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WPG Resources Kicks Off Potash Exploration In South Australia

WPG Resources (ASX: WPG) has planned a shallow aircore drilling program in south western South Australia to follow up on previous exploration work by the South Australian Mines Department over an area known as Lake C which returned intersections of up to 7.24% potash.

The South Australian Mines Department previously drilled a number of shallow holes in Lake C and this work outlined a body of alunitic clay at least 700 metres long by 150 metres wide.

The mineralised zone is about 3 metres thick and lies within a few metres of the surface. The mineralised zone is open to the south and east.

Other holes drilled away from Lake C also returned potentially ore grade intersections.

Another plus for the project is its close proximity to necessary infrastructure. The project area is about 50 kilometres from the Ooldea siding on the Transcontinental Railway, and so there is direct rail access to WPG's port facility at Port Pirie.

The key part of the tenement is less than 10 kilometres from the Ambrosia heavy mineral sand mines from which product is trucked 250 kilometres to Port Thevenard at Ceduna.

South Australia's Potash History

Potash deposits have been known to occur in the Lake Ifould - Lake Pidinga area of south western South Australia since at least 1948.

The potash is associated with the mineral alunite, which is widely recognised as a common source of potash.

Potash is a valuable fertiliser commodity, and is likely to become more so as the world puts more emphasis on food security.

Alunite is also sometimes associated with epithermal gold deposits. Ongoing exploration by WPG will also examine the epithermal gold potential of the project area.

Forward Work Program

WPG has lodged the Draft Declaration of Environmental Factors and Exploration Work Authority documents and begun access negotiations with traditional owners and native title claimant groups.

The company plans to begin drilling in the next few months once access requirements have been completed and a suitable drilling contractor has been secured.