Australian Potash (ASX: APC) is pleased to advise of the acquisition of three tenements at its Lake Wells Potash Project from AngloGold Ashanti Australia (AGAA).
Regionally, brines containing Sulphate of Potash (SOP) are found within a palaeochannel traversing the project area.
Exploration by previous owners indicates the deepest sections of the palaeochannel which host the Lake Wells brine resource is continuous through to the eastern part of the project area. The acquisition of the Tenements completes APC’s landholding to cover the full extent of the defined palaeochannel and links the Western highgrade area with the Eastern resource.
APC Executive Chairman Matt Shackleton said:
“Brine SOP operations comprise three parts; extracting the brine, evaporating the brine and processing the evaporated salts. This new tenure potentially provides access to additional quantities of SOP, augmenting the project’s forecast life of mine, and it also provides more evaporation pond development options.
The scoping study generated a strong financial model based largely on developing the western high-grade zone. This acquisition was opportunistic, but with this additional ground we believe we can optimise the model to include nearby brine supply and pond development areas.
Our hydrogeological consultants are working towards an exploration target on the ground, with our field team already planning seismic surveys and drilling programs. We look forward to updating our shareholders in due course on the outcomes of this work.”