Announcement PDF ASX Announcement 30 May 2017 ____________________________________________________________________________________ PARKWAY MINERALS (ASX:PWN) LAKE BARLEE PROJECT RETURNS COMPANY DETAILS ENCOURAGING POTASH VALUES ABN: 62 147 346 334 PRINCIPAL AND REGISTERED OFFICE Parkway Minerals NL Level 1 675 Murray St West Perth WA 6005 HIGHLIGHTS: • • • Additional tenement pegged taking total area to 1956 sq km Initial field sampling completed Solution assays up to 2430mg/l potassium returned from surficial water samples POSTAL ADDRESS PO Box 1088 West Perth WA 6872 W www.parkwayminerals.com.au E info@parkwayminerals.com.au P +61 8 9479 5386 F +61 8 9475 0847 ASX CODE PWN FRANKFURT CODE A1JH27 OTC PINK CODE PWNNY CORPORATE INFORMATION (30 May 2017) 353M Ordinary shares 123M partly paid shares 18M Listed Options 5M Unlisted options BOARD OF DIRECTORS Adrian Griffin (Non-Executive Chairman) Patrick McManus (Managing Director) Chew Wai Chuen (Non-Executive Director) Natalia Streltsova (Non-Executive Director) Fertiliser feedstock explorer Parkway Minerals (ASX: PWN), (PWN, Parkway or The Company) is pleased to announce the results of its initial sampling program on it’s 100% owned Lake Barlee Potash Brine Project. The Lake Barlee Project is located approximately 200 km north of the township of Southern Cross in Western Australia (Figure 1). A field trip has been carried out, to collect near surface brine and surface samples and to plan logistics prior to the next stage of exploration. Significant values of both potassium and magnesium were recorded. Parkways Managing Director, Patrick McManus, said “ The samples were taken from near the lake surface, after two significant rain events. The fact that they still registered high values of potassium and magnesium is encouraging. The target horizons are the deeper brines that may be present in ancient river valleys, below the lakes. The Company has engaged a hydrologist to assist with targeting the next phase of work to identify the paleo-valleys. The Company intends to complete “proof of concept “ drill testing on these targets as soon as practicable Parkway Minerals NL: Lake Barlee Field Trip May 2017 BACKGROUND The Lake Barlee project is a salt lake in mid west region of Western Australian, north of Southern Cross (Fig 1). The Company has recently secured an additional exploration license application taking its landholding for the Project to 1956 sq km. This gives the Company the dominant landholding on the lake. The Company’s principal exploration target will be paleochannels within the lake that may contain concentrations of potassium, or lithium mineralization. This is a similar exploration model to salt lake potash explorers at Lake Wells, Lake McKay, and Lake Disapointment. Should the Company’s exploration be successful, the Lake Barlee Project holds significant infrastructure advantages that could significantly reduce costs to any future operation. Lake Barlee is a large paleovalley salt lake that overlies a basement of granite and greenstone rocks of Archaean age. The sequence has been cut by north south crustal scale thrusts faults and later east west tending Proterozoic dykes which could be one of the controls on the formation of the lake topography. Geoscience Australia‘s 2013 publication “A Review of Australian Salt Lakes and Assessment of there potential for Strategic Resources “( Record 2013/39) identified Lake Barlee has having potential to host potassium and lithium mineralization in the lake sequences . Following unseasonal heavy rains in the early part of the year, the Company has recently completed a preliminary field inspection and sampling program over parts of the central section of the project area. A total of nine brine water samples and 14 auger geochemical samples were collected from shallow (<1m ) auger holes over two areas accessiable from existing tracks around the southern perimeter of the lake. The samples were assayed by Bureau Veritas Minerals Laboratories in Perth. The brine samples were analysed for Na, Ca, K, P, Mg, Li,Cl,-U,P, SO4, NO3 and TDS and the geochemical samples for Ba, Ca, K, Li, Mg, Na, P, Th, U. A location plan and list of results is presented at the end of this report. Samples were collected from two areas around the central peninsula. From Area 1 on the eastern side of the peninsula, eight brine warer samples and nine geochemical samples were collected. Part of the area was still under water from the earlier rainfall possibly diluting the solution assays. Brine concentrations ranged between 1340 mg/l to 2430 mg/l and averaged 2140mg/l. The second area sampled, Area 2, is on the south western side of the peninsula, where five geochemical and one brine sample was collected. The brine sample from this area returned 1530 mg/l K, however sampling is this area was hampered by poor recovery of fluid from the shallow auger holes. The current program did not test the primary target which is deeper alluvial channel sands within the lake. However the sampling results suggest that potassium and magnesium in solution is present in high concentrations in the near surface brine. NEXT STEPS These preliminary results are encouraging and the Company is engaging a hydrologist to assist with targeting the deeper channel sand systems. This work is expected to include airborne and ground geophysical surveys leading to identification of sites for drilling to determine thickness of channel sands and concentration of potassium and other elements in the brines. Parkway Minerals NL: Lake Barlee Field Trip For further details please contact: Parkway Minerals NL: Patrick McManus Managing Director Mob:+61 408 956 798 Email:patrick.mcmanus@parkwayminerals.com.au Web: www.parkwayminerals.com.au FIgure 1: Lake Barlee Location May 2017 Parkway Minerals NL: Lake Barlee Field Trip May 2017 Solutions Sample ID Sample Type East North Depth Description PLBA001 Auger 738058 6767549 0.4 Muddy/surface water PLBA002 Auger 738256 6767546 0.5 Muddy/surface water PLBA003 Auger 738453 6767551 0.4 Muddy/surface water PLBA004 Auger 738720 6767673 1 Muddy/surface water PLBA005 Auger 738990 6766567 0.4 Muddy/surface water PLBA006 Auger 739116 6766609 0.4 Muddy/surface water PLBA007 Auger 739255 6766643 0.4 Muddy/surface water PLBA008 Auger 739403 6766677 0.4 On island PLBA009 Auger 739534 6766772 0.4 Muddy/surface water PLBA010 Auger 739534 6766772 PLBA015 Auger 725731 6760679 0.4 dry surface PLBA016 Auger 725801 6760375 0.4 dry surface PLBA017 Auger 725878 6760060 0.4 dry surface PLBA018 Auger 725953 6759753 0.4 dry surface PLBA019 Auger 726028 6759446 0.4 dry surface Table 1: Solution assays TDS Ca Na K Li Mg P Cl SO4 NO3 U V g/ kg mg/L mg/l mg/L mg/L mg/L mg/L m/g/l mg/L mg/l ug/L mg/L 2430 0.05 7220 -10 -5 -1 2090 0.05 5970 -10 6.7 -5 -1 2190 0.05 5660 -10 -5 -1 1340 0.05 3620 -10 15.3 -5 -1 2260 0.05 5700 -10 5 -1 2130 0.05 5550 -10 2230 0.05 5320 -10 175050 177850 541 254.2 609 179.1 1180 98000 615 65100 606 639 261.8 267.3 surface water sample 663 96900 580 102000 621 214.4 945 81700 2420 0.05 6080 -10 2170 0.05 4850 -10 1530 0.05 4510 -10 14400 167850 12400 11800 111700 9040 11200 11300 10900 1.5 12100 1.5 -5 -1 10 -1 5 -1 -5 -1 10200 137950 10100 15.2 -5 -1 Parkway Minerals NL: Lake Barlee Field Trip May 2017 Solids Sample ID Sample Type East North PLBA001 Auger 738058 6767549 0.4 Muddy/surface water PLBA002 Auger 738256 6767546 0.5 Muddy/surface water PLBA003 Auger 738453 6767551 0.4 Muddy/surface water PLBA004 Auger 738720 6767673 1 Muddy/surface water PLBA005 Auger 738990 6766567 0.4 Muddy/surface water PLBA006 Auger 739116 6766609 0.4 Muddy/surface water PLBA007 Auger 739255 6766643 0.4 Muddy/surface water PLBA008 Auger 739403 6766677 0.4 On island PLBA009 Auger 739534 6766772 0.4 Muddy/surface water PLBA010 Auger 739534 6766772 PLBA015 Auger 725731 6760679 0.4 dry surface PLBA016 Auger 725801 6760375 0.4 dry surface PLBA017 Auger 725878 6760060 0.4 PLBA018 Auger 725953 6759753 PLBA019 Auger 726028 6759446 Table 2: Solids assays Depth Description TDS Ba Ca K Li g/ kg ppm % % ppm 892 2.86 1.38 9 698 10.3 1.04 7 436 1.9 1.32 20 2.76 5.25 400 36.4 464 6.97 1.07 10.5 1.23 3.17 150 16.8 398 6.86 1.09 12 1.89 4.11 300 19.4 392 5.95 1.16 14 1.98 4.19 350 22.9 439 3.85 1.31 17.5 2.15 4.41 350 35.3 58 19.9 0.25 3 0.49 2.33 100 8.6 267.3 577 3.39 1.19 9.5 1.39 3.55 200 10.4 350 0.4 1.26 16 1.72 3.69 100 7.8 214.4 326 1.78 1.17 15.5 1.68 3.83 200 11.8 dry surface 354 0.59 1.3 17 1.83 3.72 150 7.6 0.4 dry surface 317 0.54 1.38 20.5 2.18 3.77 300 22.5 0.4 dry surface 458 0.4 1.39 20 2.19 4.03 400 22 254.2 179.1 261.8 Mg Na P Th % % ppm ppm 1.17 3.31 200 13.2 0.95 2.75 150 15.4 surface water sample Parkway Minerals NL: Lake Barlee Field Trip May 2017 About Parkway Minerals Parkway Minerals (ASX:PWN) is an exploration company focused on developing large greensand deposits in West Australia’s Perth Basin. The Company aims to define a substantial resource base and investigate how best to recover phosphate, potash and other minerals from the Dandaragan Trough. The project is well situated in relation to infrastructure, with close access to rail, power and gas. A successful commercial outcome will allow the Company to become a major contributor to the potash and phosphate markets at a time of heightened regional demand. The Company has a major land holding over the Dandaragan Trough, one of the world’s largest known glauconite deposits, with exploration licenses and applications covering an area of over 2,082km2. Previous exploration indicates glauconite sediments are widespread for more than 150km along strike and 30km in width. Current JORC compliant Indicated Mineral Resources stand at 250Mt at 2.9% P2O5 of phosphate mineralisation and 175Mt at 4.2% K2O, amenable to processing by the K-Max process (ASX release:3 June 2015). A pre-feasibility study is in progress for stage 1, production of phosphate fertilisers. The Company owns 19.25M shares in Davenport Resources (ASX :DAV), focused on potash exploration in the South Harz region of central Germany, and 7.3M shares in Lithium Australia NL(ASX:LIT,) focused on lithium technology. Competent Persons Statement The information that relates to the sampling and geochemical analysis has been collected and compiled by Mr James Guy. Mr Guy is a consultant engaged by the company and is a member of the Australian Institute of Metallurgy. Mr Guy has sufficient experience in the style of mineralisation and the activites under consideration to qualify as a competent person as defined in the 2012 Edition of the Australisian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Guy consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Appendix 1 JORC Tables Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Geological samples were collected from the sample barrel of the auger bit. Drilling techniques Drill sample recovery Logging • Whether core and chip samples have been geologically and 7 Brine samples were collected by inserting a hand suction pump into the auger hole and pumping out brine solution. • A hand operated auger fitted with a 62-mm soil bit was used to drill the holes • Recovery of geological sample material was by collecting material from the sample barrel of the auger. The lake sediment was competent clays. Recovery was effected by the sticky nature of the clays. The auger bit was cleaned as much as possible between holes. • Brine samples was recovered from gaping hole. The hole could recharge after drilling as the holes were shallow (less than 1m) • The geological sample material was uniform fine clay and no sample bias • The near surface lake sediment was saturated, brine samples collected were representative of the water column intersected. • All samples were collected by an experienced geologist. A brief Criteria JORC Code explanation • Subsampling techniques and sample preparation • • • • • • • Quality of assay data and laboratory tests Commentary geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. 8 description of the geological material sampled was made. • No estimate was made of flow rates or recharge rates from the auger holes. • The results of the current sampling were not collected with the degree of precision required for future resource or extraction studies. • Approximately 500 gm of clay material recovered direct from the auger barrel for analysis. • No attempt was made to subsample the material • No field standard or duplicates were collected. • Given the fine mature of the clay material the sample size is appropriate to provide a representative sample • For the brine sampling, water was siphoned directly into a clean 1000ml plastic water bottle. The quantity of water recovered from each site varied from approximately 500ml to 1000ml. Significant mud was suspended in the brine which settled during storage. • A sample of the surface lake water was collected to give an indication of any contamination by surface waters and a blank deionized water sample was also submitted with the batch. • Due to the remote field location brine samples were not refrigerated but were stored away from direct sunlight and submitted to the laboratory within 3 days of collection. • The brine sample volume is small but is adequate to give a reasonable indication of the chemical properties of the fluids. • All samples were sent to Bureau Veritas Mineral Laboratory, Perth. • Geological samples were dried and pulverized. Samples were taken into solution using a 4 acid digestion. Na,Ca, K,Mg,Na, P were determined by Inductively Coupled Plasma Optical Emission Spectrometry. Ba,Li,Th,U were determined by Inductively Coupled Plasma Mass Spectometry • Solutions were analysed for Na,Ca, K,Mg,P,SO4, and V by Inductively Coupled Plasma Optical Emission Spectometry and Li and U by Inductively Coupled Plasma Mass Spectometry. TDS by gravimetric, Cl - and NO3 were analysed colourmetrically • A sample of deionized water was submitted as an analytical solution blank, No other external standatd were submitted • Standard laboratory QA/QC procedures were followed by the analytical laboratory . Criteria JORC Code explanation Commentary Verification of sampling and assaying • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • The measures taken to ensure sample security. • Due to the preliminary nature of the sampling program, and consistent nature of the results no independent verification of the results was considered necessary Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security Audits or reviews • The results of any audits or reviews of sampling techniques and data. • The location of the auger holes was by hand held GPS with an accuracy of between 2- 3 m. • The datum was GDA 94 zone 50. • The current sampling program was reconnaissance in nature. The auger traverses were selected based on accessibility. Traverses are approximal 1 – 1.5 km long with sample sites between 200 – 400 m apart. • The results of the current work will not be used in future resource calculations • The lake sediment is thought to be tabular in nature. Vertical sample holes are considered appropriate. • The area sampled was selected primarily on ease of access. • Due to the large areal extent of the lake surface within the project area the current sampling is not considered representative of the project area. • Samples were collected and stored on site before being transported and delivered to the laboratory by field personnel involved in collecting the samples • No audits or reviews of the sampling technique or results has been completed Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental • Tenements forming the companies Lake Barlee Project are E 77/2347, E77/2409*, E77/2445*, E77/2446*, E77/2457*, E77/2450*, E77/2451*, E77/2452*. • Tenements marked with a * are in application stage and not granted. 9 Criteria JORC Code explanation Commentary and land tenure status settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area. Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. Geology • Deposit type, geological setting and style of mineralisation. Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. • All tenements and applications are held 100% by Parkway Minerals NL • The Wutha People are the traditional owners over the north-eastern part of the project area (approximately 10% of the project area.) The remainder of the project area is currently not under native title claim. • There are currently no recorded national parks or reserves within the area of the tenements. • The tenement applications do not have any competing applications that may put at risk the eventual grant of title. • Samples were collected under the Company’s Miners Right • Limited work has bene completed on the project area for potash in the past. • Jervios Mining Limited and Soraway Development Pty Ltd have both in recent times held tenure over parts of the current project. Work completed by both companies was restricted to processing government geophysical data sets, shallow auger drilling and chemical analysis and taking hand held scintillator readings • The principal commodity being explored for is potassium within arid salt lakes. Two types of deposit models are being used. Near surface enrichment of potassium in brines that can be concentrated and extracted by surface trenching, and potassium rich brines within deeper channel sands that are believed to be developed and the base and within the lake profile. • Details of the location of the samples reported is provided in the body of the report 10 Criteria JORC Code explanation Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated. • These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Relationship between mineralisatio n widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work Commentary 11 Sample results are presented as reported by the laboratory, no weighting, or application of high grade or low grade cuts have been applied. The lake sediments hosting the potential mineralisation within the lake sediments or brines are flat lying, There is likely to be both vertical and horizontial zonation withn the deposit . • No down hole intervals of mineralisation have been reported. • • Appropriate plans and maps are provided in the body of the report • All results have been included. • Exploration work completed on the project at this stage is preliminary in nature. Other work completed by the Company has included open file search and acquisition and reprocessing of open file and government geophysical datasets • The Company intends to undertake additional surface sampling and mapping. This work will be followed by surface geophysical surveys including passive seismic and gravity to locate channels followed by aircore drill testing.