The Chelkar Project is located approximately 100 kilometres south east of the city of Uralsk in north western Kazakhstan, and approximately 160 kilometres north of the Satimola Potash Deposit. The company has a subsoil licence of approximately 779 sq. km covering a domal salt structure containing horizons of sylvinite and carnallite. Previous work on the project principally by geological teams from the former Soviet Union has identified a number of occurrences of potash mineralisation on the current licence area.
The evaporite sequence in the Chelkar deposits is up to a maximum thickness of approximately 670m and comprises an upper and lower halite horizon with a potash bearing horizon sandwiched between. The potash horizon has been further subdivided into an upper carnallite and sylvite member, a middle sylvite bishofite and carnallite member and a lower carnallite sylvite member. The sequence is interpreted to represent a series of dislocated salt deposits that during compaction and salt tectonics formed a series of steeply dipping strata comprising lenses and domes.
The property has had over 530 historical drill holes drilled across it in the 1950s and 1960s, ranged in depth from 250 m to 1200 m and totalled over 280,000 m. All the holes were vertical, concentrated in three specific targets in the northern part of the licence area at 1 km x 1 km drill spacing.
The geology of the Chelkar subsoil licence is yet to fully understand, but based on the drilling to date potash mineralisation has been identified within the licence area. Between 2010 and 2014, the company completed 14 drill holes, totally 10800 m, as part of the historical data verification program. The company is currently reviewing these recent exploration drilling results in conjunction with the extensive historical geological database. The company intends to ratify these recent and historical exploration results following the JORC Code 2012.
Mineral Resource Estimate and future work
Currently, there are no JORC compliant resources defined on the Chelkar Project. The Company intends to have a completed JORC compliant Mineral Resource Estimate for the Chelkar Project in the coming financial year.
Whilst this work is being undertaken, the historical drilling over the remaining area of the licence will be reviewed to identify additional targets for follow up drill and geophysical testing.
|Exploration Targets of Chelkar Salt Deposit in Kazakhstan|
|Deposit Types||Boron Oxide (B2O5)||Potassium Oxide (K2O)||Magnesium Oxide (MgO)|
|Deposit Content (million tonnes)||Grade (%)||Deposit Content (million tonnes)||Grade (%)||Deposit Content (million tonnes)||Grade (%)|
Note: Resource figures have been calculated from the former Soviet Union and the Republic of Kazakhstan Ministry of Energy and Mineral Resources for the Deposit. These are not JORC standard resources and supporting documentation has not yet been verified by the Company in accordance with JORC Code, and it should only be considered at this stage indicative of the scale of the project the company is acquiring. The company’s main priority is to establish JORC standard Resources and Reserves for each deposit. The estimated exploration target ranges mentioned above for the Chelkar Salt Deposit should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. The potential quantity and grade of exploration targets are conceptual in nature since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource or Ore Reserve.