Announcement PDF ASX Announcement 28th September 2017 _____________________________________________________________________________________ COMPANY DETAILS NEW EXPLORATION TARGETS FOR DANDARAGAN TROUGH FERTILISER PROJECT ABN: 62 147 346 334 PRINCIPAL REGISTERED OFFICE Parkway Minerals Nl Level 1 675 Murray Street West Perth WA 6005 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 PWNNY CORPORATE INFORMATION 28 September 2017 444M Ordinary shares 123M Partly paid shares 17M 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) HIGHLIGHTS:    Exploration Targets have been estimated for four advanced prospects within the southern portion of the Dandaragan Trough Fertiliser Project. The targets complement the recently announced revised Resource and Exploration Target for the Dinner Hill Deposit. Provides the company with a clear focus for enhancing the resource base for the project going forward and maximizing value for shareholders. Parkway Minerals NL (“PWN”, “Parkway” or “the Company”) is pleased to announce new Exploration Targets in the Dandaragan Trough. The Dandaragan Trough Fertiliser Project covers an area of 1,050 square kilometres in the Midwest wheat belt region of Western Australia, some 175 km by road north of Perth. Development is focused on the Dinner Hill Deposit in the north western corner of the project where the company has established JORC 2012 resources (refer ASX announcement dated 26 September 2017) for both Phosphate and Potash mineralization (Figure 1). In addition the company has an extensive tenement holding in the Dandaragan Trough covering prospective greensand sequences where wide spaced exploration drilling by the company and other explorers has defined potash and phosphate mineralisation. Recent geological modelling of wide spaced exploration drilling undertaken by the company and earlier explorers by the Company’s resource consultants Continental Resource Management (“CRM”) has allowed exploration targets for both Potash and Phosphate to be estimated on four prospects within the southern portion of the Project area. Parkway Minerals MD, Patrick McManus stated “These additional Exploration Targets reinforces our belief that the Dandaragan Trough has the potential to be a multi-decade supplier of phosphate and potash fertilisers to the regional agricultural sector, which is currently dependent on imports to meet the growing demand. The location of the Dinner Hill Project and the Exploration Targets is shown in Figure 2.” 1 Potash West NL – Exploration Target update September 2017 Figure 1 Location Plan – Dangaragan Trough Fertiliser Project The project tenements cover two virtually horizontal greensand formations within the Cretaceous Coolyena Group: the Poison Hill Greensand and the Molecap Greensand. Over most of the area of the project they are separated by the Gingin Chalk and in places are underlain by a thin pebble horizon containing phosphatic nodules. An average thickness of about 11m of surficial, mostly sandy, cover overlies the greensand units. The greensands and the chalk contain significant amounts of phosphate as grains and nodules of fluorapatite. They also contain significant potash within the mineral glauconite. 2 Potash West NL – Exploration Target update September 2017 Figure 2 Dangaragan Trough Mineralisation Location EXPLORATION TARGET ESTIMATION The methodology used in the estimation of the exploration target for each of the prospects was similar. Separate estimates for Potash and Phosphate were completed. The estimates were based on air-core drilling undertaken by Parkway Minerals between 2011 and 2016 and by other parties. Relevant holes are listed in Appendix 2. A plan showing the exploration target areas and drill-hole locations is provided as Figure 3. 3 Potash West NL – Exploration Target update September 2017 The criteria used to select suitable material was based on results of metallurgical testwork undertaken on the Dinner Hill Deposit for the different ore types. For the Phosphate Exploration Target the criteria was,  P2O5 content >1%  CaO: P2O5 ratio of >1 and < 3.9 and  Fe2O3: K2O ratio of <4 and for the Potash Exploration Target the criteria was,  K2O >2%  Fe2O3: K2O ratio of <10 The estimation procedure was carried out using Micromine software. Separate wireframes for Potash and Phosphate mineralisation were created enclosing mineralisation within holes that fitted the above criteria. The boundaries of the wireframes were constrained by topography and weathering. The grade of each body was calculated by applying the average grade of all intersections within each wire frame. The location of the Exploration Target areas is shown in Figure 3 and the target sizes and grades are summarised in Table 1 Table 1 Dandaragan Trough Fertiliser Project Exploration Targets Project Area Badgingarra Road Dambadgee West Dambadgee Attunga Totals Phosphate Tonnage (Mt) 60 to 100 300 to 350 200 to 250 30 to 45 590 to 745 Phosphate Grade P2O5 2 to 3 1.5 to 2 1.5 to 2.5 1.5 to 2 1.5 to 2.5 Potash Tonnage (Mt) 600 to 900 2000 to 2750 1200 to 1500 750 to 1000 4550 to 6150 Potash Grade K2O% 4 to 5 3 to 4 3 to 3.5 3.5 to 4 3.2 to 4 The Phosphate Exploration Targets total between 0.6 and 0.75 Billion tonnes at an average grade of between 1.5% and 2.5% P2O5. The Potash Exploration Targets total between 4.5 and 6 Billion tonnes at an average grade of between 3.2% and 4% K2O. The potential quantities and grades of the targets are conceptual in nature, as there has been insufficient exploration to estimate Mineral Resources over their areas and as it is uncertain if further exploration will result in the estimation of one or more Mineral Resources. 4 Potash West NL – Exploration Target update September 2017 Figure 3 Dandaragan Trough Fertiliser Project Exploration Targets COMPETENT PERSON’S STATEMENT The information in this report that relates to the estimation of the Mineral Resources and Exploration Targets is based on and fairly represents information and supporting documentation prepared by J.J.G. Doepel, who is a member of the Australasian Institute of Mining and Metallurgy. Mr. Doepel, Principal Geologist of the independent consultancy Continental Resource Management Pty Ltd, has sufficient experience relevant to the style of mineralisation and type of deposit under consideration. He is qualified as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. This report is issued with Mr. Doepel’s consent as to the form and context in which the Mineral Resource and Exploration Target appears. 5 Potash West NL – Exploration Target update September 2017 For further information contact: Parkway Minerals NL: Patrick McManus Managing Director Tel: +61 (0)8 9479 5386 info@parkwayminerals.com.au Web: www.parkwayminerals.com.au About Parkway Minerals NL Parkway Minerals (ASX: PWN) is a company focused on developing fertiliser feedstock projects. The Company holds 1,900km2 of exploration licenses and applications over Lake Barlee, where it is exploring a sulphate of potash project from the brines in the lake, north of Southern Cross in Western Australia. The Company has a major land holding over one of the world’s largest known glauconite deposits, with exploration licenses and applications covering an area of over 1,050km2 in the greensand deposits of the Dandaragan Trough, in Western Australia’s Perth Basin. The area is prospective for both phosphate and potash. Previous exploration indicates glauconite sediments are widespread for more than 150km along strike and 30km in width. A pre-feasibility study is in progress for stage 1, production of phosphate fertilisers. 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 owns 19.25M shares (26%) of Davenport Resources, which owns a potash exploration project in the South Harz region of Thuringia, in Central Germany. The region has been a potash producing area for over 100 years. 6 Potash West NL – Exploration Target update September 2017 APPENDIX 1 - JORC CODE, 2012 EDITION – TABLE 1 Section 1 Sampling Techniques and Data Criteria Commentary Sampling techniques  Air-core drilling was used to obtain 1m or 2m samples from target horizons;  3kg sub-samples were split by rotary splitter or by scoop sampling. Sub-sample size 3 to 4kg. Drilling techniques  Vertical NQ Air-core Drill sample  Clay content of moist greensands ensured total recovery and retention of all size fractions; recovery  Holes were conditioned at completion and cyclone opened and cleaned before next hole drilled Logging  All intervals geologically logged directly into a field computer using a database designed to capture relevant data including, oxidation, grainsize, rounding, sorting, mineralisation, hardness, colour and stratigraphic unit. All logging sample layouts are photographed and chip trays stored for future reference.  Duplicate field splits at a 1:18 ratio returned R 2 correlation coefficient Sub-sampling of 0.96 for P2O5 for 2012 drilling and 0.98 for more recent drilling, techniques and indicating robustness of sampling process; sample  Duplicate field splits at a 1:18 ratio returned R 2 correlation coefficient preparation of 0.99 for K2O for 2012 drilling and 0.98 for more recent drilling, again indicating robustness of sampling process;  Sample preparation by Genalysis Laboratory Services Pty Ltd via drying and total pulverisation Quality of assay  Analysis by Genalysis Laboratory Services Pty Ltd by Phosphate Major Element Suite FB1 method (XRF after lithium borate fusion); data and laboratory tests  Three alternate phosphate standards were submitted with samples at a 1:18 ratio. For the P2O5 analyses the respective means of the analytical results of the standards were 19.3%, 9.74%, and 4.94% as against the nominal standard means of 19.3%, 9.72%, and 4.94%.  Three alternate phosphate standards were submitted with samples at a 1:18 ratio. For the K2O analyses the respective means of the analytical results of the standards were 1.55%, 3.02%, and 3.76% as against the nominal standard means of 1.55%, 3.02%, and 3.75%. Verification of  Sampling and logging verified by site visits by Exploration Manager and Independent Consultant. Logging checked against major sampling and element assays and sample photography; assaying  Assay entry by digital capture of laboratory files, with later verification of significant intervals against original files. Location of data  Holes located by GPS; points  Grid MGA_GDA94, Zone 50;  Elevation data is based on a topographic contour set produced from SRTM imagery at 5m vertical resolution. Data spacing  1m or 2m samples collected and analysed throughout mineralized horizons; and distribution  Geological continuity across mineralisation. 7 Potash West NL – Exploration Target update Criteria September 2017 Commentary Orientation of  Vertical drilling through virtually horizontal stratigraphy resulted in intersected thicknesses equivalent to true thickness. data in relation to geological structure Sample security Audits reviews  Samples transported from site to laboratory by Potash West staff. or  Sample techniques, logs, and data reviewed positively by independent consultant geologist. Section 2 Reporting of Exploration Results Criteria Commentary  The Badgingarra Road and the Dambadgee West Exploration Mineral Targets are within the granted Exploration Licence E70/4609. It is tenement and registered in the name of Parkway Minerals NL. It was granted on land tenure 31/03/2015 for a period of five years.; status  The Dambadgee and the Attunga Exploration Targets are within the granted Exploration Licence E70/4137 (Figure 3), registered in the name of Parkway Minerals NL. It was granted on 22/05/2012 for a period of five years and has been extended for a further five years until 21/05/2022.  Air-core drilling has been carried out within the area by Dempsey Exploration Minerals Ltd, by Agerton Phosphate Pty Ltd, and by Australian done by other Fertilizers Ltd; parties  Results from these programmes have been incorporated into Parkway’s database and into the Exploration Target estimations. Geology  The phosphate is present as fluorapatite nodules and grains concentrated within particular horizons of horizontal greensand and chalk formations;  The potash is present as the mineral glauconite, which is a major constituent of the Molecap and Poison Hill Greensands and a minor constituent of the Gingin Chalk. Drill hole  See Appendix 2. Information Data aggregation methods Relationship between mineralisation widths and intercept lengths Diagrams  No data aggregation of analyses used;  No metal equivalent values used. Balanced reporting  Grades are consistent across deposit;  Intersection grades show consistent hole to hole grades. Other substantive exploration data Further work  There is no unreported substantive exploration data.  Vertical drilling through virtually horizontal stratigraphy resulted in intersected thicknesses equivalent to true thickness.  Diagrams are included in the report.  Further bulk density work is expected to be carried out. 8 Potash West NL – Exploration Target update Criteria September 2017 Commentary  Drill programmes are expected to be carried out in order to substantiate continuity of mineralisation. Section 3 Estimation and Reporting of Mineral Resources Criteria Commentary Database integrity  Assay data copied digitally from laboratory files; significant intersections checked; Micromine drill-hole verification performed. Site visits  Competent person visited project area during drilling programmes in June and August 2012, April 2013, and in March 2015. Geological interpretation  High degree of confidence in geological interpretation, as stratigraphy is both visually and chemically distinct and continuous. Dimensions  The Badgingarra Rd Phosphate Exploration Target has a north-south length of 3km and an average east-west width of 2.5km. The depth to mineralisation is about 24m.  The mineralisation is beneath a north-south trending ridge and is constrained by weathering and erosion to the west, north, and east; and by weathered phosphate mineralisation to the south  The mineralisation is within two 2m thick horizons within the Molecap Greensand.  The Badgingarra Rd Potash Exploration Target has a north-south length of 11km and an average east-west width of 3km. The depth to mineralisation averages 18m.  The potash mineralisation is beneath a north-south trending ridge and is constrained by weathering and erosion.  The potash mineralisation is within the Molecap Greensand and has an average thickness of 14m  The Dambadgee Exploration Targets have a north-south length of 7km and an average east-west width of 2.5km.  The mineralisation is beneath an east-west trending ridge and is constrained by weathering and erosion to the north and south; and by the Dambadgee Fault to the east. It continues into the Dambadgee West target area to the west.  The depth to the phosphate mineralisation is about 45m. It is within two separate horizons: the upper, at the base of the Poison Hill Greensand, averages 2.5m in thickness; and the lower, within the Molecap Greensand, averages 7m in thickness;  The potash mineralisation has an average thickness of 40m and is about 45m below surface  The Dambadgee West Exploration Targets have an east-west length of 7km and an average north-south width of 2.5km.  The mineralisation is beneath an east-west trending ridge and is constrained by weathering and erosion to the north, west and south. It continues into the Dambadgee target area to the east.  The average depth to the phosphate mineralisation is about 40m. It is within single horizon at the base of the Poison Hill Greensand. It averages 11m in thickness.; 9 Potash West NL – Exploration Target update Criteria September 2017 Commentary  The potash mineralisation has an average thickness of 80m and is about 25m below surface;  The Attunga Phosphate Exploration Target is restricted to circular high ground with a radius of about 2km.  The phosphate mineralisation is within the Molecap Greensand. It averages 7m in thickness and is at an average depth of about 30m.;  The potash mineralisation has an average thickness of 19m from about 30m below surface. Estimation modelling techniques and  Estimation of Exploration Target P2O5 grade by weighted average of grades above 1% P2O5;  Estimation of Exploration Target K2O grade by weighted average of grades above 2% K2O; Moisture  Tonnages estimated on dry basis. Cut-off parameters  Exploration Target Potash mineralisation has Fe2O3:K2O ratio <10;  Exploration Target Phosphate mineralisation has Fe2O3:K2O ratio <4 and CaO:P2O5 ratio >1 and <3.9. Mining factors or  Not applicable assumptions Metallurgical factors assumptions or  The processing route for production of single superphosphate is conventional; consisting of wet scrubbing, screening, desliming, magnetic separation, grinding, flotation, and reaction with sulphuric acid to produce single superphosphate;  Glauconite to be retained during process by wet high intensity magnetic separation (WHIMS) and stockpiled for later production of potash products within K-Max plant.  Not applicable. Environmental factors or assumptions Bulk density  Density determinations carried out on 93 PQ core samples by Metallurgy Pty Ltd and reported as dry densities;  Poison Hill Greensand: 12 samples, median SG 1.45, mean SG 1.55, SG of 1.50 used;  Gingin Chalk: 7 samples, median SG 1.53, mean SG 1.50, SG of 1.50 used;  Molecap Greensand: 68 samples, median SG 1.64, mean SG 1.64, SG of 1.63 used; Classification  All mineralisation is classified as an Exploration Target, as it is the Competent Person’s view that the drill-holes from which the target is estimated are not spaced closely enough to imply both geological and grade continuity throughout the area. Audits or reviews  Exploration Target estimation peer reviewed by Parkway Exploration Manager Discussion of  The relative accuracy of the Exploration Target estimate is reflected in the reporting of the Exploration Target as per the guidelines of relative accuracy the 2012 JORC Code. / confidence 10 Potash West NL – Exploration Target update September 2017 APPENDIX 2 –DRILL-HOLE DETAILS The tables below detail the air-core drill-holes used for the exploration target estimates. Table 2 Badgingarra Rd Drill-hole Locations (all holes vertical) HOLE EASTING NORTHING RL PWAC496 PWAC497 PWAC498 PWAC499 PWAC500 PWAC501 PWAC502 DGAC00007 DGAC00009 369415 371166 371856 370866 369925 369660 369562 370210 369565 6610233 6610251 6610550 6611280 6612743 6613737 6615141 6610239 6614294 DEPTH (m) 63 54 24 30 18 27 39 68 60 290 289 257 282 285 299 311 302 294 Table 3 Dambadgee West Drill-hole Locations (all holes vertical) HOLE EASTING NORTHING RL PWAC133 DGAC00002 DGAC00003 WAD9 WAD13B WAD59 WAD70 WAD73 WAD74 WAD75 375324 378486 375338 376769 378932 377141 378765 379787 379093 378194 6597689 6599551 6600150 6599701 6599658 6597885 6600761 6600767 6597997 6597984 219 261 257 276 245 242 243 253 247 267 11 DEPTH (m) 39 90 84 55 77 75 50 62 80 83 Potash West NL – Exploration Target update September 2017 Table 4 Dambadgee Drill-hole Locations (all holes vertical) HOLE EASTING NORTHING RL PWAC297 PWAC298 PWAC299 PWAC300 PWAC301 G1 G4 G5 G6 G7 G8 G9 G10 G11 G12 G14 G15 G16 G17 G18 G19 MA1 MA2 MA3 MA4 MA5 MA6 MA7 WAD10 WAD35B WAD37 WAD38B WAD47B WAD55 WAD57 WAD58 WAD71 WAD72 381986 381989 381983 382002 381991 382018 382379 382000 382445 382834 382241 382846 382816 382398 381983 381992 381607 381207 381960 381629 381595 381672 381964 381937 381960 381627 381594 381084 382161 380543 382056 380742 380661 382762 382155 382198 382155 381262 6598617 6599109 6599477 6599939 6600362 6598325 6598600. 6599107. 6599522 6599543 6599744 6599949 6600329 6600347 6600359 6599538 6598205. 6598178. 6598596 6598601 6599045 6599541 6599961 6602051 6601226 6600397 6599987 6601175 6599366 6599658 6598015 6598003 6596274 6600166 6599013 6597712 6600786 6600786 245 243 247 243 249 253 237 242 231 239 232 250 254 251 249 244 246 237 246 249 245 254 244 241 260 265 256. 250 240 259 236 232 229 254 234 221 262 262 DEPTH (m) 72 87 108 75 78 66 51 60 48 72 57 63 72 69 60 66 75 50 66 72 66 66 54 51 63 69 63 57 74 87 88 68 57 90 54 60 66 81 Table 5 Attunga Drill-hole Locations (all holes vertical) HO90LE EASTING NORTHING RL PWAC292 PWAC293 PWAC294 PWAC295 PWAC296 382068. 382069 382059 382055 382047 6593218 6593561 6594055 6594463 6594880 240 233 239 231 212 12 DEPTH (m) 99 87 102 60 60 Potash West NL – Exploration Target update P01 P01A P01B P01C P01D P01E P01F P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 P13 P14 P15 P16 P17 P18 P19 P20 P21 P22 P23 P24 P25 P26 WAD40 WAD41 WAD42 WAD44 WAD45 381559 381542 381518 381490 381449 381419 381772 381723 381930 382125 383951 383560 382626 383017 382748 382462 381827 381749 382072 382074 382075 382442 382439 382440 382430 382631 382046 381650 381834 383114 383545 384802 383270 383190 384163 380977 381399 September 2017 6594847 6594678 6594527 6594390 6593979 6593622 6593604 6594854 6594858. 6593563 6592405 6592506 6592626. 6593036 6593144 6593351 6594363 6594036 6594053 6594457 6594832 6594849 6594445 6594061 6593717 6593549 6593216 6593195 6594620 6591627 6591511 6592292 6594712 6593342 6591960 6592648 6594346 13 207. 220 226 226 222 205 222 209 207 236 241 237 240. 241 242 239 238 237 239 231 215 226 233 244 245 234 240 235 226 215 215 240 194 229. 230 239 222 87 88 90 108 99 80 86 87 84 99 105 101 99 99 99 108 60 55 54 55 50 60 60 66 66 66 54 60 51 60 57 66 20 30 90 70 60