THE BOURSE WHISPERER: Potash West has entered into an agreement with Ochre Resources, a wholly-owned subsidiary of Heron Resources.
The agreement will allow Potash West to earn a 70 per cent interest in the Langley project, which the company describes as, “A large, potentially glauconite rich, project in Western Australia’s north west”.
Langey project location plan. Source: Company announcement
Under the agreement Potash West will:
– Earn a 51 per cent interest in the project by meeting expenditure commitments for 2 years, or spending $225,000;
– Earn a 70 per cent interest by meeting expenditure commitments for a further 1 year, or spending $400,000; and
– Free carry Ochre to a Bankable Feasibility study, or until the expenditure of $5 million.
The Langey project covers an area of 162 square kilometres and is situated 60 kilometres south of Derby, in the Kimberley Region of WA.
The project has already been subjected to exploration by Heron, which has carried out over 2,200 metres of RC drilling intersecting continuous glauconite and phosphate mineralisation at shallow depth over a tested strike of 14km.
Other activites undertaken at the project include geological modelling, costeaning and preliminary metallurgical evaluations.
Potash West said flotation tests on the phosphate nodules have produced a concentrate grading 31 per cent phosphorous with 81 per cent recovery.
Potash West and Heron are currently planning the next phase of exploration work at Langey.
This work is expected to include collection of a bulk sample for process testwork and completion of resource estimate studies.
“Previous drilling has shown a widespread, consistent layer with elevated potassium and phosphorous levels,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.
“The project could benefit from the application of technology we are developing for our flagship Dandaragan Trough glauconite project in the Mid West region of Western Australia.
“With growing international demand for potash-rich fertilisers and the WA Government’s recently confirmed plans to significantly expand the Ord River agricultural area in the Kimberley Region, the Langley Project is ideally located to supply both global and domestic marketplaces.”