Quarterly Activities Report - December 2018
Lake Wells Sulphate of Potash (SOP) Project (LWPP) - 100% Owned, Western Australia
- 11 tonnes of potassium-rich salts harvested from Harvest Pond 1
- 13 tonnes of potassium-rich salts crystallised in Harvest Pond 2
- 3 tonnes of potassium-rich feeder salts delivered to Canning Vale pilot processing plant
- 8 hole/1,086m air-core drilling program completed
- Commitment to sealing an additional 100 kilometres of Great Central Road by Shire of Laverton
- Agreement between APC and Shire of Laverton to scope the sealing of the remaining 80 kilometres of the Lake Wells SOP project's logistics solution
- Post quarter end, high grade 98% SOP was produced
Lake Wells Gold Project (LWGP) - 100% Owned, Western Australia
- Australian Potash Limited and St Barbara Limited (ASX:SBM) entered into a A$7M Earn In & Joint Venture Agreement covering tenure at the Lake Wells Gold Project
- $1.25M cash payment received from SBM
- Appointment of Automic as APC's shareholder registry services provider
- Annual General Meeting held with all resolutions passed
Managing Director and CEO, Matt Shackleton, commented: "Another exciting and progressive quarter for APC and the Lake Wells SOP project.
"While solar salt production is generally lowest-quartile on the cost curve, the cost of logistics can quickly erode that advantage. A sound, viable and cheap logistics solution is of paramount focus for APC. It was of material importance therefore to have the support of the local shire in not only committing to sealing an additional 100 kilometres of the 280 kilometre road haul to Leonora' rail terminal but to also agree to work with us on scoping out the sealing of the remaining 80 kilometres of access road.
"The pilot evaporation pond program on site concluded, with more than 20 tonnes of harvest salts produced. We sent the first 3 tonnes of these potassium rich salts to the pilot processing facility, where post-quarter end, our specialist salt chemist on secondment from Novopro produced a very high grade 53% SOP. A significant milestone for the Company and the Australian SOP sector.
"We finalised an agreement with St Barbara Limited to facilitate the exploration of the Lake Wells Gold project, which saw us not only receive A$1.25m but introduced one of Australia's most respected mid-tier gold producers and active explorers as a partner. APC's commitment and focus on the SOP can continue in the confidence that the gold exploration is being managed to the highest professional and technical levels.
"We very much look forward to 2019 and finalising the DFS into the development of the high-grade, low cost Lake Wells Potash project."
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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.
St Barbara Limited
Australian Potash Ltd