Parkway Minerals Releases June Quarter Results, Records Encouraging Potash Values At Lake Seabrook

Parkway Minerals Releases June Quarter Results, Records Encouraging Potash Values At Lake Seabrook

Parkway Minerals NL (ASX: PWN) is an emerging materials sector company focused on the exploration of potash, phosphate and potassium sulphate from its two fertiliser feedstock projects– Lake Seabrook and The Dandaragan Trough- based in Western Australia. The company also owns 44.3 million shares (equivalent to 31% holdings) in Davenport Resources (ASX: DAV), a company which is focused on developing high-grade potash deposits in Germany. The company’s interest in DAV provides it with an opportunity to deliver potash products into the European market more favourably than it could have otherwise achieved solely from its Western Australia assets.

The company recently announced the quarterly activities and cash flow reports for the June Quarter 2019.

Developments at Lake Seabrook

During the quarter ended 30 June 2019, Parkway achieved the encouraging potash values at Lake Seabrook on the completion of initial field brine sampling program. The near-surface water samples returned assays of up to 4209 mg/l potassium.

Lake Seabrook Potash Brine Project is a 100% Parkway-owned project, located in the Yilgarn region of Western Australia, ~ 450 km northeast of Perth and ~80 km northeast of Southern Cross. It is a large paleovalley salt lake that overlies a basement of granite and greenstone rocks of Archaean age. The strategic location of the project holds significant infrastructure advantages in addition to its proximity to the Perth-Kalgoorlie rail line.

Location of Parkway Projects (Source: Company Announcement)

Parkway holds around 101 square kilometres of granted tenure over the lake surface, where the company principally targets to explore paleochannels within the lake that may contain high concentrations of potassium mineralisation.

In the June Quarter, Parkway’s field crew conducted a water sampling program along one of the lakes within the project area and collected samples approximately ~500m apart. On the completion of the program, the company proudly confirmed that potassium is present in high concentrations in the near-surface brine.

The most encouraging part of the results was the potassium concentrations of 2521 mg/l, 2616mg/l and 4209 mg/l from the three brine samples collected from the central part of the lake system.

Parkway’s Managing Director, Patrick McManus stated that although this sampling program covers less than half the project area, it has returned some relatively high near-surface potassium in brine.

As a part of follow up work, the company intends to further complete the surface sampling on the remaining parts of the project area as well as ground seismic surveys, to investigate the extent of paleochannels and deeper brine values.

Quarterly Update on Davenport Resources

Davenport Resources is focused on the development of the South Harz potash field in Thuringia, Central Germany, through its wholly owned subsidiary, East Exploration Gmbh (EEG). Davenport owns two exploration and three mining licences acquired from the German Government in established potash producing areas.

It is worth noting that all the licences acquired from the Government are perpetual, with no expenditure or royalty commitments, and also provides data from over 150 drill holes. As per the company’s information, the mining licences were subject to detailed drilling in the 1960s and 80s, when the field was owned by the State-owned Potash Mining Corporation of East Germany.

At the end of June quarter, Parkway Minerals reported Davenport’s total JORC compliant Inferred Resources close to 5 billion tonnes. This reflects the recent update of 1.5 Billion tonnes of Inferred Resources on Küllstedt exploration licence, taking Davenport’s total Inferred Resource at South Harz to 4.9 Billion tonnes @ 10.6% K2O that also includes 1.6 Billion tonnes of silvinite @ 13.1%.

South Harz JORC Inferred Resources (Source: Company Announcement)

Dandaragan Trough Project

Parkway Minerals holds significant landholding over a globally famous deposit of greensand through Dandaragan Trough Project, located ~200Km north of Perth in Western Australia.

Dandaragan is focused on exploiting greensand deposits, which contain both rock phosphate and glauconite. Its assets portfolio includes Dinner Hill Potash and Phosphate Deposit where Parkway holds exploration licenses and applications covering an area of 2,00 square kilometres.

The project presents excellent connectivity to transport facilities, infrastructure and proximity to local and regional markets. Moreover, at the initial levels, the company’s exploration drilling activities have indicated that the sedimentary sequences within the trough contain glauconite, a potash rich mica, and phosphate nodules.

Parkway’s overall objective is to produce sulphate and phosphate of potash fertilisers and several valuable by-products from Dandaragan Trough Project. The company aspires to become a major contributor to the fertiliser market at a time of heightened demand.

Corporate strategy and Cash Reserves

On the corporate front, Parkway Minerals continues to monitor activities and opportunities for expansion or changing the scope of existing projects alongside having discussions with third parties on other projects.

As at 30 June 2019, Parkway’s cash reserves stood at A$140,000, representing a net cash outflow of A$246,000 during the quarter, when compared with the cash balance of A$386,000 as at the beginning of June quarter.

PWN stock jumped up 20% to last trade at $0.006 on 9 August 2019. Over the past three months, the stock has gone up by 25.00%.

Also Read: All That Investors Need To Know About Parkway Minerals


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