Fifth annual report for EL 25080 Lake Amadeus period ended 8 October 2011

Abstract

Exploration on EL 25080 is targeting potassium, magnesium and sulfate-salts in salt lakes brines to eventually produce potassium sulfate (SOP) and potassium magnesium sulfate (schoenite) fertiliser probably using solar evaporation ponds. During the fifth year of tenure an Air Core drilling program was completed at Karinga Creek Potash where 28 holes were completed for 1298 m at an average depth of 46 m on EL 25080. Twenty water samples were collected. Twenty seven brine samples were collected during the year from pits dug on the salt lakes by shovel. Results confirm high grade potassium, magnesium and sulfate. Eight Vibracore drill holes were completed during the year for 11.22 m with ATV and helicopter support. No assay results have yet been received. Three trenches were pump tested over 2-3 days and recharge rates calculated. Two bulk samples were subject to salt precipitation tests which confirmed leonite/schoenite are the predominant salts produced. A flora and fauna survey was done by Low Ecological Services over the project area. A brief summary is attached but a final report has not yet been received. All results confirm the potential for the project to become Australia's first potash mine.