potash , page-20

ASX Release ? 29 January 2009
Maiden JORC Resource ? Lake Chandler Potash Project
ActivEX (AIV:ASX) is pleased to announce its maiden resource for the Lake Chandler Potash
Project. The project (Mining Lease - M77/22) is located 45 kilometres north of Merredin (300km
east of Perth) in the wheatbelt of Western Australia. Potash extraction occurred at the site in the
immediate post-war period.
ActivEX Limited (?ActivEX?) has requested independent consulting geologists Hellman &
Schofield Pty Ltd (?H&S?) of Sydney, Australia to complete a resource estimate for its Lake
Chandler Potash Project in Western Australia. The reporting of these new resources is in
accordance with the 2004 JORC Code. All resources are in the Inferred Resource category as
follows:-
Table 1 Lake Chandler Potash Project Inferred Resources
Volume
(m3)
Tonnes
K2O
%
3,611,891 5,779,025 5.73
(significant figures does not imply precision, no cut off grade used; default bulk density of 1.6t/m3)
Infill drilling is required to upgrade the Inferred Resource estimate to Indicated and Measured
Resource categories.
ActivEX is reviewing mining and treatment options for the deposit and production rates of
150,000 to 300,000 tonnes per annum are being considered. At these rates a mine life of 20 to
30 years is envisaged.
Summary
The potash mineralisation at Lake Chandler occurs as alunite (KAl3(SO4)(OH)6) mineralisation
hosted in a flat lying evaporitic sequence (playa lake) of Recent age. ActivEX plans to review
options to mine the potash deposit using an open pit operation and the resources have been
classified on this assumption.
The new resources are based on rotary air blast (RAB) and aircore drilling results from two
exploration campaigns in the 1980s for a total of 112 holes. Drill hole spacing was
approximately 200 by 50m (see figure below) with samples taken over 1m intervals to an
average depth of 6m. Samples were assayed for K2O using fusion and AAS or ICP methods.
Sample recoveries were recorded as ?good? during the drilling campaigns. Results from six
twinned holes during the second aircore program indicate good correlation with the RAB
drilling for the neighbouring mineral intervals. No analytical standards or duplicate samples
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were collected during the drilling and no measurements of bulk density were made. A
assumption for bulk density (in situ) of 1.6t/m3 has been used for the resources.
A digital wireframe was created from a geological interpretation of the prospective grey and
white alunitic clays. A total of 315, one-metre composites were used in the resource estimate
with the data modelled using Ordinary Kriging. The resources were reported using the
wireframe shape as a constraint with no K2O cut off grade. ActivEX plans to mine the whole
deposit hence no cut off grade was used. A diagram of composite grade versus the block grade
is included below for the 279m level. A historical resource estimate by previous explorers
using a sectional polygonal method gave comparable results.
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0.00 - 4.500
4.500 - 5.500
5.500 - 6.00
6.00 - 6.500
6.500 - 7.00
7.00 - 100.00
model extents
K2O range
blocks this layer only
9200 9600 10000 10400
19600
20000
20400
20800
Plan Plot of K2O
RL slice: 279.0 +/- 0.5
East
North
0.00 - 4.500
4.500 - 5.500
5.500 - 6.00
6.00 - 6.500
6.500 - 7.00
7.00 - 100.00
K2O range
point data
Univariate Statistics
mean: 5.18579
variance: 2.37653
coef varn: 0.29727
minimum: 1.6500
1st quart: 4.100
median: 5.600
3rd quart: 6.400
maximum: 7.800
no. of data: 410
Lake Chandler ? Block Grade Distribution and Drillholes 279m RL
(local grid bearing 301?to MGA94 Zone 50).
There is exploration potential for additional mineralisation peripheral to the current resource within the
confines of the lake margin.
Future work programs planned by the Company are designed to investigate optimum treatment methods,
market potential of the products and the economics of the project.