TIDMSO4
RNS Number : 7656M
Salt Lake Potash Limited
18 September 2019
18 September 2019 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
PREMIUM GRADE WATER SOLUBLE SULPHATE OF POTASH
PRODUCED FROM LAKE WAY SALTS
------------------------------------------------
Highlights
Ø Salt Lake Potash has completed Pilot Plant test work on Lake
Way confirming a premium SOP product with a +53% K2O grade
Ø The Pilot Plant operation was conducted by SRC over two
separate trials utilising 5 tonnes of salt harvested from Lake
Way
Ø Potassium Chloride (KCl) was successfully added into the
process to utilise the excess of sulphate naturally present in the
Lake Way brine
Ø The Lake Way process flowsheet confirms the addition of KCl
provides an increase in the SOP output from equivalent Lake Way
brine volumes with no material additional capital expenditure
Ø Testing demonstrates Lake Way SOP to be highly water soluble,
positioning the product in the highest premium SOP market
Salt Lake Potash Limited (Salt Lake Potash or the Company) is
pleased to announce it has completed the Pilot Plant test work of
the Lake Way salts at the Saskatchewan Research Council (SRC). The
test work has yielded a premium Sulphate of Potash (SOP) product
that is highly water soluble with a +53% K2O grade.
SRC, the world leading potash processing laboratory, has
completed a Pilot Plant operation that is representative of the
proposed Lake Way Project process flowsheet. The Pilot Plant
operation included the addition of Potassium Chloride to take
advantage of the excess sulphate that naturally occurs within the
Lake Way brine.
SRC has completed two separate Pilot Plant runs utilising 5
tonnes of salt harvested from Lake Way site evaporation trials,
producing premium grade, highly water soluble SOP. The Total
Solubility and Dissolution Rate indicates the product would be
suitable for application in drip irrigation (otherwise known as
fertigation) systems.
Table 1: Lake Way Pilot Plant 2 Specifications
Specification(1)
Potassium K(2) O >53%
----------------------- -----------------
Sulphate SO(4) >55%
----------------------- -----------------
Chloride Cl <0.1%
----------------------- -----------------
Insolubles <0.1%
----------------------- -----------------
Total Solubility (g/100g H(2) O) 11.8
----------------------- -----------------
Dissolution Rate % in 1 minute 95%
----------------------- -----------------
Note 1: Results of composite sample from Pilot Plant 2.
The Pilot Plant runs successfully confirmed that high quality
soluble SOP can be generated via the process flowsheet with the
inclusion of KCl. Importantly the positive results of the inclusion
of the KCl within the process flowsheet will provide significant
benefits to the Lake Way Project by increasing the SOP output from
an equivalent volume of Lake Way brine. This can be achieved
without significant changes to the processing equipment and no
material additional capital expenditure.
The outstanding results achieved from the Pilot Plant indicate
that the product is comparable with other premium grade soluble
products on the market and supports Salt Lake Potash's marketing
strategy to supply into the premium SOP market. The premium
achievable for soluble grade SOP can be up to 20% (CRU SOP Market
Study May 2019) above the standard pricing.
The process flowsheet that has been developed and confirmed as
part of the Pilot Plant test work has been incorporated in the Lake
Way Bankable Feasibility Study (BFS) which is scheduled for
completion in early October 2019.
Salt Lake Potash's Chief Executive Officer, Mr Tony Swiericzuk,
said:
"The outstanding results from the Pilot Plant testwork confirm
the addition of KCl into the process will enable Salt Lake Potash
to utilise the excess sulphate within the Lake Way brine to produce
additional premium grade SOP.
This is a significant outcome for the Company and will
strengthen the already compelling economics for the Lake Way
Project. We are focussed on finalising the BFS which will reflect
the Pilot Plant results and confirm the excellent potential of Lake
Way."
For further information please visit www.so4.com.au or
contact:
Tony Swiericzuk Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson / Richard Tonthat / Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
Ben Roberts (Nominated Adviser)
Derrick Lee / Beth McKiernan Cenkos Securities plc (Joint Tel: +44 (0) 131 220 6939
Broker)
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907 8500
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Forward Looking Statements
This announcement may include forward-looking statements. These
forward-looking statements are based on Salt Lake Potash Limited's
expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Salt Lake
Potash Limited, which could cause actual results to differ
materially from such statements. Salt Lake Potash Limited 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.
Competent Persons Statement
The information in this report that relates to Process Testwork
Results is based on, and fairly represents, information compiled by
Mr Bryn Jones, BAppSc (Chem), MEng (Mining) who is a Fellow of the
AusIMM. Mr Jones is a Director of Salt Potash Limited. Mr Jones has
sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking, to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Jones consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
Appendix A: JORC Table One
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling The Pilot Plant operation processed a bulk sample of
techniques * Nature and quality of sampling (e.g. cut channels, nearly 5 tonnes of harvested salts from
random chips, or specific specialised industry the Lake Way Site Evaporation Trials (SET).
standard measurement tools appropriate to the The SET utilised solar ponds consisting of re-purposed
minerals under investigation, such as downhole gamma temporary above-ground swimming pools
sondes, or handheld XRF instruments, etc.). These and HDPE aquaculture tubs. These solar ponds were filled
examples should not be taken as limiting the broad with brine drawn from either the
meaning of sampling. Lake Way playa brine from a 4m deep test pit excavated
next to the trial, or from the Williamson
Pit directly. The majority (99%) of the harvest salts
* Include reference to measures taken to ensure sample processed in the Pilot Plant operation
presentively and the appropriate calibration of any were from Lake Way playa brine.
measurement tools or systems used. Brine samples were taken from each solar evaporation pond
regularly and routinely during the
solar evaporation process.
* Aspects of the determination of mineralisation that Brine samples were taken manually by initially rinsing
are Material to the Public Report. out the sample bottle with brine from
the source then filling the bottle. Samples were analysed
for K, Mg, Ca, Na, Cl, SO4, TDS
* In cases where 'industry standard' work has been done, and specific gravity.
this would be relatively simple (e.g. 'reverse The temperature and level in each pond were logged
circulation drilling was used to obtain 1 m samples electronically with piezometers.
from which 3 kg was pulverised to produce a 30 g Once the brine in a particular solar pond had
charge for fire assay'). In other cases, more concentrated to pre-determined point it was
explanation may be required, such as where there is pumped to another solar pond downstream in the process.
coarse gold that has inherent sampling problems. Salt was then extracted from the drained
Unusual commodities or mineralisation types (e.g. solar pond.
submarine nodules) may warrant disclosure of detailed Process test work results for the production of harvest
information. salts from the Lake Way Site Evaporation
Trials were previously reported on 29 January 2019.
Metallurgical test work and the pilot plant operation
were conducted under control conditions
by laboratory professionals with experience in operating
and handling salts and potash processes
at Saskatchewan Research Council (SRC).
The continuous pilot plant operation involved a small
closed circuit operation whereby harvested
salt from the SET was crushed before reverse flotation to
remove halite. The flotation concentrate
then underwent a two stage decomposition process,
complete with brine recycle, to form the
SOP product.
In circuit samples were taken regularly for process
control and monitoring purposes. Final
samples of SOP product were taken every 4 hours from 8hrs
to 56hr during the pilot operation.
The product slurry was collected and dewatered in a
centrifuge. Each dewatered 4hr sample
was homogenised and sub-sampled for assay. The total 4
hour composite sample quantity was
typically 19 kg.
------------------------------------------------------------- -----------------------------------------------------------------------
Drilling No drilling was undertaken. Metallurgical testing
techniques * Drill type (e.g. core, reverse circulation, open-hole involved processing harvested salt from
hammer, rotary air blast, auger, Bangka, sonic, etc.) the SET.
and details (e.g. core diameter, triple or standard Process test work results for the production of harvest
tube, depth of diamond tails, face-sampling bit or salts from the Lake Way Site Evaporation
other type, whether core is oriented and if so, by Trials were previously reported on 29 January 2019.
what method, etc.).
------------------------------------------------------------- -----------------------------------------------------------------------
Drill sample No drilling was undertaken. Metallurgical testing
recovery * Method of recording and assessing core and chip involved the processing harvested salt from
sample recoveries and results assessed. site evaporation trials.
Process test work results for the production of harvest
salts from the Lake Way Site Evaporation
* Measures taken to maximise sample recovery and ensure Trials were previously reported on 29 January 2019.
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 No logging was undertaken. Metallurgical testing involved
* Whether core and chip samples have been geologically the processing harvested salt from
and geotechnically logged to a level of detail to site evaporation trials.
support appropriate Mineral Resource estimation, Process test work results for the production of harvest
mining studies and metallurgical studies. salts from the Lake Way Site Evaporation
Trials were previously reported on 29 January 2019.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography.
* The total length and percentage of the relevant
intersections logged.
------------------------------------------------------------- -----------------------------------------------------------------------
Sub-sampling Core sampling is not applicable, to process test work.
techniques * If core, whether cut or sawn and whether quarter, Process test work results for the production of harvest
and sample half or all core taken. salts from the Lake Way Site Evaporation
preparation Trials were previously reported on 29 January 2019.
Wet harvest salts or process generated samples are
* If non-core, whether riffled, tube sampled, rotary homogenised and split using a riffle splitter.
split, etc. and whether sampled wet or dry. Brine samples are typically taken in sterile plastic
bottles of 50ml or 250ml capacity. Brine
is a homogenous fluid below the surface, while salt is
* For all sample types, the nature, quality and coned and quartered to homogenise and
appropriateness of the sample preparation technique. sample.
Salt samples are crushed to -2mm and 100-200g sub sample
taken (representative for the grain
* Quality control procedures adopted for all size) using a riffle splitter. The sub sample is
sub-sampling stages to maximise representivity of pulverized to -106 microns using a puck and
samples. ring grinding mill. The pulp is then transferred to a
labelled plastic snap top vial.
An aliquot of pulp is placed in a test-tube with 15 mls
* Measures taken to ensure that the sampling is of 30degC DI water. The sample is
representative of the insitu material collected, shaken. The soluble solution is then analyzed by ICP-OES.
including for instance results for field If XRD is required, approximately 50 g of the wet
duplicate/second-half sampling. homogenised sample is air dried at ambient
temperature and sent for XRD. The XRD sample is typically
crushed with a mortar and pestle
* Whether sample sizes are appropriate to the grain to <120um. It is then packed into a pellet to undergo XRD
size of the material being sampled. analysis.
------------------------------------------------------------- -----------------------------------------------------------------------
Quality of The samples were taken, prepared and analysed by
assay data * The nature, quality and appropriateness of the Saskatchewan Research Council (SRC) and SRC
and assaying and laboratory procedures used and whether Geoanalytical Laboratories.
laboratory the technique is considered partial or total. ICP-OES analysis to determine the chemical ion analysis,
tests and ICP-MS to determine chloride
content was performed by SRC Geoanalytical Laboratories.
* For geophysical tools, spectrometers, handheld XRF XRD analysis to determine the salt crystal mineralogy at
instruments, etc., the parameters used in determining was performed by SRC.
the analysis including instrument make and model, No laboratory analysis was undertaken with geophysical
reading times, calibrations factors applied and their tools.
derivation, etc. SRC Geoanalytical Laboratories' management system
operates in accordance with ISO/IEC 17025:2005
(CAN-P-4E), General Requirements for the Competence of
* Nature of quality control procedures adopted (e.g. Mineral Testing and Calibration Laboratories.
standards, blanks, duplicates, external laboratory The Potash Method for Analysis of Major Water Soluble
checks) and whether acceptable levels of accuracy Components of Evaporites are accredited
(i.e. lack of bias) and precision have been by the Standards Council of Canada.
established. Geoanalytical Laboratories participates in a number of
interlaboratory analyses. These results
are used to assess the quality of all the methods used at
the laboratory.
The quality control processes at the laboratory are
continuously monitored by our Quality
Assurance Department.
Quality control measures applied at the laboratory
include:
* Sample preparation QC checks
* Analysis of Certified Reference Standards
* Analysis of in-house reference materials and
standards
* Traceable calibration standards for instrumentation
* Analyzing duplicate and blind QC samples
* Spiking samples to monitor process recoveries
* Proficiency Testing and Interlaboratory Comparisons
QC monitoring
https://www.src.sk.ca/labs/quality-assurance
------------------------------------------------------------- -----------------------------------------------------------------------
Verification Significant intersections not applicable to process
of sampling * The verification of significant intersections by flowsheet test work. Harvest salt bulk
and assaying either independent or alternative company personnel. samples are crushed, homogenised and sampled to ensure
representative mineral characterisation.
Twinned holes not applicable to process flowsheet test
* The use of twinned holes. work.
All sampling and assaying results are reported in test
report documentation, SRC Publication
* Documentation of primary data, data entry procedures, No. 14205-3C19, subject to standard SRC protocols.
data verification, data storage (physical and No adjustments have been made to assay data.
electronic) protocols.
* Discuss any adjustment to assay data.
------------------------------------------------------------- -----------------------------------------------------------------------
Location of Location data is not relevant for this process test and
data points * Accuracy and quality of surveys used to locate drill so was not taken.
holes (collar and down-hole surveys), trenches, mine
workings and other locations used in Mineral Resource
estimation.
* Specification of the grid system used.
* Quality and adequacy of topographic control.
------------------------------------------------------------- -----------------------------------------------------------------------
Data spacing Not applicable to this process flowsheet test work. The
and * Data spacing for reporting of Exploration Results. Company is not reporting a Mineral
distribution Resource estimate in this announcement.
Process samples for the pilot plant operation were taken
* Whether the data spacing and distribution is regularly and composite samples were
sufficient to establish the degree of geological and taken every 4 hours.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied.
* Whether sample compositing has been applied.
------------------------------------------------------------- -----------------------------------------------------------------------
Orientation Not applicable as harvest salts were homogenised.
of data in * Whether the orientation of sampling achieves unbiased Drilling orientation is not applicable to this process
relation to sampling of possible structures and the extent to flowsheet test work. The entire mass
geological which this is known, considering the deposit type. of salt produced by the solar pond was harvested,
structure homogenised and sent for assay.
* 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 Process test work, sampling and analysis was conducted
security * The measures taken to ensure sample security. solely by SRC in accordance with their
protocols.
------------------------------------------------------------- -----------------------------------------------------------------------
Audits or All processes performed at SRC Geoanalytical laboratory
reviews * The results of any audits or reviews of sampling are subject to a strict audit program,
techniques and data. which is performed by approved, trained professionals.
https://www.src.sk.ca/labs/quality-assurance
------------------------------------------------------------- -----------------------------------------------------------------------
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral The Lake Way
tenement and * Type, reference name/number, location and ownership Project comprises
land tenure including agreements or material issues with third tenements held by
status parties such as joint ventures, partnerships, Salt Lake Potash
overriding royalties, native title interests, and Blackham
historical sites, wilderness or national park and Resources Limited
environmental settings. (Blackham).
Salt Lake Potash
holds tenements
* The security of the tenure held at the time of covering the
reporting along with any known impediments to south east of the
obtaining a licence to operate in the area. lake, including
granted
Exploration
licences
E53/1878,
E53/1897,
Exploration
Licence
Applications
E53/2057,
E53/2059 and
E53/2060,
and Mining Lease
application
M53/1102.
On the 9th March
2018 Salt Lake
Potash and
Blackham signed a
gold and brine
minerals
memorandum
of understanding.
Under this MOU
Blackham has
granted the brine
rights on its
Lake Way tenement
free from
encumbrances to
Salt Lake Potash.
In April 2019,
Salt Lake Potash
and Blackham
signed a binding
Split Commodity
and Access
Agreement
(in relation to
the development
of the Lake Way
Project) on terms
in line with the
previously
executed MOU.
Tenure granted to
Blackham and its
subsidiaries that
is covered by the
Split Commodity
Agreement
includes:
Exploration
licence E53/1862,
Exploration
Licence
applications
E53/1905 and
E53/1952,
Mining Licences
M53/121, M53/122,
M53/123, M53/147,
M53/253, M53/796,
M53/797, M53/798
and
M53/910, and
Prospecting
Licences
P53/1642,
P53/1646,
P53/1666,
P53/1667 and
P53/1668.
The Company has
subsequently
entered into a
Sales Agreement
with Blackham to
acquire a package
of tenements
(including the
tenements listed
above plus the
following
additional
tenure:
Miscellaneous
licence L53/51,
L53/207,
Exploration
Licence 53/1863,
Exploration
Licence
applications
E53/1966
and E53/2049, and
Prospecting
Licences
P53/1643,
P53/1644 and
P531645) and
other key assets
for the Lake Way
Project. This
acquisition is
expected to
complete in
September 2019.
------------------------------------------------------------ -------------------------------
Exploration Process test work
done by other * Acknowledgment and appraisal of exploration by other results for the
parties parties. production of
harvest salts
from the Lake Way
Site Evaporation
Trials were
previously
reported on 29
January 2019.
Bench scale
process flowsheet
test work has
previously been
completed on
potassium harvest
salts generated
from wind tunnel
tests using Lake
Way brine.
The Company has
previously
reported a brine
resource over the
Blackham
tenements - refer
ASX
Announcement 18
March 2019.
There is a
database of
approximately
6200 boreholes
across Lake Way
of which some
1000 are
within the
Blackham
tenements. The
primary source
for the
information is
the publicly
available
Western
Australian
Mineral
Exploration
(WAMEX) report
data base.
Recent
sterilisation
drilling has also
been undertaken
by Blackham
Resources.
The data from
previous
exploration work
by other parties
has not been used
in appraising the
results of the
process testwork
included in this
announcement.
------------------------------------------------------------ -------------------------------
Geology The deposit is a
* Deposit type, geological setting and style of salt-lake brine
mineralisation. deposit.
The lake setting
is typical of a
Western
Australian
palaeovalley
environment.
Ancient
hydrological
systems have
incised
palaeovalleys
into Archaean
basement rocks,
which were then
infilled
by Tertiary-aged
sediments
typically
comprising a
coarse-grained
fluvial basal
sand overlaid
by palaeovalley
clay with some
coarser grained
interbeds. The
clay is overlaid
by recent
Cainozoic
material
including
lacustrine
sediment,
calcrete,
evaporite and
aeolian deposits.
The brine is
concentrated in
solar evaporation
ponds and the
salt is
precipitated into
the
evaporation ponds
as fine (0.5 -
5mm) crystals
that form a
single,
homogeneous salt
bed.
------------------------------------------------------------ -------------------------------
Drill hole No drilling was
Information * A summary of all information material to the undertaken. Lake
understanding of the exploration results including a Way playa brine
tabulation of the following information for all was sourced from
Material drill holes: a pit next to the
site evaporation
trial with the
* easting and northing of the drill hole collar following
coordinates
(26deg46'25.55"S,
* elevation or RL (Reduced Level - elevation above sea 120deg18'27.46"E)
level in metres) of the drill hole collar . Williamson pit
brine
was drawn from
* dip and azimuth of the hole the bottom of the
pit ramp.
* downhole length and interception depth
* hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
------------------------------------------------------------ -------------------------------
Data Process testwork
aggregation * In reporting Exploration Results, weighting averaging results for the
methods techniques, maximum and/or minimum grade truncations production of
(e.g. cutting of high grades) and cut-off grades are harvest salts
usually Material and should be stated. from the Lake Way
Site Evaporation
Trials were
* Where aggregate intercepts incorporate short lengths previously
of high grade results and longer lengths of low grade reported on 29
results, the procedure used for such aggregation January 2019.
should be stated and some typical examples of such In process
aggregations should be shown in detail. flowsheet test
work, where
sample quantities
* The assumptions used for any reporting of metal are generated,
equivalent values should be clearly stated. the entire sample
is
homogenised and a
representative
sub-sample is
taken using a
riffle splitter.
The sub sample
is assayed and
reported.
------------------------------------------------------------ -------------------------------
Relationship Not applicable to
between * These relationships are particularly important in the this process
mineralisation reporting of Exploration Results. flowsheet test
widths and work.
intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* If it is not known and only the downhole lengths are
reported, there should be a clear statement to this
effect (e.g. 'down hole length, true width not
known').
------------------------------------------------------------ -------------------------------
Diagrams Maps and sections
* Appropriate maps and sections (with scales) and not included for
tabulations of intercepts should be included for any process test
significant discovery being reported These should work.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
------------------------------------------------------------ -------------------------------
Balanced An average composition of
reporting * Where comprehensive reporting of all Exploration SOP has been reported.
Results is not practicable, representative reporting Noting that all SOP
of both low and high grades and/or widths should be product sample results
practiced to avoid misleading reporting of have been included in the
Exploration Results. body of SRC Publication
No. 14205-3C19, which meet
or exceed the
reported average.
------------------------------------------------------------ -------------------------------
Other All material
substantive * Other exploration data, if meaningful and material, process data has
exploration should be reported including (but not limited to): been reported.
data 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 Field evaporation
* The nature and scale of planned further work (e.g. trials are
tests for lateral extensions or depth extensions or ongoing,
large-scale step-out drilling). including
operation of a
commercial scale
* Diagrams clearly highlighting the areas of possible SOP evaporation
extensions, including the main geological pond containing
interpretations and future drilling areas, provided the brine from
this information is not commercially sensitive. the Williamson
Pit.
Metallurgical
test work and
optimisation work
will continue
throughout the
design phase,
including;
filtration,
flotation, salt
precipitation,
and
crystallisation
tests.
------------------------------------------------------------ -------------------------------
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END
UPDLPMATMBIBMTL
(END) Dow Jones Newswires
September 18, 2019 02:01 ET (06:01 GMT)
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