THE BOURSE WHISPERER: Potash West has extended its exploration tenure in the Dandaragan Trough in Western Australia.
The company has increased its landholding from an area of 2,107 square kilometres to 2,905 square kilometres.
Potash West listed on the boards of the Australian Securities Exchange in May after closing a heavily oversubscribed $6 million Initial Public Offering.
The main focus for Potash West is on developing potassium-rich glauconite deposits in the Perth Basin, from which the company hopes to define a substantial resource base and subsequently investigate how it can best recover potash from the mineral.
By acquiring the new exploration areas the company has increased its control over the glauconitic prospective Dandaragan Trough to an estimated 80 per cent of the available ground in the region.
Potash West has successfully completed regional mapping program over some of its granted tenements using high resolution satellite imagery.
This technique enabled the company to map laterite surfaces and low lying topography, both of which are known to have a deleterious influence on potash grades.
It also enabled Potash to map geomorphology and overburden, and other features which the company considers to reflect underlying geology.
After the detailed mapping exercise, the company undertook field trips to carry out preliminary ground investigations.
This led to the application for four Exploration Licences, E70/4124, E70/4137, E70/4138 and E70/4139, which have a combined area of 798sqkm.
“These exploration licenses will not only add significantly to our prospective landholding but, importantly, increases our contiguous footprint, which will aid future project development,” Potash West managing director Patrick McManus said in the company’s ASX announcement.
“The deposits are located close to the potash consuming region of the WA Wheat Belt, in a region with established infrastructure.”
Using target zones generated from the mapping, Potash has applied to undertake drilling at Dandaragan that will be aimed at providing more detail on the thickness and grade of the underlying glauconite bearing lithologies.
The company expects to begin this program of drilling in the final quarter of 2011.
Potash West has also commenced metallurgical test work aimed at extracting potassium from the glauconite-bearing greensands in its tenements and to produce commercial-grade potash.