TIDMSO4
RNS Number : 1600O
Salt Lake Potash Limited
28 May 2020
28 May 2020 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
-------------------------
HARVEST SALT RESULTS REPORT ABOVE MODELLED POTASSIUM GRADES
Salt Lake Potash Limited (SO4 or the Company) is pleased to
announce results of chemical analysis on a bulk sample from its
Kainite harvest ponds at the Lake Way Project, showing above the
modelled average Potassium grades.
HIGHLIGHTS
-- A bulk sample of Harvest Salt from the Stage 1 Kainite Ponds
was collected in March to confirm plant feed grades and produce
mass samples of premium quality SOP for end user customers.
-- Chemical analysis of these Harvest Salts has indicated
potassium salts kainite and schoenite (as modelled) are present
with a potassium concentration of 7.5%, above the modelled assumed
plant feed of 6.8%. Sulphate concentration of 20.9% also matched
expectations.
-- Results for other compounds, namely Sodium and Magnesium
align with the anticipated plant feed grade.
-- The bulk sample confirms the Lake Way operation is
precipitating plant feed Harvest Salts suitable for conversion to
premium quality SOP in the designed flowsheet. This will be further
confirmed via process testwork at Saskatchewan Research Council
(SRC) in Saskatoon, Canada.
TONY SWIERICZUK, Chief Executive Officer
"These positive results confirm our Stage 1 ponds are operating
within design parameters and are producing high grade potassium
feed salts which can be converted to premium quality SOP. Following
the strong results from pumping our first brine abstraction bore
reported last week, today's results further highlights the extent
to which the Lake Way Project and our on-lake production process
has been de-risked over the last twelve months."
harvest salt chemical testwork
In March 2020 the Company harvested a bulk sample (277kg) of
Harvest Salts from a single point location in Kainite Pond 1, Cell
C4 (Figure 2) in the 125ha Stage 1 pond network. Brine feed to the
Stage 1 ponds is from both the on-lake trenches and the Williamson
Pit.
Following collection, the Harvest Salts were de-brined and
homogenised. A representative 0.25kg sample was sent to the Bureau
Veritas laboratory in Perth for chemical analysis.
The chemical composition of the sample is outlined in Table 1
and aligns with SO4's evaporation model, based on a series of
comprehensive evaporation trials undertaken in 2018 and early 2019.
The potassium grade of 7.5% is within the range of expected
outcomes and is above the average BFS feed grade of 6.8%. Readings
for all other elements were within the range of expected outcomes.
XRD results are pending.
Harvest Salt element Wt %
---------------------- ------
Mg 3.3%
====================== ======
Ca 0.01%
====================== ======
Na 24.4%
====================== ======
K 7.5%
====================== ======
Cl 40.4%
====================== ======
SO4 20.9%
====================== ======
Mg 3.3%
====================== ======
Table 1: Table of Bureau Veritas sample results chemistry
Having confirmed that the chemical composition of the bulk
sample aligns with SO4's modelling and the grades are within the
expected ranges, the remainder of the bulk sample of Harvest Salts
is now being shipped to SRC in Canada for confirmatory testwork to
produce premium high grade SOP to generate further samples to
provide to offtakers.
The Stage 1 pond network commenced commissioning in May 2019 and
has been in operation for 12 months, with the continuous inflow of
brine into the Halite Pond. Brine evaporates and increases in
concentration as it flows through the pond cells. Halite salts form
in the early cells prior to the higher concentrate brine being
pumped into the Kainite harvest pond cells for the precipitation of
the potassium rich harvest salts.
At the end of April 2020, 2.7GL of brine has been pumped into
the Stage 1 pond network.
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 report that relates to Process Testwork
Results is based on, and fairly represents, information compiled by
Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the
Australasian Institute of Mining and Metallurgy. Mr Jones is a
holder of shares and performance rights in, and 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'. Mr Jones consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
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 Sampling involved
* Nature and quality of sampling (e.g. cut channels, extraction of a small
random chips, or specific specialised industry sample of harvest salt
standard measurement tools appropriate to the from the Stage 1 kainite
minerals under investigation, such as downhole gamma harvest
sondes, or handheld XRF instruments, etc.). These ponds (C4) at Lake Way.
examples should not be taken as limiting the broad The harvest ponds are
meaning of sampling. large solar evaporation
ponds which receive
brine from the
* Include reference to measures taken to ensure sample surrounding lake aquifer.
presentively and the appropriate calibration of any Brine is pumped into the
measurement tools or systems used. solar evaporation ponds
and the chemistry is
monitored and controlled
* Aspects of the determination of mineralisation that to ensure the potassium
are Material to the Public Report. salts are formed in the
harvest ponds. A salt
sample was taken from
* In cases where 'industry standard' work has been done, a single point location
this would be relatively simple (e.g. 'reverse in TK1C4, approximately
circulation drilling was used to obtain 1 m samples 10m in from the centre of
from which 3 kg was pulverised to produce a 30 g the western edge
charge for fire assay'). In other cases, more of the pond, on 28 March
explanation may be required, such as where there is 2020.
coarse gold that has inherent sampling problems. The salt sample was taken
Unusual commodities or mineralisation types (e.g. from the surface of the
submarine nodules) may warrant disclosure of detailed salt pavement to a depth
information. of approximately
5cm. The salt sample was
drained and placed into a
total eight buckets
(277kg gross) and shipped
to Perth for analysis.
Once received at the SO4
laboratory in Perth, the
salt was further
de-brined by draining the
harvested salt through a
strainer, then the
drained salts were
crushed by hand using
hand
tools (shovels and paving
tamper) to nominally all
passing 25mm, where the
typical particle
size is <5mm.
The crushed salts were
homogenised (overturned
and mixed using shovels
on a tarpaulin, then
coned and quartered
multiple times until a
1kg representative salt
sample was obtained. A
250g sub sample was
provided to Bureau
Veritas for ICP-OES and
XRD analysis.
In addition to the salt
sample, brine samples are
taken from each solar
evaporation pond
regularly
and routinely to monitor
the solar evaporation
process.
Brine samples were taken
manually by initially
rinsing out the sample
bottle with brine from
the source then filling
the bottle. Samples were
analysed for K, Mg, Ca,
Na, Cl, SO4, TDS
and specific gravity.
The temperature and
pressure in each pond
were logged
electronically with
piezometers.
Brine is a homogenous
fluid below the surface,
while salt samples are
cone and quartered to
provide a homogenous
sample.
------------------------------------------------------------- --------------------------
Drilling techniques No drilling was
* Drill type (e.g. core, reverse circulation, open-hole undertaken during
hammer, rotary air blast, auger, Bangka, sonic, etc.) sampling. The salt sample
and details (e.g. core diameter, triple or standard was taken manually by
tube, depth of diamond tails, face-sampling bit or shovel from
other type, whether core is oriented and if so, by the surface of the salt
what method, etc.). pavement.
------------------------------------------------------------- --------------------------
Drill sample recovery No drilling was
* Method of recording and assessing core and chip undertaken during
sample recoveries and results assessed. sampling.
Brine samples taken from
the ponds, were sampled
* Measures taken to maximise sample recovery and ensure from beneath the surface
representative nature of the samples. of the ponds, thus
were representative of
the entire pond as the
* Whether a relationship exists between sample recovery ponds are small enough to
and grade and whether sample bias may have occurred act as a homogeneous
due to preferential loss/gain of fine/coarse liquid bodies.
material. Salt samples were
crushed, coned and
quartered to ensure
sample
representativeness. The
crushing
and homogenisation lowers
the risk of preferential
loss/gain of one size
fraction over another.
------------------------------------------------------------- --------------------------
Logging No logging was undertaken
* Whether core and chip samples have been geologically during sampling.
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.
------------------------------------------------------------- --------------------------
Sub-sampling techniques Not applicable, no
and sample preparation * If core, whether cut or sawn and whether quarter, drilling was undertaken
half or all core taken. during sampling.
Not applicable, no
drilling was undertaken
* If non-core, whether riffled, tube sampled, rotary during sampling.
split, etc. and whether sampled wet or dry. The brine samples were
taken in sterile plastic
bottles of 50ml or 250ml
* For all sample types, the nature, quality and capacity. Brine is
appropriateness of the sample preparation technique. a homogenous fluid below
the surface, while salt
is cone and quartered to
* Quality control procedures adopted for all homogenise and sample.
sub-sampling stages to maximise representivity of Brine was diluted (1:50
samples. in de-ionised water) at
the lab to ensure
accurate determination by
* Measures taken to ensure that the sampling is ICP.
representative of the insitu material collected, Salt was crushed to <25mm
including for instance results for field and homogenising to
duplicate/second-half sampling. ensure that the 250g
subsample taken is
representative
* Whether sample sizes are appropriate to the grain for the grain size. 50g
size of the material being sampled. of the wet homogenised
sample is air dried at
ambient temperature
and sent for XRD.
Following this the sample
is crushed with a mortar
and pestle to <120um.
It is then packed into a
pellet to undergo XRD
analysis.
10g of the wet
homogenised sample is air
dried at ambient
temperature. Residual
moisture is
determined by
acetone-displacement wash
followed by drying at a
temperature of 60 degrees
Celsius. Following this
drying, the salt sample
is dissolved in 100ml of
de-ionised water,
and is sent for ICP
analysis.
------------------------------------------------------------- --------------------------
Quality of assay data and The brine and salt
laboratory tests * The nature, quality and appropriateness of the samples were sent to
assaying and laboratory procedures used and whether Bureau Veritas (BV)
the technique is considered partial or total. Laboratories in Perth,
WA. ICP
and XRD preparation
* For geophysical tools, spectrometers, handheld XRF undertaken at BV.
instruments, etc., the parameters used in determining ICP analysis to determine
the analysis including instrument make and model, the chemical ion
reading times, calibrations factors applied and their analysis, and wet
derivation, etc. chemistry titration to
determine
chloride content was
* Nature of quality control procedures adopted (e.g. performed by Bureau
standards, blanks, duplicates, external laboratory Veritas, Canning Vale,
checks) and whether acceptable levels of accuracy WA.
(i.e. lack of bias) and precision have been Sub samples prepared at
established. BV were sent for XRD
analysis to determine the
salt crystal mineralogy
at Microanalysis in
Perth, WA.
No laboratory analysis
was undertaken with
geophysical tools.
All BV laboratories work
to documented procedures
compliant with ISO 9001
Quality Management
Systems. Rigorous quality
control and quality
assurance measures are
applied throughout the
entire process in their
laboratories.
Standard quality
assurance procedures
include:
-- Analysis of blanks
within each batch.
-- The routine testing of
suitable certified
reference materials from
national and
international
suppliers, in addition to
in-house and client
supplied standards.
Standards will be
selected
based on the elements of
interest, expected range
of concentration, and the
analytical method
used.
-- Duplicate samples are
included in each batch to
ensure that reproducible
results are being
achieved. Duplicate
samples may be solutions,
pulps or coarse splits as
requested.
-- Re-assay of anomalous
results by our quality
control staff using
techniques considered
appropriate for the level
of analytes encountered.
-- All sample results are
reported. All blanks and
standards are reported on
request.
Microanalysis uses XRD,
which is
semi-quantitative, as it
does not take into
account preferred
orientation, strain or
crystallite size. The
amorphous content is
estimated using the
background
ratio rather than an
internal spike. All
procedures are internally
validated. Microanalysis
Australia has an
established QA/QC system
of procedures for
receipt, preparation and
analysis
of samples. All
instruments are
calibrated monthly with a
certified reference
standard. They
run a calibration check
using a certified
Panalytical silicon
standard monthly and
monitor
source decay.
Repeatability studies
have been undertaken to
verify subsampling
procedures.
Every tenth sample is
repeated to verify
repeatability and
consistency of results.
------------------------------------------------------------- --------------------------
Verification of sampling Not applicable, brine is
and assaying * The verification of significant intersections by a homogenous fluid below
either independent or alternative company personnel. the surface.
Not applicable, brine is
a homogenous fluid below
* The use of twinned holes. the surface.
All sampling and assaying
is well documented and
* Documentation of primary data, data entry procedures, contained in SO4's
data verification, data storage (physical and internal databases.
electronic) protocols. No adjustments have been
made to assay data.
* Discuss any adjustment to assay data.
------------------------------------------------------------- --------------------------
Location of data points Location data is not
* Accuracy and quality of surveys used to locate drill relevant for this process
holes (collar and down-hole surveys), trenches, mine test and so was not
workings and other locations used in Mineral Resource taken.
estimation.
* Specification of the grid system used.
* Quality and adequacy of topographic control.
------------------------------------------------------------- --------------------------
Data spacing and Brine samples were taken
distribution * Data spacing for reporting of Exploration Results. at appropriate time
intervals, either weekly
or biweekly, to gain
* Whether the data spacing and distribution is sufficient resolution on
sufficient to establish the degree of geological and the brines' evaporation
grade continuity appropriate for the Mineral Resource pathway.
and Ore Reserve estimation procedure(s) and The salt sample was taken
classifications applied. from cell 4 of 5 cells in
the Stage 1 harvest pond,
whilst the brine
* Whether sample compositing has been applied. chemistry of the cell was
within the targeted
"harvest zone" (where
potassium salt is
expected
to be produced). The
sample is therefore is
indicative of the type of
harvest salt produced
in the potassium harvest
ponds.
Sample compositing has
not been applied.
------------------------------------------------------------- --------------------------
Orientation of data in Not applicable as harvest
relation to geological * Whether the orientation of sampling achieves unbiased salts were homogenised.
structure sampling of possible structures and the extent to Drilling orientation is
which this is known, considering the deposit type. not applicable. The
entire mass of the salt
sample produced by the
* If the relationship between the drilling orientation solar pond was harvested,
and the orientation of key mineralised structures is homogenised and sent for
considered to have introduced a sampling bias, this assay.
should be assessed and reported if material.
------------------------------------------------------------- --------------------------
Sample security SO4 operations personnel
* The measures taken to ensure sample security. and engineers were
responsible for sampling
and homogenising all
brine and salt samples
prior to shipping to the
BV lab in Perth and the
SO4 lab/warehouse.
The security measures for
the material and type of
sampling at hand was
appropriate.
------------------------------------------------------------- --------------------------
Audits or reviews Data review is undertaken
* The results of any audits or reviews of sampling in the report and
techniques and data. included an assessment of
the quality of assay
data and laboratory tests
and verification of
sampling and assaying. No
audits of sampling
techniques and data have
been undertaken.
------------------------------------------------------------- --------------------------
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land The Lake Way Project
tenure status * Type, reference name/number, location and ownership comprises tenements held
including agreements or material issues with third by Piper Preston Pty Ltd,
parties such as joint ventures, partnerships, a wholly owned subsidiary
overriding royalties, native title interests, of Salt Lake Potash
historical sites, wilderness or national park and Limited (SO4 or the
environmental settings. Company).
* 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 No prior process (solar
parties * Acknowledgment and appraisal of exploration by other evaporation) test work has
parties. been undertaken by other
parties on the
brine from Williamson Pit
or Lake Way Playa.
The Company has previously
reported a brine resource
for the Lake Way Project -
refer ASX
Announcement 11 October
2019.
There has been significant
mineral exploration on and
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.
The data from previous
exploration work by other
parties has not been used
in appraising the
results of the process
testwork included in this
announcement.
------------------------------------------------------------ ---------------------------
Geology The deposit is a salt-lake
* Deposit type, geological setting and style of brine deposit.
mineralisation. 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.
The brine is concentrated
in solar evaporation ponds
and the salt is
precipitated into the
evaporation ponds as fine
(0.5 - 5mm) crystals that
form a single, homogeneous
salt bed.
------------------------------------------------------------ ---------------------------
Drill hole Information No drilling was
* A summary of all information material to the undertaken.
understanding of the exploration results including a The brine source for the
tabulation of the following information for all Stage 1 solar evaporation
Material drill holes: pond, was initially
sourced from the
Williamson
* easting and northing of the drill hole collar pit, and subsequently from
an array of trenches
constructed on the surface
* elevation or RL (Reduced Level - elevation above sea of Lake Way in
level in metres) of the drill hole collar the vicinity of Stage 1
solar evaporation pond.
* dip and azimuth of the hole
* downhole length and interception depth
* hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
------------------------------------------------------------ ---------------------------
Data aggregation methods Harvested salt from the
* In reporting Exploration Results, weighting averaging solar evaporation ponds
techniques, maximum and/or minimum grade truncations was homogenised, assayed
(e.g. cutting of high grades) and cut-off grades are weighed to provide
usually Material and should be stated. the estimated grade at the
time of sampling.
* 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 Not applicable to process
mineralisation widths and * These relationships are particularly important in the testwork.
intercept lengths reporting of Exploration Results.
* If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the downhole lengths are
reported, there should be a clear statement to this
effect (e.g. 'down hole length, true width not
known').
------------------------------------------------------------ ---------------------------
Diagrams Maps and sections not
* Appropriate maps and sections (with scales) and included for process
tabulations of intercepts should be included for any testwork. Refer prior ASX
significant discovery being reported These should Announcement dated 25
include, but not be limited to a plan view of drill February 2020.
hole collar locations and appropriate sectional
views.
------------------------------------------------------------ ---------------------------
Balanced reporting All results have been
* Where comprehensive reporting of all Exploration included in the body
Results is not practicable, representative reporting of the report.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
------------------------------------------------------------ ---------------------------
Other substantive All material process data
exploration data * Other exploration data, if meaningful and material, 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 Brine evaporation from the
* The nature and scale of planned further work (e.g. solar ponds is ongoing, as
tests for lateral extensions or depth extensions or the brine concentration
large-scale step-out drilling). progresses to
the target concentration
points.
* Diagrams clearly highlighting the areas of possible Downstream metallurgical
extensions, including the main geological test work on the harvested
interpretations and future drilling areas, provided salts will be undertaken
this information is not commercially sensitive. by a world leading
potash research laboratory
to convert the harvest
salt to a process
intermediate (schoenite).
The schoenite will then be
tested by the crystalliser
supplier.
Brine and salt samples
will continue to be
collected during the
establishment of a fully
operational
solar evaporation pond
system.
------------------------------------------------------------ ---------------------------
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END
DRLKKFBNKBKKCPB
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May 28, 2020 02:00 ET (06:00 GMT)
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