THE BOURSE WHISPERER: Potash West (ASX: PWN) has added approximately 300 square kilometres of prospective ground to its landholding comprising the Dandaragan Trough project.
The Dandaragan Trough project is focused on exploiting the large greensands deposits present in the Dandaragan Trough, less than 100km to the north of Perth.
Potash West stated its objective at the Dandaragan Trough project is to produce potash and single superphosphate fertilisers and a range of valuable by-products from the glauconite and phosphate present within the greensands.
“This acquisition consolidates our tenement holding over one of the most prospective areas of the Dandaragan Trough and provides an opportunity to add to our already extensive resource base, very close to Dinner Hill,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.
The new tenement was formerly held as E70/3741 by Dempsey Minerals (ASX: DMI).
Potash West has agreed to purchase the technical data generated by Dempsey for 200,000 fully paid ordinary shares and a 0.4 per cent Net Smelter Royalty.
Potash West explained the new application ELA70/4609 overlies the Dandaragan Scarp, on the western edge of the Dandaragan Trough, in a similar geological setting to the company’s potash and phosphate resources at Dinner Hill.
Current JORC compliant Indicated Mineral Resources at Dinner Hill stand at
241 million tonnes at 3 per cent potassium oxide, including 120 million tonnes at 4.6 per cent potassium oxide amenable to processing by the company’s K-Max process and 120 million tonnes at 2.8 phosphorous oxide of phosphate mineralisation.
Potash West indicated it intends to continue to analyse the drill data generated by Dempsey and will plan drilling to target greensand units that have the potential to add to the potash and phosphate inventories already defined at Dinner Hill.