THE BOURSE WHISPERER: Potash West (ASX:PWN) has completed the first resource estimate at the company’s Dinner Hill prospect, which is part of a much more extensive tenement holding of some 2,900 square kilometres in the Dandaragan Trough commencing just 50km north of Perth in Western Australia.
Potash West said the new JORC resource estimate has been defined on an estimated 20 per cent of the Dinner Hill prospect, which is one of several prospective regions the company has identified within the Dandaragan Trough.
Total estimated resources consist of:
– 244 million tonnes grading 3 per cent potassium oxide and 1.6 per cent phosphate.
“This is a significant milestone in Potash Wests’ progress towards unlocking the value in the Dandaragan Trough Greensands,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.
“The JORC resource is open to the north, east and south and constrained only by the amount of completed drilling.
“Our geological modelling and results lead us to believe that the Molecap becomes shallower and thickens to the south, which will be the target of follow-up drilling.
“The quoted resource is within a small section of the Dinner Hill area, which, in turn, is one of several prospective areas within the whole Dandaragan Trough, as announced in our ASX release of 3 April 2012.
“We are very confident that further drilling will increase this resource, and identify further resources within the Dandaragan Trough.”
This estimate comes less than 18 months after Potash West listed on the ASX and commenced programs of mapping, target generation and widely spaced reconnaissance drilling to identify areas that it considers to have potential to host higher grade mineralisation.
Potash West geological model of the Dinner Hill prospect showing
areas where the Molecap Greensand is predicted to lie less than 30m
below surface. Source: Company announcement
Through ground mapping, drilling and interpretation of detailed elevation data Potash West has identified an area of some 60sqkm at Dinner Hill where it expects additional resources will be identified within 30m of the surface.
The company has plans in place for up to 10,000m of aircore drilling to be undertaken to significantly increase the resource inventory at Dinner Hill.
“Operating cost and revenue estimates, to be generated as part of the scoping study, will allow us to consider the economics of treating the Poison Hill material, which contains lower potassium values,” McManus said.
“We look forward to completing the scoping study this year and moving quickly into the next stages of project evaluation.”