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Lake Wells Shallow Core Drilling Completed

22nd Sep 2015 07:00

RNS Number : 7459Z
Wildhorse Energy Limited
22 September 2015
 



 

 

22 September 2015

 

AIM/ASX Code: WHE

 

 

WILDHORSE ENERGY LIMITED

Successful Shallow Core Drilling Program Completed At Lake Wells Project

 

 

The Directors of Wildhorse Energy Limited ("Wildhorse" or "Company") are pleased to advise that the Company has successfully completed its initial shallow core drilling program at the Lake Wells Project.

 

The drilling program has confirmed that the brine pool across the Lake is at least 20m deep in most areas, with excellent porosity (43.5%) and brine chemistry (K: 4,247 mg/L and S04: 20,416 mg/L) for estimating a substantial initial resource. The program has also produced a comprehensive set of intact core and brine samples for geological interpretation, aquifer modelling and ongoing chemical analysis.

 

Highlights:

· A total of 30 hollow auger core holes have been completed over the entire surface of the Lake, including areas where access was limited in previous campaigns. 

 

· Average chemistry of brine samples processed to date is highly encouraging:

Brine Chemistry

K (mg/L)

Mg (mg/L)

SO4 (mg/L)

TDS (mg/L)

Average of results received to date

4,247

7,341

20,416

276,307

 

· Results received to date include excellent average porosity across all samples processed of 43.5% (vol/vol).

 

· The geology seen in drill holes to date is encouraging, with a consistent sequence of saturated sediments encountered, including a range of sands, silts and clays. The average standing water level across the holes is 0.5 metres from the lakebed.

 

· The average depth achieved was 17 metres. Only 2 holes appear to have encountered basement rocks, with all other holes finishing at the effective limit of drilling. Any potential resource is therefore open at depth over the majority of the Lake bed.

 

· A zone of saturated coarse grained evaporite sediments within the upper 3-4 metres of the Lake bed have been encountered in most drill holes in the program

 

· The balance of porosity and assay results should be available over the next few weeks, allowing completion of an initial JORC resource estimate.

 

· An aircore rig is mobilising imminently to test the deeper potential of the Lake.

 

The drilling results are described in more detail below and the announcement being released on ASX will be available on the Company's website, www.wildhorse.com.au.

 

For further information please visit www.wildhorse.com.au or contact:

Matt Syme/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

 

 

Drill Program

 

The Lake Wells Project comprises 522 km2 of granted Exploration Licences, substantially covering the Lake Wells Playa, as well as 604 km2 of Exploration Licence Applications, immediately contiguous to Lake Wells. Lake Wells has been the subject of reconnaissance drilling and sampling by the previous owner (see ASX announcement dated 9 April 2015) indicating shallow, highly saline brines across the extent of Lake Wells, which may be suitable for production of Sulphate of Potash (K2SO4) and other salt products.

 

The 2015 shallow drilling program was designed to test the lateral extent of brine in the lakebed sediments to a targeted depth of approximately 20 metres.

 

The drill program utilised a lightweight auger rig capable of drilling hollow core to the targeted depth. The drill rig was towed by a tracked Landtamer amphibious vehicle with Argo vehicles providing support. The drilling method recovered intact sediment core in 750mm lengths of clear tubing. Company geologists visually logged the core and marked sections to be submitted for entrained brine extraction and porosity (water content) testwork. On completion drill holes were flushed using a downhole pump and brine samples were collected. Marked intact core samples and brine samples were then despatched to Perth for laboratory analysis of porosity and brine chemistry (major ions).

 

The analysis of intact core samples of lakebed sediments for porosity and brine chemistry data is intended to allow estimation of a JORC compliant resource.

 

Completed Program

 

Drilling based on a grid, with a drill hole spacing of less than 5km, has now been completed, including on the northern arm of the Lake, which has previously only been lightly sampled due to limited access.

 

The drilling program was completed efficiently in light of the challenges of collecting intact core samples of lakebed sediments and mobilisation in the salt lake environment. Core recovery has been satisfactory.

 

The program commenced in the expansive northern arm of the lake before advancing south through the 'neck area' in the middle of the Lake and drilling the southern arm of the lake on slightly wider spacing (given this area was previously sampled more extensively).

 

The sedimentary profile of holes across the Lake is uniform with a similar sequence of variably sorted silt, clay and sand encountered in most holes. The water table was encountered at an average of 0.5m below from surface and a maximum of 2.3m under one of the islands (collar approximately 1.5m above lake surface). There is a generally coarse grained zone in the upper 4m of most holes.

 

A total of 30 holes have been completed for 467m of intact core with the average depth being approximately 17m. Refer to Appendix 1 for the complete drill result data. The majority of holes ended on blade refusal and therefore are effectively open at depth.

 

Hole LWG007 appears to have encountered basement rocks at 6.8m in the form of a Proterozoic meta-sediment. West of hole LWG007, drilling encountered very stiff, impenetrable clays and so holes were terminated at shallower depths. Hole LWG004 was equipped with slotted PVC casing to allow future monitoring of water levels, flow rates and brine chemistry.

 

The large area of the lake between LWG007 and LWG023 was drilled to an average depth of 19m, with a reasonably uniform sediment profile and all holes finishing in saturated sediments. LWG014 was equipped with slotted PVC casing to allow future monitoring of water levels, flow rates and brine chemistry.

 

Hole LWG024, in the narrowest part of the lake, encountered what appears to be basement of Proterozoic meta-sediment at 6.75m.

 

In the southern half of the Lake most holes encountered a similar sedimentary profile to the northern arm, finishing in saturated sediments at an average depth of 17m.

 

Holes LWG025 and LWG026 targeted, what appears at surface to be, a more permeable part of the lake. In this area, gypsiferous sand is seen at surface and to depth. Both holes encountered gypsiferous and quartz sands interbedded with silt down to 4m. LWG025 was equipped with slotted PVC casing to allow future monitoring of water levels, flow rates and brine chemistry.

 

Holes LWG021 and LWG031 were drilled on islands within the lake playa to test whether the brine saturated lake sediments continued beneath the islands and to provide samples for determining the effect of the islands, if any, on chemistry. All holes demonstrated continuity of the brine pool beneath the islands although insufficient results of these holes have been received to date to make a judgement on the chemistry of the brine beneath the islands.

 

Results to Date

 

Drill cores were collected intact in clear tubes for all holes except LWG019 and LWG051, which were recovered as split core for closer field analysis and future reference.

 

The 0.75 metre intact cores tubes are immediately capped and sealed after drilling to retain moisture in the sediments. The cores are logged, marked up for Porosity and Entrained Brine analysis. The Porosity samples are marked up in 0.1m lengths every 3m down each hole. Entrained brine samples are marked up in 0.1m length in set geological units down each hole (typically 3 - 4 samples per hole). The core is then despatched to NATA accredited laboratories in Perth, along with the brine samples pumped from the holes.

 

The Entrained Brine sample is spun in a centrifuge to extract a brine sample representative of that interval in the hole. The extracted Entrained Brine samples, and the Bulk water (brine) samples, are then analysed for major cations and anions using ICP-AES with chloride determined by Mohr titration and alkalinity determined volumetrically. Sulphate is calculated from the ICP-AES sulphur analysis.

Brine analysis has been completed on 15 holes from brine pumped from down the hole after the completion of each drillhole. The brine chemistry is detailed below.

 

HOLE ID

K

(mg/L)

Cl

 (mg/L)

Na

(mg/L)

Ca

(mg/L)

Mg

(mg/L)

SO4

 (mg/L)

TDS

(mg/L)

LWG007

3,980

147,700

88,900

513

7,580

22,000

270,673

LWG009

4,150

151,550

94,300

495

7,210

21,000

278,705

LWG010

4,330

154,850

98,900

508

6,790

21,000

286,378

LWG014

4,245

146,900

89,350

519

7,240

22,000

270,254

LWG015

4,620

158,300

96,000

512

7,140

21,000

287,572

LWG018

4,910

135,800

83,300

767

5,290

17,000

247,067

LWG019

4,150

145,300

90,100

536

7,290

20,000

267,376

LWG020

4,000

144,500

89,500

483

7,150

23,000

268,633

LWG021

4,070

135,550

83,600

568

5,930

18,200

247,918

LWG022

3,600

151,500

92,800

550

8,380

20,700

277,530

LWG023

3,820

134,650

82,200

674

5,490

16,200

243,034

LWG024

4,860

152,800

95,100

529

5,540

19,000

277,829

LWG027

3,540

154,750

90,700

529

8,580

18,600

276,699

LWG030

3,500

150,650

86,700

570

8,000

17,600

267,020

LWG050

4,420

152,300

93,800

497

7,300

21,300

279,617

Average

4,146

147,807

90,350

550

6,994

19,907

269,754

Table 1: Brine Chemistry of Bulk Water Samples from Lake Wells

 

Brine analysis has been completed on 15 holes from brine extracted from selected intervals of intact core sediments. A total of 39 entrained brine samples have been analysed with average potassium content of 4,287mg/L. The full details are provided in Appendix 2. The average potassium content of all brine analysis received for both down hole and entrained brine samples is 4,247mg/L.

 

Overall the brine chemistry is fairly consistent. The average potassium content for assays received to date from this campaign are lower than those from previous campaigns. Reconciliation and analysis of the difference is ongoing however, preliminary analysis by the Company's consultant analytical chemist indicates that last year's results received by Australia Salt Lake Potash Pty Ltd prior to its acquisition by Wildhorse, were overstated due to laboratory processes and this year's results are likely to be more representative.

 

Porosity

 

The Porosity samples are cut from the core tubes, weighed and then dried in an oven at 80°c for up to 48 hours until the dry weight is stable. The dried remnant is weighed and to provide an accurate assessment of moisture content (weight percentage) in the sample interval. The porosity expressed as volume percentage is then calculated by correcting for precipitation of dissolved salts during the drying process, and allowance for the brine density (1.18) and particle density (2.58) of the solids.

No porosity testwork has been undertaken at Lake Wells previously and results to date have been particularly pleasing. From a total of 19 holes analysed to date, the average brine volume was 43.5%, with a low of 37% and a high of 54%.

 

Hole_ID

Average Moisture Content

(Weight Percentage)

Average Porosity

(Volume Percentage)

LWG001

20.2%

43%

LWG003

27.5%

54%

LWG004

17.4%

38%

LWG007

19.6%

42%

LWG008

16.9%

37%

LWG009

19.8%

42%

LWG010

24.7%

49%

LWG012

19.2%

41%

LWG014

22.0%

45%

LWG015

22.5%

47%

LWG017

20.4%

43%

LWG018

19.4%

41%

LWG020

21.0%

44%

LWG021

20.8%

43%

LWG022

19.9%

42%

LWG023

18.6%

40%

LWG024

21.4%

45%

LWG027

20.0%

42%

LWG050

21.9%

45%

Average

20.7%

43%

Table 2: Porosity Results from Lake Wells

Outlook

 

The results of the shallow drilling campaign to date have proven very satisfactory. Drilling has encountered brine saturated sediments in all drillholes to an average depth of approximately 17m.

 

An air-core rig, capable of drilling to at least 100m, will now be mobilised to test the full thickness of the lake sediments and the basement contact, as well as to collect brine samples at depth.

 

The balance of samples (approximately 15 holes) will be processed for brine chemistry and porosity immediately for incorporation into a model for estimation of an initial JORC resource estimate.

 

Competent Persons Statement

The information in this report that relates to Exploration Results for Lake Well's drill program 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 DATA

 

Hole_ID

Drilled Depth (m)

Water Depth (m)

East

North

RL

Dip

Azimuth

(mAHD)

LWG001

8.75

0.3

503281

7050948

447

-90

0

LWG003

1.5

0.5

504840

7046721

445

-90

0

LWG004

7.25

0.3

506205

7050557

446

-90

0

LWG007

6.75

0.7

511841

7049619

441

-90

0

LWG008

16.75

0.5

516722

7048077

446

-90

0

LWG009

17.25

0.6

517757

7049815

429

-90

0

LWG010

19.8

0.3

518727

7051540

441

-90

0

LWG012

22.95

0.6

520923

7045358

442

-90

0

LWG014

20.25

0.6

522074

7047346

432

-90

0

LWG015

18.25

0.65

523195

7049252

435

-90

0

LWG017

20.25

0.3

525119

7043218

441

-90

0

LWG018

19.5

0.2

526519

7045037

441

-90

0

LWG019

20.5

0.6

529088

7039485

443

-90

0

LWG020

20.25

0.6

530095

7041226

443

-90

0

LWG023

20.85

0.4

534149

7031928

444

-90

0

LWG024

6.75

0.45

535893

7026879

444

-90

0

LWG027

16.4

0.45

535921

7022247

442

-90

0

LWG030

19.9

0.5

539200

7020066

445

-90

0

LWG050

21

0.6

529088

7039483

443

-90

0

LWG051

17.25

0.3

525112

7043218

440

-90

0

LWG028

18.45

1.2

532393

7013339

442

-90

0

LWG025

18.75

0.3

528436

7017175

438

-90

0

LWG026

18.3

0.4

532008

7019067

441

-90

0

LWG029

18.25

0.4

536085

7016679

442

-90

0

LWG021

17.75

1.7

531719

7035328

442

-90

0

LWG022

20.65

0.5

534310

7038541

440

-90

0

LWG031

20.4

2.3

536007

7010114

444

-90

0

LWG032

16.5

0.4

537781

7005827

442

-90

0

LWG033

12.2

0.3

539880

7001764

442

-90

0

LWG035

14.6

0.5

542903

6997671

442

-90

0

 

 

 

APPENDIX 2 - ENTRAINED BRINE SAMPLE BRINE CHEMISTRY ANALYSIS

 

HOLE ID

From

 (m)

To

(m)

K

(mg/L)

Cl

 (mg/L)

Na

(mg/L)

Ca

(mg/L)

Mg

(mg/L)

SO4

 (mg/L)

TDS

(mg/L)

LWG001

7.08

7.18

4,872

145,712

117,541

609

11,267

29,233

309,234

LWG004

5.59

5.69

4,058

160,273

95,353

487

8,250

22,993

291,414

LWG007

1.34

1.44

3,899

148,511

87,193

525

7,869

21,975

269,972

LWG007

6.29

6.39

6,081

169,907

104,806

501

7,333

20,747

309,375

LWG008

10.14

10.24

4,279

149,756

94,774

556

7,809

20,966

278,140

LWG009

3.59

3.69

3,770

149,818

94,743

646

5,934

14,752

269,663

LWG010

1.31

1.41

3,746

145,699

87,114

597

6,751

19,165

263,072

LWG010

10.24

10.34

4,118

152,421

91,019

527

7,043

20,227

275,355

LWG010

19.24

19.34

4,645

166,030

96,349

470

6,653

19,442

293,589

LWG012

11.91

12.01

4,302

161,555

93,070

527

7,595

21,072

288,121

LWG012

20.01

20.11

4,498

157,418

97,361

529

7,672

21,959

289,437

LWG014

1.34

1.44

4,250

150,484

91,439

528

7,696

22,975

277,372

LWG014

11.09

11.1

4,749

156,322

96,959

594

7,519

22,162

288,305

LWG015

1.34

1.35

3,888

152,721

100,213

525

7,295

19,722

284,364

LWG015

9.54

9.55

3,949

154,477

101,485

465

7,599

20,697

288,672

LWG018

1.58

1.59

4,483

151,462

90,122

486

6,983

22,648

276,184

LWG020

0.425

0.53

3,890

147,400

88,400

449

8,370

24,000

272,509

LWG020

3.89

3.995

3,920

145,150

90,800

480

7,600

23,000

270,950

LWG021

14.05

14.15

4,283

144,070

88,194

623

6,425

18,106

261,701

LWG022

4.18

4.28

3,553

143,656

88,047

602

8,032

20,390

264,280

LWG022

10.2

10.3

3,608

146,084

84,391

565

7,392

20,079

262,119

LWG023

14.08

14.18

4,013

143,031

95,639

623

6,148

17,164

266,618

LWG023

17.95

18.05

3,922

137,253

84,593

644

6,022

15,126

247,560

LWG024

0.55

0.65

4,690

150,533

88,504

518

5,976

20,424

270,645

LWG024

2.8

2.9

4,869

151,784

90,307

563

5,680

19,092

272,295

LWG024

6.4

6.5

4,826

150,214

91,434

588

5,769

19,230

272,061

LWG027

0.54

0.64

3,751

152,951

84,846

533

9,166

19,283

270,530

LWG027

3.44

3.54

3,727

155,296

90,889

588

8,958

19,616

279,074

LWG027

5.8

5.9

4,045

157,114

95,513

653

8,711

19,289

285,325

LWG027

16.2

16.3

3,807

157,037

93,271

666

8,328

19,035

282,144

LWG050

0.42

0.52

4,450

152,200

92,000

431

7,980

24,000

281,061

LWG050

3.42

3.52

4,250

148,650

90,300

514

7,100

21,000

271,814

LWG050

5.79

5.89

5,030

156,800

110,070

769

7,989

21,300

301,958

LWG050

18.47

18.57

4,726

159,200

100,987

696

7,611

19,900

293,120

LWG050

20.61

20.71

4,429

166,150

98,415

689

7,430

19,700

296,813

LWG050

1.3

1.4

4,480

149,200

91,300

492

7,480

22,000

274,952

LWG050

2.55

2.65

4,510

148,500

90,500

531

7,030

20,000

271,071

LWG050

4.3

4.4

4,530

147,600

95,700

551

7,720

21,000

277,101

Average

4,287

152,169

93,780

562

7,479

20,618

278,894

 

 

 

 

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.

All drilling and sampling is completed using hollow-core auger.

Split tube drill core was taken for two auger holes twinned within 5 metres of an existing intact tube auger hole.

Intact core is taken for all other intervals of all other holes. The intact core is completed using clear Lexan tubes which are sealed shortly after drilling.

Bulk water (brine) samples from auger drilling were taken at the end of drilling each hole by purging the hole with a submersible pump, then taking the sampel after purging. These brine samples are composite samples from the water table intersection to the end of hole.

Split tube drill core was taken for two auger holes twinned within 5 metres of an existing intact tube auger hole.

Entrained brine samples were recovered by centrifuging selected intervals of intact drill core. Entrained brine samples are marked up in 0.1m intervals in the field within pre-determined geological horizons.

Porosity samples are marked up at 0.1m intervals in the field at pre-determined depths (approximately 3m down each hole).

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diametre, 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 an auger rig.

Auger bit size was 178 mm, using 50 mm hollow core auger and 1.5 metre long rods.

Core and/or chips were not oriented.

Core diameter was 50 mm

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 auger flights from the outside return.

Brine was sampled from the auger holes at the completion of drilling once the hole had refilled with brine.

Porosity and Entrained brine samples, 0.1 metres in length, were taken at intervals within the intact drill core where best representation of lithology was present and minimally affected by auger drilling processes.

Core loss is directly measured by taking the difference between the interval drilled and the core recovered and adjusting for compaction.

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, induration, grainsize, matrix and structural observations. A digital drill log was 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.

Occasional auger holes were drilled within 3m of the intact core holes and used to provide lubrication brine to advance drilling. The holes named auxiliary auger holes were drilled to the top of the upper clay and brine sampling was undertaken.

Where water was injected into auger holes during drilling the holes were flushed completely three times before brine samples were taken. Where this couldn't be achieved immediately after drilling the holes were re-sampled at a later date, using the same technique.

Geological logs are recorded in the field based on inspection of cuttings, and a small amount of visible intact core tube material. Geological samples are retained for each hole in archive.

All brine samples taken in the field are split into three sub-samples: primary, potential duplicate, and archive.

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.

 

· Porosity was determined gravimetrically by weighing the wet sample, drying at 80 degrees and weighing the dry sample.

· Brine samples were analysed as follows:

· -K, Mg, Na, Cl and Ca: by ICP - AES

· SO4: by Ion Chromatography and ICP=OES

· Primary samples were sent to Bureau Veritas Minerals Laboratory, Perth. Secondary samples were send to ALS Ammtec Laboratory in Perth, and Intertek Genalysis Laboratory in Perth.

· Reference standard solutions were sent un-marked to all laboratories to check accuracy.

·

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.

Two holes were twinned for comparison of logging between split core and intact core.

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.

Hole co-ordinates were captured using hand held GPS.

Coordinates were provided in 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.

Drill hole spacing is approximately 5km x 3km or better across the lake. The drilling is not on an exact 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 2 twinned split core, 23 auxiliary shallow holes and 26 intact core auger holes were drilled.

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 flat lying.

Structures may be present in the underlying clay and may control brine flow in the sub-surface, but their orientations are unknown.

Sample security

The measures taken to ensure sample security.

All entrained brine and porosity samples were marked and kept onsite before transport to the laboratory. The entire core was sent to the laboratory where the marked intervals are cut and analysed.

Bulk water (brine) samples were held on site before transport to the laboratory. Some samples were sent via the main office in Perth for sorting, before being sent on to respective laboratories. 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 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.

Tenements drilled were granted exploration licences 38/2710, 38/2821 and 38/2824 in Western Australia.

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 of 31 hollow tube auger drillholes drilled to a depth of between 1.5 and 22.95 metres. Drillhole details and locations of all data points are presented in Appendix 1. Drilling, sampling and logging techniques are summarised in Section 1.

 

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.

Air Core drilling to be undertaken to further assess the occurrence of brine at depth and the nature of the basement.

Continued auger drilling to occur over the southern areas of lake Wells for further resource definition.

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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