake Wells substantially applies to the other lakes in the GSLP; and
  • Potential co-product revenues, particularly where transport costs are lowest

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

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

A Scoping Study on the development of a 50,000tpa SOP Demonstration Plant at Lake Way was completed during the quarter, supporting a low capex, highly profitable, staged development model, with total capital costs of approximately A$49m and average cash operating costs (FOB) of approximately A$387/t.

LAKE WAY

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

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

The Company entered into a Memorandum of Understanding with Blackham in March 2018 to investigate the development of an SOP operation on Blackham’s existing Mining Leases at Lake Way, including, initially, a 50,000tpa Demonstration Plant.

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

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

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

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

Mineral Resource

A maiden Mineral Resource Estimate for Lake Way (Blackham tenements only) was estimated by Groundwater Science Pty Ltd, an independent hydrogeological consultant with substantial salt lake brine expertise.

Areas outside the Blackham tenements at Lake Way, including the remaining playa surface covered by SLP tenements and applications, were not considered as part of the Mineral Resource estimate and provide significant future upside to increase resources at Lake Way.

Table 1: Lake Way Project – Mineral Resource Estimate (JORC 2012)

Total Mineral Resource Estimate (Blackham tenements only)  

Sediment Hosted Brine – Indicated (94%)

Playa Area

Lakebed Sediment Volume

Brine Concentration

Mineral Tonnage Calculated from Total Porosity

Mineral Tonnage Calculated from Drainable Porosity

K

Mg

SO4

Total Porosity

Brine Volume

SOP Tonnage

Drainable Porosity

Brine Volume

SOP Tonnage

(km2)

(Mm3)

(kg/m3)

(kg/m3)

(Kg/m3)

(Mm3)

(kt)

(Mm3)

(kt)

55.4

290

6.9

7.6

28.3

0.43

125

1,900

0.11

31.9

490

 

Williamson Pit Brine – Measured (6%)

Brine Volume (Mm3)

Potassium Conc.   (kg/m3)

Magnesium Conc.   (kg/m3)

Sulphate Conc.  

(kg/m3)

SOP Tonnage (kt)

1.26

11.4

14.47

48

32

Scoping Study

In July 2018, the Company completed a Scoping Study on development of a 50,000tpa sulphate of potash (SOP) Demonstration Plant at Lake Way that supports a low capex, highly profitable, staged development model.

The Demonstration Plant is supported by the Indicated resource estimate of 1,900,000t SOP calculated from Total Porosity (Stored) and 490,000t calculated from Drainable Porosity, a multiple of the resource required to support a 50,000tpa Demonstration Plant for 2-3 years.

The Demonstration Plant will produce up to 50,000tpa of high quality, standard SOP from hypersaline brine extracted from Lake Way via a system of shallow trenches.

The extracted brine will be transported to a series of solar evaporation ponds built on the Lake where selective evapo-concentration will precipitate potassium double salts in the final evaporation stage. These potassium-rich salts will be mechanically harvested and processed into SOP in a purification and crystallisation plant. The final product will then be transported for sale to domestic and international markets.

The Company has previously tested and verified, at Lake Wells, all the major technical foundations for production of SOP from salt lake brine under actual site conditions and across all seasons. These technical achievements are broadly applicable across all the lakes in the GSLP and form part of the inputs into the Scoping Study.  Subsequent testing of salts generated from Lake Way brine at the Saskatchewan Research Council (“SRC”) (Canada) has confirmed the validity of the GSLP process flowsheet selected for the Lake Way Demonstration Plant.

The Scoping Study established the indicative costs of the Demonstration Plant to +/- 30% accuracy for Operating Costs and -10%/+30% for Capital Expenditure.

Major Study Parameters

Table 2:  Key Assumptions and Inputs 

Maximum Study Accuracy Variation

+/- 30%

Annual Production (steady state)

50,000tpa

Proportion of Production Target – Measured & Indicated

100%

Mineral Resource (Blackham Mining Leases)

SOP Resource (Total Porosity)

2Mt

SOP Resource (Drainable Porosity)

490,000t

Williamson Pit (Measured)

32,000t

Mining Method (Extraction)

Trenches – Average 5m deep

30km

Brine Delivery

595m3/h

Brine Chemistry (SOP Lake Brine only)

15kg/m3

Evaporation Ponds

Area

389ha

Halite Ponds (unlined)

308ha

Harvest Ponds (partially lined)

81ha

Recovery of Potassium from feed brine

63%

Recovery of Sulphate from feed brine

21%

Plant

Operating time (h/a)

7,950

Total Staffing

20

Operating Costs  (±30%)

Minegate

A$251/t

Transport and Handling

A$96/t

Royalties 1

A$40/t

Total Cash Costs (FOB)

A$387/t

Capital Costs (-10%/+30%)

Direct

A$37.3m

Indirect

A$5.2m

Growth Allowance

A$6.3m

Total Capital

A$48.9m

1    Royalties (State Government 2.5% and Other 4.5%)

* Operating costs do not include deprecation or sustaining capital. The Demonstration Plant is intended to operate for 2-3 years to validate the production model, and a successful Demonstration Plant will naturally then be intregrated into a larger production operation.

Capital Expenditure

The initial capital cost to develop the Demonstration Plant has been estimated at A$43 million (before growth allowance). Capital expenditure was estimated at an accuracy of -10% to +30%.

Table 3: Capital Costs

$Am

1.6

7.8

20.3

3.0

0.1

2.6

1.9

37.3

0.4

4.8

5.2

42.5

6.3

48.9

* Errors due to rounding

The benefits of Lake Way’s location are evident in the low Area and Regional Infrastructure capital costs. The availability of a wide flat playa area with amenable in-situ clays offers the opportunity to construct low capex evaporation ponds on the Lake.

Operating Costs

The operating cost estimates are based on an accuracy of ±30%.

Table 4: Operating Costs

Cost per tonne ($A)

Labour

 $    57

Power

 $    24

Maintenance

 $    22

Reagents

 $    14

Consumables

 $    81

Miscellaneous

 $    32

General and Administration

 $    21

Total (Operating Costs per tonne) Mine Gate

 $  251

Transportation

 $    96

Total (Operating Costs per tonne)

 $  347

Royalties (2.5% State Government and 4.5% Others)

$    40

Total Operating Cost per tonne

$  387

* Errors due to rounding

Ongoing Hydrogeological Testwork

Following the completion of the Scoping Study, pumping of four trenches continued (LYTR01, 02, 03 and 04).  Trenches 1 and 2 were pumped for approximately 90 days each and terminated in mid-September in order to observe recovery.  Pumping of trenches 3 and 4 continues, to observe recharge effects during the upcoming wet season.

The extended time of pumping enabled the reconfirmation of the specific yield parameters quoted in the Scoping Study.  The analysis of the final dataset from Trenches 1 and 2 is expected to provide good estimations of aquifer transmissivity and Drainable Porosity that will be key to the further development of the numerical groundwater model.

Throughout the trench testing a brine sample was taken from each trench on a weekly basis with the objective of identifying any variation in brine grade due to the pumping. The results obtained to date show minimal variation in brine grade as the pumping progressed.

Geotechnical Investigations

During the quarter, the Company significantly progressed design of the Williamson Ponds to dewater the Williamson Pit at Lake Way.

A Cone Penetration Test (CPT) rig completed a soil testing programme across the Williamson Pond footprint. Thirty-one CPT’s were undertaken to measure the strength and permeability characteristics of lakebed sediments. The CPT’s provided data to define the geotechnical parameters that are required for final pond analysis and design.

Detailed engineering of the Williamson Ponds commenced, with geotechnical design work completed including CPT data analysis, trafficability assessment, access road analysis, setup of seepage models, borrow pit assessments and development of the Pond construction methodology. Further analysis and design work will produce design drawings for the Ponds.

Civil engineering work also included topographical surveys of the pond and process plant site areas.

Given the unique design and site conditions, the Company is planning an Earthworks Trial as part of the early works construction activities. The trial will finalise earthworks equipment selection and refine the construction methodology for on-lake embankments.

The Company is progressing with the contractor selection process for dewatering of the Williamson Pit.

Mines Department Approval

SLP received environmental approval from the Department of Mines, Industry Regulation and Safety (DMIRS) for the pond system to dewater the Williamson Pit at Lake Way.

DMIRS has given environmental approval to construct ponds totalling up to 133Ha, as well as ancillary infrastructure and a trench to provide conditioning brine to manage the chemistry of the brine extracted from the Williamson Pit.

The Williamson Ponds will be the first operational scale SOP evaporation ponds built on a salt lake in Australia – an important part of the staged de-risking and development at Lake Way and across the Goldfields Salt Lakes Project.

Construction of the Williamson ponds will proceed upon:

·     completion of final engineering designs and contractor engagements;

·     completion of formal documents with Blackham to supersede the MOU (already substantially advanced); and

·     satisfaction of aboriginal heritage requirements. 

Process Testwork

Brine evaporation modelling, conducted by international solar pond experts, Ad Infinitum, indicated the salts produced at Lake Way through the natural evaporation process will be comparable to those produced at Lake Wells and therefore suitable for conversion into SOP. 

The Company executed a range of process development testwork to confirm the Ad Infinitum model and validate inputs to the Lake Way Scoping Study production model. The testwork uses both brines from the lake playa and the super-concentrated brines from the Williamson Pit.

The Lake Way Site Evaporation Trial (SET) continued to process significant volumes of both Lake and Williamson Pit brine. Assay results from samples collected at regular intervals are used to confirm the evaporation pathway aligns closely with predictions from the Company’s evaporation modelling.

Harvest salt from the laboratory evaporation of Lake Way brine was processed at SRC (Canada) to confirm the flowsheet for the Lake Way Demonstration Plant. The Lake Way flowsheet utilises the same unit operations as the previously piloted Lake Wells flowsheet, giving the company confidence that the process is robust and highly transferrable with only minor modifications to crush size.

LAKE WELLS

MOU with Australia Potash

In September 2018, Salt Lake entered into a Memorandum of Understanding and Co-operation Agreement with Australian Potash Limited (ASX: APC) to undertake a joint study of the potential benefits of development cost sharing for each Company’s project developments at Lake Wells.

The Companies’ substantial project holdings at Lake Wells are contiguous with many common infrastructure elements, including access roads, proximity to the Leonora rail terminals, and potential power and fresh water solutions. Both Companies anticipate substantial potential Capex and Opex benefits from some level of infrastructure sharing, with further potential benefits arising from shared or common evaporation and salt processing facilities.

The Companies have agreed to constitute a joint study team to carry out an initial assessment of the merits of infrastructure cooperation. The team will also conduct a high-level review of potential benefits of upstream operational synergies. A substantial part of the Study work will be outsourced to independent engineers and both Companies intend to continue with their independent project developments in parallel with the Study.

Mining Lease

The Company’s first Mining Lease at Lake Wells was granted in September 2018, a significant milestone in the Projects development pathway.

ML 38/1278 covers 87.4km2 in the south east corner of the Lake Wells project. The Mining Lease has an initial 21 year term.

LAKE BALLARD

Geological Interpretation

Lake Ballard project is located about 15 km north of Menzies. The playa is a significant regional landform with a surface area of over 626km2. The geology of Lake Ballard is similar to that encountered at other lakes in the Company’s GSLP.   

The Lake Ballard drainage is incised into the granite-greenstone basement and now in filled with a mixed sedimentary sequence. The lake bed sediments are underlain by a deeper paleochannel characterised by a sandy layer at its base.

The lake bed sediments comprise a mixed sequence of sands, clays and silts reflecting the climatic and depositional environment that created firstly the paleochannel and subsequently the lake.

At Lake Ballard the surficial deposits also include a highly consolidated sand layer between 1.5 and 3m depth.  This layer is non continuous across the lake and acts as a local aquiclude that results in a release of hydrostatic pressure and localised high flows when broken through.

Surface Aquifer Exploration Programme

The Company mobilised an amphibious excavator on Lake Ballard in July 2018 to complete a surface aquifer exploration programme.

The objective of the programme was to gather geological and hydrological data about the shallow brine aquifer hosted by the Quaternary alluvium stratigraphic sequence in the upper levels of the Lake. The programme is to evaluate the geology of the shallow lakebed sediments, and to undertake pumping trials to provide estimates of the potential brine yield from trenches in the shallow sediment and ultimately enable estimation of an indicated resource calculated from Total Porosity and Drainable Porosity. The excavator programme provides important geological and geotechnical information for potential construction of trenches and on-lake brine evaporation ponds.

Previous work in 2017 included the excavation of 163 test pits and 8 trenches and brine sampling. Work during the quarter included re-evaluation of gravity data to locate the deepest part of the paleochannel (the Thalweg), resampling and hydraulic testing of 38 test pits across the lake comprising 17 of the 2017 test pits at the eastern end of the lake and 21 new test pits located across the lake.  The new pits were logged geologically and all pits were sampled for brine chemistry and hydraulic testing.  In addition, 170 test pits from the 2017 and 2018 programmes were rehabilitated and one of the 2017 trenches extended to a total length of 180m.

The programme is ongoing and involves an auger drilling programme and trench testing.

Gravity Re-evaluation

The gravity data initially collected in 2017 was re-evaluated to identify the location of the Thalweg. Of particular interest was the eastern end where the channel crosses from Lake Ballard to the adjacent Lake Marmion. This assessment will facilitate the location of targets for future drilling.

Test Pits

38 test pits were assessed in 2018 to develop a greater understanding of the geology and brine chemistry across the lake. The pits were dug to 5m. In-situ samples were taken using Shelby tubes for 5 pits to assess total and drainable porosity of the sediment. Preliminary results of the data available are summarised in Table 5.

Table 5: Shelby Tube Porosity and Effective Porosity Results

Sample Id

Sample Depth (m)

Total Porosity (%)

Drainable Porosity (%)

LBTT 121

1

52.5

12.5

LBTT 121

2

60.1

14.7

LBTT 121

3

35.2

6.5

LBTT 121

4

43.1

11.9

LBTT 144

0.75

55.8

12.4

LBTT 144

1.75

58.2

12.5

LBTT 144

2.75

45.4

5.4

LBTT 155

0.75

59.9

10.6

LBTT 155

1.75

38.5

4.2

LBTT 155

2.75

26.7

5.7

Brine Chemistry

Over 140 brine samples have been analysed for Lake Ballard. Brine chemistry is reasonably uniform across the lake. 

All brine samples are considered to be composite samples representing the whole excavated or drilled depth at each location. Given the proposed abstraction techniques will involve trenches excavated to at least 4m across a large portion of the playa, the use of composite samples is representative of the brine that will be extracted.

Between 2017 and 2018, 142 brine samples were analysed from the test pits and trenches. The full suite of brine samples including their location is attached in Appendix 2. 

The spatial distribution of potassium concentration across the samples is reasonably consistent ranging from 1,040 to 2,460 mg/L. There are several low measurements of potassium, all of which relate to samples taken from test pits very close to the lake shore. At the lake shore there is the potential for local dilution following freshwater runoff onto the lake that may result in a localised area of lower brine concentration.

Auger Drilling

The Company commenced an auger drilling programme at Lake Ballard in September to obtain insitu samples for geological logging, porosity measurement, specific yield testing and brine sampling. The holes were drilled using a track mounted auger rig, capable of drilling to between 15 – 20m depth depending on ground conditions.

The programme consisted of a total of 15 holes at 11 locations. Location and total depth is outlined in Table 6. A brine sample was also recovered at each location. 

The core sample was collected using hollow stem augers within which a 1m plastic tube was inserted.  The plastic tubes were sealed immediately upon retrieval to prevent drying and loss of entrained brine.

The programme was successful with over 130m of core collected, from which 45 samples were selected for laboratory analysis of total and drainable porosity.  The core samples chosen for analysis were representative of the programme in terms of both location and depth interval from surface to total depth.

All core was delivered to Core Laboratories and the analysis will be completed and reported in the next quarter.

Table 6: Hole Locations and Depths

Hole ID

Easting

Northing

Depth (m)

Cased

Brine Sample

LBPAG01

319177

6731097

12.7

LBPAG02

318517

6731243

10.8

Yes

LBPAG03

315539

6733652

13

Yes

B800061,62

LBPAG04

311947

6733975

13.5

B800063,64

LBPAG05

307467

6735256

14.5

B800065,66

LBPAG06(a)

303547

6733253

5

LBPAG06(b)

304066

6733890

9

LBPAG07(a)

301092

6737570

4.5

B800067,68

LBPAG07(b)

300749

6937786

4

LBPAG07(c)

300443

6737940

3

LBPAG08

303139

6739647

10

Yes

B800069,70

LBPAG09(a)

299465

6741072

4

LBPAG09(b)

299174

6741053

4.5

LBPAG10

294859

6741331

11

Yes

B800071,72

LBPAG11

290355

6741953

15

Yes

B800073,74

 

Further Planned Work

The Company intends to undertake further work at Lake Ballard, including pumping of 2 test trenches to determine aquifer properties including hydraulic conductivity and Drainable Porosity.

EVAPORATION MODELLING

The Company continued to develop in-house capability to model evaporation pathways for lake brines under differing conditions to inform evaporation pond design and model salt production. An in-house modelling tool has been developed using a combination of standard engineering expressions and a well established and proven chemical-thermodynamic database.

SOP SAMPLE PRODUCTION

Perth Laboratory

The Company began the process of converting 10 tonnes of harvest salts collected from the Lake Wells SET into SOP samples at the Company’s in-house laboratory in Perth at the end of the quarter.  The process being used is based upon the flowsheet previously tested by SRC.

An initial 2 tonnes of salt were selected to represent a range of seasonal outputs from the SET. The process will initially be simulated through a series of batch operations to investigate the effects of seasonality on process performance.

The ultimate aim of the in-house work is to generate several hundred kilograms of lake-derived SOP product for assessment of quality and for marketing purposes. The operation also provides the Company’s process team valuable hands-on experience in the operation of a salt-brine process.    

Product Preparation

The Company is considering a range of product preparations for commercial scale production of SOP including standard (powder), compacted, spherical (granular) and soluble products.

During the quarter the Company engaged FEECO, USA to conduct granulation testwork using growth agglomeration techniques to generate a spherical fertilizer granule from Lake Wells produced SOP. The tests found that an attractive, 2mm to 4mm spherical SOP granule can be readily produced with the desired strength and physical properties. 

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

Matt Syme/Clint McGhie

Salt Lake Potash Limited

Tel: +61 8 9322 6322

Jo Battershill

Salt Lake Potash Limited

Tel: +44 (0) 20 7478 3900

Colin Aaronson/Richard Tonthat/
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

 

 

Competent Persons Statement

The information in this announcement that relates to Exploration Results for Lake Ballard 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.

The information in this announcement that relates to Process Testwork Results is extracted from the report entitled ‘June 2018 Quarterly Report’ dated 30 July 2018. This announcement is available to view on www.saltlakepotash.com.au. The information in the original ASX Announcement that related to Process Testwork Results was based on, and fairly represents, information compiled by Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM, a ‘Recognised Professional Organisation’ (RPO) included in a list promulgated by the ASX from time to time. Mr Jones is a Director of Salt Lake Potash Limited. Mr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Salt Lake Potash Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. Salt Lake Potash Limited confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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

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.

 

Appendix 1 – Summary of Exploration and Mining Tenements

As at 30 September 2018, the Company holds interests in the following tenements:

 

Project

Status

Type of Change

License Number

Interest (%)
1-Jul-18

Interest (%)

30-Sep-18

Western Australia

Lake Wells

Central

Granted

E38/2710

100%

100%

South

Granted

E38/2821

100%

100%

North

Granted

E38/2824

100%

100%

Outer East

Granted

E38/3055

100%

100%

Single Block

Granted

E38/3056

100%

100%

Outer West

Granted

E38/3057

100%

100%

North West

Granted

E38/3124

100%

100%

West

Granted

L38/262

100%

100%

East

Granted

L38/263

100%

100%

South West

Granted

L38/264

100%

100%

South

Granted

L38/287

100%

100%

South Western

Granted

E38/3247

100%

100%

South

Granted

Granted

M38/1278

100%

100%

Lake Ballard

West

Granted

E29/912

100%

100%

East

Granted

E29/913

100%

100%

North

Granted

E29/948

100%

100%

South

Granted

E29/958

100%

100%

South East

Granted

E29/1011

100%

100%

South East

Granted

E29/1020

100%

100%

South East

Granted

E29/1021

100%

100%

South East

Granted

E29/1022

100%

100%

Lake Irwin

West

Granted

E37/1233

100%

100%

Central

Granted

E39/1892

100%

100%

East

Granted

E38/3087

100%

100%

North

Granted

E37/1261

100%

100%

Central East

Granted

E38/3113

100%

100%

South

Granted

E39/1955

100%

100%

North West

Granted

E37/1260

100%

100%

South West

Granted

E39/1956

100%

100%

Lake Minigwal

West

Granted

E39/1893

100%

100%

East

Granted

E39/1894

100%

100%

Central

Granted

E39/1962

100%

100%

Central East

Granted

E39/1963

100%

100%

South

Granted

E39/1964

100%

100%

South West

Granted

E39/1965

100%

100%

Lake Way

Central

Granted

E53/1878

100%

100%

South

Application

E53/1897

100%

100%

Lake Marmion

North

Granted

E29/1000

100%

100%

Central

Granted

E29/1001

100%

100%

South

Granted

E29/1002

100%

100%

West

Granted

E29/1005

100%

100%

Lake Noondie

North

Granted

Granted

E57/1062

100%

100%

Central

Granted

Granted

E57/1063

100%

100%

South

Granted

Granted

E57/1064

100%

100%

West

Granted

Granted

E57/1065

100%

100%

East

Granted

Granted

E36/932

100%

100%

Lake Barlee

North

Granted

Granted

E30/495

100%

100%

Central

Granted

E30/496

100%

100%

South

Granted

E77/2441

100%

100%

Lake Raeside

North

Granted

Granted

E37/1305

100%

100%

Lake Austin

North

Application

E21/205

100%

100%

West

Application

E21/206

100%

100%

East

Application

E58/529

100%

100%

South

Application

E58/530

100%

100%

South West

Application

E58/531

100%

100%

Northern Territory

Lake Lewis

South

Granted

EL 29787

100%

100%

North

Granted

EL 29903

100%

100%

 

Appendix 2 – Lake Ballard Brine Sample Analysis

HOLE ID

Easting

Northing

TDS
(by calc)

Na

Ca

Mg

K

SO4

Cl

Solution
SG
(g/cm3)

Solution
pH

Sample Depth

LBPT002

325658

6731602

62100

1540

4550

1430

7110

112550

1.1082

Composite Sample

LBPT003

308700

6730471

55100

1660

4160

1360

6600

93200

1.1017

Composite Sample

LBPT004

302738

6744250

87900

834

8230

2050

9600

157950

1.1536

Composite Sample

LBPT005

302212

6743736

89900

1060

6550

2010

8130

154900

1.16776

Composite Sample

LBPT006

302212

6743736

89900

1080

6630

2020

8010

154550

1.17008

Composite Sample

LBPT007

302212

6743736

94900

974

7520

2170

8790

160850

1.176

Composite Sample

LBPT008

302212

6743736

92900

983

7460

2080

8820

159250

1.17392

Composite Sample

LBPT009

325586

6731856

271950

85500

883

9590

1780

8460

161400

1.18316

7.12

Composite Sample

LBPT010

325447

6732100

275850

86100

999

8080

2020

8250

160500

1.17792

6.95

Composite Sample

LBPT012

326492

6732881

278500

87000

864

9680

2100

8790

162100

1.18092

6.82

Composite Sample

LBPT013

319001

6727398

192550

63700

1070

4800

1450

5250

112050

1.12904

7.01

Composite Sample

LBPT014

277821

6735449

233450

76300

1120

5350

1840

6900

134450

1.14844

6.86

Composite Sample

LBPT015

278070

6735444

230400

74600

1160

4980

1750

6300

133900

1.15236

6.87

Composite Sample

LBPT016

319201

6727398

260500

83100

1140

7000

1850

7680

153500

1.17264

6.71

Composite Sample

LBPT017

308680

6730653

189500

62700

1060

4730

1440

5160

110800

1.12984

6.95

Composite Sample

LBPT018

308660

6730898

260150

83800

1140

7050

1860

7620

153500

1.17496

6.68

Composite Sample

LBPT019

301117

6725240

193450

61900

858

5960

1170

8310

113250

1.13496

6.81

Composite Sample

LBPT020

301140

6725500

199850

65900

1190

5730

1160

8940

115550

1.1362

6.99

Composite Sample

LBPT021

302640

6727058

255200

83700

1010

6790

1600

9030

149650

1.17316

6.47

Composite Sample

LBPT022

302354

6727064

257600

83600

999

6910

1700

9000

150700

1.17012

6.55

Composite Sample

LBPT023

304245

6745381

219950

74400

1280

5470

1730

6690

129700

1.1418

6.85

Composite Sample

LBPT024

304000

6745229

218700

74100

1190

5300

1770

6240

128850

1.13956

7

Composite Sample

LBPT025

302690

6744000

240100

78600

1050

6410

1850

7710

141100

1.15652

6.92

Composite Sample

LBPT026

302763

6743750

266400

85400

950

7420

1840

8880

155950

1.16004

6.78

Composite Sample

LBPT027

304000

6745229

189300

63000

1440

1400

7200

107000

1.1224

Composite Sample

LBTT011

324848

6734075

263350

86300

938

8380

2130

7350

159000

1.17812

6.67

Composite Sample

LBTT014

324869

6734673

208200

69500

892

5700

1770

5220

123250

1.1396

7.04

Composite Sample

LBTT015

324875

6734875

118100

40300

735

3210

1040

3510

70750

1.08432

7.01

Composite Sample

LBTT015

324875

6734875

170000

55400

800

4570

1360

4680

96200

1.107544

6.83

Composite Sample

LBTT015

324875

6734875

246073

98788

473

6035.2

3030

22417

155972

1.191

6.3

Composite Sample

LBTT016

324648

6734154

207650

70500

1050

5820

1770

5490

126600

1.14124

6.9

Composite Sample

LBTT017

324447

6734155

233400

81500

1050

7100

2040

6210

145850

1.16256

6.89

Composite Sample

LBTT018

324250

6734155

230650

82300

1070

6980

2060

6150

142200

1.13408

6.8

Composite Sample

LBTT019

324047

6734155

246850

86200

1040

7840

2140

7110

154250

1.17032

6.76

Composite Sample

LBTT019

324047

6734155

275500

89500

1100

8200

2130

7245

156150

1.171568

6.67

Composite Sample

LBTT020

323847

6734155

240150

80500

1080

7300

2050

6450

147250

1.15928

6.7

Composite Sample

LBTT021

323650

6734155

213000

73600

1140

6200

1870

5910

131150

1.17644

6.73

Composite Sample

LBTT022

323447

6734155

195000

66700

1080

5540

1760

5400

119600

1.1366

6.89

Composite Sample

LBTT023

323249

6734154

200650

66400

1070

5570

1730

5310

120300

1.13696

6.92

Composite Sample

LBTT024

323047

6734155

202400

66600

1050

5570

1740

5310

122200

1.13928

6.9

Composite Sample

LBTT024

323047

6734155

211000

67800

1060

5660

1670

5490

119200

1.131568

6.76

Composite Sample

LBTT025

323838

6734261

247650

87900

1120

7470

2200

7260

151100

1.164628

Composite Sample

LBTT026

323839

6734212

232200

82200

1160

6750

2140

6510

144150

1.17144

Composite Sample

LBTT027

323845

6734107

241750

83200

1090

7030

2110

6720

145000

1.172956

Composite Sample

LBTT028

323847

6734054

240600

81100

1170

6880

2110

6450

145000

1.141296

Composite Sample

LBTT030

322735

6730202

261050

90400

1200

7900

2350

7620

159150

1.183848

Composite Sample

LBTT031

322531

6730201

266250

89600

1180

7830

2160

7470

160050

1.093476

Composite Sample

LBTT031

322531

6730201

286000

88800

925

8940

1910

9180

161900

1.179036

6.68

Composite Sample

LBTT038

321137

6730178

282000

88650

958.5

8675

1810

9120

156925

1.175404

6.8

Composite Sample

LBTT043

320136

6730166

262350

88300

1050

8040

2040

8580

155650

1.110616

Composite Sample

LBTT046

320132

6730100

185600

63400

1570

5380

1490

7650

109450

1.13928

Composite Sample

LBTT047

320136

6730206

223850

74500

1310

6440

1720

8250

129300

1.175924

Composite Sample

LBTT050

318601

6728705

162200

60100

1440

3940

1390

5820

96900

1.186168

Composite Sample

LBTT053

319201

6728663

261900

91900

1120

7830

2040

9030

154200

1.1396

Composite Sample

LBTT054

319406

6728628

260600

88700

1100

7590

1980

8550

154400

1.08432

Composite Sample

LBTT055

319603

6728608

261800

90600

1210

7230

2080

7860

153850

1.17812

Composite Sample

LBTT055

319603

6728608

270000

85900

1070

8000

1880

8790

153150

1.169972

6.74

Composite Sample

LBTT056

319804

6728588

259750

90700

1010

7990

1900

9360

152600

1.14124

Composite Sample

LBTT057

320003

6728568

271000

94200

1130

7670

2180

8250

159350

1.16256

Composite Sample

LBTT058

320209

6728546

260050

90000

1310

6450

2170

6480

153500

1.13408

Composite Sample

LBTT059

320404

6728525

251900

93600

1070

7800

2000

9000

157550

1.17032

Composite Sample

LBTT060

320604

6728506

246250

88700

1110

7770

1940

8640

153500

1.15928

Composite Sample

LBTT061

320800

6728486

241550

86400

1060

7830

1960

8790

152800

1.17644

Composite Sample

LBTT061

320800

6728486

270000

89200

1190

7270

1970

7560

151600

1.171012

6.72

Composite Sample

LBTT063

321301

6728433

247000

89800

1090

7860

2110

8370

156700

1.1366

Composite Sample

LBTT064

321502

6728412

247650

89600

1150

7390

2080

8130

157050

1.13696

Composite Sample

LBTT065

321703

6728389

238450

88600

1280

6860

2070

7560

150150

1.170068

Composite Sample

LBTT068

319222

6730192

276000

88300

1000

8320

1930

8730

155450

1.17294

6.69

Composite Sample

LBTT068

319222

6730192

244564

96474

446

6273

3038

26015

152114

1.19

6.3

Composite Sample

LBTT071

318604

6730200

255650

93500

1030

7970

2170

8910

159700

1.179528

Composite Sample

LBTT072

318364

6731106

264350

94500

1070

7650

2100

9090

160400

1.1766

Composite Sample

LBTT073

318513

6731235

252350

92100

1060

7280

2020

8580

155800

1.093348

Composite Sample

LBTT073

318513

6731235

323000

92600

638

14400

3290

12800

174600

1.198072

6.55

Composite Sample

LBTT074

318664

6731366

259700

88900

1170

7020

1940

8400

153700

1.1235

Composite Sample

LBTT075

318810

6731492

266500

94200

1130

7280

2050

8400

158450

1.1642

Composite Sample

LBTT076

318936

6731596

249350

90400

1260

6610

2010

7800

151400

1.096176

Composite Sample

LBTT076

318936

6731596

241450

86600

1230

6570

1970

7650

150300

1.09778

Composite Sample

LBTT077

319077

6731719

251450

93400

1060

7440

2000

8640

156350

1.195852

Composite Sample

LBTT078

319224

6731844

247050

90000

1090

7360

1900

8430

155100

1.1211

Composite Sample

LBTT079

319344

6731947

255450

90100

1020

7540

1930

8580

158800

1.1566

Composite Sample

LBTT080

319491

6732075

252550

88800

1020

7880

1920

9270

155250

1.1841

Composite Sample

LBTT081

319626

6732190

247750

87100

1100

7830

1870

9600

151200

1.1644

Composite Sample

LBTT082

319787

6732309

248350

87300

1020

8170

1900

10000

150700

1.183732

Composite Sample

LBTT082

319787

6732309

247200

88300

1020

8230

1890

9600

151050

1.147

Composite Sample

LBTT083

319908

6732429

263600

91700

935

8690

1940

10200

157950

1.131

Composite Sample

LBTT084

320056

6732555

268350

91000

892

9080

1960

10700

158300

1.1101

Composite Sample

LBTT087

320625

6733158

276000

85700

988

8680

2010

9000

152650

1.177

6.87

Composite Sample

LBTT087

316105

6731412

244534

98413

458

5802.1

3357

22360

156523

1.193

6.2

Composite Sample

LBTT099

316105

6731412

268000

95200

978

7950

1980

8340

162250

1.1844

7.37

Composite Sample

LBTT099

316051

6731653

270000

85000

988

7500

1900

8280

149550

1.179

6.62

Composite Sample

LBTT099

316051

6731653

239387

90960

981

7834.6

2012

8917

157625

1.178

6.5

Composite Sample

LBTT100

315997

6731866

266000

90700

996

7950

2040

8100

160300

1.1776

6.99

Composite Sample

LBTT100

315997

6731866

266000

90700

996

7950

2040

8100

160300

1.1776

6.99

Composite Sample

LBTT101

315815

6732626

263000

88200

1020

7950

2040

8100

158200

1.1804

6.78

Composite Sample

LBTT103

315764

6732827

269000

93600

987

8340

2050

8970

162100

1.1808

6.79

Composite Sample

LBTT105

315704

6733021

280000

98700

862

8850

2070

9390

168200

1.1856

6.74

Composite Sample

LBTT106

315603

6733390

263000

94000

1060

7890

2030

8820

158050

1.1768

6.85

Composite Sample

LBTT107

315538

6733588

273000

95000

918

8550

2050

9360

164900

1.1868

6.81

Composite Sample

LBTT109

315395

6733959

272000

96800

935

8230

2030

9060

163150

1.184

6.73

Composite Sample

LBTT110

315395

6733959

259000

91700

1070

7490

2010

7890

155400

1.1756

6.69

Composite Sample

LBTT112

315314

6734154

269000

92700

959

8200

2080

8580

161550

1.1816

6.64

Composite Sample

LBTT112

315314

6734154

288000

89900

968

8240

2100

8220

158100

1.1846

6.81

Composite Sample

LBTT113

315240

6734314

278000

96500

909

8790

2160

8880

166300

1.1888

6.72

Composite Sample

LBTT114

316375

6734039

276000

96500

949

8500

2160

8970

165250

1.1872

6.79

Composite Sample

LBTT115

316375

6734039

265000

91100

1020

8080

2190

8190

158900

1.1772

6.8

Composite Sample

LBTT115

316521

6734168

279000

90000

1040

8050

2130

8430

149400

1.1825

6.72

Composite Sample

LBTT116

316962

6734577

261000

91100

1030

7550

2130

7680

156300

1.1688

6.67

Composite Sample

LBTT119

317399

6734975

273000

95600

1140

8120

2230

8220

163850

1.1728

6.6

Composite Sample

LBTT123

317694

6732520

258000

92800

1050

7450

2070

8190

154700

1.1552

6.59

Composite Sample

LBTT124

317839

6735385

279000

84500

988

7570

1940

8040

158950

1.1819

6.82

Composite Sample

LBTT125

317986

6735519

251000

85100

1070

7390

2030

7920

150150

1.1488

6.61

Composite Sample

LBTT126

318137

6735660

243000

85600

1330

6520

1960

6900

144900

1.1464

6.66

Composite Sample

LBTT127

318282

6735794

246000

87100

1290

6830

2050

7080

146650

1.1408

6.73

Composite Sample

LBTT128

318428

6735928

243000

87100

1300

6710

2040

7140

145450

1.1532

6.77

Composite Sample

LBTT129

318428

6735928

256000

88000

1180

7110

2080

7410

151900

1.1524

6.68

Composite Sample

LBTT129

318428

6735928

271000

87400

1120

7450

1990

7770

154200

1.169028

6.75

Composite Sample

LBTT131

313153

6737408

163000

58000

996

4420

1310

5250

96700

1.0964

6.98

Composite Sample

LBTT132

313132

6737224

258000

91800

1170

6850

2060

7110

153150

1.154

6.65

Composite Sample

LBTT133

313105

6737027

269000

94600

1020

7470

2060

8400

158750

1.1632

6.64

Composite Sample

LBTT133

313105

6737027

287000

90400

950

7920

1990

8550

157750

1.1838

6.68

Composite Sample

LBTT134

313082

6736829

271000

94300

1030

7490

2100

7740

161050

1.1616

6.63

Composite Sample

LBTT135

313051

6736634

270000

93400

1020

7390

2110

8160

159800

1.1684

6.68

Composite Sample

LBTT136

313029

6736432

263000

91400

1020

7460

2040

8040

156450

1.1652

6.63

Composite Sample

LBTT137

313004

6736240

312000

96500

853

9450

2460

8940

170850

1.1934

6.72

Composite Sample

LBTT142

312874

6735244

257000

89700

959

7650

1970

8340

152600

1.156

6.65

Composite Sample

LBTT142

312874

6735244

287000

92600

963.5

8140

2020

8880

159275

1.1761

6.73

Composite Sample

LBTT143

312850

6735049

261000

91600

968

7570

1950

8910

154900

1.1588

6.61

Composite Sample

LBTT144

312822

6734850

272000

85000

1080

7260

1890

8580

148400

1.1759

6.82

Composite Sample

LBTT145

312797

6734660

238000

86100

1090

6030

1780

7080

140700

1.1436

6.67

Composite Sample

LBTT149

313340

6733847

253000

84700

993

6650

1720

7710

147700

1.164

7.02

Composite Sample

LBTT150

313323

6733652

257000

86700

1060

6950

1750

8520

148400

1.166

6.78

Composite Sample

LBTT156

313143

6732468

270000

89800

939

7900

1860

9060

156650

1.1764

6.62

Composite Sample

LBTT165

308329

6738318

290000

91300

968

7780

2010

8310

157050

1.1789

6.59

Composite Sample

LBTT166

307463

6735246

278000

90200

1030

7450

1910

8880

152450

1.1722

6.7

Composite Sample

LBTT166

307463

6735246

238197

90335

986

7403.7

1911

9177

157074

1.177

6.6

Composite Sample

LBTT169

307397

6731029

279000

88000

1010

7510

1850

8670

151100

1.1764

6.66

Composite Sample

LBTT169

307397

6731029

238546

91021

973

7519.6

1853

9493

157074

1.177

6.5

Composite Sample

LBTT170

304632

6730314

261000

84100

1190

6600

1750

7920

146150

1.1633

6.75

Composite Sample

LBTT171

300652

6730490

276000

88100

1200

6720

1900

7380

151250

1.1811

6.75

Composite Sample

LBTT172

303546

6733252

286000

91600

1000

7320

2010

8040

158950

1.1836

6.53

Composite Sample

LBTT176

300602

6734536

275000

88800

959

7310

1750

9420

150950

1.1739

6.59

Composite Sample

LBTT181

298362

6736492

278000

90200

933

7240

1730

9150

155200

1.2208

6.64

Composite Sample

Note: Results indicated in italix are duplicate samples

APPENDIX 3 – JORC TABLE ONE

Section 1: Sampling Techniques and Data

CriteriaCriteria

JORC Code explanationJORC Code explanation

CommentaryCommentary

Sampling techniques

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

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

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

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

Sampling involved the excavation of 38 test pits over the tenement area to a depth of 4mbgl or weathered basement whichever was encountered first. 

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.

Drilling techniques

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

No drilling results are reported.  Test pits were dug with an excavator approximately 2m long x 1m wide x 4m deep.

 

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 storativity of the host rock, which will be determined during test pumping of trenches.

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 in situ material collected, including for instance results for field duplicate/second-half sampling.

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

No drilling results are reported.

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 programme 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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie 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 SLP.  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.

No drilling results reported.

All sampling and assaying is well documented and contained on SLP’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.

The Lake Ballard area was calculated by digitising the lake surface and removing the area covered by the islands the approximate area is 626km2.  38 test pits were excavated over the lake surface resulting in 1 excavation per 16.47Km2. Which whilst it is a low density of investigation for a salt-lake it is sufficient to establish variations in brine content.

Sample compositing has not been 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.

There are no structural or geological controls with respect to sampling the lake bed sediments. 

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

Sample security

The measures taken to ensure sample security.

SLP field geologists were responsible for collecting, sealing and labelling brine and Shelby tube samples prior to shipping to the Perth labs and the SLP 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.

No audits or review of sampling techniques have been undertaken.  The brine chemistry data has been reviewed for charge balance.

 

Section 2: Reporting of Exploration Results

CriteriaCriteria

JORC Code explanationJORC 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 Ballard project area is covered by Exploration licences E29/0912, E29/1011, E29/1022, E29/0958, E29/1021, E29/0948, E29/1020 and E29/0913.

All tenements are held by Piper Preston Pty Ltd, a wholly owned subsidiary of Salt Lake Potash Limited.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

No previous work has been carried out on Lake Ballard for potash exploration.

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:

o   easting and northing of the drill hole collar

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

o   dip and azimuth of the hole

o   down hole length and interception depth

o   hole length.

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

No drill results are reported. 

38 test pits and 8 trenches were excavated on the lake surface.

All test pit locations are presented in the report.

Data aggregation methods

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

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

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

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.

Relationship between mineralisation widths and intercept lengths

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

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

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

The 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 all test pits were excavated into the lake sediments to a depth of 4m or basement, 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 report.

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.

A summary of the average of all brine results has been included in the body of the report.

The total and drainable porosity results for 4 test pits where Shelby tube insitu samples were taken are included in the body of the report.

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 available at the time of writing has been reported.

Further work

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

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

Trench tests will commence and be concluded in Q2, an auger drilling programme will be completed and the results reported in Q2.

 

 

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

END

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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

Name of entity

Salt Lake Potash Limited

ABN

Quarter ended (“current quarter”)

98 117 085 748

30 September 2018

Consolidated statement of cash flows

Current quarter $A’000

Year to date

 (3 months)
$A’000

1.

Cash flows from operating activities

1.1

Receipts from customers

1.2

Payments for

(1,633)

(1,633)

(a)   exploration & evaluation

(b)   development

(c)   production

(d)   staff costs

(610)

(610)

(e)   administration and corporate costs

(182)

(182)

1.3

Dividends received (see note 3)

1.4

Interest received

34

34

1.5

Interest and other costs of finance paid

1.6

Income taxes paid

1.7

Research and development refunds

1.8

Other (provide details if material)
– Business Development

(224)

(224)

1.9

Net cash from / (used in) operating activities

(2,615)

(2,615)

2.

Cash flows from investing activities

(122)

(122)

2.1

Payments to acquire:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.2

Proceeds from the disposal of:

(a)   property, plant and equipment

(b)   tenements (see item 10)

(c)   investments

(d)   other non-current assets

2.3

Cash flows from loans to other entities

2.4

Dividends received (see note 3)

2.5

Other (provide details if material)

2.6

Net cash from / (used in) investing activities

(122)

(122)

3.

Cash flows from financing activities

3.1

Proceeds from issues of shares

3.2

Proceeds from issue of convertible notes

3.3

Proceeds from exercise of share options

3.4

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

3.5

Proceeds from borrowings

3.6

Repayment of borrowings

3.7

Transaction costs related to loans and borrowings

3.8

Dividends paid

3.9

Other (provide details if material)

3.10

Net cash from / (used in) financing activities

4.

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

5,709

5,709

4.1

Cash and cash equivalents at beginning of period

4.2

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

(2,615)

(2,615)

4.3

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

(122)

(122)

4.4

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

4.5

Effect of movement in exchange rates on cash held

4.6

Cash and cash equivalents at end of period

2,972

2,972

5.

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

Current quarter
$A’000

Previous quarter
$A’000

5.1

Bank balances

1,259

1,596

5.2

Call deposits

1,713

4,113

5.3

Bank overdrafts

5.4

Other (provide details)

5.5

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

2,972

5,709

6.

Payments to directors of the entity and their associates

Current quarter
$A’000

6.1

Aggregate amount of payments to these parties included in item 1.2

(127)

6.2

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

6.3

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

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

7.

Payments to related entities of the entity and their associates

Current quarter
$A’000

7.1

Aggregate amount of payments to these parties included in item 1.2

7.2

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

7.3

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

Not applicable.

8.

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

Total facility amount at quarter end
$A’000

Amount drawn at quarter end
$A’000

8.1

Loan facilities

8.2

Credit standby arrangements

8.3

Other (please specify)

8.4

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

Not applicable

9.

Estimated cash outflows for next quarter

$A’000

9.1

Exploration and evaluation

950

9.2

Development

9.3

Production

9.4

Staff costs

500

9.5

Administration and corporate costs

150

9.6

Other (provide details if material)
– Business Development

150

9.7

Total estimated cash outflows

1,750

10.

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

Tenement reference and location

Nature of interest

Interest at beginning of quarter

Interest at end of quarter

10.1

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

Refer to Appendix 1

10.2

Interests in mining tenements and petroleum tenements acquired or increased

Compliance statement

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

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

Sign here:         ……………………………………………………                        Date: 31 October 2018

(Director/Company secretary)

Print name:       Clint McGhie

Notes

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

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

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

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

END

Align Research – New Salt Lake Potash #SO4 MoU with Sinofert highlights potential upside

Investors woke up to a cracking announcement from Salt Lake Potash (AIM:SO4) this morning concerning a Memorandum of Understanding (MOU) for an Offtake Agreement with the Chinese fertiliser giant Sinofert Holdings Limited. The MOU sets out the basis for the second Offtake Agreement for SO4’s potentially vast Goldfields Salt Lakes Project (GSLP) for an initial 8 year term, beginning in January 2020.

This latest Offtake Agreement will provide Sinofert with sales and offtake rights for up to 50% of ALL Sulphate of Potash (SOP) production from across all the nine vast lakes in Western Australia which comprise the GSLP. In all, GSLP hosts a drainable exploration target of over 150Mt of SOP.

Soon, SO4 is planning to begin the construction of the Demonstration Plant at GSLP to produce 50,000 tpa of high-quality SOP, with the production being distributed by a handful of global distribution partners. Once the Demonstration Plant is up and running, the team has well-developed plans to progressively expand production across a number of the lakes within the GSLP. This is SO4’s second offtake agreement, having already entered into an agreement with Mitsubishi Corp for sales and offtake rights to 50% of the SOP production from the 50,000 tpa Demonstration Plant.

It worth taking a closer look at Sinofert which is the largest fertiliser company in China, with businesses encompassing the complete fertiliser industry chain. In all, this well-established fertiliser giant handles something like 13Mtpa of fertilisers as well as being the biggest fertiliser importer into China. Hong Kong-listed Sinofert is capitalised at over US$1 billion and is majority-owned by Sinochem Corporation, a Chinese State Owned Enterprise.

This deal serves to underline the viability and the economics of SO4’s vast high-grade SOP brine projects in Western Australia. Investors should realise that SOP represents a premium sustainable potash fertiliser which currently sells at more than double the price of the more commonly used MOP. With SOP being a high value fertiliser which is increasing being favoured by global demographics and in the shift to high value speciality crops such as citrus, potatoes, nuts, strawberries, mangoes, tomatoes, coffee, tobacco, spinach and peas.

Read the full Align research article here

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