TIDMSO4
RNS Number : 0688J
Salt Lake Potash Limited
28 March 2018
28 March 2018 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
Exploration Targets Reveal World Class Scale Potential
---------------------------------------------------------
Salt Lake Potash Limited (SLP or the Company) is pleased to
announce results of an initial estimate of Exploration Targets for
eight of the nine lakes comprising the Company's Goldfields Salt
Lakes Project (GSLP). The ninth lake, Lake Wells, already has a
Mineral Resource reported in accordance with the JORC code.
The total "stored" Exploration Target for the GSLP is 290Mt -
458Mt of contained Sulphate of Potash (SOP) with an average SOP
grade of 4.4 - 7.1kg/m(3) (including Lake Wells' Mineral Resource
of 80-85Mt). On a "drainable" basis the total Exploration Target
ranges from 26Mt - 153Mt of SOP. The total playa area of the lakes
is approximately 3,312km(2) .
The potential quantity and grade of this Exploration Target is
conceptual in nature. There has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
Area Average Grade (kg/m(3) ) Stored (Mt) Drainable (Mt)
Lake (km(2) ) SOP (min) SOP (max) SOP (min) SOP (max) SOP (min) SOP (max)
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Ballard 626 3.5 4.7 42 53 3.1 18
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Barlee 350 1.9 4.3 10 21 0.8 8.1
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Irwin 306 4.8 8.1 25 43 1.9 15
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Marmion 339 3.0 5.1 20 34 1.6 11
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Minigwal 567 3.8 8.3 45 98 3.4 31
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Noondie 386 4.2 6.0 35 50 2.8 16
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Raeside 89 2.1 7.0 6 20 0.4 5.4
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Way 172 5.6 15.5 28 54 2.7 19
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Wells 477 8.7 8.8 80(1) 85(1) 9(2) 29(2)
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
Total 3,312 4.4 7.1 290 458 26 153
---------- --------- ------------- ------------ ---------- ---------- ---------- ----------
1. Incorporating Lake Wells' stored Mineral Resource Estimate previously reported.
2. Lake Wells Mineral stored Mineral Resource Estimate converted to drainable equivalent.
Table 1: GSLP Exploration Target
The combined resources and exploration targets in the GSLP
comprise a globally significant Project in the SOP sector,
potentially sustaining one of the world's largest SOP production
operations for many decades.
CEO Matt Syme commented "These initial exploration targets allow
us for the first time to quantify the real scale of the long term
opportunity at the Goldfields Salt Lakes Project. We have already
made very substantial progress in revealing the outstanding
potential at Lake Wells and these Exploration Targets illustrate
how the broader Project has a multiple of that potential. This
places the GSLP asset at the leading edge of world scale SOP
development opportunities."
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 Company's recent 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.
The GSLP has a number of very important, favourable
characteristics:
Ø Very large paleochannel hosted brine aquifers, with chemistry
amenable to evaporation of salts for SOP production, extractable
from both low cost trenches and deeper bores;
Ø Over 3,300km(2) of playa surface, with in-situ clays suitable
for low cost on-lake pond construction;
Ø Excellent evaporation conditions;
Ø Excellent access to transport, energy and other infrastructure
in the major Goldfields mining district;
Ø Lowest quartile capex and opex potential based on the Lake
Wells Scoping Study;
Ø Clear opportunity to reduce transport costs by developing
lakes closer to infrastructure and by capturing economies of
scale;
Ø Multi-lake production offers operational flexibility and
protection from localised weather events;
Ø The very high level of technical validation already undertaken
at Lake Wells substantially applies to the other lakes in the GSLP;
and
Ø Potential co-product revenues, particularly where transport
costs are lowest.
Salt Lake Potash will progressively explore the lakes in the
portfolio 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 GOLDFIELDS SALT LAKES PROJECT
The nine lakes comprising the GSLP were selected for scale,
potential brine volume, known hypersaline brine characteristics,
and the potential for production from both shallow trenches and
deeper paleochannel aquifer bores. Each has a large surface area, a
flat and bare surface playa and proximity to the important
transport and energy infrastructure and engineering expertise
available in the Western Australian Goldfields.
The GSLP has a number of very important, favourable
characteristics:
Paleochannel Hosted Brine Aquifers
The GSLP salt lakes are each part of typical Western Australian
paleovalley environments. Ancient hydrological systems incised
paleovalleys into Palaeozoic or older basement rocks, which were
then infilled by Tertiary-aged sediments, typically comprising a
coarse-grained fluvial basal sand, overlain by paleovalley clay
with some coarser grained interbeds. The clay is overlain by recent
Cainozoic material including lacustrine sediment, calcrete,
evaporite and aeolian deposits.
There are two methods of extracting brine from aquifers.
Firstly, low cost trenching from the surface aquifer and the
secondly, extraction from the paleochannel basal aquifer via
bores.
All the lakes in the GSLP offer very large paleochannel hosted
brine aquifers, with brine chemistry amenable to evaporation of
salts for SOP production.
Large Playa Surface
The lakes included in the GSLP have a surface area averaging
370km(2) and totaling over 3,300km(2) . This large surface area and
the occurrence of impermeable clays near the surface, provides the
potential for constructing low cost, on-lake, unlined evaporation
ponds.
As demonstrated at Lake Wells (refer to ASX Announcement dated
16 October 2017), this provides significant potential capex
savings. The results from the evaporation pond trial at Lake Wells
exceeded expectations and strongly validated SLP's model for
construction of on-lake, unlined evaporation ponds. Net seepage of
2.4mm per day in a test scale pond extrapolates to less than
0.125mm per day in a 400ha Demonstration Plant scale halite pond, a
negligible inefficiency in the context of overall pond
operations.
Preliminary excavation and sampling at Lakes Ballard, Irwin and
Way also indicate the presence of clays amenable for pond
construction near the lake surface.
Excellent Evaporation Conditions
The Goldfields has very favourable arid climatic conditions with
annual Class A pan evaporation in the region around 3,000mm per
year. This compares favourably with other global brine projects
currently in production.
Access to Transport, Energy and Other Infrastructure
The lakes of the GSLP are strategically located close to the
regional transport and energy infrastructure corridor. Transport
from site to port is the single largest cost factor for (export
oriented) Australian salt lake SOP projects, and the GSLP has a
considerable advantage in this regard, with excellent proximity to
the Kalgoorlie-Leonora rail line and the Goldfields Highway. The
Company has made substantial progress in understanding and
optimising its transport proposition, with major economies of scale
to be achieved as the production volume increases.
The table below sets out the straight-line and existing road
distances to the nearest railhead for each lake.
Lake Railhead Straight-line Distance to Rail line Likely Road Haul Distance
(km) (km)
--------------- ---------- ------------------------------------ --------------------------
Lake Wells Malcolm 270 318
--------------- ---------- ------------------------------------ --------------------------
Lake Way Leonora 230 281
--------------- ---------- ------------------------------------ --------------------------
Lake Irwin Leonora 85 170
--------------- ---------- ------------------------------------ --------------------------
Lake Ballard Menzies 2 20
--------------- ---------- ------------------------------------ --------------------------
Lake Marmion Menzies 20 47
--------------- ---------- ------------------------------------ --------------------------
Lake Minigwal Kookynie 130 172
--------------- ---------- ------------------------------------ --------------------------
Lake Raeside Leonora 20 20
--------------- ---------- ------------------------------------ --------------------------
Lake Noondie Leonora 110 198
--------------- ---------- ------------------------------------ --------------------------
Lake Barlee Menzies 130 133
--------------- ---------- ------------------------------------ --------------------------
Average 111 151
--------------------------- ------------------------------------ --------------------------
Table 2: Transportation Distances of the GSLP
The Goldfields Gas Pipeline also intersects the GSLP, passing
close to a number of lakes, offering potential energy cost
savings.
Multi-Lake Production
There is substantial potential for integration, economies of
scale, operating synergies and overhead sharing in the GSLP across
a number of producing lakes.
There is also the possibility of some important elements of the
SOP production process such as compaction, agglomeration and
packaging being centralised, probably adjacent to rail loading
facilities.
The flexibility of multi-lake production is also appealing for a
natural production process which is subject to climate variability,
where the operating risk of individual high rainfall events is
diminished over a portfolio of production lakes.
Technical Validation Already Undertaken at Lake Wells
At Lake Wells, the Company has tested and verified all the major
technical foundations for production of SOP from Lake Wells brine
to a standard previously unseen in Australia under actual site
conditions and across all seasons.
These key technical achievements at Lake Wells will have
significant application across the other lakes in the GSLP, given
the similar geology, brine chemistry and climate conditions.
Lowest Quartile Capex and Opex
The Scoping Study on Lake Wells released in August 2016 (see ASX
announcement dated 29 August 2016) highlighted the outstanding
potential economics of extracting hypersaline brine by trenches and
bores for solar evaporation of salts and processing to produce
premium SOP. The Scoping Study indicates Lake Wells would be firmly
in the lowest cost quartile for any SOP Project in Australia and
around the world, with relatively low transport costs being a major
advantage.
Stage 1 Stage 2
---------------------------------------------------------------------- -------------- --------------
Annual Production (tpa) - steady state 200,000 400,000
---------------------------------------------------------------------- -------------- --------------
Capital Cost * A$191m A$39m
---------------------------------------------------------------------- -------------- --------------
Operating Costs ** A$241/t A$185/t
---------------------------------------------------------------------- -------------- --------------
* Capital Costs based on an accuracy of -10%/+30% before contingencies and growth allowance
but including EPCM. Stage 1 Capital Costs include most of the main capital items for 400,000tpa
production.
** Operating Costs based on an accuracy of +/-30% including transportation & handling (FOB
Esperance) but before royalties and depreciation.
Table 3: Lake Wells Scoping Study
Lake Way is likely to offer material economic advantages even
over Lake Wells due to proximity and availability of transport and
other infrastructure and potential cost saving with the
Matilda-Wiluna Gold Operation.
Production of Valuable Co-Products
Brine modelling and evaporation testwork has demonstrated that
Lakes Wells, Irwin, Ballard and Way can produce potassium and
magnesium salts amenable to conversion to SOP and also potentially
other valuable co-products.
Kieserite (MgSO(4) .H(2) O) and Epsom salts (MgSO(4) .7H(2) O)
are valuable fertiliser products for both the domestic and export
markets, with particular application in the tropical crop regions
in South East Asia, South America and Africa.
While magnesium nutrients have lower market value than SOP, they
are potentially valuable co-products, particularity where transport
costs are lowest, for example Lakes Ballard and Marmion.
Exploration Targets for MgSO(4) .7H(2) O (Epsom Salt) were
calculated at the each lake, except Lake Wells, as follows:
Stored (Mt) Drainable (Mt) Average Grade (kg/m(3) )
Lake MgSO(4) (min) MgSO(4) (max) MgSO(4) (min) MgSO(4) (max) MgSO(4) (min) MgSO(4) (max)
---------- -------------- -------------- -------------- -------------- -------------- --------------
Ballard 667 949 51 320 58 82
---------- -------------- -------------- -------------- -------------- -------------- --------------
Barlee 158 431 13 163 31 84
---------- -------------- -------------- -------------- -------------- -------------- --------------
Irwin 145 304 11 106 27 57
---------- -------------- -------------- -------------- -------------- -------------- --------------
Marmion 355 712 27 235 53 107
---------- -------------- -------------- -------------- -------------- -------------- --------------
Minigwal 668 1,462 50 469 57 124
---------- -------------- -------------- -------------- -------------- -------------- --------------
Noondie 308 488 23 154 37 58
---------- -------------- -------------- -------------- -------------- -------------- --------------
Raeside 86 358 6 98 30 126
---------- -------------- -------------- -------------- -------------- -------------- --------------
Way 151 339 15 125 49 105
---------- -------------- -------------- -------------- -------------- -------------- --------------
Total 2,538 5,043 196 1,670 46 92
---------- -------------- -------------- -------------- -------------- -------------- --------------
MgSO(4) = the molar mass of MgSO(4) .7H(2) 0 based on a
conversion ratio of 10.14 of Mg to MgSO(4) .7H(2) O.
Table 4: Magnesium Sulphate Exploration Target
The potential quantity and grade of this Exploration Target is
conceptual in nature. There has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
APPIX 1 - EXPLORATION TARGET METHODOLOGY AND RESULTS
GSLP Exploration Targets:
Exploration Target calculated using Total Porosity:
Estimated Average Potassium
Paleochannel Sediment Brine Concentration SOP Tonnage
Lake Playa Area Length Volume Volume kg/m(3) Mt
Km(2) Km Mm(3) Mm3 Lower Upper Lower Upper
Estimate Estimate Estimate Estimate
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Ballard 626 55 26,370 11,487 1.6 2.1 42 53
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Barlee 350 60 11,455 5,107 0.8 1.9 10 21
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Irwin 306 22 11,942 5,236 2.1 3.6 25 43
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Marmion 339 35 15,294 6,626 1.3 2.3 20 34
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Minigwal 567 100 27,166 11,716 1.7 3.7 45 98
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Noondie 386 75 19,412 8,345 1.9 2.7 35 50
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Raeside 89 35 6,775 2,844 0.9 3.1 6 20
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Way 172 25 8,044 3,475 3.6 7.0 28 54
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Wells 477 60 24,723 9,639 3.9 80 85
---------- ----------- ------------- ---------- ----------- --------------------------- ----------- -----------
Total 3,312 467 151,181 64,474 290 458
---------- ----------- ------------- ---------- ----------- ----------- -------------- ----------- -----------
Table 5: Exploration Target calculated using Total Porosity
Exploration Target calculated using Drainable Porosity:
Weighted Average Brine Volume Average Potassium SOP Tonnage
Sediment Drainable Porosity Concentration
Lake Volume (1)
----------------------
Mm(3) kg/m(3) Mt
---------- --------- ---------- ---------- -------------------- ------------------------- ----------------------
Mm(3) Sy Sy Lower Upper Lower Upper Lower Upper
Lower Upper Estimate Estimate Estimate Estimate Estimate Estimate
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Ballard 26,370 0.03 0.15 882 3,913 1.6 2.1 3.1 18
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Barlee 11,455 0.04 0.17 404 1,931 0.8 1.9 0.8 8
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Irwin 11,942 0.03 0.15 408 1,844 2.1 3.6 1.9 15
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Marmion 15,294 0.03 0.14 501 2,192 1.3 2.3 1.6 11
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Minigwal 27,166 0.03 0.14 877 3,783 1.7 3.7 3.4 31
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Noondie 19,412 0.03 0.14 619 2,645 1.9 2.7 2.8 16
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Raeside 6,775 0.03 0.11 198 778 0.9 3.1 0.4 5
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Way 8,044 0.04 0.15 299 1,196 2.8 7.1 2.7 19
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
Wells(2) 24,723 0.04 0.14 1,074 3,355 3.9 9 29
---------- --------- ---------- ---------- --------- --------- ------------------------- ---------- ----------
Total 151,181 0.03 0.14 5,262 21,637 26 153
---------- --------- ---------- ---------- --------- --------- --------- -------------- ---------- ----------
1. Drainable Porosity was assigned to each geological unit per
Table 9 Porosity Estimates. The volume weighted average value is
presented here.
2. Incorporating Lake Wells' total Mineral Resource Estimate previously reported.
Table 6: Exploration Target calculated using Drainable
Porosity
The potential quantity and grade of this Exploration Target is
conceptual in nature. There has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
The Company engaged an independent hydrogeological consultant
with substantial salt lake brine expertise, Groundwater Science Pty
Ltd, to complete the Exploration Targets for all the lakes in the
GSLP.
Scope
The Exploration Target is a statement or estimate of the
exploration potential of a mineral deposit in a defined geological
setting where the statement of estimate, quotes as a range of tones
and a range of grade (or Quality), relative to mineralisation for
which there has been insufficient exploration to estimate a Mineral
Resource. The potential quantity and grade is conceptual in nature
and there has been insufficient exploration to estimate a Mineral
Resource and it is uncertain if further exploration will result in
the estimation of a Mineral Resource.
The Exploration Targets are reported in accordance with
-- the JORC Code 2012,
-- the draft Guidelines for Resource and Reserve Estimation for
Lithium and Potash Brines, developed by the Australia Association
of Mining and Exploration Companies (AMEC), and
-- the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) Best Practice Guidelines for Resource and Reserve Estimation
for Lithium Brines.
A Mineral Resource Estimate for Lake Wells has been reported
(refer to ASX Announcements dated 11 November 2015 and 22 February
2016), comprising a total of 85Mt SOP. This estimate was calculated
as the total in-situ resource based on the total porosity of the
brine host aquifer. The resource has been re-calculated for this
study based on the estimates of drainable porosity that are
detailed below. The aim is to provide an estimate of mineralisation
that is comparable to the proposed Exploration Targets and collate
an inventory of the entire GSLP project.
Data sources
An exploration target for each lake has been defined by review
of:
-- All historic exploration data that has been released for the
tenement, including drilling and geophysics;
-- All public geology and hydrogeology reports, maps and data;
-- Company hydrogeological reports obtained from the Western Australia Department of Water and Environmental Regulation via freedom of information request;
-- Surface brine samples from test pits; and
-- Test Pits, test excavation, and geophysical survey, undertaken by SLP.
Geology
Each playa lake exhibits reasonably consistent Tertiary
paleovalley morphology as described in detail by Bell et al.
(2012)([1]) , Johnson et al. (1999)([2]) , and DeBroekert and
Sandiford (2005)([3]) . Paleovalleys are incised into the
Palaeozoic or older basement rocks. These are then infilled by
Tertiary-aged sediment typically comprising a coarse-grained
fluvial Basal Sand overlain by Paleovalley Clay with some coarser
grained interbeds. The clay is overlain by Cainozoic Alluvium, that
includes lacustrine clay, calcrete, evaporite and aeolian
deposits.
Geological Inferred age Description Hydrogeological
Unit Attributes
============= =================== ========================== ========================
Lake surface Recent Clay sediments with Minor aquifer.
and islands some sandy, evaporite Highly variable
and calcrete horizons permeability and
containing variable moderate drainable
abundance of evaporite porosity.
minerals, particularly
gypsum.
============= =================== ========================== ========================
Alluvium Cainozoic Unconsolidated silt, Minor aquifer.
sand and clay sediments. Moderate permeability
and moderate drainable
porosity
============= =================== ========================== ========================
Paleovalley Tertiary (Miocene) Stiff to plastic clay. Aquitard.
clay Minor silt and sand Low permeability
interbeds and low drainable
porosity
============= =================== ========================== ========================
Basal sand Tertiary (Eocene) Typically fining upwards Major aquifer.
sequence of sand with High to moderate
silt, clay and lignitic permeability and
interbeds. High to moderate
drainable porosity
============= =================== ========================== ========================
Table 7: Geological Units
Geological Model
At each playa lake, the extent and thickness of each geological
unit has been inferred from the available data. Differentiating
each geological unit is important because each unit exhibits
specific hydrogeological properties, permeability and drainable
porosity as described below.
Area
The area of each playa lake was calculated by digitising the
lake surface and removing area covered by islands. These areas are
used to calculate the volume of the lake sediments. The extent of
the brine body hosted by alluvium has been defined by the extent of
the lake playa. Extension of the brine body beyond the lake playa
edge in shallow sediment is possible but unsupported by data at
this stage. Studies on other playa lakes have demonstrated that
brine concentration quickly diminishes with distance from the playa
edge. The mechanism for lower brine grade off the playa is
understood to be dilution by rainfall infiltration and the absence
of the intense evaporation that occurs on the playa surface.
The extent of the lower Paleovalley Clay and Basal Sand is based
on the mapped distribution of paleovalleys across the Northern
Goldfields by Johnson et al. (1999) and other studies. This has
been used as the basis for determining paleovalley length. There
has been additional geophysics undertaken at Lakes Ballard, Irwin
and Marmion that provides a more accurate interpretation. At Lake
Way, exploration drilling for the Mt Keith Borefield (AGC Woodward
Clyde, 1992) has further confirmed the paleochannel extent and
presence of the Basal Sand.
Thickness
Lake Sediments (Upper Alluvium)
The lake sediments are dominated by clay lacustrine deposits
with abundant evaporite minerals, such as gypsum. The thickness of
this unit is poorly resolved. An average thickness of 10m has been
assumed. The 10m thickness of Lake sediments are also the maximum
depth of dilution calculated beneath islands on the Playa
Surface.
Alluvium
The alluvium comprises a mixed sequence of sheetwash, calcrete
and aeolian deposits that underlie the lake sediments. It has been
mapped by Johnson et al. (1999) as a channel fill deposit being
similar in nature to that found in present-day outwash alluvial
fans and minor creeks, and it extends and is present beyond the
lake margins. The thickness is highly variable and is up to 60m
thick in parts of the Raeside Paleovalley. An average thickness of
15m has been applied for the exploration target estimation.
Paleochannel Clay
The paleochannel clay is a stiff clay that confines the basal
paleochannel sand. It has a variable thickness depending on whether
a site is within a trunk (thicker) or tributary (thinner)
paleovalley. The width is dependent on the basement material with
wider channels in granitoid basement and narrower channels in
greenstone lithologies. For the resource estimation, the thickness
and width was determined based on nearby geological transects from
Langford (1997) and Johnson et al. (1999), or other company
drilling in the case of Lake Way.
Basal Sand
The basal sand is present in the deepest section of the
paleovalley. It has a variable thickness with some sand sections
being up to 40 m thick. The development of the sand is dependent on
proximity to granitoid catchments with less sand thickness in
catchments dominated by greenstone lithologies. As with the
paleochannel clay, the thickness and width was determined based on
nearby geological transects from Langford (1997) and Johnson et al.
(1999), or other company drilling in the case of Lake Way. As an
example, the conceptual model applied to a cross section at Lake
Ballard developed by Langford (1997).
Brine Concentration
Brine concentration has been defined based on samples taken from
test pits excavated into the Alluvium by SLP in 2017 (Appendix 3),
and from historic drilling data where available. Minimum and
Maximum values have been defined as the mean value +/- one standard
deviation for sample sets of more than 10 samples. For sample sets
of less than 10 samples, the minimum and maximum values have been
used.
Where no brine chemistry data is available for the paleochannel
sediments, brine concentration is assumed to be constant with
depth. This assumption is supported by SLP's experience at Lake
Wells, other company reports for comparable paleochannel hosted
brine in the Goldfields region, and work by Water and Rivers
Commission and others. Proving this assumption by drilling and
sampling is a priority for progressing evaluation of these
targets.
Hydrogeological Attributes
Hydrogeological attributes assigned to each geological unit are
summarised in Table 8.
The permeability of the Lake Sediments and Alluvium is expected
to be variable. Permeability is dependent on the lithology of the
sediment, development of evaporite minerals that can enhance
permeability, and the development of calcrete minerals that can be
extremely permeable.
Paleovalley Clay is a low permeability aquitard, brine held in
this unit will not be drained by bores; however, some fraction of
the brine stored in this unit might be accessed by leakage into the
underlying basal sand.
Basal Sand is typically permeable, and brine is expected to be
extracted by pumping from bores.
Geological Unit Hydrogeological Properties
================= ===============================================
Lake Sediments Highly variable aquifer dependent on lithology
and evaporite formation
================= ===============================================
Alluvium Highly variable aquifer dependent on lithology
and evaporite formation
================= ===============================================
Paleovalley Clay Aquitard low permeability
================= ===============================================
Basal Sand Aquifer high permeability
================= ===============================================
Table 8: Hydrogeological Attributes
Porosity
Total porosity (Pt) relates to the volume of brine-filled pores
contained within a unit volume of aquifer material. A fraction of
this pore volume can by drained under gravity, this is described as
the drainable porosity (or specific yield). The remaining fraction
of the brine, which is held by surface tension and cannot be
drained under gravity, is described as the specific retention (or
un-drainable porosity).
A resource calculated as the product of drainable porosity is
still not completely recoverable by gravity drainage to trenches or
bores.
The reported mineral tonnage represents the brine with no
recovery factor applied. It will not be possible to economically
extract all the contained brine by pumping. The amount that can be
extracted depends on many factors including the permeability of the
sediments, adjacent groundwater composition, and the recharge
dynamics of the aquifers. Brine projects typically recover a small
fraction of the in-situ resource.
The total and drainable porosity of each geological unit has
been estimated from lithology and benchmarking against other
studies completed in comparable geological settings. A summary of
the porosity assigned to each geological unit and the source of the
estimates is presented in Table 9.
Benchmarking of the porosity applied in this study to other
Australian salt lakes is presented in Table 10.
Geological Unit Total Porosity (%) Drainable Porosity (%)
================= =================== =======================
Lake Sediments 0.46 0.04-0.2
================= =================== =======================
Alluvium 0.46 0.04-0.2
================= =================== =======================
Paleovalley Clay 0.4 0.01-0.05
================= =================== =======================
Basal Sand 0.4 0.1-0.2
================= =================== =======================
Table 9: Porosity Estimates
Project
---------------- ---------------- -------------------------------------------------------------
WA Salt WA Salt WA Salt WA Salt GSLP
Lake 1 Lake 2 Lake 3 Lake 4
Mineral Mineral Mineral Exploration
Resource Resource Resource Target
Estimate Estimate Estimate
---------------- ---------------- ---------- ---------- ---------- ------------- ----------
Lake Sediments
and Alluvium Total Porosity 0.39 0.47 0.45 0.42-0.53 0.46
================ ================ ========== ========== ========== ============= ==========
Drainable
Porosity 0.16 0.17 0.064 0.13-0.15 0.04-0.20
--------------------------------- ---------- ---------- ---------- ------------- ----------
Clay Total Porosity 0.47 0.5 - 0.4
================ ================ ========== ========== ========== ============= ==========
Drainable
Porosity 0.06 0.03 - 0.01-0.05
--------------------------------- ---------- ---------- ---------- ------------- ----------
Basal Sand Total Porosity 0.4 0.4 - 0.4
================ ================ ========== ========== ========== ============= ==========
Drainable
Porosity 0.23 0.28 - 0.1-0.20
--------------------------------- ---------- ---------- ---------- ------------- ----------
Source: Company releases
Table 10: Porosity Benchmarks
Brine Hydrology and Water Balance
The brine hydrology and water balance of each playa lake is not
yet defined at this early stage of project evaluation.
All the playa lakes are understood to flood intermittently
following large rainfall events. This is based on information
derived from a Geoscience Australia dataset that presents the
frequency of inundation for the Australian continent based on
analysis of Landsat TM images compiled since 1984 (GA, 2017)([4])
.
Flooding and direct infiltration of rainfall will recharge the
lake sediments and contribute to the water balance of the brine
system.
Pumping from confined paleochannels results in depressurisation
of the paleochannel and subsequent slow leakage of groundwater from
the overlying clay aquitard and lateral inflow from the adjacent
weathered basement aquifer. Studies of long-term water supply
abstraction from the Roe paleochannel suggest sustainable water
yields of around 1GL/year per 10km of paleochannel are possible
(Johnson, 2007)([5]) .
Neighbouring properties and temporal effects
Neighbouring properties and temporal effects have not been
evaluated at this early stage of project development.
Treatment of Islands
Many of the salt lake playas contain islands on the playa
surface. These islands generally comprise gypsiferous dunes and
often exhibit some vegetation. They are more common in playas that
are less frequently inundated Bowler, (1986)([6]) , presumably due
to the erosion that occurs through wave action during periods of
inundation. Research on other playas has shown that the brine
beneath islands is typically diluted close to the surface. The
mechanism is understood to be dilution by infiltration of rainfall
through the islands, without the subsequent intense evaporation
that occurs on the playa surface. This dilution effect diminishes
with depth.
Shallow dilution beneath islands is considered in the
Exploration Target estimate by defining the area occupied by
islands and reducing brine concentration beneath the islands by a
factor of 3 to a depth of 10m.
Mineralisation Extent
Mineralisation is calculated for the area beneath the salt lake
playa and islands only. There is in-sufficient data at each site to
infer continuity of the mineralisation beyond the playa extent.
A summary of the geological and hydrogeological data review
undertaken at each playa lake is presented below.
APPIX 2 - GSLP GEOLOGICAL AND HYDROGEOLOGICAL DATA REVIEW
LAKE BALLARD
Previous Exploration
A large amount of historical exploration work has been
undertaken surrounding Lake Ballard focusing on gold, nickel and
uranium. There has been limited exploration on the lake surface
with most exploration associated with uranium exploration in the
upper 10 m. Soil sampling was undertaken on the lake, as well as a
number of geophysical surveys and shallow drilling activities. The
Company has reviewed multiple publicly available documents to
provide an understanding of the geology and hydrogeology in the
Lake Ballard paleodrainage.
Esso Australia (1977) completed ground-based gravity and seismic
geophysical survey at western end of lake suggesting the presence
of the palaeovalley. Uranerz Australia (1977) undertook airborne
spectrometric and ground-based scintillometric surveys that was
followed by auger drilling with 81 holes being completed to depths
of up to 30 m bgl, which suggested the shallow alluvium is
dominated by clay lithologies and some drill holes encountered the
top of the paleochannel clay. Uranoz Ltd (2007) completed an
airborne gravity survey over the eastern portion of Lake Ballard
and eastward over the northern portion of Lake Marmion that broadly
mapped the distribution of the paleochannel thalweg.
The most useful hydrogeological data relates groundwater
exploration undertaken by the Geological Survey of Western
Australia (GSWA) in 1987. Three north-south transects were drilled
between Lake Ballard and Lake Marmion to explore for the main trunk
paleodrainage that originates to the west of Lake Ballard and flows
to the east beneath Lakes Marmion and Rebecca. Drill holes were
cased where possible; however, most holes into the deeper
paleochannel sediments couldn't be cased owing to running sands.
There are some drill sites with multiple bores and different screen
intervals. A bore completion report details the drilling and bore
construction (Nidagal, 1992), while a description of the
hydrogeology between the two lakes is provided by Langford
(1997).
Geology
The Lake Ballard paleodrainage is incised into the Archean
basement and now in-filled with a mixed sedimentary sequence. There
is a shallow sedimentary sequence comprising lake sediments
overlying alluvium and colluvium that concealed a deeper
sedimentary sequence of plastic clay and basal sand. The
paleochannel sands occur only in the deepest portion.
The lake sediments are thin being less than 2 to 3 m thick,
which tend to interfinger and grade downward into an upper,
iron-stained sequence of alluvium and colluvium (up to 30 m thick).
This upper sequence appears to be more clayey with noticeably less
sandy horizons, when compared with other paleodrainages to the
north. Between Lakes Ballard and Marmion, there are clay layers (up
to 20 m thick) being separated by sandy clay to clayey sand
beds.
The understanding of the deep stratigraphy in the paleovalley is
limited to three drilling transects between Lakes Ballard and
Marmion. The lower Tertiary-aged paleochannel sequence comprises
dense plasticine clay (60m thick) and basal sands (up to 20m
thick). In places, there are silcrete and sandy intervals within
the plasticine clay providing a different stratigraphy to other
paleodrainages.
Hydrogeology
The upper alluvium and colluvium is likely to be a minor aquifer
associated with Lake Ballard, and in some places may form an
aquitard. The basal sands are confined beneath the plastic clay and
comprise fine to coarse-grained quartz sand, which forms a deeper
aquifer being about 80m bgl in the west (estimated from
ground-based geophysics) and about 110m bgl at the east of Lake
Ballard. There has been no hydraulic testing of the shallow or deep
aquifers at Lake Ballard; however, bore yields will be higher from
the basal sands.
References
Esso Exploration and Production Australia Inc, 1977, 1999 Annual
(Final) Report, Lake Ballard - Project 650, Mineral Claims
29/2988-3000, 29/3059 and 3060, 30/1249-1253, and 30/1266-1270 -
unpublished report by Esso Australia, WAMEX A7536.
Langford, R., 1997, Hydrogeology of part of the Rebecca
Palaeodrainage between Lake Ballard and Lake Marmion in the
northeastern Goldfields of Western Australia, unpublished thesis
for Master of Science (Applied Geology) at Curtin University.
Nidagal, V., 1992, Lake Ballard palaeodrainage groundwater
investigation bore completion reports, Western Australia Geological
Survey, Hydrogeology Report 1989/18, unpublished.
Uranerz Australia, 1977, Final Report covering the period from
10/12/1976 to 1/11/1977, Temporary Reserve No 6400H, unpublished
report by Uranerz Australia, WAMEX A7330.
Uranoz Ltd, 2007, E59/599 - Goongarrie Project, Annual Technical
Report, Period Ending December 18, 2007: Report compiled by Mark
Gordon of Gondor Geoconsult Pty Ltd in December 2007, unpublished
report for Uranoz Ltd, WAMEX A76810.
LAKE BARLEE
Previous Exploration
There has been limited exploration on the lake surface with most
exploration associated with uranium exploration in the upper 10m.
Soil sampling was undertaken on the lake, as well as a number of
geophysical surveys and shallow drilling activities (Jervois
Mining, 2013; Northern Uranium, 2008). The Company has reviewed
multiple publicly available documents to provide an understanding
of the geology and hydrogeology in the Lake Barlee
paleodrainage.
Recent potash exploration work by Parkway Minerals on their
tenements to the north of SLP tenements suggest the presence of a
paleochannel feature (Parkway Minerals, 2017). There has been no
drilling to date, but geophysics results indicate the combined
depth of the paleovalley is about 75m (Parkway Minerals, 2017)
being shallower than other paleodrainages as it is close to its
headwaters.
Geology
There is little known about the stratigraphy in the Barlee
Paleodrainage, as there has been no regional assessment undertaken.
The paleovalley becomes shallower towards its headwaters in the
west and south; as such it is possible that it is about 50m deep
beneath the SLP tenements.
The paleodrainage is incised into the Archean basement and now
in-filled with a mixed sedimentary sequence. Lake sediments are
thin being less than 2 to 3m thick, which tend to interfinger and
grade downward into an upper, iron-stained sequence of alluvium and
colluvium (up to 30m thick). This shallow sedimentary sequence may
conceal a deeper sedimentary sequence of plastic clay and basal
sand. The presence of the paleochannel sands is unknown; however,
if present they will occur in the deepest portion.
Hydrogeology
The upper alluvium and colluvium is likely to be a minor
aquifer, and in some places may form an aquitard. Basal sands
comprise fine to coarse-grained quartz sand may be confined beneath
plastic clay and form a deeper aquifer. There has been no hydraulic
testing of the shallow or deep aquifers at Lake Barlee; however,
bore yields are likely to be higher from the basal sands.
References
Jervois Mining, 2013, Bulga Project, Final Surrender Report for
period 6th September to 22nd May 2013, unpublished report, WAMEX
A98133.
Northern Uranium, 2008, Annual Report for the Lake Barlee
Project, Exploration Licence E77/1331, unpublished report, WAMEX
A77895.
Parkway Minerals, 2017, Parkway Minerals announces seismic
survey at Lake Barlee confirms deep paleo-channels, ASX
announcement by Parkway Minerals, 17 October 2017.
LAKE IRWIN
Previous Exploration
Significant historical exploration work has been completed in
the Lake Irwin area focusing on nickel and gold. This exploration
work was largely undertaken in the basement lithologies surrounding
the lake; however, there has been no substantial exploration on the
lake.
The most useful stratigraphic and hydrogeological data relates
to groundwater exploration undertaken by the Water and Rivers
Commission (WRC) in 1997 and 1998. Three investigation transects
were completed surrounding and across Lake Irwin. Transect B
located across the middle of the lake failed to encounter the main
trunk paleodrainage and is somewhat inconclusive. Transect C in the
northwest encountered a palaeotributary with basal sand between 80
and 90 m bgl. Transect D located to the north of the lake
encountered the basal sand between 110 and 140 m bgl. A bore
completion report details the drilling and bore construction
(Johnson et al., 1998), while a regional description of the
hydrogeology is provided by Johnson et al. (1999).
Geology
The Carey paleodrainage, passing beneath Lake Irwin, is incised
into the Archean basement and now in-filled with a mixed
sedimentary sequence. There is a shallow sedimentary sequence
comprising lake sediments overlying alluvium and colluvium that
concealed a deeper sedimentary sequence of plastic clay and basal
sand. The paleochannel sands occur only in the deepest portion.
The stratigraphy comprises thin lake sediments overlying an
upper interbedded sequence of alluvium and colluvium (30m thick),
and a lower Tertiary-aged paleochannel sequence of dense plasticine
clay (50 to 60m) and basal sands (20 to 30m thick) that is
surrounded by Archaean granite and greenstone basement.
Hydrogeology
The upper alluvium and colluvium is considered a minor aquifer
owing to the fine-grained nature of the sediments and lack of thick
sandy / gravel horizons. This aquifer is present beneath the entire
lake surface. Direct hydraulic testing is limited; however, bore
yields are likely to be low in the order of 1 to 2 L/sec and up to
5 L/sec in some cases. It is utilised by the pastoral industry for
stock watering with bores and wells.
The deeper paleochannel sand is an important regional aquifer
that is widely developed by the mining industry for meeting process
water requirements. The thalweg of the trunk paleochannel appears
to be about 1 to 2 km northeast of the lake, and only
paleotributaries on the western side are present the current lake
surface. In these paleotributaries, there are two production
borefields (Charlie Well and Greymare) operated by Minara
Resources' Murrin Murrin operation. Long-term bore yields are
commonly between 10 and 15 L/sec with up to 20 L/sec in the
thickest thalweg sections.
References
Johnson, S., Mohsenzadeh, H., Yesterener, C., and Koomberi, H.,
1998, Northern Goldfields regional groundwater assessment bore
completion reports: Western Australia Water and Rivers Commission,
Hydrogeology Report 107, unpublished.
Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater
resources of the Northern Goldfields, Western Australia: Western
Australia Water and Rivers Commission, Hydrogeological Record
Series, Report HG2, 57p.
LAKE MARMION
Previous Exploration
A large amount of historical exploration work has been
undertaken surrounding Lake Marmion focusing on gold, nickel and
uranium. There has been limited exploration on the lake surface
with most exploration associated with uranium exploration in the
upper 10m. The Company has reviewed multiple publicly available
documents to provide an understanding of the geology and
hydrogeology in the paleodrainage beneath Lake Marmion.
Reports from previous tenement holders detailing mineral
exploration programs provided useful data on the location of the
paleochannel, and thickness / nature of the lake sediments. There
have been a range of exploration activities including wide-spaced
gravity surveys and some drilling at the western and eastern lake
margins.
There have been several gravity surveys across the lake that
have provided an understanding of the distribution of the
paleochannel. The most recent surveys by Uranoz Ltd (2007a, b and
c), Nickleore Ltd (2008) and Siburan Resources (2011a, b, c and
2012) suggest that the main trunk drainage takes a meandering path
beneath the northern parts of the lake that merges with a large
palaeotributary from the south.
Geology
There have been no regional studies on the
Ballard-Marmion-Rebecca Paleodrainage - unlike the paleodrainages
to the north (Johnson et al., 1999) and to the south (Commander et
al., 1992). Despite this, there is high level of confidence that
the main trunk drainage traverses the northern portion of the lake
from Lake Ballard to Boomerang Lake / Lake Rebecca in the east, and
there is also a large paleotributary from the south. The
stratigraphy seems to broadly align with other paleodrainages in
the northern Goldfields.
Lake sediments are probably thin being less than 2 to 3m thick,
which tend to interfinger and grade downward into an upper,
iron-stained sequence of alluvium and colluvium (up to 30m thick).
This upper sequence may be more clayey with noticeably less sandy
horizons, when compared with other paleodrainages to the north.
Between Lakes Ballard and Marmion, there are clay layers (up to 20m
thick) being separated by sandy clay to clayey sand beds.
The understanding of the deep stratigraphy is based on the
drilling undertaken at the lake margins. In the northwest, one
incomplete and shallow drilling transect was completed by AFMECO
(1978 a and b) and three drilling transects were completed by the
GSWA between Lakes Ballard and Marmion with detailed lithological
descriptions in the bore completion reports (Nidagal, 1992) and
interpreted stratigraphy for each transect (Langford, 1997). This
drilling suggests a total thickness of about 80m with 20m of
alluvium / colluvium overlying 45m of plasticine clay and 15m of
basal sands. There are silcrete and sandy intervals at the base of
the alluvium / colluvium and throughout the plasticine clay that
provides a different stratigraphy to other paleodrainages.
Hydrogeology
The upper alluvium and colluvium is considered a minor aquifer
owing to the dominance of clay lithologies and lack of thick sandy
/ gravel horizons. It is present beneath the entire lake surface.
There has been no direct hydraulic testing with bore yields to be
very low, less than 1 L/sec. In places, discrete bodies of calcrete
are present that form localised aquifers; however, these bodies are
less common near Menzies when compared with areas to the north.
Groundwater resources in this shallow aquifer will be more likely
accessed via leakage rather than direct abstraction.
The deeper paleochannel sand is an important regional aquifer
that is widely developed by the mining industry to the north;
however, there has been no utilisation in the vicinity of Lake
Marmion. Long-term bore yields are commonly between 10 and 15 L/sec
with up to 20 L/sec in the thickest thalweg sections.
References
AFMECO, 1978a, Yilgarn Drainage, Temporary Reserve 6402H, West
Lake Marmion, Annual Report, Report WA 275F, February 1978,
unpublished report, WAMEX 7573.
AFMECO, 1978b, Yilgarn Drainage, Temporary Reserve 6402H, West
Lake Marmion, Final Report, Report WA 275F, July 1978, unpublished
report, WAMEX 7945.
Commander, D.P., Kern, A.M. and Smith, R.A., 1992, Hydrogeology
of the Tertiary Palaechannels in the Kalgoorlie Region (Roe
Palaeodrainage): Western Australia Geological Survey, Record
1991/10.
Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater
resources of the Northern Goldfields, Western Australia: Western
Australia Water and Rivers Commission, Hydrogeological Record
Series, Report HG2, 57p.
Langford, R., 1997, Hydrogeology of part of the Rebecca
Palaeodrainage between Lake Ballard and Lake Marmion in the
northeastern Goldfields of Western Australia, unpublished thesis
for Master of Science (Applied Geology) at Curtin University.
Nickleore Ltd., 2008, E29/634 (Lake Marmion), 2008 Annual
Report, 12 April 2007 to 11 April 2008, unpublished report, WAMEX
79044.
Nidagal, V., 1992, Lake Ballard palaeodrainage groundwater
investigation bore completion reports, Western Australia Geological
Survey, Hydrogeology Report 1989/18, unpublished.
Siburan Resources, 2011a, Lake Marmion Project, Annual Report,
Exploration Licence E29/756, Western Australia, Reporting period 19
August 2010 to 18 August 2011, unpublished report, WAMEX 91660.
Siburan Resources, 2011b, Lake Marmion Project, Annual Report,
Exploration Licence E29/757, Western Australia, Reporting period 18
November 2010 to 17 November 2011, unpublished report, WAMEX
92276.
Siburan Resources, 2011c, Gravity surveys outline new uranium
prospective paleochannels at Lake Marmion Project, ASX
announcement.
Siburan Resources, 2012, Lake Marmion Project, Annual Report,
Exploration Licences E29/637, E29/756-757, E29/773, E29/778-780,
E29/782, E31/939-940, E31/976-977, Reporting period 5 July 2011 to
4 July 2012, unpublished report, WAMEX 95065.
Uranoz Ltd., 2007a, Goongarrie Project, E59/598, Annual
Technical Report, Period Ending November 14, 2007: Report prepared
by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007,
unpublished report, WAMEX 76809.
Uranoz Ltd., 2007b, Goongarrie Project, E59/599, Annual
Technical Report, Period Ending December 18, 2007: Report prepared
by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007,
unpublished report, WAMEX 76810.
Uranoz Ltd., 2007c, Goongarrie Project, E59/600, Annual
Technical Report, Period Ending December 18, 2007: Report prepared
by Mark Gordon of Gondor Geoconsult Pty Ltd in December 2007,
unpublished report, WAMEX 76811.
LAKE MINIGWAL
Previous Exploration
A large amount of historical exploration work has been
undertaken in the area to the north of Lake Minigwal focusing on
gold, nickel and uranium. The Company has reviewed multiple
publicly available documents to develop an understanding of the
geology and hydrogeology in the paleodrainage beneath the lake
itself.
Mineral exploration has been undertaken surrounding the lake
margins with minimal activity on or beneath the lake surface. There
has been some drilling near the eastern portion of the lake
(Uranerz, 1983); however, there was no reporting of lithology in
these drill holes. Uranerz Pty Ltd (1987) focused on a tributary
near Jasper Hill that flows in Lake Minigwal with a drill hole
encountering shallow paleochannel sediments. An AEM (airborne
electromagnetic) survey has been undertaken over the project area
by Camuco Pty Ltd (2008): however, there were issues with
near-surface conductivity masking. It was concluded that there is
limited data from geophysical surveys and drilling activities that
contribute to paleochannel interpretation at Lake Minigwal.
Geology
There is limited understanding of the deep stratigraphy beneath
Lake Minigwal. In the available dataset, there are no drill holes
that fully penetrate the Tertiary sequence with the deepest holes
being about 60m bgl that were ceased in paleochannel clay. Granny
Smith Mines (1999) noted that there are 120m deep paleochannels
beneath Lake Carey near Wallaby deposit and it is assumed that this
is the same paleochannel beneath Lake Minigwal.
Beneath 20 to 30m of alluvium and colluvium, there is a
Tertiary-aged paleochannel sequence comprising dense plasticine
clay (50 to 60m) and basal sands (10 to 20m thick) that are incised
into the Archaean granite and greenstone basement. In places, there
may be silcrete and sandy intervals within the plasticine clay. The
basal sands are commonly fine to coarse-grained sand.
Hydrogeology
The upper alluvium and colluvium is considered a minor aquifer,
which is present beneath the entire lake surface. There has been no
direct hydraulic testing with bore yields to be low, less than 3
L/sec. In places, there may be discrete bodies of calcrete that
form localised aquifers. Groundwater resources in this shallow
aquifer may be directly abstracted from sandy intervals, but more
likely via downward leakage.
The deeper paleochannel sand is an important regional aquifer
that is widely developed by the mining industry to the north, in
particular Granny Smith Mines at Lake Carey. Production bores are
screened in the permeable basal sand and gravels. Long-term bore
yields are commonly between 10 and 15 L/sec with up to 20 L/sec in
the thickest thalweg sections
References
Camuco Pty Ltd, 2008, Annual Report for the Minigwal Project
comprising ELs 39/1185, 39/1186, 39/1187, unpublished report, WAMEX
A77594.
Granny Smith Mines, 1999, Lake Carey Project, E38/447, E38/448,
E38/457, E39/387, E39/389 & E39/483, Mount Margaret Mineral
Field, Western Australia, Sixth Annual Report on Exploration,
Period ending 30th June 1999, Ref: M7959, unpublished report, WAMEX
A59288.
Uranerz Pty Ltd, 1983, Final report on Exploration Licence
38/13, Rason Lake Area, Western Australia, Covering the Period 30
March 1983 to 4 November 1983, unpublished report, WAMEX
A12985.
Uranerz Pty Ltd, 1987, Surrender Report on Exploration Licence
39/87, Lake Minigwal, Western Australia, Covering the period 23
March 1986 to 22 March 1987, unpublished report, WAMEX A20809.
LAKE NOONDIE
Previous Exploration
Previous diamond, gold and uranium exploration has been
conducted in the vicinity of Lake Noondie. There has been limited
exploration on the lake surface with most exploration associated
with uranium exploration in the upper 10m. Soil sampling was
undertaken on the lake, as well as a number of geophysical surveys
and shallow drilling activities (Hemisphere, 2010, 2011; Mindax,
2008). The Company has reviewed multiple publicly available
documents to provide an understanding of the geology and
hydrogeology in the Lake Noondie paleodrainage.
Geology
There is little known about the stratigraphy in the Noondie
Paleodrainage, as there have been no regional studies unlike the
paleodrainages to the east (Johnson et al., 1999). The closest
drill transect (Transect R) completed by the Water and River
Commission (Johnson et al., 1999) is about 40km to the east. This
drilling suggests the presence of a full paleochannel stratigraphy
with a combined thickness of 130m.
The paleodrainage is incised into the Archean basement and now
in-filled with a mixed sedimentary sequence. Lake sediments are
thin being less than 2 to 3m thick, which tend to interfinger and
grade downward into an upper, iron-stained sequence of alluvium and
colluvium (up to 30m thick). This shallow sedimentary sequence
conceals a deeper sequence of plastic clay and basal sand. The
paleochannel sands will occur in the deepest portion and may be 20
to 30m thick.
Hydrogeology
The upper alluvium and colluvium is likely to be a minor aquifer
associated with Lake Noondie. Basal sands comprise fine to
coarse-grained quartz sand that are confined beneath plastic clay
and form a deeper aquifer. There has been no hydraulic testing of
the shallow or deep aquifers at Lake Noondie; however, bore yields
will be higher from the basal sands.
References
Hemisphere Resources Ltd., 2010, Combined reporting group
C61/2009, Bulga Downs Project, Exploration Licences E57/720,
E57/721, E57/722, E57/762, E57/763, E57/781 and E57/782, Western
Australia, Annual Report for the year ended 13 April 2010,
unpublished report, WAMEX A87235.
Hemisphere Resources Ltd., 2011, Combined reporting group
C61/2009, Bulga Downs Project, Exploration Licences E57/720,
E57/721, E57/722, E57/762, E57/763, E57/781 and E57/782, Western
Australia, Annual Report for the year ended 13 April 2011,
unpublished report, WAMEX A90598.
Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater
resources of the Northern Goldfields, Western Australia: Western
Australia Water and Rivers Commission, Hydrogeological Record
Series, Report HG2, 57p.
Mindax Ltd, 2008, Lake Noondie Project, Combined Annual Report
for Exploration Licenses E57/602 (Lake Noondie West), E57/603 (Lake
Noondie East) and E57/619 (Bill Well), Black Range District, East
Murchison Mineral Field for the period 1st January 2007 and 31st
December 2007, unpublished report, WAMEX A77744.
LAKE RAESIDE
Previous Exploration
A large amount of historical exploration work has been
undertaken in the vicinity of Lake Raeside focusing on gold,
limestone, nickel and uranium. There has been limited exploration
on the lake surface with most exploration associated with limestone
and uranium exploration in the upper 10m at the lake margins. Soil
sampling was undertaken on the lake, as well as a number of
geophysical surveys and shallow drilling activities. The Company
has reviewed multiple publicly available documents to develop an
understanding of the geology and hydrogeology in the paleodrainage
beneath the lake itself.
The Water and Rivers Commission completed a regional groundwater
resource assessment of the paleodrainages in the Northern
Goldfields in 1997 and 1998. As part of this assessment, a drilling
transect (Transect Q) was installed about 5 km north of Lake
Raeside along the Ida Valley Road that encountered a full
paleochannel stratigraphy with a combined thickness of 130 m
(Johnson et al., 1999).
Geology
The paleodrainage is incised into the Archean basement and now
in-filled with a mixed sedimentary sequence. Lake sediments are
thin being less than 2 to 3 m thick, which tend to interfinger and
grade downward into an upper, iron-stained sequence of alluvium and
colluvium (up to 30 m thick). This shallow sedimentary sequence
conceals a deeper sequence of plastic clay and basal sand. The
paleochannel sands occur in the deepest portion, may be 20 to 30 m
thick, and are present beneath the current lake surface
Hydrogeology
The upper alluvium and colluvium is likely to be a minor
aquifer, and in some places may form an aquitard. The presence of
calcrete at the margins suggests that there may be calcrete aquifer
horizons within the upper 10 m. Beneath the plastic clay, basal
sands comprise fine to coarse-grained quartz sand that forms a
potential deeper aquifer. There has been no hydraulic testing of
the shallow or deep aquifers at Lake Raeside; however, bore yields
will be higher from the basal sands.
References
Johnson, S., Commander, D., and O'Boy, C., 1999, Groundwater
resources of the Northern Goldfields, Western Australia: Western
Australia Water and Rivers Commission, Hydrogeological Record
Series, Report HG2, 57p.
LAKE WAY
Previous Exploration
Significant historical exploration work has been completed in
the Lake Way area focusing on nickel, gold and uranium. The Company
has reviewed multiple publicly available documents including
relevant information on the Lake Way's hydrogeology and
geology.
Groundwater exploration was undertaken in the early 1990s by AGC
Woodward Clyde to locate and secure a process water supply for WMC
Resources Limited's Mt Keith nickel operation. There was a wide and
extensive program of exploration over 40km of paleodrainage that
focused on both the shallow alluvium and deeper paleochannel
aquifers.
The comprehensive drilling program comprised 64 air-core drill
holes totalling 4,336m and five test production bores (two of which
were within SLP's exploration licences). The aquifers identified
were a deep paleochannel sand unit encountered down the length of
the Lake Way investigation area and a shallow mixed alluvial
aquifer from surface to a depth of approximately 30m.
Geology
The Lake Way drainage is incised into the Archean basement and
now in-filled with a mixed sedimentary sequence, the paleochannel
sands occurring only in the deepest portion. The mixed sediments
include sand, silts and clays of lacustrine, aeolin, fluvial and
colluvial depositional origins. The surficial deposits also include
chemical sediments comprising calcrete, silcrete and ferricrete.
These sediments provide a potential reservoir for large quantities
of groundwater.
The deep paleochannel sand aquifer is confined beneath
plasticine clay up to 70m thick. The sand comprises medium to
coarse grained quartz grains with little clay - it is approximately
30m thick and from 400m to 900m in width.
Hydrogeology
The shallow aquifer comprises a mixture of alluvium, colluvium
and lake sediments extending beyond the lake playa and continuing
downstream. Five test production bores were developed, of which two
are within SLP's tenements. CRT bore yields ranged from 520 kL/day
up to 840 kL/day in permeable coarse-grained sand.
References
AGC Woodward-Clyde Pty Ltd, 1992, Mt Keith Process Water Supply,
Lake Way Area, Volume 1, Contained within WMC Resources, Partial
Surrender Report for the period 8 December 1992 to 7 December 1995,
unpublished report, WAMEX A48586.
Tenements
The GSLP tenements are detailed in the Table below:
Project Status License Area Term Grant Date of First Interest
Number (km(2) Date Relinquish-ment
)
Western Australia
===================== ============== ========= ======================= ========== ===========================
Lake
Wells
Central Granted E38/2710 192.2 5 years 05-Sep-12 4-Sep-17 100%
==================== ============== ============== ======== ========= ========== ================ =========
South Granted E38/2821 131.5 5 years 19-Nov-13 18-Nov-18 100%
North Granted E38/2824 198.2 5 years 04-Nov-13 3-Nov-18 100%
==================== ============== ============== ======== ========= ========== ================ =========
Outer East Granted E38/3055 298.8 5 years 16-Oct-15 16-Oct-20 100%
Single Block Granted E38/3056 3.0 5 years 16-Oct-15 16-Oct-20 100%
==================== ============== ============== ======== ========= ========== ================ =========
Outer West Granted E38/3057 301.9 5 years 16-Oct-15 16-Oct-20 100%
North West Granted E38/3124 39.0 5 years 30-Nov-16 29-Nov-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
West Granted L38/262 113.0 20 years 3-Feb-17 2-Feb-38 100%
East Granted L38/263 28.6 20 years 3-Feb-17 2-Feb-38 100%
==================== ============== ============== ======== ========= ========== ================ =========
South West Granted L38/264 32.6 20 years 3-Feb-17 2-Feb-38 100%
South Application L38/287 95.8 - - - 100%
==================== ============== ============== ======== ========= ========== ================ =========
South Western Granted E38/3247 350.3 5 years 25-Jan-18 24-Jan-23 100%
South Application M38/1278 87.47 - - - 100%
==================== ============== ============== ======== ========= ========== ================ =========
Lake
Ballard
West Granted E29/912 607.0 5 years 10-Apr-15 10-Apr-20 100%
==================== ============== ============== ======== ========= ========== ================ =========
East Granted E29/913 73.2 5 years 10-Apr-15 10-Apr-20 100%
North Granted E29/948 94.5 5 years 22-Sep-15 21-Sep-20 100%
==================== ============== ============== ======== ========= ========== ================ =========
South Granted E29/958 30.0 5 years 20-Jan-16 19-Jan-21 100%
South East Granted E29/1011 68.2 5 years 11-Aug-17 10-Aug-22 100%
==================== ============== ============== ======== ========= ========== ================ =========
South East Granted E29/1020 9.3 5 years 21-Feb-18 20-Feb-23 100%
South East Granted E29/1021 27.9 5 years 21-Feb-18 20-Feb-23 100%
==================== ============== ============== ======== ========= ========== ================ =========
South East Granted E29/1022 43.4 5 years 21-Feb-18 20-Feb-23 100%
Lake
Irwin
========= ========== ============== ========= ======================= ========== ===========================
West Granted E37/1233 203.0 5 years 08-Mar-16 07-Mar-21 100%
Central Granted E39/1892 203.0 5 years 23-Mar-16 22-Mar-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
East Granted E38/3087 139.2 5 years 23-Mar-16 22-Mar-21 100%
North Granted E37/1261 107.3 5 years 14-Oct-16 13-Oct-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
Central East Granted E38/3113 203.0 5 years 14-Oct-16 13-Oct-21 100%
South Granted E39/1955 118.9 5 years 14-Oct-16 13-Oct-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
North West Application E37/1260 203.0 - - - 100%
South West Application E39/1956 110.2 - - - 100%
==================== ============== ============== ======== ========= ========== ================ =========
Lake Minigwal
West Granted E39/1893 246.2 5 years 01-Apr-16 31-Mar-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
East Granted E39/1894 158.1 5 years 01-Apr-16 31-Mar-21 100%
Central Granted E39/1962 369.0 5 years 8-Nov-16 7-Nov-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
Central East Granted E39/1963 93.0 5 years 8-Nov-16 7-Nov-21 100%
South Granted E39/1964 99.0 5 years 8-Nov-16 7-Nov-21 100%
==================== ============== ============== ======== ========= ========== ================ =========
South West Application E39/1965 89.9 - - - 100%
Lake Way
==================== ============== ============== ======== ========= ========== ================ =========
Central Granted E53/1878 217.0 5 years 12-Oct-16 11-Oct-21 100%
South Application E53/1897 77.5 - - - 100%
==================== ============== ============== ======== ========= ========== ================ =========
Lake Marmion
North Granted E29/1000 167.4 5 years 03-Apr-17 02-Apr-22 100%
==================== ============== ============== ======== ========= ========== ================ =========
Central Granted E29/1001 204.6 5 years 03-Apr-17 02-Apr-22 100%
South Granted E29/1002 186.0 5 years 15-Aug-17 14-Aug-22 100%
==================== ============== ============== ======== ========= ========== ================ =========
West Granted E29/1005 68.2 5 years 11-Jul-17 10-Jul-22 100%
Lake Noondie
==================== ============== ============== ======== ========= ========== ================ =========
North Application E57/1062 217.0 - - - 100%
Central Application E57/1063 217.0 - - - 100%
==================== ============== ============== ======== ========= ========== ================ =========
South Application E57/1064 55.8 - - - 100%
West Application E57/1065 120.9 - - - 100%
==================== ============== ============== ======== ========= ========== ================ =========
East Application E36/932 108.5 - - - 100%
Lake Barlee
==================== ============== ============== ======== ========= ========== ================ =========
North Application E49/495 217.0 - - - 100%
Central Granted E49/496 220.1 5 years 17-Dec-17 16-Dec-22 100%
==================== ============== ============== ======== ========= ========== ================ =========
South Granted E77/2441 173.6 5 years 09-Oct-17 08-Oct-22 100%
Lake Raeside
==================== ============== ============== ======== ========= ========== ================ =========
North Application E37/1305 155.0 - - - 100%
Northern Territory
===================== ============== ========= ======================= ========== ===========================
Lake
Lewis
South Granted EL 29787 146.4 6 years 08-Jul-13 7-Jul-19 100%
==================== ============== ============== ======== ========= ========== ================ =========
North Granted EL 29903 125.1 6 years 21-Feb-14 20-Feb-19 100%
==================== ============== ============== ======== ========= ========== ================ =========
Competent Persons Statement
The information in this report that relates to Exploration
Results, Exploration Targets or Mineral Resources is based on
information compiled by Mr Ben Jeuken, who is a member Australian
Institute of Mining and Metallurgy. 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'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, which could
cause actual results to differ materially from such statements.
Salt Lake 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 2A - LAKE RAESIDE BRINE CHEMISTRY ANALYSIS
HOLE ID East North From To K Cl Na Ca Mg SO(4) TDS
(m) (m) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (g/L)
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700001 315501 6807912 0 1 2,270 138,200 82,000 1,020 5,420 10400 241
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700005 311513 6809765 0 1 1,440 73,000 44,000 1,500 3,390 8400 133
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700007 307959 6811061 0 1 2,180 115,350 68,700 1,060 5,330 11500 208
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700011 300035 6813662 0 1 2,240 149,850 87,900 603 8,690 17600 273
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700013 278641 6810996 0 1 3,140 167,950 96,900 409 12,400 27400 317
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700015 281725 6810666 0 1 950 55,550 34,100 600 3,130 8730 104
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
S700017 287751 6812747 0 1 2,230 124,500 74,100 789 6,510 15400 228
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
APPIX 2B - LAKE NOONDIE BRINE CHEMISTRY ANALYSIS
HOLE ID East North From To K Cl Na Ca Mg SO(4) TDS
(m) (m) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (g/L)
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700004 713808 6828889 0 1 2,630 131,000 78,600 785 5,310 13,700 232
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700008 720566 6832676 0 1 2,350 125,050 75,300 822 5,230 13,900 223
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700010 727256 6836907 0 1 2,390 125,050 75,400 796 4,950 14,300 222
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700012 734532 6837014 0 1 2,740 130,150 80,400 821 4,370 13,400 231
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700014 740408 6837916 0 1 2,030 121,050 71,500 802 5,330 12,900 212
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700016 741574 6840505 0 1 1,900 92,800 54,900 522 3,700 8,640 162
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700018 750994 6847653 0 1 2,340 135,400 76,600 754 5,870 14,200 234
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700020 754948 6851513 0 1 2,470 111,750 67,700 949 4,240 12,100 197
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700022 765001 6857294 0 1 2,600 128,550 73,600 1,050 4,810 10,200 222
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
N700024 781493 6855076 0 1 2,030 101,200 58,600 1,390 3,800 8,490 172
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
APPIX 2C - LAKE MINIGWAL BRINE CHEMISTRY ANALYSIS
HOLE ID East North From To K Cl Na Ca Mg SO(4) TDS
(m) (m) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (g/L)
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700002 462878 6753653 0 1 1,900 154,200 96,600 706 5,900 14,300 267
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700004 465178 6751680 0 1 2,160 168,450 104,000 658 5,710 12,900 288
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700006 516470 6735650 0 1 2,270 143,150 89,300 523 7,210 23,000 261
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700008 518949 6731636 0 1 1,850 138,950 87,100 594 7,580 20,500 250
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700010 520783 6728495 0 1 1,990 145,100 91,700 499 8,110 24,300 267
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700011 477839 6749646 0 1 2,470 176,750 106,000 539 7,030 15,700 311
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700013 482455 6738102 0 1 2,610 165,500 103,000 310 7,290 31,800 323
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700015 488600 6734506 0 1 2,040 126,450 75,300 648 6,120 19,200 237
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700017 507653 6736762 0 1 1,750 134,000 79,600 526 8,160 23,200 257
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700019 527552 6726613 0 1 1,750 149,850 84,800 549 7,890 18,300 274
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700023 505953 6742473 0 1 3,810 167,750 92,400 375 11,700 26,700 316
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700025 509570 6745818 0 1 2,850 151,400 80,300 456 10,900 23,900 285
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700027 504869 6753891 0 1 3,800 133,450 78,800 500 7,990 24,900 259
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
M700029 504869 6753891 0 1 3,740 149,300 82,700 402 12,500 32,100 292
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
APPIX 2D - LAKE BARLEE BRINE CHEMISTRY ANALYSIS
HOLE ID East North From To K Cl Na Ca Mg SO(4) TDS
(m) (m) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (g/L)
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700003 766001 6706841 0 1 1920 146800 81100 726 8180 13400 250500
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700005 764573 6716740 0 1 1680 145950 81500 677 8470 14200 250900
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700011 761574 6746205 0 1 1720 132450 78700 1000 5680 10900 228850
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700013 754538 6747013 0 1 1150 93300 54500 477 3890 7200 158200
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700017 758045 6747653 0 1 1400 98400 59000 978 3480 7680 169350
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700021 737684 6727502 0 1 860 65750 38800 554 3110 6060 113950
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
E700023 742095 6731966 0 1 1460 129100 76900 990 5400 11000 223650
--------- ------- -------- ------ ----- -------- -------- -------- -------- -------- -------- -------
APPIX 2E - LAKE WAY BRINE CHEMISTRY ANALYSIS
"Lake Way" series Chemistry data extracted from AGC
Woodward-Clyde Pty Ltd, 1992, Mt Keith Process Water Supply, Lake
Way Area, Volume 1, Contained within WMC Resources, Partial
Surrender Report for the period 8 December 1992 to 7 December 1995,
unpublished report, WAMEX A48586.
HOLE ID Aquifer East North K Cl Na Ca Mg SO(4) TDS
(mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (g/L)
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 2/4 Paleochannel 255050 7020250 5,200 120,000 68,000 600 6,700 6,700 220
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 3/4 Paleochannel 247700 7032150 6,300 130,000 83,000 520 8,200 8,200 260
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 3/5 Paleochannel 247700 7032150 3,400 75,000 49,000 510 5,000 5,000 160
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 3/14 Paleochannel 245050 7029800 5,300 130,000 70,000 440 7,400 7,400 240
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 5/6 Paleochannel 241750 7035300 6,100 130,000 77,000 570 7,000 7,000 240
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 2/4 Clay 255050 7020250 3,800 78,000 49,000 930 3,400 3,400 150
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 2/6 Clay 254250 7019550 3,400 64,000 38,000 1,100 2,500 2,500 120
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 2/7 Clay 253300 7018850 3,000 56,000 37,000 930 2,900 2,900 120
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 3/1 Clay 248420 7032900 1,500 42,000 28,000 450 3,400 3,400 88
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 3/4 Clay 247700 7032150 2,200 49,000 31,000 750 3,900 3,900 110
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Lake Way 5/7 Clay 242800 7034250 6,000 130,000 73,000 510 7,100 7,100 240
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700002 Surficial 237500 7031600 8,110 149,750 86,800 359 8,930 30,600 288
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700004 Surficial 235968 7036128 6,950 124,750 74,200 503 7,280 28,000 240
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700006 Surficial 237015 7039115 6,980 132,800 79,200 445 8,470 31,800 258
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700008 Surficial 240508 7036136 6,440 142,100 78,300 407 12,000 33,000 274
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700010 Surficial 241352 7031891 7,210 127,200 72,800 593 6,630 22,500 238
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700012 Surficial 241855 7026999 7,090 114,750 67,000 638 5,450 21,900 216
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700020 Surficial 245022 7027585 6,930 123,700 73,000 624 6,440 22,100 231
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
Y700022 Surficial 246105 7024796 5,160 109,300 59,700 803 6,670 17,300 201
-------------- -------------- ------- -------- -------- -------- -------- -------- -------- -------- -------
APPIX 3 - JORC TABLE ONE
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling (eg Sampling was undertaken using test
cut channels, random chips, or pits excavated into the playa surface
specific specialised industry to a depth of approximately
standard measurement tools 1m.
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.
====================================== ====================================== ======================================
Drilling techniques Drill type (eg core, reverse Not Applicable
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).
Drill sample recovery Method of recording and assessing Brine samples were obtained from all
core and chip sample recoveries and test pits
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.
====================================== ====================================== ======================================
Logging Whether core and chip samples have All pits were geologically logged by
been geologically and geotechnically a qualified geologist, noting
logged to a level moisture content of sediments,
of detail to support appropriate lithology, colour, induration,
Mineral Resource estimation, mining grainsize, matrix and structural
studies and metallurgical observations. A digital drill
studies. log was developed specifically for
Whether logging is qualitative or this project.
quantitative in nature. Core (or
costean, channel, etc)
photography.
The total length and percentage of
the relevant intersections logged.
Sub-sampling techniques and sample If core, whether cut or sawn and Geological logs are recorded in the
preparation whether quarter, half or all core field based on inspection of
taken. cuttings. Geological samples
If non-core, whether riffled, tube are retained for each hole in
sampled, rotary split, etc and archive.
whether sampled wet or dry. Sub-sampling was not undertaken.
For all sample types, the nature, Sample bottles are rinsed with brine
quality and appropriateness of the which is discarded prior to sampling.
sample preparation technique. All brine samples taken in the field
Quality control procedures adopted are split into three sub-samples:
for all sub-sampling stages to primary, potential
maximise representivity duplicate, and archive.
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.
====================================== ====================================== ======================================
Quality of assay data and laboratory The nature, quality and Primary samples were sent to Bureau
tests appropriateness of the assaying and Veritas Minerals Laboratory, Perth.
laboratory procedures used and Brine samples were analysed using
whether the technique is considered ICP-AES for K, Na, Mg, Ca, with
partial or total. chloride determined by Mohr
For geophysical tools, spectrometers, titration and alkalinity determined
handheld XRF instruments, etc, the volumetrically. Sulphate was
parameters used in calculated from the ICP-AES
determining the analysis including sulphur analysis
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.
Verification of sampling and assaying The verification of significant Data entry is done in the field to
intersections by either independent minimise transposition errors.
or alternative company Brine assay results are received from
personnel. the laboratory in digital format to
The use of twinned holes. prevent transposition
Documentation of primary data, data errors and these data sets are
entry procedures, data verification, subject to the quality control
data storage (physical described above.
and electronic) protocols. Independent verification of
Discuss any adjustment to assay data. significant intercepts was not
considered warranted given the
relatively consistent nature of the
brine.
====================================== ====================================== ======================================
Location of data points Accuracy and quality of surveys used Hole co-ordinates were captured using
to locate drill holes (collar and hand held GPS.
down-hole surveys), Coordinates were provided in GDA
trenches, mine workings and other 94_MGA Zone 51.
locations used in Mineral Resource Topographic control is obtained using
estimation. Geoscience Australia's 3-second
Specification of the grid system digital elevation product.
used. Topographic control is not considered
Quality and adequacy of topographic critical as the salt lakes are
control. generally flat lying
and the water table is taken to be
the top surface of mineralisation.
Data spacing and distribution Data spacing for reporting of Data spacing is variable and is not
Exploration Results. on an exact grid due to the irregular
Whether the data spacing and nature of the salt
distribution is sufficient to lake shape and difficulty obtaining
establish the degree of geological access to some part of the salt lake.
and grade continuity appropriate for
the Mineral Resource and Ore Reserve
estimation procedure(s)
and classifications applied.
Whether sample compositing has been
applied.
====================================== ====================================== ======================================
Orientation of data in relation to Whether the orientation of sampling Not Applicable
geological structure 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.
Sample security The measures taken to ensure sample All brine samples were marked and
security. kept onsite before transport to the
laboratory.
All remaining sample and duplicates
are stored in the Perth office in
climate-controlled
conditions.
Chain of Custody system is
maintained.
====================================== ====================================== ======================================
Audits or reviews The results of any audits or reviews Data review is summarised in Quality
of sampling techniques and data. of assay data and laboratory tests
and Verification of
sampling and assaying. No audits were
undertaken.
====================================== ====================================== ======================================
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure Type, reference name/number, location Details are presented in the report.
status 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.
====================================== ====================================== ======================================
Exploration done by other parties Acknowledgment and appraisal of Details are presented in the report.
exploration by other parties.
Geology Deposit type, geological setting and Salt Lake Brine Deposit
style of mineralisation.
====================================== ====================================== ======================================
Drill hole Information A summary of all information Details are presented in the report.
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.
Data aggregation methods In reporting Exploration Results, Details are presented in the report.
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.
====================================== ====================================== ======================================
Relationship between mineralisation These relationships are particularly The brine resource is inferred to be
widths and intercept lengths important in the reporting of consistent and continuous through the
Exploration Results. full thickness
If the geometry of the mineralisation of the sediments.
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').
Diagrams Appropriate maps and sections (with Addressed in the announcement.
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.
====================================== ====================================== ======================================
Balanced reporting Where comprehensive reporting of all All results have been included.
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.
Other substantive exploration data Other exploration data, if meaningful All material exploration data
and material, should be reported 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 The nature and scale of planned Aircore / RC drilling to defined
further work (eg tests for lateral paleovalley structure and provide
extensions or depth extensions brine samples with depth.
or large-scale step-out drilling). Hydraulic testing be undertaken, for
Diagrams clearly highlighting the instance pumping tests from bores
areas of possible extensions, and/or trenches to
including the main geological determine, aquifer properties,
interpretations and future drilling expected production rates and
areas, provided this information is infrastructure design (trench
not commercially sensitive. and bore size and spacing).
Diamond Core drilling to obtain
sample for porosity determination.
Lake recharge dynamics be studied to
determine the lake water balance and
subsequent production
water balance. For instance,
simultaneous data recording of
rainfall and subsurface brine
level fluctuations to understand the
relationship between rainfall and
lake recharge, and
hence the brine recharge dynamics of
the lake.
====================================== ====================================== ======================================
For further information please visit www.saltlakepotash.com.au
or contact:
Matt Syme/Sam Cordin Salt Lake Potash Limited Tel: +61 8 9322 6322
Jo Battershill Salt Lake Potash Limited Tel: +44 (0) 20 7478 3900
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[1] Bell et al, 2012, WASANT Paleovalley Map - Distribution of
Palaeovalley in Arid and Semi-arid WA-SA-NT. Geoscience Australia
Thematic Map.
[2] Johnson, S.L., Commander, D.P., and O'Boy, C.A. 1999,
Groundwater resources of the Northern Goldfields, Western
Australia: Water and Rivers Commission, Hydrogeological Record
Series, Report HG 2, 57p.
[3] DeBroekert and Sandiford (2005), Buried Inset-Valleys in the
Eastern Yilgarn Craton, Western Australia: Geomorphology, Age, and
Allogenic Control. The Journal of Geology, 2005, volume 113, p.
471-493
[4]
http://www.ga.gov.au/scientific-topics/hazards/flood/wofs
[5] Johnson, (2007) Groundwater abstraction and aquifer response
in the Roe Palaeodrainage (1990-2001). Department of Water
Hydrogeological Record Series Report HG23 October 2007
[6] Bowler, J.M., 1986. Spatial variability and hydrologic
evolution of Australian lake basins: analogues for Pleistocene
hydrologic change and evaporite formation. Palaeogeography,
Palaeoclimatology, Palaeoecology, 54, 21-41.
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