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Potash West Delivers Thickest Molecap Greensand Intercept At Dandaragan

Potash West (ASX: PWN) has drilled thick intersections of Molecap Greensand, up to 58 metres, confirming the presence of phosphate-rich horizons at its Dandaragan Trough Project in Western Australia.

Nodular phosphate was intersected, confirming observations from previous exploration. A major component of greensand is glauconite, a common source of potassium in plant fertilisers.

The discovery was made in a 100 hole, 5,000 metre aircore drilling program designed to confirm historical drilling, which intersected both potash and phosphate mineralisation, and extend the Dinner Hill Resource to the south and east.

To date Potash West has completed a 10 hole, 4 kilometre traverse through the Dambadjie and Attunga prospects.

Demonstrating the record thickness of this new intersection, the Molecap Greensand at the Dinner Hill deposit has an average thickness of only 8 metres but is estimated to contain 122 million tonnes at 4.6% K2O and 1.5% P2O5.

At the Dambadjie Prospect, the entire Molecap Greensand sequence is located below the base of oxidation enhancing potential grades and metallurgical recoveries.

A long section through holes PWAC297 to PWAC 301 clearly shows the thickness of the Molecap sequence and the low ratio of oxidised greensand to fresh greensand at Dambadjie - both Molecap and Poison Hill.

Patrick McManus, managing director, said the thick intersections of Molecap Greensand seen to date correlates with previous results which reported plus 50 metres of greensands at numerous locations throughout the Dandaragan Trough.

"Previous drill logs had reported greensands, but had not been assayed for potassium, phosphorous, aluminium or magnesium, all of which will become high value products via Potash West's patent pending K-Max process.

"Significant thicknesses will also allow a large resource to be defined in a very small area. The current Dinner Hill Resource has a plus 60 year life within 10 square kilometres, so the massive scale of this project is clearly becoming apparent as further drilling is completed."

Drilling was previously undertaken in an area 20 kilometres south of Dandaragan between 1980 and 1984, and more recently in 2008.

The work was directed at the evaluation of nodular, phosphate bearing horizons occurring in sedimentary units of the Poison Hill Formation, Gingin Chalk and the Molecap Greensand.

Much of the historical drilling in the Attunga and Dambadjie prospects, did not penetrate the entire sequence and provided little information on Potash West's primary potash target - the Molecap Greensand.

Metallurgical testwork

The current drilling program was also designed to collect samples for ongoing programs of metallurgical testwork.

All samples from one drill hole, where Molecap Greensand was 42 metres thick from 60 metres downhole, at the Dambadjie Prospect have been transported to Perth for metallurgical testing.

The coarse phosphate units represent a potentially valuable project enhancement and testwork on this fraction will form part of the ongoing program.

Potential major fertiliser supplier

Potash West is focused on developing the project as a major supplier of fertiliser to Western Australian markets.

The company has an extensive tenement holding of some 2,900 square kilometres in the Dandaragan Trough, 50 kilometres north of Perth.

The Dandaragan Trough Project has a location advantage in terms of connectivity to transport facilities, infrastructure and proximity to local markets.

The project is strategically located adjacent to the Western Australian Wheat Belt, a major consumer of fertiliser products.

Significantly, there is no potash production in Australia and the Dandaragan Trough Project is located within Australia's largest potash consuming region.

Australia currently consumes half a million tonnes per annum of potash, which at present is all imported.

The project has a transport advantage to two major growth markets - India and China, with established export infrastructure in place nearby.

A phosphate study is slated for release in the September quarter of 2013, followed by a pilot plant in the June quarter of 2014.


These early findings are highly encouraging as they offer potential for Potash West to define a large resource within a very small area.

All indications are for a substantial resource with thicknesses of up to 58 metres, when you consider the Molecap Greensand at the Dinner Hill deposit has an average thickness of just 8 metres but is estimated to contain 122 million tonnes at 4.6% K2O and 1.5% P2O5.

Further drilling results will likely be highly anticipated.

Potash West recently raised A$1.5 million via a pro-rata renounceable entitlement issue.

Potash West will be presenting at the Proactive Investors One2One Forum in Sydney on 8 May 2013. Click HERE to register.

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