The applications cover an area of 2,792 square kilometres which includes the majority of an extensive 450-kilometre-long salt lake system.
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Historical reconnaissance exploration at the Percival Lakes and Lake Auld targets within the applications have returned average SOP grades of 31.1 kilograms per cubic metre and 15.6 kilograms per cubic metre, respectively.
The grades sampled at Percival Lakes are the highest known grades from an Australian salt lake to date.
The company has agreed to issue 1 million ordinary shares to Potash Global Limited for services related to the facilitation of the applications.
Shares will be issued on the earlier of the applications being granted or December 12, 2019.
Growing presence in WA potash industry
Agrimin chief executive officer Mark Savich said the company was pleased to grow its presence in Western Australia’s potash industry with the lost-cost entry into the exploration tenements.
He said: “Historical sampling on Agrimin’s new tenement applications has returned the highest known potash grades from an Australian salt lake.
“We believe this compelling exploration opportunity compliments the company’s activities at the advanced Mackay SOP Project.
“The company’s focus and current cash will continue to be directed to the definitive feasibility study for the Mackay SOP Project.
“In parallel, the company will progress native title consultations with a view to having these new exploration tenements granted next year.”
Suited to low-cost solar evaporation
The licence applications are in a hot and dry environment that is well-suited to low-cost solar evaporation production techniques.
The area is accessible via Marble Bar along the Telfer Road and Kidson Track and is 400 kilometres west of Agrimin’s Mackay SOP Project.
Reconnaissance groundwater sampling was undertaken in February 2015 by Potash Global Limited and was confined to the upper 1-metre of the lakebed sediments.
A total of 130 samples were collected returning average potassium grades of 13,932 milligrams per litre and 6,991 milligrams per litre at Percival Lakes and Lake Auld, respectively.
Agrimin believes these prospective areas warrant further investigation to determine whether there is an economic concentration of SOP brine.