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10 March 2022
ASX Announcement
Salt Lake Potash Limited (Administrators Appointed) (Receivers and Managers Appointed)
ACN 117 085 748 and its subsidiaries outlined in Schedule 1 ('the Group') Trading as SO4
ASX Code: SO4
Commencement of sales process
The Receivers in conjunction with Macquarie Capital are commencing a process to sell the Group's flagship Lake Way Project ("the Project") or recapitalise the Group and are seeking expressions of interest from interested parties.
Parties that wish to participate in the process can contact Macquarie Capital or the Receivers:
Stephanie Sumich | Sam Broughton |
Macquarie Capital | KordaMentha |
+61 428 511 6267 | +618 9220 9303 |
Stephanie.Sumich@macquarie.com | sbroughton@kordamentha.com |
Material Resource upgrade
Highlights
- Measured Mineral Resource for the Project has increased 108%, from 0.90 Mt of Potassium to 1.87 Mt of Potassium based on drainable porosity.
- Upgrade of Indicated Mineral Resource for the Project has increased 156% from 0.90 Mt of Potassium to 2.30 Mt of Potassium based on drainable porosity.
SO4 has upgraded its JORC Code (2012) compliant Mineral Resource estimate for the Project further de-risking the investment.
Summary
The Company reported its maiden Mineral Resource Estimate at the Project in July 2018. A significant extension to the Resource Estimate was subsequently reported in March 2019 and further updated in October 2019 to be consistent with the AMEC (2019) Brine Guidelines adopted by the JORC Committee.
The lakebed sediment hosted Mineral Resource at the Project was refined in the Bankable Feasibility Study (BFS) based on an updated geological modelling to reflect larger sediment volumes (ASX Announcement, 11 October 2019).
The availability of additional data collected during the paleochannel production bore drilling program increased the understanding and known extent of the paleochannel sequence. The geometry of the
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channel and the overlaying units were able to be further defined through an extensive drilling and test pumping program. This data was used to update the 3D Leapfrog model which increased the confidence in the amount of extractable resource from these units. This new information provides a material increase to the previously reported Measured Resource which is the basis for this resource upgrade.
A summary of the upgrade is covered at Schedule 2 and Schedule 3.
We note that creditor and shareholder queries should be directed to KPMG. Contact details are:
KPMG
235 St Georges Terrace Perth WA 6000
Tel: +61 8 9263 7171
Email: saltlakepotash@kpmg.com.au
Media inquiries:
Michael Smith, Inside Public Relations | 0411 055 306 | msmith@insidepr.com.au
About KordaMentha Restructuring
KordaMentha Restructuring is the distressed business division of KordaMentha, an advisory and investment firm that helps clients to grow, protect and recover value.
KordaMentha Restructuring works with companies in financial distress - to restructure and to stabilise the business or to recover value on behalf of stakeholders. They have over 170 professional staff with diverse backgrounds and deep experience from accounting and agriculture to mining and real estate.
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Schedule 1
Company (all Administrators appointed) (all Receivers and Managers appointed) | ACN |
SO4 Fertiliser Holdings Pty Ltd | 633 114 628 |
SO4 Fertiliser Developments Pty Ltd | 634 354 224 |
Two Lake Holdings Pty Ltd | 633 114 637 |
Two Lake Developments Pty Ltd | 634 354 233 |
Piper Preston Pty. Ltd. | 142 962 409 |
Australia Salt Lake Potash Pty. Ltd. | 164 369 420 |
Irve Holdings Pty Ltd | 633 114 619 |
Irve Developments Pty Ltd | 634 354 215 |
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Schedule 2 - Comparison
Set out below is a comparison of the 2019 BFS resource and the 2022 Mineral Resource Upgrade. We note that this has been prepared by the Group for illustration purposes and the 2019 BFS was not reviewed by the same Competent Person as part of the 2022 Mineral Resource Upgrade process. Further, the confidence level of considerable portions of the Inferred and Indicated units from the 2019 BFS have been upgraded to Measured and Indicated and, therefore, are reflected in table 2 as negative values when compared to the 2019 BFS.
2019 BFS | 2022 Mineral Resource Upgrade | ||||||||||||||
% Change in K | |||||||||||||||
brine | brine | tonnage 2019 | |||||||||||||
K grade | porosity | volume | K tonnage | SOP(5) | K grade | porosity | volume | K(4) | SOP(5) | to 2022(1) | |||||
kg/m3 | - | Mm3 | Mt | Mt | kg/m3 | - | Mm3 | Mt | Mt | % | |||||
Resource based on Specific Yield | 6.52 | 0.11 | 772.36 | 5.14 | 11.45 | 5.34 | 0.07 | 830.96 | 4.41 | 9.84 | (14.1%) | ||||
Measured | 6.45 | 0.13 | 134.45 | 0.90 | 2.01 | 5.39 | 0.08 | 316.69 | 1.87 | 4.18 | 107.6% | ||||
Lake Bed Sediments North | 6.80 | 0.11 | 116.60 | 0.79 | 1.77 | 6.80 | 0.11 | 116.60 | 0.79 | 1.77 | - | ||||
Paleo sequence | - | - | - | - | - | 5.19 | 0.07 | 151.60 | 0.77 | 1.71 | 100.0% | ||||
Paleochannel Basal Sands | 6.10 | 0.15 | 17.85 | 0.11 | 0.24 | 6.20 | 0.11 | 48.50 | 0.31 | 0.70 | 187.7% | ||||
Indicated | 6.10 | 0.15 | 147.15 | 0.90 | 2.00 | 5.28 | 0.06 | 479.51 | 2.30 | 5.13 | 156.4% | ||||
Paleo Sequence(2) | - | - | - | - | - | 5.21 | 0.05 | 440.48 | 2.08 | 4.64 | 100.0% | ||||
Paleochannel Basal Sands | 6.10 | 0.15 | 147.15 | 0.90 | 2.00 | 5.87 | 0.11 | 39.04 | 0.22 | 0.50 | (75.3%) | ||||
Inferred | 6.80 | 0.07 | 490.76 | 3.34 | 7.44 | 6.80 | 0.11 | 34.76 | 0.24 | 0.53 | (92.9%) | ||||
Lake Bed Sediments South | 6.80 | 0.11 | 34.76 | 0.24 | 0.53 | 6.80 | 0.11 | 34.76 | 0.24 | 0.53 | 0.0% | ||||
Paleochannel Sediments (2) | |||||||||||||||
6.80 | 0.03 | 456.00 | 3.10 | 6.91 | - | - | - | - | - | (100.0%) | |||||
Tonnage from total porosity | 6.52 | 0.41 | 7,111.68 | 48.05 | 107.15 | 5.34 | 0.25 | 4,375.05 | 22.94 | 51.16 | (52.3%) | ||||
Measured | 6.45 | 0.42 | 503.40 | 3.39 | 7.56 | 5.39 | 0.24 | 1,055.11 | 6.31 | 14.08 | 86.3% | ||||
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Lake Bed Sediments North(3) | 6.80 | 0.43 | 455.80 | 3.10 | 6.91 | 6.80 | 0.43 | 455.80 | 3.10 | 6.91 | - |
Paleo Sequence | - | - | - | - | - | 5.19 | 0.23 | 483.35 | 2.47 | 5.50 | 100.0% |
Paleochannel Basal Sands | 6.10 | 0.40 | 47.60 | 0.29 | 0.65 | 6.20 | 0.25 | 115.96 | 0.75 | 1.67 | 157.9% |
Indicated | 6.10 | 0.40 | 392.40 | 2.39 | 5.34 | 5.28 | 0.25 | 3,184.06 | 15.70 | 35.02 | 556.1% |
Paleo Sequence(2) | - | - | - | - | - | 5.21 | 0.25 | 3,090.73 | 15.17 | 33.83 | 100.0% |
Paleochannel Basal Sands | 6.10 | 0.40 | 392.40 | 2.39 | 5.34 | 5.87 | 0.25 | 93.33 | 0.53 | 1.18 | (77.8%) |
Inferred | 6.80 | 0.42 | 6,215.88 | 42.27 | 94.26 | 6.80 | 0.43 | 135.88 | 0.92 | 2.06 | (97.8%) |
Lake Bed Sediments South(3) | 6.80 | 0.43 | 135.88 | 0.92 | 2.06 | 6.80 | 0.43 | 135.88 | 0.92 | 2.06 | 0.0% |
Paleochannel Sediments (2) | 6.80 | 0.40 | 6,080.00 | 41.34 | 92.20 | - | - | - | - | - | (100.0%) |
Notes:
- Percentage change is calculated as (new_value -old value)/old value x 100%. In case if old_value = 0, percentage change is assumed 100% (to avoid dividing by 0)
- Paleo Sequence in 2022 assessment includes Paleochannel Sediments as defined in 2019 assessment
- South Lake Bed Sediment *(0.4-8m bgl) and North Lake Bed Sediments *(0.4-8m bgl) were not updated and were not evaluated as part of 2022 assessment
- Potassium (K) grade represent average grade, in 2022 assessment tonnage was calculated for sub-zones for each unit, to account for grade variability within the aquifer.
- Conversion of K to SOP has been calculated by using a factor of 2.23
Note, negative values have been presented in parentheses.
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Salt Lake Potash Limited published this content on 10 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2022 08:02:01 UTC.