The Adavale Project is covered by Exploration Permit for Minerals 17503 “Adavale” lie south of the township of Blackall in central western Queensland. The EPM was granted on the 3rd November 2008 for a period of five years. This report is the Annual Report for EPM 17503.
Based on earlier petroleum exploration conducted in the 1980s that included drilling, well logs, and seismic surveys, and on work conducted by the Queensland Department of Mines and the Australian Bureau of Mines (BMR), the Boree Salt Member was identified as the only known significant occurrence of bedded potash in Australia. Since then, additional work by AusPotash and their contractors have recovered and assembled much of the technical literature of the early 1980s on EPM 17503 including available data, reports, and well logs. Geochemical sampling of previous oil exploration drill holes Bury #1 and Bonnie #1 was carried out with encouraging results. Na values ranged from
23% to 28.3%.
Technical reports have been commissioned on basic technical information of a complete chloralkali plant by Gea Messo AG designing an extraction process. A comprehensive, independent 43-101 compliant report was commissioned and completed by M. D. Campbell and Associates, L.P. as part of a TSX listing. KBB Underground Technologies GmbH (KBB UT) completed a conceptual design for an extraction process whereby a brine production plant with salt caverns was envisaged to deliver concentrated brine as a feedstock for the electrolysis plant and to support AusPotash with information relevant for future investment decisions.
Rockwater Pty Ltd was commissioned to conduct a desktop assessment of groundwater supply options for a proposed Salt Solution Mining Project. It was concluded there are no transferable groundwater allocations within 15 km of the proposed project area. However, transferable allocations are available at greater distances and would need to be negotiated with the individuals and organizations. It was recommended if a transfer can be negotiated, an application would need to be made by the owner or legal occupier of the land on which a new bore is to be constructed to obtain a license and permit from
the Queensland DNRW.
Terra Search Pty. Ltd, an independent exploration contractor, has processed the available historical petroleum exploration drilling and seismic interpretation data and created a 3-D model of the Boree Salt geometry. This work indicates that the Boree Salt Member is several tens of cubic kilometers in volume, is up to 500 meters thick at depths between 2,000 and 2,500 meters below the ground surface.
The authors of the report concluded:
- Conceptual studies, including geochemical sampling and recent modelling of the Boree Salt Member have advanced the Adavale salt project significantly.
- Based on a review of the historical reports and associated analyses, well logs, and seismic modelling of earlier well data, it can be concluded that the Boree Salt Member represents a potentially large resource for making fertilizers and various specialty chemicals.
- Significantly more drilling and sampling (with appropriate quality control measures in place) would need to be undertaken before a JORC compliant
resource could be contemplated.
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