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Market:	ASX
Sector:	Chemicals
EPIC:	PWN
Latest Price:	0.29 (0.00%)
52-week High:	0.33
52-week Low:	0.16
Market Cap:	12.38M

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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: assays show broad potassium intercepts at Dandaragan Trough

Friday, January 27, 2012 by Angela Kean

Potash West (ASX: PWN) has intersected over 20 metres of glauconite rich greensands in a number of locations during aircore drilling at its Dandaragan Trough Potash Project in Western Australia’s mineral-rich Mid-West region.

Assays from 18 of the 41 holes drilled in November and December 2011 have been received showing a best intersection of 22 metres at 4.12% potassium from 74 metres below surface.

Although the intersection is deep it points to the potential for higher grades in selected areas of the sequence.

Encouraging results were also encountered in another hole drilled along the southern boundary of E70/3635, with an intersection of 20 metres at 3.24% potassium from 16 metres below surface in the Poison Hill Greensand.

Located downslope from a laterite ridge, this result provides confirmation of the geological model targeting active erosional surfaces, which expose near surface mineralisation.

While laboratory assays are pending, portable XRF results and visual logging indicate that the two holes drilled in E70/3418 along the Coorow-Greenhead Road have intersected near fresh greensand from 4 metres below surface.

The intersections are notable in that they appear to contain between 60 and 70 metres of the target Poison Hill Formation. Both holes are located along the edges of a topographic high.

Potash West is in the process of negotiating access to properties on both sides of the road and will submit an application to undertake grid drilling of the area.

A zone of phosphate enrichment characterises the top and bottom of the Molecap Formation in some areas of the Dandaragan Trough.

The highest phosphate grade encountered in the recent drilling is a 2 metre intersection at 3.16% phosphorus and 2.84% potassium at the top of the unit.

Drilling is ongoing with the current program expected to be completed by the end of February.

Earlier this week Potash West announced that ongoing test work has identified a number of process options for the production of potash from its greensands resources in Western Australia.

Following testing over the past nine months the company has defined two flowsheets that have successfully produced laboratory quantities of potassium chemicals.

Potassium chemicals have the potential to be important ingredients in the production of fertilisers for domestic and international markets.

Potash West is aiming to have at least one process developed in sufficient detail to form the basis of a Scoping Study by mid-2012.

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