Proactiveinvestors recommends

Toro Energy: Environmental approval recommended for Wiluna Uranium Project
Mutiny Gold: Is Deflector one of the best undeveloped orebodies in Australia?
Globe Metals & Mining’s Mark Sumich talks Chinese funding and the upcoming DFS at One2One Forum

Additional Information

Market:	ASX
Sector:	Chemicals
EPIC:	PWN
Latest Price:	0.23 (0.00%)
52-week High:	0.33
52-week Low:	0.16
Market Cap:	10.22M

1 year chart

1 day chart

Potash West

Potash West NL (ASX: PWN) aims to extract potassium – for the production of potash – from one of the world’s largest greensand deposits.

Potash West confirms potash in maiden drilling over Dandaragan Trough

Tuesday, May 31, 2011 by John Phillips

Recently minted Potash West (ASX: PWN) has already secured early exploration success, confirming potash in maiden drilling in the Dandaragan Trough, where the company controls an extensive 2100 square kilometres of tenements.

Wide intersections of potash mineralisation included; 62 metres at 3.09% K2O from 10 metres.

Higher grades of up to 5.07% K2O were discovered in glauconitic sandstone and shale, from 70 metres to 72 metres.

The maiden exploration drilling program covered seven holes for 534 metres, with Potash West kicking off metallurgical studies immediately to further evaluate the potential of the tenements.

The company's current exploration aim is to test the prospective stratigraphy over wide areas, and to collect samples for the initial phases of metallurgical testwork.

Potash West said the holes were located to provide maximum information over the almost 50 kilometre length of the tenement, and not specifically target interpreted areas of favourable geology.

Patrick McManus, managing director, said “This is a great start to our program to understand the extent of the glauconite mineralisation in the Dandaragan Trough.

"Substantial thicknesses close to the surface bode well for future mining activities.”

The company is exploring the Dandaragan Trough to evaluate the commercial potential of the greensand deposits, which have been examined as a source of potassium several times over a period of nearly 50 years, but not pursued due to low potash prices.

Current prices and technological advances make re-examining the area attractive.

The Potash West IPO

Potash West only hit the ASX boards a couple of weeks ago after a heavily oversubscribed IPO which offered 30 million shares at $0.20 to raise up to $6 million.

Potash West was incorporated to combine the exploration assets of four tenement holders; Image Resources (ASX: IMA), Richmond Resources, Torbinip Resources and Adrian Griffin.

The Potash West deposits are strategically located in the Dandaragan Trough and near the Western Australia potash consuming region of the wheat belt, with established infrastructure including roads, railway, ports, power and a gas pipeline.

Adding to the potential of the IPO, the Dandaragan Trough hosts one of the largest glauconite deposits ever identified.

Glauconite can have potassium extracted from it to produce potash.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.