a mound of gold close-up

YAMARNA GOLD PROJECT UPDATE

 Australian Potash Limited has provided an update on the Yamarna Gold Project, 130km north-east of Laverton in Western Australia’s Eastern Goldfields.

Highlights:

·       Multi-element interrogation and analysis completed, building on the initial structural review completed in July 2017

·       Multi-element geochemical data confirms priority targets for follow-up testing including walk-up drill targets

·       Mineralisation within the project area has a magmatic or intrusion related signature

·       Project area reviewed covers an area equivalent to the entire area of other known major greenstone belts

·       Interrogation and review conducted by tier 1 consultants CSA Global and industry leading geoscientists Scott Halley, Marcus Willson and Carl Brauhart

·       Drill program being prepared in light of the targeting implications of this significant new analysis

Structural Review

In 2017, the Company commissioned industry leading geological consultants CSA Global to conduct a structural review of its tenure at the northern end of the Yamarna Greenstone Belt in the Eastern Goldfields Province of Western Australia.

The results of this initial review and targeting exercise were outlined in an ASX announcement released 27 July 2017[i], and identified that the Yamarna Gold Project area was conducive to Archaean Lode/orogenic gold type mineralisation, with a structural analogy to the southern Abitibi/Timmins in Canada.

The initial review concluded that an additional lithological and geochemical interpretation would provide further insight into the identified targets. The findings of this follow-up review and multi-element interrogation are discussed here, including further confirmation of the priority drill targets.

Multi-element Geochemical and Lithological Review

Large mineral systems have large alteration halos and these halos can be detected by a range of means. Where an exploration target is under the cover of sediments one of the most effective exploration methods is geochemical analysis and pathfinder mapping to detect alteration halos and direct further exploration to high probability drill targets.

With over 500 drill holes reaching basement rocks within the project area, geochemical analysis and alteration mapping has proven to be an effective tool to refine targets generated in the structural study and lead to high probability drill targets.

Significantly, the analysis identified that mineralisation within the project area has a magmatic association and presents intrusion related mineralisation targets.

The Lake Wells area considered in the reviews comprises over 1,400km2 of granted and pending tenure across 16 exploration licenses, encompassing the majority of the northern third of the Yamarna Greenstone Belt.

The project area commences c.60 kilometres north-west of the 6-million-ounce Gruyere mine development.

Pathfinder Analysis & Lithogeochemistry

Principal Component analyses (PCA) is the method CSA Global used to define a number of element associations and correlations with mineralisation. The review concluded that of the 4 associations identified through PCA, 3 were significant, or potentially significant, with respect to gold mineralisation.

Significantly, the analysis identified that mineralisation within the project area is intrusion related. A local of example of this style of mineralisation is Kanowna Belle (¬7Moz).

The analysis produced a geochemically defined lithological classification, and indicates that the project area comprises 2 distinct domains, being the northern extent of the Yamarna Shear and, to the west, the Lateral Ramp Thrust. Rock types defined in the lithogeochemical analysis are consistent with those associated with other gold mineral systems and deposits.

Executive Chairman Matt Shackleton said, “The Yamarna Gold Project represents a significant opportunity for our shareholders, as the work conducted by Scott Halley, Marcus Willson and Carl Brauhart shows. Their experience of Archaean greenstone structural settings is widely acknowledged, and in Dr Halley’s case, his expertise in geochemical alteration analysis is recognised globally.

“The results of the multi-element analysis and lithological/alteration mapping further strengthen the targets identified in the previous structural review, and cannot be ignored. Our exploration team is now finalising plans for drill programs on priority target areas, commencing with target area 1.

“With a positive outlook for gold in 2018, the high-grade results returned by Gold Road Resources from tenure contiguous to the highest priority targets[ii], and the truly regional nature of the Yamarna Gold Project, we believe this to be an auspicious time to be considering this value-adding work.

“This work has the potential to generate significant value for shareholders as APC moves forward in 2018.”

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