TIDMSO4
RNS Number : 5041M
Salt Lake Potash Limited
31 July 2017
31 July 2017 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
June 2017 Quarterly Report
---------------------------------
The Board of Salt Lake Potash Limited (the Company or SLP) is
pleased to present its Quarterly Report for the period ending 30
June 2017. Highlights for the quarter and subsequently include:
LAKE WELLS
Surface Aquifer
Ø The Lake Wells surface aquifer exploration program was
completed, comprising a total of 250 shallow test pits and 10 test
trenches. This work provides very high quality data for the
hydrogeological model for the surface aquifer of the Lake, giving
the Company a high level of confidence about the potential brine
production from low cost surface trenching.
Ø The first trench test pumped in the Northern part of the Lake
demonstrated very high brine flows and consistent brine
chemistry.
Evaporation Pond Testwork
Ø The Company commenced construction of a number of test
evaporation ponds of different designs to support the Company's
model for cost-effective on-lake evaporation pond construction. The
Lake Wells playa includes a pervasive brown silt with a high clay
content averaging 55cm below surface, which potentially offers a
major advantage for construction of low cost unlined evaporation
ponds on the Lake.
Process Testwork
Ø The Site Evaporation Trial (SET) at Lake Wells has now
processed approximately 215 tonnes of brine and produced 3.4 tonnes
of harvest salts.
Ø The Company continues a range of process development testwork
to enhance the Lake Wells process model. Raw brine or Lake Wells
harvest salts have already produced substantial samples of SOP.
Ongoing work at SGS (Perth), Bureau Veritas (Perth) and
Saskatchewan Research Council (Canada) continues to enhance the
process flowsheet and produce further customer and testwork
samples.
Pilot Plant
Ø The Company and its consultants have substantially advanced
the Pilot Plant study for the GSLP.
LAKE BALLARD
Ø A surface aquifer exploration program has commenced at Lake
Ballard with the mobilisation of an amphibious excavator. The
Company also completed further surface brine sampling and
reconnaissance work at Lake Ballard and Lake Marmion.
Process Testwork
Ø Initial evaporation testwork on Lake Ballard brine also
indicates excellent potential to produce Sulphate of Potash (SOP)
and additional co-products.
The Company's primary focus is to construct a Pilot Plant at the
Goldfields Salt Lakes Project (GSLP), intended to be the first
salt-lake brine Sulphate of Potash (SOP) production operation in
Australia. While proceeding with the analysis of options to
construct a 20-40,000 tpa SOP Pilot Plant at Lake Wells, the
Company is exploring the other lakes in the Goldfields Salt Lakes
Project, starting with Lake Ballard and Lake Marmion.
LAKE WELLS
Surface Aquifer Exploration Program
The Company has completed a substantial program of work
investigating the geological and hydrogeological attributes of the
Shallow Lake Bed Sediment hosted brine resource at Lake Wells. The
information and data generated will be utilised in the design of
the brine extraction system for the GSLP Pilot Plant.
The total program includes 250 test pits and 10 trenches over
the lake playa. The test pits are generally 1m wide x 1.5m long and
4.5m deep and confirm lithology and permeability of upper lake bed
sediments and demonstrate spatial continuity of the surface
aquifer.
Geological setting of the Shallow Aquifer
The general setting for the lake consists of Cenozoic
(Quaternary - Holocene) brown to white to red, unconsolidated,
gypsiferous sands, silts and clay units. These units have varying
silt and clay compositions.
Two distinct domains of geological deposition for the shallow
aquifer were identified in the recent assessments. This is roughly
correlated to the southern half of the lake playa and the northern
half of the lake playa. The transition between the two domains does
not occur at a hard boundary but rather a wide transition zone that
may be correlated to the frequency of surface water inundation of
the lake. Satellite imagery analysis by Geoscience Australia
indicates that the northern part of the lake is inundated with
surface water more frequently than in the south. This is supported
by anecdotal discussions with the local landowners and experience
during exploration activities.
Long Term Pumping Test - Test Trench P3b
A 50m long trench (P3b) was constructed and test pumped over a 7
day period. This is the first trench pump test conducted in the
Northern part of the Lake. The brine yield into the trench was very
high and a 6L/s pump could not dewater the trench sufficiently to
stress the surrounding aquifer. Adding an additional 3L/s pump to
the system was only able to draw down the brine level temporarily
in the trench.
During the full duration of the pumping test an average flow
rate of 6.3 litres per second (L/s) was achieved, demonstrating
very high inflows from the Lake Bed Aquifer, substantially higher
than achieved in other trench pumping tests at Lake Wells. Note
that the brine yield from this trench is not representative of the
whole shallow aquifer in this area.
The geological logs for the trench recorded a coarse grained
(massive) evaporative sand horizon that occurs from 1m to 1.5m
below surface. This unit is the main contributor to the high
permeability encountered at the trench.
This layer contains a crystalline zone with large crystals
visually yielding very large volumes of brine during trench
dewatering. This zone was also encountered in two adjacent test
pits (LWTT209 and 211) located 200m either side of the trench.
Results from the trench testing are summarised as follows:
-- The pumping rate averaged 545m(3) /day (6.3 L/s) and remained
relatively constant for the duration of the test.
-- The cumulative pumping volume during the test was 3,800m(3) (or 3.8 megalitres ML).
-- Drawdown was observed at all observation bores and after 7
days ranged from 0.6m at an observation point 10m from the trench
to 0.2m at an observation point 50m from the trench.
-- The relatively high flow rate and extensive cone of drawdown
indicate that the trench is excavated into a highly permeable part
of the lake.
-- This local geological setting is not representative of the whole shallow aquifer.
Brine was sampled daily over the duration of the test. The brine
chemistry remained consistent over the test period with an average
grade of potassium of 4,311 Mg/L, ranging from 4,000 to 4,800
Mg/L.
The P3b trench pump test will be repeated shortly, when pumping
equipment is available to adequately stress the aquifer.
Evaporation Ponds Testwork
The Lake Wells geological setting typically includes a pervasive
brown silt layer with a high clay content around 55cm below the
surface. An initial assessment by MHA Geotechnical Engineers
indicates that this clay material appears to be suitable for on
lake pond base and embankment construction.
In conjunction with international consultants and geotechnical
specialists, SLP has developed a series of on lake pond designs
suitable for the stratigraphy at Lake Wells, which are expected to
minimise brine losses and optimize capital costs.
During the quarter, a 30 tonne excavator was mobilised to Lake
Wells to commence construction of the different pond designs, as
well as a control pond to support infiltration measurement
analysis. Each of the trial ponds are 25m by 25m and the ultimate
berm height will be 1.5m.
The 30 tonne excavator is operating efficiently on the Lake and
has excavated the first berm lift for all of the trial ponds. Upon
completion of construction of the ponds, test work will be
performed to determine the optimal pond design to contain brine
leakage. Subsequent to the end of the quarter, the Company filled
the first pond in the series. Initial leakage is relevant to the
conditioning of the pond.
Environmental Studies
An experienced Western Australian environmental consultancy
company, Phoenix Environmental Sciences Pty Ltd, undertook a
detailed flora and vegetation survey and a Level 1 terrestrial
fauna survey at the Lake Wells Project. The work was focused on
providing information to support environmental approval for the
Pilot Plant
The study covered an area of approximately 1,777 hectares. The
surveys included a detailed desktop review, systematic quadrat and
transect sampling and mapping of vegetation communities, fauna
habitat assessment and mapping, and targeted searches for
significant flora, vertebrate fauna and short range endemic
invertebrates (SREs).
No threatened or priority flora were recorded in the survey.
Suitable habitat was identified for several conservation
significant vertebrate species; however, no highly restricted
habitats were recorded.
Pilot Plant
As announced on 20 April 2017, Amec Foster Wheeler have been
engaged to prepare an analysis of the alternatives for the Company
to construct a Pilot Plant at the Goldfields Salt Lakes
Project.
International brine and salt processing experts Carlos Perucca
Processing Consulting Ltd (CPPC) and AD Infinitum Ltd (AD
Infinitum) are also engaged for the Study.
Substantial progress continues on pond and trench design, mass
balance modelling, process flowsheet design, major equipment
quotations, costings and transportation alternative studies.
Process Testwork
The Company continues a range of process development testwork to
enhance the Lake Wells process model.
Site Evaporation Trial
A large scale, continuous Site Evaporation Trial (SET) continued
at Lake Wells to refine process design criteria for the halite
evaporation ponds and subsequent harvest salt ponds. The SET has to
date processed approximately 215 tonnes of brine and produced 3.4
tonnes of harvest salts.
With the onset of winter, the evaporation rate and harvest salt
production has decreased in line with expectations. Approximately
1,800kg of harvest salt was harvested in April and May, at an
average potassium grade of 7%. Optimum harvests have recorded
potassium grades up to 9.9%. Harvest salts have been transported to
Perth and are currently being processed at the Bureau Veritas
laboratory for grading and preparation for further processing. The
harvest salts recovered from the SET contain approximately 50%
Kainite (KMg(SO(4) )Cl.3(H2O)), a potassium double salt which the
Company has previously successfully processed into SOP.
Process Testwork - Saskatchewan Research Council (SRC)
The Company has engaged Saskatchewan Research Council (SRC) in
Saskatoon, Canada to further optimise the attrition, flotation,
conversion and crystallisation process for production of SOP from
harvest salts. SRC are global experts in the refinement and testing
of salt based processes, particularly in the area of potash
resources.
The aims of the work at SRC are to validate and refine the
process parameters used in the process flowsheet for the production
of commercial grade SOP, including feed composition analysis,
flotation system arrangement and process plant recovery
factors.
The harvest salts sent to both SGS and SRC for processing have
undergone XRD analysis to identify the key salt crystals in the
sample. A 90kg sample of Lake Wells harvest salts was despatched to
SRC for testwork. The sample contains 57.1% Kainite which is within
the expected range for harvest salts at the Lake Wells operation
and ideal for processing and conversion to SOP.
Process Testwork - SGS Laboratories
SGS laboratories in Perth have also been engaged to process a
further 200kg of salt harvested from the Lake Wells Site
Evaporation Trial. This new test work program includes some process
refinements from previous work and is expected to produce a
substantial quantity of SOP product samples for evaluation and
further testwork.
LAKE BALLARD
Lake Ballard is located in the Goldfields region of Western
Australia approximately 140km north of Kalgoorlie. SLP's holding
comprises 788km(2) of granted and 66km(2) of exploration license
applications, substantially covering the Lake Ballard playa. The
Company recently completed a heritage clearance survey over the
area, and has now initiated a comprehensive exploration program and
continued process testwork.
Surface Aquifer Exploration Program
After the successful completion of the surface aquifer
exploration program at Lake Wells, the Company mobilised an 8.5
tonne amphibious excavator to Lake Ballard to gather geological and
hydrological data about the shallow brine aquifer hosted by the
Quaternary Alluvium stratigraphic sequence in the upper levels of
the Lake.
The aim of the program is to evaluate the geology of the shallow
Lake Bed Sediments, and to undertake pumping trials to provide
estimates of the potential brine yield from trenches in the shallow
sediment.
The excavator program will also provide important geological and
geotechnical information for potential siting and construction of
trenches and on-lake brine evaporation ponds.
Three transects of test pits have been completed in the eastern
portion of Lake Ballard that have revealed a varied stratigraphy.
The shallow test pits, most less than 3.5m, have mainly encountered
clayey lacustrine sediments with minor groundwater inflows;
however, there have been a number of test pits that encountered
higher groundwater inflow associated with zones of indurated and
laminated clayey sediments and karstic calcrete (a limestone).
Short-term groundwater inflows associated with test pits in the
calcrete are between 10 to 15 L/sec. The distribution of the
calcrete will continue to be resolved with test pit investigations,
but its nature is cavernous and is considered prospective for
trenching development. Deeper test pits to a depth of 6m are
planned to fully penetrate the calcrete for improved hydraulic
assessment of its long-term yield potential.
Sampling Program and Reconnaissance Work
During the quarter, the Company undertook further surface brine
sampling of the near surface aquifer at both Lake Ballard and Lake
Marmion. To date the average potassium grade for samples taken for
Lake Ballard is 1,793Mg/L and at Lake Marmion the average potassium
grade is 1,783Mg/L.
Process Development Testwork
Two bulk evaporation trials of Lake Ballard brine were conducted
at Bureau Veritas, following on from the initial trial reported in
the March Quarter. The feed brines for the trials (see table below)
were extracted at different locations on the Lake and during a
period of high rainfall and give an indication of the different
crystallisation pathways possible when dilution and other effects
produce variable brine chemistry. The specifications of the feed
samples represented in the table below:
Trial Initial Mass Solution ICP (Mg/L)
-------- --------------
K Mg SO(4)
-------- -------------- ------- ------- ------
Bulk 1 1,997kg 1,440 4,670 7,230
-------- -------------- ------- ------- ------
Bulk 2 1,009kg 2,140 7,360 8,790
-------- -------------- ------- ------- ------
Table 1: Brine Chemistry of Feed Brines
The main conclusions from the trials were:
-- High purity halite (>97% on a dry basis) is produced initially in substantial quantities;
-- There is a clear transition to production of double salts;
-- Significant potassium-magnesium double salts are produced in
the final harvest phase (>90% evaporation), with speciation to
be confirmed by XRD analysis. It is anticipated these salts will be
readily amenable for processing into SOP and potential co-products,
in a similar process to Lake Wells.
Due to the different feed chemistry observed in these bulk
trials, different evaporation pathways were observed. In trials
Bulk 1 and Bulk 2 the evaporation pathway, following bulk halite
removal, favours kainite production immediately. Magnesium
sulphate, in these cases, is co-produced with the double salts.
Mineralogy work on the harvested salts showed that the composition
was largely magnesium sulphate and potassium bearing salts (kainite
and carnallite). Additional evaporation trials are being conducted
to further define the evaporation pathway.
The graphs below show the sharp transition from halite dominated
salts to sulphate mixed salts for the two bulk trials.
Mineralogy results from these two trials the Company will assist
in developing a strategy to maximise the potential co-product
streams from Lake Ballard.
CORPORATE
Placement Raising A$17.6 million
The Company completed a placement of 41,000,000 ordinary shares
at an issue price of A$0.43 (25 pence) to a range of strategic,
institutional and sophisticated investors in Australia and overseas
raising a total of A$17.6m (GBP10.25m) before costs.
Proceeds from the placement will be used to accelerate the
Company's exploration programs at the GSLP.
Experienced Chemical Engineer Strengthens Board
The Company appointed Mr Bryn Jones as a Non-Executive Director,
Mr Jones is a Chemical Engineer with over 20 years management
experience in industrial processing in commercial and mining
operations around the world, including potash and phosphate
projects. Mr Jones has been closely involved with the development
of the Goldfields Salt Lakes Project to date, as a senior
consultant and Project Manager.
Competent Persons Statement
The information in this Announcement that relates to Exploration
Results, or Mineral Resources for Lake Wells, Lake Ballard and Lake
Marmion is extracted from the report entitled 'Work Accelerates at
the Goldfields Salt Lakes Project' dated 20 June 2017. The
information in the original ASX Announcement that related to
Exploration Results, or Mineral Resources for Lake Wells, Lake
Ballard and Lake Marmion 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. The Company confirms
that it is not aware of any new information or data that materially
affects the information included in the original market
announcement. The Company confirms that the form and context in
which the Competent Person's findings are presented have not been
materially modified from the original market announcement
The information in this Announcement that relates to Process
Testwork Results is extracted from the report entitled 'Work
Accelerates at the Goldfields Salt Lakes Project' dated 20 June
2017. The information in the original ASX Announcement that related
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, a 'Recognised Professional
Organisation' (RPO) included in a list promulgated by the ASX from
time to time. 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. The Company confirms that the form and context in which
the
Competent Person's findings are presented have not been
materially modified from the original market announcement
Table 2 - Summary of Exploration and Mining Tenements
As at 30 June 2017, the Company holds interests in the following
tenements:
Australian Projects:
Project Status Type of Change License Number Area (km(2) ) Term Grant Date Date of First Relinquish-ment Interest (%) Interest
1-Apr-17 (%)
30-Jun-17
Western Australia
Lake Wells
5
Central Granted - E38/2710 192.2 years 05-Sep-12 4-Sep-17 100% 100%
5
South Granted - E38/2821 131.5 years 19-Nov-13 18-Nov-18 100% 100%
5
North Granted - E38/2824 198.2 years 04-Nov-13 3-Nov-18 100% 100%
5
Outer East Granted - E38/3055 298.8 years 16-Oct-15 16-Oct-20 100% 100%
Single 5
Block Granted - E38/3056 3.0 years 16-Oct-15 16-Oct-20 100% 100%
5
Outer West Granted - E38/3057 301.9 years 16-Oct-15 16-Oct-20 100% 100%
5
North West Granted - E38/3124 39.0 years 30-Nov-16 29-Nov-21 100% 100%
20
West Granted - L38/262 113.0 years 3-Feb-17 2-Feb-38 100% 100%
20
East Granted - L38/263 28.6 years 3-Feb-17 2-Feb-38 100% 100%
20
South West Granted - L38/264 32.6 years 3-Feb-17 2-Feb-38 100% 100%
Application 20
South Application Lodged L38/287 95.8 years - - - 100%
South Application 5
Western Application Lodged E38/3247 350.3 years - - - 100%
Lake
Ballard
5
West Granted - E29/912 607.0 years 10-Apr-15 10-Apr-20 100% 100%
5
East Granted - E29/913 73.2 years 10-Apr-15 10-Apr-20 100% 100%
5
North Granted - E29/948 94.5 years 22-Sep-15 21-Sep-20 100% 100%
5
South Granted - E29/958 30.0 years 20-Jan-16 19-Jan-21 100% 100%
South East Application - E29/1011 68.2 - - - - 100%
Lake Irwin
5
West Granted - E37/1233 203.0 years 08-Mar-16 07-Mar-21 100% 100%
5
Central Granted - E39/1892 203.0 years 23-Mar-16 22-Mar-21 100% 100%
5
East Granted - E38/3087 139.2 years 23-Mar-16 22-Mar-21 100% 100%
5
North Granted - E37/1261 107.3 years 14-Oct-16 13-Oct-21 100% 100%
Central 5
East Granted - E38/3113 203.0 years 14-Oct-16 13-Oct-21 100% 100%
5
South Granted - E39/1955 118.9 years 14-Oct-16 13-Oct-21 100% 100%
North West Application - E37/1260 203.0 - - - 100% 100%
South West Application - E39/1956 110.2 - - - 100% 100%
Lake
Minigwal
5
West Granted - E39/1893 246.2 years 01-Apr-16 31-Mar-21 100% 100%
5
East Granted - E39/1894 158.1 years 01-Apr-16 31-Mar-21 100% 100%
5
Central Granted - E39/1962 369.0 years 8-Nov-16 7-Nov-21 100% 100%
Central 5
East Granted - E39/1963 93.0 years 8-Nov-16 7-Nov-21 100% 100%
5
South Granted - E39/1964 99.0 years 8-Nov-16 7-Nov-21 100% 100%
South West Application - E39/1965 89.9 - - - 100% 100%
Lake Way
5
Central Granted - E53/1878 217.0 years 12-Oct-16 11-Oct-21 100% 100%
South Application - E53/1897 77.5 - - - 100% 100%
Lake
Marmion
5
North Granted Granted E29/1000 167.4 years 03-Apr-17 02-Apr-22 100% 100%
5
Central Granted Granted E29/1001 204.6 years 03-Apr-17 02-Apr-22 100% 100%
South Application - E29/1002 186.0 - - - 100% 100%
West Application - E29/1011 68.2 - - - 100% 100%
Lake
Noondie
North Application - E57/1062 217.0 - - - 100% 100%
Central Application - E57/1063 217.0 - - - 100% 100%
South Application - E57/1064 55.8 - - - 100% 100%
West Application - E57/1065 120.9 - - - 100% 100%
Lake Barlee
North Application - E49/495 217.0 - - - 100% 100%
Central Application - E49/496 220.1 - - - 100% 100%
South Application - E77/2441 173.6 - - - 100% 100%
Lake
Raeside
North Application - E37/1305 155.0 - - - 100% 100%
Northern
Territory
Lake Lewis
6
South Granted - EL 29787 146.4 years 08-Jul-13 7-Jul-19 100% 100%
6
North Granted - EL 29903 125.1 years 21-Feb-14 20-Feb-19 100% 100%
============ ================ ================== ================= ============== ====== =========== ============================== ============= ===========
For further information please visit www.saltlakepotash.com.au
or contact:
Sam Cordin Salt Lake Potash Limited Tel: +61 8 9322 6322
Colin Aaronson/Richard Tonthat/Daniel Bush Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0)207 383 5100
Nick Tulloch/Beth McKiernan Cenkos Securities plc (Broker) Tel: +44 (0) 131 220 6939
This information is provided by RNS
The company news service from the London Stock Exchange
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