9th Apr 2015 07:00
9 April 2015
| AIM/ASX Code: WHE
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WILDHORSE ENERGY LIMITED Acquisition and Appointment of Directors
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The Directors of Wildhorse Energy Limited ("Wildhorse" or the "Company") are pleased to announce that the Company has entered into an agreement to acquire Australia Salt Lake Potash Pty Ltd ("ASLP") which has two large, salt lake brine projects ("Projects") in Western Australia, each having excellent potential to produce highly sought after Sulphate of Potash ("SOP") for domestic and international fertiliser markets. Pursuant to the agreement, Wildhorse will acquire 100 per cent. of ASLP, a privately held Australian company which holds the Project's Exploration Licences in a wholly owned subsidiary (the "Acquisition").
The Board believes that the Acquisition provides the Company with the opportunity to build a high margin business supplying an increasingly sought after agricultural product to both domestic and international markets. The Board looks forward to making further announcements to the market as the Projects progress.
Highlights
Ø The Projects have potential for producing substantial tonnages of Sulphate of Potash (SOP) and/or Sulphate of Potash Magnesia (SOPM) based on:
· Excellent chemistry of highly saline brines characterised by highly elevated concentrates of dissolved potassium, magnesium, sulphates and elemental ratios considered most suitable for SOP and SOPM production.
· Large salt lakes featuring high potential recharge from large drainage basins.
· Very favourable arid climatic conditions for potential year round, cost effective production of potash salts using conventional evaporation and crystallisation ponds.
· Good access to transport infrastructure.
Ø The Lake Wells Project comprises an area of 1,126 km2 substantially covering the Lake Wells playa near Laverton. The playa has been extensively drilled and sampled, with a high average dissolved potassium (K) content of 5,220 mg/L and brine chemistry which favours potential production of SOP by conventional methods. The high catchment area to lake ratio also indicates good brine recharge potential.
Ø The Lake Ballard Project comprises 775 km2 and is located 350 km to the south-west of the Lake Wells Project. Historical sampling indicates highly elevated potassium contents in the brines and the project also has a large catchment area, very good evaporation potential and access to excellent transport infrastructure and the Goldfields gas pipeline.
Ø Substantial news flow is expected over the coming months with:
· Further drilling to assess the extent and continuity of brine laterally and at depth.
· Hydraulic testing and pumping tests from bores and/or trenches to determine aquifer properties, expected production rates and infrastructure design (trench and bore size and spacing).
· Studies on the lake recharge dynamics to determine the lake water balance and subsequent production water balance, as well as studies of the brine chemistry characteristics and evaporation trials.
· Preparation of an initial resource estimate in accordance with the JORC Code.
Ø The appointment of two additional directors to the Board of Directors. Mr Jason Baverstock, the founding director and shareholder of ASLP, as Executive Director of the Company and Mr Matthew Syme, a highly experienced resources company director as a Non-Executive Director.
Sulphate of Potash (K2SO4) is a premium fertiliser product, currently commanding a 30% premium over the more common Muriate of Potash (KCl), due to its high potassium content, absence of chlorine, suitability for high value crops such as fruit and nut orchards, oil palms, tea crops and other leafy fruit and vegetables. The global market for SOP is around 5.5mtpa and current market prices are around US$700 per tonne. Australia presently imports all of its SOP requirements.
The potential for production of SOP and SOPM based on pond evaporation from inland salt lakes in Australia has been recognised for some time. Salt lake evaporation projects are substantial producers of Potash and other minerals from operations in North and South America, the Middle East and China. Production of primary SOP from salt lake evaporation enjoys an inherent and a substantial cost advantage over the secondary (Mannheim) process, which produces around 70% of SOP globally.
About ASLP
ASLP was founded to capitalise on the quality of Australia's unique salt lake brine resources and cost-effective production conditions and the growing demand for high-value SOP, a chloride-free potassium fertiliser, and its by-products.
The Company has secured three granted and six pending exploration licences covering a total area of 1,901 km2 of salt lake basins of the two targeted lakes: Lake Wells and Lake Ballard located in Western Australia.
Reconnaissance auger drilling, pit sampling programs and/or historical data have indicated the presence of highly concentrated brine resources for both projects with elemental ratios highly suitable for commercial production of SOP and its by-products via low-cost solar crystallisation and selective salt recovery methods.
Both projects have ready access to transport infrastructure servicing the domestic and international fertiliser markets.
ASLP made a loss of AU$177,692 in the financial year ended 30 June 2014, the latest available, which reflects the fact that the company does not capitalise its exploration expenditure.
Lake Wells Project, Western Australia
Lake Wells is located approximately 80 km north of the Great Central Road and 180 km NE of Laverton in the West Australian Goldfields. ASLP holds three exploration licences and the three applications over the Lake Wells playa covering a total area of 1,126 km2. There are no known Native Title claims in relation to the permits.
Lake Wells basin is Australia's tenth largest salt lake basin covering an area of about 19,000 km2. The ratio of the basin size to playa lake area is over 30 times, underpinning the high potential for elevated recharge.
ASLP has undertaken a maiden exploration program at Lake Wells, comprising reconnaissance stage auger drilling and test pit excavation across the playa. A total of 28 auger holes were drilled to an average depth of 4.1 metres and 79 test pits were dug by hand to an average depth of 0.5 metres. Brine samples from all the auger holes and 35 test pits were submitted to NATA accredited laboratories for analysis (averaging one data point per 6.8 km2).
Samples tested to date from Lake Wells have an average potassium concentration of 5,220 mg/L. This brine quality compares favourably with that reported by other Australian and overseas salt lake SOP projects.
Company | Project | Area (km2) | Key Brine Chemistry | Target Output (tpa) | ||
K (mg/L) | SO4 (mg/L) | TDS (mg/L) | ||||
Compass Minerals (US) | Great Salt Lake | n/a | 4,500 | 18,000 | 250,000 | 400,000 |
EPM Mining (US) | Sevier Lake | 511 | 2,545 | 20,664 | 228,339 | 300,000 |
Reward Minerals (AUS) | Lake Disappointment | 990 | 5,460 | 25,950 | 237,000 | 400,000 |
Rum Jungle (AUS) | Karinga Creek | 103 | 4,730 | 40,000 | 274,000 | 125,000 |
ASLP (AUS) | Lake Wells | 522 | 5,220 | 18,520 | 268,250 | n/d |
Source: Company Reports and Announcements
Wildhorse believes Lake Wells has the potential to generate substantial volumes of highly enriched brine to supply a solar evaporation facility and processing plant to produce SOP, SOPM and other by-products. The Lake Wells area boasts annual pan evaporation of around 3 metres per year, which is substantially higher than evaporation rates at other brine potash projects in Utah, USA and Western China.
Upon completion of the transaction, Wildhorse plans to undertake further drilling, pump testing, process testwork and evaporation trials to form the basis of an initial resource estimate and scoping study.
Lake Ballard Project, Western Australia
Lake Ballard is a large salt lake in the Goldfields region of Western Australia about 20 kilometres North of Menzies and 150 kilometres north of Kalgoorlie.
ASLP owns three exploration licence applications over the Lake Ballard playa covering a total area of 775 km2. No Native Title claims are registered over the area.
Lake Ballard is located next to a sealed highway, a mining haul road, and a railway which links it to Esperance Port. A gas pipeline also transects in close proximity to the eastern edge of the lake.
Historical sampling at Lake Ballard indicates high concentrates of dissolved potassium in the lake brines. To date no large scale evaporation work has been undertaken.
Following the expected exploration licences grant, ASLP plans to undertake a systematic drilling program to define the lateral extent of near surface brines.
Consideration
The Share Sale Agreement ("Agreement") in respect of the Acquisition includes consideration as follows:
(i) 15,000,000 fully paid ordinary shares, issued at the mid-market price on market close the day prior to issue, on completion;
(ii) 5,000,000 unlisted convertible performance shares on completion, which convert into fully paid ordinary shares upon the completion and announcement by the Company of the results of a positive Pre-feasibility Study on all or part of the Project Licences, within three years from the date of issue;
(iii) 7,500,000 unlisted convertible performance shares on completion, which convert into fully paid ordinary shares upon the completion and announcement by the Company of the results of a positive Definitive Feasibility Study on all or part of the Project Licences, within four years from the date of issue; and
(iv) 10,000,000 unlisted convertible performance shares on completion, which convert into fully paid ordinary shares upon the commencement of construction activities for a mining operation on all or part of the Project Licences (including the commencement of ground breaking for the construction of infrastructure and/or processing facilities) following a final investment decision by the Board as per the project development schedule and budget in accordance with the Definitive Feasibility Study, within five years from the date of issue.
The consideration shares and performance shares will be subject to a 24 month voluntary escrow from completion. However, securities will not be subject to escrow to the same extent as if the cash formula (per the listing rules) was applied.
Project Licences means the below exploration tenements (granted and applications) and any other mining tenement or mining tenements which may be granted in lieu of (in whole or in part) or relate to the same ground (or whole or in part) as those licenses:
Lake Wells Project
i. Exploration License 38/2710
ii. Exploration License 38/2821
iii. Exploration License 38/2824
iv. Exploration License (application) 38/3055
v. Exploration License (application) 38/3056
vi. Exploration License (application) 38/3057
Lake Ballard Project
vii.Exploration License (application) 29/912
viii.Exploration License (application) 29/913
ix. Exploration License (application) 29/948
The Agreement also provides that Wildhorse may agree to make a limited loan facility available to ASLP prior to completion, which is intended to provide limited funding to ASLP to conduct agreed exploration activities.
The Agreement is dated 9 April 2015. Completion of the acquisition of ASLP must occur within 6 months of signing the Agreement ("End Date") and is subject to the following conditions precedent:
Wildhorse Shareholders passing all resolutions as a required under the ASX Listing Rules, the Constitution and the Corporations Act to give effect to the transactions contemplated by the Agreement within 90 days of signing the Agreement;
ASX approving the terms and conditions of the performance shares within 60 days of signing the Agreement;
No material breach of the Vendor warranties; and
Wildhorse complying with the ASX Listing Rules, the AIM Rules for Companies and the Corporations Act in order for completion to occur.
There are normal commercial warranties associated with the acquisition.
Appointment of Directors
In addition to the Acquisition, Wildhorse is pleased to announce the appointment of Mr Matthew Syme as a Non-executive Director of the Company, with immediate effect and Jason Baverstock, as an Executive Director, with effect from the completion of the Acquisition. Details of Mr Baverstock's service contract and remuneration will be disclosed when Mr Baverstock is appointed at the completion of the Acquisition.
Mr Matthew Syme - Non-executive Director
Mr Syme is a Chartered Accountant and an accomplished mining executive with over 26 years' experience in senior management roles in Australia and overseas. He was a Manager in a major international Chartered Accounting firm before spending 3 years as an equities analyst in a large stockbroking firm. He became Chief Financial Officer of Pacmin Mining Limited, a successful Australian gold mining company, in 1994.
Mr Syme has considerable experience in managing mining projects in a wide range of commodities and countries. He has been a senior executive or director of a number of exploration and mining companies including Managing Director of Berkeley Resources Limited (August 2004 - November 2009), Sierra Mining Limited (July 2010-June 2014) and Sovereign Metals Limited (June 2014 to date).
Mr Syme joins the Board with immediate effect, and will assist in the Company's business development activities.
Mr Jason Baverstock - Executive Director
Mr Baverstock founded ASLP and secured each of its potash projects. He brings to the Company over 10 years of financial, business and research expertise. He began his career with the Australian government as Researcher and Mandarin Translator in the Australian Embassy in Beijing. He then worked in commerce and finance in Greater China in roles such as Strategy Analyst at Credit Suisse, Hong Kong and Analyst at BNP Paribas, Hong Kong. His role at BNP Paribas focused on identifying new investment ideas in the agricultural and alternative energy sectors and also analysis of the leading Chinese grain processing and fertiliser companies.
Mr Baverstock is one of the vendors of the Project and will be appointed with effect from the completion of the Acquisition.
The information required by Schedule 2 paragraph (g) in relation to each of Matthew Syme and Jason Baverstock is as follows:
Director's Full Name and Age | Current Directorships/ Partnerships | Directorships/Partnerships within the last 5 years |
Matthew Gordon Syme (aged 48) | Sovereign Metals Limited Hopetoun Consulting Pty Ltd Solar Resources Pty Ltd | Sierra Mining Limited RTG Mining Inc. Berkeley Resources Limited |
Matthew Gordon owns 4,500,000 ordinary shares in Wildhorse held by Hopetoun Consulting Pty Ltd, trustee of M Syme Family Trust. | ||
Jason Baverstock (aged 36) | Australia Salt Lakes Potash Pty Ltd Piper Preston Pty Ltd | |
Save as disclosed in this announcement, there are no further disclosures required to be made in respect of the appointments or the Acquisition under Schedule Two(g) or Schedule Four of the AIM Rules for Companies.
Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves 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.
APPENDIX 1 - LAKE WELLS PROJECT AUGER DRILLHOLE DATA5
Hole_ID | Drilled Depth (m) | Water Depth (m)1 | East2 | North2 | RL (mAHD) 3 | Potassium Assay (mg/L) | Top Underlying Clay (m) | Saturated LPS Thickness4 (m) | |
LW2G6A | 3.0 | 0.9 | 516107 | 7046991 | 436 | 5040 | 2.5 | 1.6 | |
LW2G7A | 6.0 | 0.55 | 520486 | 7044394 | 436 | 5040 | 3.5 | 2.95 | |
LW2G10A | 3.0 | 0.3 | 526920 | 7045730 | 436 | 5890 | 2 | 1.7 | |
LW2G11A | 6.0 | 0.4 | 526027 | 7043904 | 436 | 4360 | 5.5 | 5.1 | |
LW2G12A | 6.0 | 0.55 | 524747 | 7041928 | 436 | 6230 | 5.5 | 4.95 | |
LW2G13A | 10.4 | 0.7 | 528890 | 7039477 | 436 | 5730 | 9.5 | 8.8 | |
LW2G14A | 7.0 | 0.6 | 529941 | 7041412 | 436 | 5720 | 5 | 4.4 | |
LW2G15A | 6.0 | 0.5 | 534078 | 7038950 | 436 | 4470 | 4.5 | 4 | |
LW2G16A | 3.0 | 0.65 | 534067 | 7036926 | 436 | 3510 | |||
LW2G17A | 3.0 | 0.55 | 531819 | 7034867 | 439 | 5260 | |||
LW2G18A | 3.0 | 0.5 | 533887 | 7033911 | 436 | 5130 | 3 | 2.5 | |
LW2G19A | 1.6 | 0.2 | 534327 | 7031264 | 439 | 5860 | |||
LW2G20A | 3.0 | 0.45 | 535133 | 7028031 | 438 | 4260 | |||
LW2G20AA | 3.0 | 0.5 | 536028 | 7027632 | 437 | 7750 | 3 | 2.5 | |
LW2G21A | 6.0 | 0.6 | 534966 | 7025564 | 435 | 6150 | 5.5 | 4.9 | |
LW2G22A | 3.0 | 0.7 | 530565 | 7018342 | 436 | 2880 | 3 | 2.3 | |
LW2G24A | 6.0 | 0.4 | 536483 | 7018945 | 436 | 5830 | 5.5 | 5.1 | |
LW2G25A | 4.5 | 0.9 | 531971 | 7015364 | 436 | 5540 | 4 | 3.1 | |
LW2G26A | 7.0 | 0.7 | 530236 | 7012215 | 438 | 4730 | 6.5 | 5.8 | |
LW2G27A | 3.0 | 0.8 | 538788 | 7022412 | 434 | 3140 | 3 | 2.2 | |
LW2G29A | 3.0 | 0.5 | 539980 | 7020064 | 437 | 4680 | 3 | 2.5 | |
LW2G30A | 4.5 | 1.2 | 536575 | 7014610 | 439 | 4520 | 4 | 2.8 | |
LW2G31A | 3.0 | 1.0 | 535690 | 7008680 | 436 | 5050 | 3 | 2 | |
LW2G33A | 3.0 | 0.6 | 538685 | 7004404 | 437 | 5120 | 3 | 2.4 | |
LW2G34A | 1.6 | 0.4 | 536948 | 6998207 | 437 | 5150 | 1.5 | 1.1 | |
LW2G35A | 1.7 | 0.4 | 540906 | 7001283 | 437 | 5650 | 1.5 | 1.1 | |
LW2G38A | 2.0 | 0.25 | 542595 | 6995352 | 437 | 5340 | 2 | 1.75 | |
LW2G40A | 2.0 | 0.3 | 538092 | 6994286 | 437 | 6530 | 2 | 1.7 | |
Notes: 1) Water depth below ground surface 2) Coordinates in GDA94 Zone 52 projection 3) RL Collar elevation derived from Geoscience Australia 3 Second DEM. 4) Lith unit 1 thickness below water table 5) Azimuth of drill holes not reported as drill holes were vertical and only shallow depth
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APPENDIX 2 - LAKE WELLS TEST PIT RESULTS4
Hole_ID | Pit Depth (m) | Water Depth (m)1 | East2 | North2 | RL (mAHD) 3 | Potassium Assay (mg/L) |
LWP2 | 0.4 | 0.3 | 521311 | 7050481 | 436 | 7190 |
LWP4 | 0.6 | 0.5 | 519386 | 7047872 | 436 | 4000 |
LWP5 | 1 | 0.9 | 518478 | 7046754 | 436 | 4420 |
LWP6 | 0.85 | 0.75 | 519921 | 7045419 | 436 | 4400 |
LWP8 | 0.8 | 0.7 | 521810 | 7044718 | 436 | 4880 |
LWP11 | 0.35 | 0.25 | 525007 | 7045081 | 436 | 5200 |
LWP13 | 0.45 | 0.35 | 526872 | 7045284 | 436 | 5390 |
LWP15 | 0.6 | 0.5 | 526544 | 7042866 | 436 | 4330 |
LWP16 | 1.05 | 0.95 | 526889 | 7041459 | 436 | 5070 |
LWP17 | 0.8 | 0.7 | 498626 | 7051606 | 439 | 5590 |
LWP18 | 0.3 | 0.2 | 501767 | 7050759 | 436 | 4360 |
LWP19 | 0.2 | 0.1 | 536553 | 7029750 | 439 | 6080 |
LWP20A | 0.35 | 0.25 | 535372 | 7028910 | 438 | 5960 |
LWP21 | 0.35 | 0.25 | 535086 | 7030164 | 437 | 5970 |
LWP22 | 0.35 | 0.25 | 534099 | 7031428 | 435 | 5160 |
LWP25 | 0.9 | 0.8 | 533836 | 7040289 | 436 | 5250 |
LWP26 | 0.8 | 0.7 | 530260 | 7039587 | 436 | 5480 |
LWP28 | 0.45 | 0.35 | 533772 | 7033598 | 436 | 5430 |
LWP29 | 0.2 | 0.1 | 537508 | 7028935 | 438 | 5910 |
LWP31 | 0.35 | 0.25 | 535713 | 7024396 | 434 | 5500 |
LWP32 | 0.18 | 0.08 | 535544 | 7023111 | 437 | 5770 |
LWP33 | 0.3 | 0.2 | 535971 | 7025884 | 439 | 6120 |
LWP34 | 0.8 | 0.7 | 528584 | 7039819 | 436 | 6000 |
LWP42 | 0.5 | 0.4 | 527381 | 7017679 | 437 | 5660 |
LWP44 | 0.25 | 0.15 | 526475 | 7016835 | 437 | 6850 |
LWP45 | 0.6 | 0.5 | 527295 | 7015791 | 437 | 5110 |
LWP48 | 0.6 | 0.5 | 532774 | 7014586 | 437 | 4410 |
LWP50 | 1 | 0.9 | 534448 | 7015874 | 437 | 5030 |
LWP54 | 0.4 | 0.3 | 535341 | 7019841 | 437 | 6310 |
LWP59 | 0.3 | 0.2 | 535467 | 7022385 | 437 | 6470 |
LWP62 | 0.4 | 0.3 | 533947 | 7020337 | 438 | 5300 |
LWP63 | 0.5 | 0.4 | 533161 | 7019960 | 438 | 5630 |
LWP67 | 0.3 | 0.2 | 529482 | 7017444 | 437 | 5580 |
LWP74 | 0.8 | 0.7 | 531626 | 7011236 | 437 | 4340 |
LWP75 | 0.8 | 0.7 | 532110 | 7010175 | 439 | 4430 |
1) Water depth below ground surface 2) Coordinates in GDA94 Zone 52 projection 3) RL Collar elevation derived from Geoscience Australia 3 Second DEM. 4) Azimuth of drill holes not reported as drill holes were vertical and only shallow | ||||||
APPENDIX 3 - JORC TABLE 1
Section 1 Sampling Techniques and Data
Criteria | JORC Code explanation | Commentary |
Sampling techniques | Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools 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. | Brine samples from auger drilling were taken at the end of drilling. Brine samples are composite samples from the water table intersection to the end of hole. Sediment samples were taken every metre. Geological logs were provided as a composite qualitative description for the entire hole. The depth to underlying clay was recorded for each holes, with the exception of four holes where the underlying clay contact was not intersected, or not discernible. |
Drilling techniques | Drill type (eg core, reverse 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). | Auger drilling was undertaken with a simple auger rig. Auger bit size was approximately 80 mm, using 75 mm x 1.5 m long rods. Core and/or chips were not oriented. |
Drill sample recovery | Method of recording and assessing core and chip sample recoveries and 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. | Sediment samples were collected by hand from the collar of the hole as produced by the augers. Brine was sampled from the auger holes at the completion of drilling once the holes had refilled with brine.
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Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. | All auger drill holes were geologically logged by a qualified geologist, noting in particular moisture content of sediments, lithology, colour, structural observations Log sheets were developed specifically for this project. |
Sub-sampling techniques and sample preparation | If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity 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. | Brine was sampled directly from the auger hole with duplicates taken periodically. Sample bottles are rinsed with brine which is discarded prior to sampling. Geological logs are recorded in the field based on inspection of cuttings. Samples are retained in a cooler for archive.
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Quality of assay data and laboratory tests | The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including 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. | Samples were submitted to ALS Global Laboratory, Sydney for analysis. · The technique used is Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry (ICP OES) excluding sulphate determination which was carried out by gravimetric method. · Inter-laboratory duplicate samples were sent to SESL Australia. The full dataset and analysis is presented as Appendix 2. The primary lab exhibits higher potassium assay for three sample pairs. · The charge balance error for each sample assay was calculated. Charge balance errors averaged 5.1% and ranged from -8.6 to 16.3. · Detailed review of laboratory assay quality was reported by ASLP. Data quality checks comprised: o The primary laboratory's analytical methodology was reviewed by ASLP's technical specialist for suitability to very high concentration brine assay by ICP determination. The review and subsequent methodology implemented specific dilution techniques and standards to ensure accurate ICP assay results. o The accuracy of dilution procedures and subsequent ICP assay by the primary laboratory was confirmed through duplicate assay at a Research Laboratory (A Arakel per com, 2014) using wet chemistry assay methods which are better suited to high concentration brines. Results compare favourably with ALS Global Laboratory indicating that the dilution and subsequent ICP methodology is suitable. · The assay method and results are suitable for calculation of the resource estimate. |
Verification of sampling and assaying | The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. | · Data entry is done in the field to minimise transposition errors. · Brine assay results are received from the laboratory in digital format to prevent transposition errors and these data sets are subject to the quality control described above. · No holes were twinned, and independent verification of significant intercepts was not considered warranted given the relatively consistent nature of the brine resource |
Location of data points | Accuracy and quality of surveys used to locate drill 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. | Drillhole co-ordinates were captured using hand held GPS. Coordinates were provided in latitude and longitude. Data was re-projected to GDA 94_MGA Zone 51. Topographic control is obtained using Geoscience Australia's 3-second digital elevation product. Topographic control is not considered critical as the salt lakes are generally flat lying and the water table is taken to be the top surface of the brine resource. |
Data spacing and distribution | Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. | Data spacing averages one data point per 6.8 km2 not on a grid due to the irregular nature of the salt lake shape and difficulty obtaining access to some part of the salt lake. Data points are presented in Appendix 1. A total of 79 test pits were dug by hand during on a random basis but at least 1 km apart (depending on access conditions). Of these 35 brine samples were submitted for assay. |
Orientation of data in relation to geological structure | Whether the orientation of sampling 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. | · All drill holes were vertical as geological structure is generally flat lying. Structures may be present in the underlying clay and may control brine flow in the sub-surface but their orientations are unknown. The basement geological unit is excluded from the brine resource. · |
Sample security | The measures taken to ensure sample security. | Samples are labelled and kept onsite before transport to the laboratory. Chain of Custody system is maintained. |
Audits or reviews | The results of any audits or reviews of sampling techniques and data. | Data review is summarised in Quality 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 status | Type, reference name/number, location 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. | Granted Exploration Licences 38/2710, 38/2821 and 38/2824 in Western Australia. Application for Exploration Licences 38/3045, 29/912, 29/913 and 29/948 in Western Australia. Granted Exploration Licenses 29787 and 29903 in Northern Territory. Exploration Licenses are held by Piper Preston Pty Ltd (fully owned subsidiary of ASLP). |
Exploration done by other parties | Acknowledgment and appraisal of exploration by other parties. | No other known exploration has occurred on the Exploration Licences. |
Geology | Deposit type, geological setting and style of mineralisation. | Salt Lake Brine Deposit |
Drill hole Information | A summary of all information 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. | Exploration and resource definition drilling comprised 28 aircore drillholes drilled to a depth of between 1.6 and 10.4 meters and 35 test pits dug to an average depth of 0.5m. Drillhole details, Test pits and locations of all data points are presented in Appendix 1. Drilling, sampling and logging techniques are summarised in Section 1.
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Data aggregation methods | In reporting Exploration Results, 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. | No data aggregation has been undertaken. The complete data set is used for analysis. Within the salt lake extent no low grade cut-off or high grade capping has been implemented due to the consistent nature of the brine assay data. |
Relationship between mineralisation widths and intercept lengths | These relationships are particularly important in the reporting of Exploration Results. 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 down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known'). | The brine resource is inferred to be consistent and continuous through the full thickness of the Lake Playa sediments unit. The unit is flat lying and drillholes are vertical hence the intersected downhole depth is equivalent to the inferred thickness of mineralisation. |
Diagrams | Appropriate maps and sections (with 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. | Addressed in the announcement. |
Balanced reporting | Where comprehensive reporting of all 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. | All results have been included. |
Other substantive exploration data | Other exploration data, if meaningful and material, should be 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. | All material exploration data reported. |
Further work | The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. | Further drilling to assess the occurrence of brine at depth. Closer spaced, more evenly distribute drilling, particularly to define the thickness of the LPS unit. Hydraulic testing be undertaken, for instance pumping tests from bores and/or trenches to determine, aquifer properties, expected production rates and infrastructure design (trench and bore size and spacing). 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. Study of the potential solid phase soluble or exchangeable potassium resource.
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A version of the ASX announcement and further details of the acquisition, is available on the Company's website www.wildhorse.com.au.
For further information please visit www.wildhorse.com.au or contact:
Sam Cordin | Wildhorse Energy Limited | Tel: +61 8 9322 6322 |
Colin Aaronson/Jen Clarke/Jamie Barklem | Grant Thornton UK LLP | Tel: +44 (0)207 383 5100 |
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