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.
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.