TIDMSO4
RNS Number : 6028N
Salt Lake Potash Limited
21 May 2020
21 May 2020 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
PALEOCHANNEL BORE EXHIBITS STRONG FLOW RATES AND HIGH GRADES
Salt Lake Potash Limited (SO4 or the Company) is pleased to
announce positive results from the pumping of its paleochannel
brine extraction bore at Lake Way.
HIGHLIGHTS
-- Pumping of the initial brine extraction bore drilled into the
Lake Way paleochannel delivered flow rates of 18 litres per second
with a consistent Potassium grade of 7,100mg per litre (15.9kg/m(3)
SOP), sustained over a 17 day period.
-- The results are significantly above average flow rates used
in the Bankable Feasibility Study (BFS) announced 11 October 2019
of 8.4 litres per second (per bore) and average interpolated brine
grades within the paleochannel of 6,100mg per litre (13.7kg/m(3)
SOP).
-- Drawdown of brine observed in monitoring bores located next
to the pumping bore aligned with hydrogeological assumptions used
in the BFS.
-- The response to pumping observed in a monitoring bore 1.6 km
away indicates continuity of the aquifer, whilst brine samples also
indicate a consistent grade within this zone of the
paleochannel.
-- Two additional brine extraction bores have been completed
along the paleochannel with pumping expected to commence in the
near term. In each case the primary basal sand aquifer was
encountered in line with our geological model prediction.
TONY SWIERICZUK, Chief Executive Officer
"Strong results from pumping our first brine abstraction bore
validates work undertaken as part of the BFS and highlights the
value of the paleochannel resource which will be a significant
contributor of brine supply to our ponds over the life of the
project."
paleochannel drilling
In April SO4 commenced drilling its first brine extraction bore
into the paleochannel basal sands at Lake Way.
The bore was located at Pad 17 with two monitoring bores also
drilled adjacent. Test pumping was sustained over a 17 day
period.
During the test pumping, brine samples were taken every 24
hours. Potassium and Sulphate grades were consistent throughout,
averaging 7,100mg per litre and 29,700mg per litre respectively
(15.9kg/m(3) SOP) . The 17 day duration of the test and constant
pumping rate of 18 litres per second was sufficient to stress the
aquifer and to model the longterm aquifer response to pumping.
Brine levels were measured in all three bores at Pad 17 and also
in a monitoring bore at Pad 21 approximately 1.6km to the
North.
Drawdown observed in the monitoring bores located at Pad 17
demonstrated that brine flow is sourced from lateral flow within
the basal sand aquifer as well as from downward vertical leakage
from the overlying paleovalley clays. This is consistent with
modelling assumptions set out in the BFS.
Furthermore, drawdown was observed in the monitoring bore at Pad
21, indicating a strong continuity of flow and grade within this
zone of the paleochannel. A brine sample taken from the monitoring
bore at Pad 21 reported a grade of 7,230mg per litre Potassium
(16.2kg/m(3) ) and 29,500 mg per litre Sulphate, consistent with
that seen at Pad 17.
In the months ahead SO4 will drill and test pump further brine
extraction bores along the Eastern side of Lake Way. During May
bores have been completed at Pads 8 and 21, with test pumping
expected to be completed in the near term. In each case the primary
basal sand aquifer was encountered in line with our geological
model prediction.
Bore Name Drilled Casing Intersected Modelled Easting Northing Elevation
Depth Diameter and Screened Sand interval (mahd)
(m) (mm) Interval
(mbgl)
------------------------- -------- ---------- -------------- --------------- -------- --------- ----------
92.5 -
Pad 17: Pumping 113 255 94.4 - 112.4 111 239817 7040119 491
------------------------- -------- ---------- -------------- --------------- -------- --------- ----------
92.5 -
Pad 17: Deep Monitoring 115 153 95 - 113 111 239804 7040107 491
------------------------- -------- ---------- -------------- --------------- -------- --------- ----------
Pad 17: Shallow 92.5 -
Monitoring 72 50 66.2 - 72.2 111 239812 7040119 491
------------------------- -------- ---------- -------------- --------------- -------- --------- ----------
90.5 -
Pad 21: Deep Monitoring 114 255 93 - 111 109 238761 7041336 493
------------------------- -------- ---------- -------------- --------------- -------- --------- ----------
Pad 8: Deep Monitoring 114 153 99 - 111 88 - 104 251766 7028264 492
------------------------- -------- ---------- -------------- --------------- -------- --------- ----------
Note: Drilled depth equates to end of hole and all holes are
vertical.
Table 1: Paleochannel drilling summary
For further information or to view a full version of this
announcement, please visit www.so4.com.au or contact:
Tony Swiericzuk / Richard Knights Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson / Richard Tonthat / Seamus Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Fricker
Derrick Lee / Peter Lynch Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907 8500
This announcement has been authorised for release by the
Company's Managing Director, Mr Tony Swiericzuk.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Appendix A - Competent Person Statement and Disclaimer
Competent Persons Statement
The information in this announcement that relates to Exploration
Results for Lake Way is based on, and fairly represents,
information compiled by Mr Ben Jeuken, who is a member of the
Australasian 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.
Forward Looking Statements
This announcement may include forward-looking statements. These
forward-looking statements are based on Salt Lake Potash'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, which could cause actual results to differ materially from
such statements. Salt Lake Potash 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.
APPIX B - JORC CODE, 2012 EDITION - TABLE 1
Section 1 - Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Drill cuttings were
* Nature and quality of sampling (e.g. cut channels, sampled every 2m. The mud
random chips, or specific specialised industry rotary method used means
standard measurement tools appropriate to the that the samples are
minerals under investigation, such as downhole gamma only considered
sondes, or handheld XRF instruments, etc.). These representative of the
examples should not be taken as limiting the broad geology which is
meaning of sampling. sufficient for the
purposes of planning
the construction of the
* Include reference to measures taken to ensure sample brine pumping bore in
presentively and the appropriate calibration of any this instance.
measurement tools or systems used.
A brine sample and
duplicate were taken from
* Aspects of the determination of mineralisation that every bore after
are Material to the Public Report. development. Brine
samples and
duplicates were taken
* In cases where 'industry standard' work has been done, from the pumping bore at
this would be relatively simple (e.g. 'reverse 1 hour after pumping
circulation drilling was used to obtain 1 m samples commenced, 24 hours after
from which 3 kg was pulverised to produce a 30 g pumping commenced and
charge for fire assay'). In other cases, more every 24 hours for the
explanation may be required, such as where there is remainder of the test
coarse gold that has inherent sampling problems. duration.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed Samples were taken
information. manually from a sampling
valve on the side of the
pump headworks. Prior
to taking the sample the
bottle was rinsed with
brine from the pumping
bore.
Samples were analysed for
K, Mg, Ca, Na, Cl, SO(4)
, HCO(3) , NO(3) , pH,
TDS and specific
gravity.
Test pumping entailed
pumping from 90m below
ground level (4m above
the top of the screens)
using a submersible
electric pump.
Water levels in the
pumping bore and
monitoring bores were
measured manually and by
pressure
transducers with
barometric pressure and
brine density correction.
------------------------------------------------------------- --------------------------
Drilling techniques Mud rotary drilling was
* Drill type (e.g. core, reverse circulation, open-hole used in all cases. The
hammer, rotary air blast, auger, Bangka, sonic, etc.) pumping bore at Pad 17
and details (e.g. core diameter, triple or standard and the monitoring bore
tube, depth of diamond tails, face-sampling bit or at Pad 21 were drilled to
other type, whether core is oriented and if so, by 113m - 114m depth at 15"
what method, etc.). diameter and completed
with 10" PVC casing
and wire wrap screens.
18m of screen were placed
in the Pad 17 bore from
94.5mbgl to 112.5mbgl
and in the Pad 21 bore
from 93 - 111mbgl. The
annulus was gravel packed
with 1.6 - 3.2mm washed
gravel from total depth
to 10m above the screens
a cement plug was
installed from 74mbgl to
84mbgl and the bore
backfilled with gravel to
surface where a 6m
sanitary cement seal was
emplaced..
The deep monitoring bores
at Pads 17 and 8 were
drilled to 114m - 115m
depth at a diameter
of 9 7/8" and cased with
6" slotted and blank PVC,
the bore was gravel
packed to the surface
using 1.6 - 3.2mm washed
gravel. A 6 m sanitary
cement seal was emplaced
at the surface.
The clay monitoring bore
was drilled to 73.5mbgl
to a diameter of 6". It
was completed with
6m of 50mm PVC screen at
the base (66.2mbgl to
72.2mbgl) - and blank
50mm PVC to surface.
The bore was gravel
packed with 1.6 - 3.2mm
washed gravel and a neat
cement seal with 5%
bentonite
was installed via tremmie
between 52 and 62m.
All bores were developed
using airlift techniques
including surging until
the discharge was
clear of drill muds and
sand .
------------------------------------------------------------- --------------------------
Drill sample recovery Drill cutting were
* Method of recording and assessing core and chip collected at the top of
sample recoveries and results assessed. the hole using a sieve
every 2m. Chip trays were
also completed for future
* Measures taken to maximise sample recovery and ensure reference.
representative nature of the samples.
The sample provides an
indication of the
* Whether a relationship exists between sample recovery lithology only. There is
and grade and whether sample bias may have occurred not a relationship
due to preferential loss/gain of fine/coarse between
material. the geology and brine
grade.
Flow and grade cannot be
sampled during drilling
when the mud rotary
method is used.
------------------------------------------------------------- --------------------------
Logging The geological logging is
* Whether core and chip samples have been geologically sufficient for the
and geotechnically logged to a level of detail to purposes of identifying
support appropriate Mineral Resource estimation, variations in sand/ clay
mining studies and metallurgical studies. and silt fraction within
the paleochannel
lithology.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography. For a brine abstraction
project, the key
parameters are the
* The total length and percentage of the relevant hydraulic conductivity
intersections logged. and storativity
of the host rock, which
will be determined during
test pumping of the
trenches.
The logging is
qualitative.
The entire bore depth was
logged in every case.
------------------------------------------------------------- --------------------------
Sub-sampling techniques Not applicable, mud
and sample preparation * If core, whether cut or sawn and whether quarter, rotary drilling.
half or all core taken.
Not applicable, cutting
sampled at the borehead
* If non-core, whether riffled, tube sampled, rotary only.
split, etc. and whether sampled wet or dry.
The brine samples were
taken after airlift
* For all sample types, the nature, quality and development when each
appropriateness of the sample preparation technique. bore was clear of
drilling
mud and residual sand.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of Brine samples and
samples. duplicates were taken
during the test pumping
at approximately 11am
* Measures taken to ensure that the sampling is each
representative of the insitu material collected, day of the test pump in
including for instance results for field order to identify any
duplicate/second-half sampling. variation in brine grade
during the test pump
duration.
* Whether sample sizes are appropriate to the grain
size of the material being sampled. All the samples taken
were incorporated into a
rigorous QA / QC program
in which Standards
and Duplicates were
taken. The samples were
taken in sterile plastic
bottles of 125ml or 250ml
capacity. The samples
were labelled with the
alphanumeric code Y20001,
Y80002 ...etc.
------------------------------------------------------------- --------------------------
Quality of assay data and The brine samples were
laboratory tests * The nature, quality and appropriateness of the sent to Bureau Veritas
assaying and laboratory procedures used and whether Laboratories in Perth, WA
the technique is considered partial or total. with the duplicates
being held by SO4. Every
10th duplicate was sent
* For geophysical tools, spectrometers, handheld XRF to Intertek, an alternate
instruments, etc., the parameters used in determining laboratory for
the analysis including instrument make and model, comparison purposes.
reading times, calibrations factors applied and their
derivation, etc. No analysis was
undertaken with
geophysical tools.
* Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory QA/ QC procedures are
checks) and whether acceptable levels of accuracy considered acceptable for
(i.e. lack of bias) and precision have been this type exploration and
established. sampling.
------------------------------------------------------------- --------------------------
Verification of sampling Not applicable for brine
and assaying * The verification of significant intersections by sampling.
either independent or alternative company personnel.
Not applicable, however
monitoring bores have
* The use of twinned holes. been drilled to measure
changes in water levels
during test pumping.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and All sampling and assaying
electronic) protocols. is well documented and
contained on SO4's
internal database.
* Discuss any adjustment to assay data.
No adjustments have been
made to assay data.
------------------------------------------------------------- --------------------------
Location of data points All coordinates were
* Accuracy and quality of surveys used to locate drill collected by handheld
holes (collar and down-hole surveys), trenches, mine GPS.
workings and other locations used in Mineral Resource
estimation. The grid system is the
Australian National Grid
Zone MGA 51 (GDA 94).
* Specification of the grid system used.
There is no specific
topographic control as
* Quality and adequacy of topographic control. the depth of the hole is
determined by the
intersection
of the target horizon and
the end of the hole by
the basement contact.
------------------------------------------------------------- --------------------------
Data spacing and The results provided
distribution * Data spacing for reporting of Exploration Results. represent a single point.
However, when this data
point is incorporated
* Whether the data spacing and distribution is with previous resource
sufficient to establish the degree of geological and declarations it confirms
grade continuity appropriate for the Mineral Resource previous assumptions and
and Ore Reserve estimation procedure(s) and results.
classifications applied.
The data spacing and
degree of grade
* Whether sample compositing has been applied. continuity is not
sufficient to upgrade the
current resource
estimate, however it does
confirm the current
estimate.
Sample compositing not
applicable .
------------------------------------------------------------- --------------------------
Orientation of data in The target aquifers are
relation to geological * Whether the orientation of sampling achieves unbiased contained within
structure sampling of possible structures and the extent to paleovalleys incised into
which this is known, considering the deposit type. the granitic or
greenstone
basement. There are no
* If the relationship between the drilling orientation structural controls that
and the orientation of key mineralised structures is impact brine flow within
considered to have introduced a sampling bias, this the basal sand aquifer.
should be assessed and reported if material.
Geological influence on
the brine is limited to
the aquifer parameters of
the host rock, namely
the hydraulic
conductivity, total
porosity and storativity.
------------------------------------------------------------- --------------------------
Sample security SO4 field geologists were
* The measures taken to ensure sample security. responsible for bagging
and tagging brine samples
prior to shipping
to the BV lab in Perth
and the SO4 offices. The
security measures for the
material and type
of sampling at hand was
appropriate.
------------------------------------------------------------- --------------------------
Audits or reviews No audits or reviews of
* The results of any audits or reviews of sampling sampling techniques and
techniques and data. data have been
undertaken.
------------------------------------------------------------- --------------------------
Section 2 - Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land Bore Pads 17, 21 and 8 are
tenure status * Type, reference name/number, location and ownership on E53/1878.
including agreements or material issues with third
parties such as joint ventures, partnerships, All tenure is granted to
overriding royalties, native title interests, Piper Preston Pty Ltd, a
historical sites, wilderness or national park and wholly owned subsidiary of
environmental settings. Salt Lake Potash
Limited.
* 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.
------------------------------------------------------------ ---------------------------
Exploration done by other There has been significant
parties * Acknowledgment and appraisal of exploration by other mineral exploration on and
parties. around Lake Way. The
primary source
for the information is the
publicly available Western
Australian Mineral
Exploration (WAMEX)
report data base.
The majority of previous
work has been concerned
with investigating the
bedrock and calcrete
for gold and uranium, and
it is of limited value in
defining the stratigraphy
of the lakebed
sediments. The data has
been shown to be useful in
the determination of the
top of the paleochannel
basal sand and for the
calibration of the passive
seismic data.
Some bores drilled by WMC
in 1992 for the Mt Keith
mine water supply have
proved useful in
determining paleochannel
grade and aquifer
parameters.
------------------------------------------------------------ ---------------------------
Geology The deposit is a
* Deposit type, geological setting and style of paleochannel brine deposit
mineralisation. lying beneath the eastern
shore of Lake Way.
The lake and paleochannel
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 Bore coordinates and
* A summary of all information material to the elevations were located
understanding of the exploration results including a using a hand held GPS
tabulation of the following information for all which is sufficient for
Material drill holes: this type of exploration
activity.
* easting and northing of the drill hole collar All bores are vertical.
Total drilled depths,
* elevation or RL (Reduced Level - elevation above sea basal sand interceptions
level in metres) of the drill hole collar and screened intervals are
included in a table
in the text for the
* dip and azimuth of the hole abstraction bores and deep
monitoring bores. The
screened interval is
* downhole length and interception depth also stated for the clay
monitoring bores.
* 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.
------------------------------------------------------------ ---------------------------
Data aggregation methods No cut off grade is
* In reporting Exploration Results, weighting averaging stated.
techniques, maximum and/or minimum grade truncations
(e.g. cutting of high grades) and cut-off grades are No data aggregation has
usually Material and should be stated. been undertaken.
* 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.
------------------------------------------------------------ ---------------------------
Relationship between The chemical analysis from
mineralisation widths and * These relationships are particularly important in the the test pumping has shown
intercept lengths reporting of Exploration Results. the that the brine
resource is consistent
and continuous within this
* If the geometry of the mineralisation with respect to section of paleochannel.
the drill hole angle is known, its nature should be The unit is flat lying and
reported. the intersected
thickness of the basal
sands is equivalent to the
* If it is not known and only the downhole lengths are vertical depth and the
reported, there should be a clear statement to this thickness of
effect (e.g. 'down hole length, true width not mineralisation.
known').
------------------------------------------------------------ ---------------------------
Diagrams All location maps and
* Appropriate maps and sections (with scales) and sections are contained
tabulations of intercepts should be included for any within the body of ASX
significant discovery being reported These should version of this
include, but not be limited to a plan view of drill announcement
hole collar locations and appropriate sectional available to view at
views. www.so4.com.au .
------------------------------------------------------------ ---------------------------
Balanced reporting A summary of the brine
* Where comprehensive reporting of all Exploration grade results is
Results is not practicable, representative reporting included in the
of both low and high grades and/or widths should be report.
practiced to avoid misleading reporting of
Exploration Results.
------------------------------------------------------------ ---------------------------
Other substantive All material exploration
exploration data * Other exploration data, if meaningful and material, data has been reported.
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.
------------------------------------------------------------ ---------------------------
Further work Ongoing
* The nature and scale of planned further work (e.g. drilling and
tests for lateral extensions or depth extensions or test pumping of
large-scale step-out drilling). further bores
within the
programme.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological All approved
interpretations and future drilling areas, provided future
this information is not commercially sensitive. locations are
shown on maps
included in the
ASX version of
this
announcement
available to
view at
www.so4.com.au
.
------------------------------------------------------------ ---------------------------
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END
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