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Australian Potash; Yamarna Gold Project Update

ASX ANNOUNCEMENT | AUSTRALIAN POTASH | 12 JANUARY 2018

• Multi-element interrogation and analysis completed, building on the initial structural review completed in July 2017

• Multi-element geochemical data confirms priority targets for follow-up testing including walk-up drill targets

• Mineralisation within the project area has a magmatic or intrusion related signature

• Project area reviewed covers an area equivalent to the entire area of other known major greenstone belts

• Interrogation and review conducted by tier 1 consultants CSA Global and industry leading geoscientists Scott Halley, Marcus Willson and Carl Brauhart

• Drill program being prepared in light of the targeting implications of this significant new analysis Australian Potash Limited (ASX: APC) is pleased to provide an update on the Yamarna Gold Project, 130kms north-east of Laverton in Western Australia’s Eastern Goldfields.

Structural Review

In 2017, the Company commissioned industry leading geological consultants CSA Global to conduct a structural review of its tenure at the northern end of the Yamarna Greenstone Belt in the Eastern Goldfields Province of Western Australia. The results of this initial review and targetting exercise were discussed in an announcement released to the market on 27 July 2017i, and identified that the Yamarna Gold project area was conducive to Archaean Lode/orogenic gold type mineralisation, with a structural analogy to the southern Abitibi/Timmins in Canada (see Figure 2).

The initial review concluded that an additional lithological and geochemical interpretation would provide further insight into the identified targets. The findings of this follow-up review and multi element interrogation are discussed here, including further  confirmation of the priority drill targets (see Figure 1).

Large mineral systems have large alteration halos and these halos can be detected by a range of means. Where an exploration target is under the cover of sediments one of the most effective exploration methods is geochemical analysis and pathfinder mapping to detect alteration halos and direct further exploration to higher probability drill targets. With over 500 drill holes reaching basement rocks within the project area geochemical analysis and alteration mapping has proven to be an effective tool to refine targets generated in the structural study and lead to high quality, early stage drill targets (see Figure 1).

Significantly the analysis identified that mineralisation within the project area has a magmatic association and presents intrusion related mineralisation targets.

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Australian Potash