One To Watch: Australian Potash

22 February 2018 – 13:30 (CET)

Australian Potash are sat at A$0.10 on the ASX (APC) and in my opinion have a little bit too much going on to stay there for long.

Australian Potash Logo

Australian Potash are a multi asset company centred around the 100% owned Lake Wells potash project 500km northeast of Kalgoorlie, in Western Australia’s Eastern Goldfields. The company also holds a number of gold and base metal projects, including the Yamarna gold project which is due to be drilled this month and the historically explored Laverton Downs gold project.

In March 2017 the company completed their scoping study for the Lake Wells project, the formal ASX update stated it had ‘exceeded expectations’ and has been followed up with fast progress on development. Licencing for production is currently with the EPA (Australian) pending approval, most importantly, without any calls for public engagement.

Drilling at Australian Potash's Lake Wells Deposit

Drilling at Australian Potash’s Lake Wells Deposit

The company’s December bulletin highlighted the commission of a pilot solar evaporation pond, extending their Class A evaporation pan trial from October 2016. The first samples from the new trial pond are due to be produced this quarter (1st-2018). Lake Wells will comprise a 150,000 tpa SOP processing operation for its first 5 years, and an expanded <300,000tpa for up to 20 years, supported by a 35-bore brine abstraction network.

Recent geotechnical work has confirmed similar underlying geology to other producing operations in the Kalgoorlie region, allowing reliable production and recovery data to be included in their maiden JORC estimations, which we’re hoping for in 2018.

Australian Potash's 2016 pilot pond in Western Australia

Australian Potash’s 2016 pilot pond in Western Australia

On top of this fast progressing potash project, the company have significant interest in 2 gold projects, one historic slow burner (Laverton) and one active (Yamarna). Work continued steadily at their Yamarna project in 2017. The licence areas stretches for some 1400km2 alongside North Road Resources’ ‘North Yamarna’ project and 60km north-west of the 6-million ounce Gruyere mine development.

During 2017, the Company commissioned CSA Global to conduct a structural interpretation and targeting exercise, which identified that the Yamarna gold project area was conducive to Archaean lode/orogenic gold type mineralisation, with a structural analogy to the southern Abitibi/Timmins in Canada. Drilling based on this intitial study is planned for Q2-2018 and based on other regional deposits, could yield some impressive results.

Liam’s thoughts: On the whole, I think this company can only get more exciting, with lots of results due in the coming months in a safe jurisdiction and well known production area and one project drilled and mapped historically, but yet to even kick off at Laverton. At the very least, they’re worth a click!

 


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