Australian Potash – (ASX: APC, Share Price: $0.092, Market Cap: $24m, coverage initiated @ $0.098 in Feb 2018)
Key Catalyst
Drilling set to commence in April to test a highly prospective zone within the Yamarna gold project in WA, the first of 13 ‘walk-up’ drill targets identified so far across +1,400 sq km of acreage.
Yamarna Gold Project
APC has provided details of the upcoming exploration campaign with respect to its Yamarna Gold Project, 130km northeast of Laverton in Western Australia’s Eastern Goldfields.
A 3 stage, 23,000 metre air-core drilling program has been finalised to test a highly prospective zone, identified in the recently completed CSA Global and Dr Scott Halley structural and geochemical/lithological reviews. The program is scheduled to commence during April 2018.
Currently 13 targets have been defined, with more pending as the detailed targeting process continues. Assisting the target definition process is the sourcing of additional drill assay data from Department of Mines, Industry Regulation and Safety records, which has added to the understanding of local geology.
Furthermore, new data has been uncovered in the open file records that have provided additional drill-ready targets. A prospect called Barrett North is defined by a coherent bottom of hole +10ppb gold anomaly that extends for more than 800m of strike, with a maximum assay result of 120ppb Au from air-core drilling. Barrett North is considered an advanced prospect where follow-up drilling with RC is warranted. This prospect will be included in a larger RC program scheduled for later in 2018.
Figure 1: Of the 13 currently defined walk-up drill targets, 5 of the highest priority (T07 – T011) are located in close proximity to GOR’s Corkwood gold camp
Technical Significance
The insights provided by external expert reviews have demonstrated the significant potential of the North-Yamarna greenstone belt, comprising 1,400 sq km of 100%-owned tenure contiguous with GOR’s Corkwood gold camp. APC has narrowed down drill targets on the basis of geochemical/arsenic assays more than 10 times background readings. This is a similar strategy to that being employed in the identification of large intrusive-related gold deposits.
Limited shallow drilling by APC during 2016 recorded anomalous gold, silver, and arsenic results along strike from Gold Road Resources’ (ASX: GOR) Corkwood gold camp. Geochemical analysis has confirmed the prospectivity of this area through the identification of favourable alteration, particularly highly anomalous arsenic recordings. Arsenic is commonly associated with gold mineralisation as it facilitates transport of the gold during deposition.
Summary
APC is currently focused on activities related to completion of a Bankable Feasibility Study (BFS) on its Lake Wells Potash Project. The recently completed Scoping Study has highlighted a robust, high-margin operation producing a premium SoP product for a growing domestic and global market, with initial production targeted for late-2020. The resource at Lake Wells should comfortably support the planned 20-year operation (it utilises <25% of the current drainable resource), and given the aquifer type, should have good pumping characteristics as demonstrated by pumping tests to date.
APC is also set commence a 3-stage, 23,000 metre air-core drilling program at its Yamarna gold project during April, with results keenly awaited. Currently 13 targets have been defined, with more pending as the detailed targeting process continues.
