Quarterly Activities Report - June 2018
Lake Wells Sulphate of Potash Project - Western Australia
- Level 2 short range endemic, fauna and stygofauna surveys were completed
- Initial review by the Environment Protection Authority of the Company's draft Environmental Scoping Document completed
- Pilot evaporation pond program continuing with anticipated SOP trade sample production during Q3
- Final program of work on hydrogeology workstream agreed with consultants: contractor tendering and engagement through Q3
- Expert engineering consultants Lycopodium appointed to finalise process engineering in conjunction with Canadian based SOP expert engineering firm Novopro
- Geotechnical engineering program to close out Q3/Q4 building on scoping study/optimisation studies in conjunction with Knight Piesold
- Continued engagement with Chinese MOU partners and other export opportunities following appointment of experienced SOP marketing executive Jay Hussey (see below)
Yamarna Gold Project - Western Australia
- 3-stage, 23,000m drill program commenced at Yamarna to test highly prospective zone identified in the CSA Global structural and geochemical/lithological review
- Significant bedrock gold anomaly over a 2,500-metre strike length identified at Target 15a which remains open and is similar in scale to early Air-Core (AC) drilling at recently identified high-grade Ibanez prospecti 2 kilometres to the south
- Northern line of drill-program at Target 15d returned anomalous bedrock gold results over a 500-metre width
- 5 of the 6 lines drilled for a total of 7,027 metres returned anomalous bedrock gold
- Board continuing to actively investigate and consider strategic options to realise full-value for shareholders.
- Oversubscribed placement to sophisticated and professional investors to raise $3 million completed
- Jay Hussey appointed as Chief Commercial Officer
Australian Potash, Executive Chairman, Matt Shackleton commented:
"Another productive quarter by our team saw the Company's two projects move forward in very material ways.
"At the Lake Wells SOP project, we are moving into the final DFS stages across the 4 major work streams.
"Our hydrogeological consultants and project management team have agreed the scope of the final package of work leading to the finalisation of the hydro/flow model and estimation of a reserve. With our geotechnical program significantly advanced, and in synchronisation with our approvals program, the final flora and fauna surveys have either been conducted or are progressing to an agreed scope of work. We anticipate producing first trade samples from site Q3. It is important to distinguish between what can be produced in the laboratory and what is actually produced at site. The pilot evaporation pond program has been underway for nearly a year.
"We are very excited by the addition of Jay Hussey to our team of experts. Jay brings with him an extensive network of commercial contacts in the SOP and fertiliser industries throughout China and south-east Asia more generally.
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About Australian Potash Ltd
Australian Potash Limited (ASX:APC) is an ASX-listed Sulphate of Potash (SOP) developer. The Company holds a 100% interest in the Lake Wells Potash Project located approximately 500kms northeast of Kalgoorlie, in Western Australia's Eastern Goldfields.
Following the release of a Scoping Study in 2017, APC has been conducting a Definitive Feasibility Study (DFS) into the development of the Lake Wells Potash Project. The Company is aiming to release the findings of the DFS in H2 2019.
The Lake Wells Potash Project is a palaeochannel brine hosted sulphate of potash project. Palaeochannel bore fields supply large volumes of brine to many existing mining operations throughout Western Australia, and this technique is a well understood and proven method for extracting brine. APC will use this technically low-risk and commonly used brine extraction model to further develop a bore-field into the palaeochannel hosting the Lake Wells SOP resource.
A Scoping Study on the Lake Wells Potash Project was completed and released on 23 March 2017. The Scoping Study exceeded expectations and confirmed that the Project's economic and technical aspects are all exceptionally strong, and highlights APC's potential to become a significant long-life, low capital and high margin sulphate of potash (SOP) producer.
Australian Potash Ltd