RESOURCE ESTIMATION REPORT DINNER HILL PHOSPHATE & POTASH DEPOSIT DANDARAGAN PROJECT WESTERN AUSTRALIA. Potash West NL

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1 RESOURCE ESTIMATION REPORT DINNER HILL PHOSPHATE & POTASH DEPOSIT DANDARAGAN PROJECT WESTERN AUSTRALIA Produced for Potash West NL Report Number WA15/05 AUTHOR: J.J.G. Doepel BSc (Hons), GradDipForSci, DipTeach, MAusIMM, MGSA Principal Geologist Continental Resource Management Pty Ltd Signature: DATE: 1 st June 2015

2 Table of Contents Executive Summary 6 Introduction 6 Resources 6 Geology and Mineralisation 9 Introduction and Terms of Reference 11 Introduction 11 Terms of Reference 11 Sources of Information and Field Visits 11 Property Description and Location 12 Tenure 13 Geological Setting & Project Geology 15 Poison Hill Greensand 18 Gingin Chalk 18 Molecap Greensand 18 Osborne Formation 19 Mineralisation 20 Glauconite 20 Phosphate 20 Regional Distribution 20 Dinner Hill 20 Exploration 21 Potash West Exploration Potash West Exploration Metallurgical Sample Holes 21 Aircore Drill Programme 22 Diamond Core Programme 24 Potash West Exploration Potash West Exploration Sampling, Sample Preparation, and Analysis 27 Sample Protocols 27 Aircore Samples 27 Sample Preparation 27 Analyses 27 Potash West Protocols 27 Quality Control and Assurance 28 Duplicate Field Splits 28 Continental Resource Management Pty Ltd 2

3 Field Standards 30 Density Determinations 32 Co-ordinate System, Survey Control, and DTM 33 Mineral Resource Estimation 34 Previous Resource Estimates 34 Estimation Procedure 34 Input Files 35 Wireframes 35 Upper Cuts 35 Variograms 36 OBMs 42 Search Ellipsoids 42 Specific Gravities 43 Resources 43 Validation 46 Resource Classification 46 Resource Details 48 Phosphate resources 48 Potash resources 49 Resource Statement 56 Other Relevant Data and Information 58 Confidence Levels of the Mineral Resource Criteria 58 References 59 Declarations 60 APPENDIX 1 - JORC Code, 2012 Edition Table 1 61 Section 1 Sampling Techniques and Data 61 Section 2 Reporting of Exploration Results 62 Section 3 Estimation and Reporting of Mineral Resources 63 APPENDIX 2 Drill-hole Details 66 Tables Table 1 Dinner Hill Deposit Resource Summary 6 Table 2 Coolyena Group stratigraphy 18 Table 3 Density determinations 32 Table 4 Indicated phosphate resources by cut-off grade (unrounded) 48 Table 5 Indicated phosphate resources by cut-off grade (rounded) 48 Table 6 Indicated potash resources within Molecap Greensand and phosphate resource envelope by cut-off grade (unrounded) 50 Table 7 Indicated potash resources within Molecap Greensand and phosphate resource envelope by cut-off grade (rounded) 50 Continental Resource Management Pty Ltd 3

4 Table 8 Indicated potash resources within Molecap Greensand but outside phosphate resource envelope by cut-off grade (unrounded) 52 Table 9 Potash resources within Molecap Greensand but outside phosphate resource envelope by cut-off grade (rounded) 52 Table 10 Total Indicated potash resources (unrounded) 53 Table 11 Total Indicated potash resources (rounded) 53 Table 12 Inferred potash resources within Poison Hill Greensand and within phosphate resource envelope (unrounded) 54 Table 13 Inferred potash resources within Poison Hill Greensand and within phosphate resource envelope (rounded) 54 Table 14 Inferred potash resources within Gingin Chalk (unrounded) 55 Table 15 Inferred potash resources within Gingin Chalk (rounded) 55 Table 16 Dinner Hill Deposit Resource Summary 56 Table 17 Confidence Levels 58 Figures Figure 1 Diagrammatic cross-sectional view of resource areas 7 Figure 2 Resource plan with drill-hole locations 8 Figure 3 Dinner Hill Deposit OBM Cross-section N showing phosphate grades 9 Figure 4 Dinner Hill Deposit OBM Cross-section N showing potash grades 9 Figure 5 Dinner Hill Deposit Cross-section N showing intersection grades 10 Figure 6 Dandaragan Project Location map 13 Figure 7 Dandaragan Project Physiographic and Structural Setting 16 Figure 8 Dandaragan Project - Geological Setting 17 Figure 9 Molecap Greensand 18 Figure 10 Drill-core of Phosphate nodule horizon at base of Molecap Greensand 19 Figure 11 Plan of aircore drill-holes after 2012 drilling at Dinner Hill Deposit 22 Figure 12 Dinner Hill Deposit Diamond drill-hole locations (blue) and aircore collars (yellow) over satellite image 24 Figure 13 Geological cross-section N with intersection grades 25 Figure 14 Geological cross-section N with intersection grades 26 Figure 15 Geological cross-section N with intersection grades 26 Figure 16 Correlation plot of P 2 O 5 % for primary samples versus their duplicate field splits 29 Figure 17 Correlation plot of K 2 O% for primary samples versus their duplicate field splits 29 Figure 18 P 2 O 5 analytical results for field standard pulp GPO-13 (assay mean 4.94%; standard mean 4.94%) 30 Figure 19 K 2 O analytical results for field standard pulp GPO-13 (assay mean 3.76%, standard mean 3.75%) 31 Figure 20 P 2 O 5 analyses Log-probability plot 36 Figure 21 K 2 O analyses Log-probability plot 36 Figure 22 P 2 O 5 Horizontal log variogram bearing 0 o 37 Figure 23 P 2 O 5 Horizontal log variogram bearing 90 o 37 Figure 24 P 2 O 5 Down-hole log variogram 38 Figure 25 K 2 O% in Molecap Greensand Horizontal log variogram bearing 0 o 38 Figure 26 K 2 O% in Molecap Greensand Horizontal log variogram bearing 90 o 39 Figure 27 K 2 O% in Molecap Greensand Down-hole log variogram 39 Figure 28 K 2 O% in Poison Hill Greensand Horizontal log variogram bearing 0 o 40 Figure 29 K 2 O% in Poison Hill Greensand Horizontal log variogram bearing 90 o 40 Figure 30 K 2 O% in Poison Hill Greensand Down-hole log variogram 40 Figure 31 K 2 O% in Gingin Chalk Horizontal log variogram bearing 0 o 41 Figure 32 K 2 O% in Gingin Chalk Horizontal log variogram bearing 90 o 41 Continental Resource Management Pty Ltd 4

5 Figure 33 K 2 O% in Gingin Chalk Down-hole variogram 42 Figure 34 OBM Cross-section N displaying phosphate grades 44 Figure 35 OBM Cross-section N displaying phosphate grades 44 Figure 36 OBM Cross-section N displaying phosphate grades 44 Figure 37 Long-section E displaying phosphate grades 45 Figure 38 OBM Cross-section N displaying potash grades 45 Figure 39 OBM Cross-section N displaying potash grades 45 Figure 40 OBM Cross-section N displaying potash grades 46 Figure 41 OBM Long-section E displaying potash grades 46 Figure 42 Phosphate resource - Grade-tonnage curve 49 Figure 43 Relationship of potash and phosphate resources 49 Figure 44 Indicated potash resource - Grade-tonnage curve 51 Figure 45 Resource plan and drill-hole locations 57 Continental Resource Management Pty Ltd 5

6 EXECUTIVE SUMMARY Introduction This report details a revised resource estimation of Potash West NL s ( Potash West s ) Dinner Hill Phosphate & Potash Deposit, which is located 175km north of Perth in Western Australia. The estimation was carried out by Continental Resource Management Pty Ltd ( CRM ). The estimation is based on drill results from Potash West drilling between December 2011 and March The estimate updates the phosphate resources reported in 2014 and the potash resources reported in The recent drilling extended the north-south length of the resources from 4000m to 7200m and the east-west width in the central portion of the deposit from about 2700m to 3700m. Significantly, the phosphate resources increase in grade to the north within the area of the new drilling. The estimation was carried out by John Doepel, Principal Geologist of CRM. It is reported in accordance with the 2012 Edition of the JORC Code. The estimation employed Inverse Distance Squared (IS2) modelling to produce an ore block model (OBM) of the mineralisation. The mineralisation is occurs in continuous bodies within near-surface, sub-horizontal greensand and chalk formations. The phosphate mineralisation occurs as grains and nodules of fluorapatite. The potash mineralisation occurs as glauconite. Resources The Dinner Hill Deposit has, above a cut-off grade of 1.45% P 2 O 5, an Indicated Mineral Resource of 250Mt at 2.9% P 2 O 5. Within this phosphate resource there is an Indicated Mineral Resource of 155Mt at 4.1% K 2 O and an Inferred Mineral Resource of 20Mt at 2% K 2 O. An additional Indicated Mineral Resource of 18Mt at 3.8% K 2 O occurs marginal to the phosphate resource. The resources are set out in Table 1. Figure 1 shows the relationship between the various resources in diagrammatic form. Table 1 Dinner Hill Deposit Resource Summary Resource Category Tonnes (Mt) P 2 O 5 (%) K 2 O (%) Phosphate Indicated Potash Potash resources included within Indicated the phosphate resource area Inferred 20 2 Totals Potash resource outside the phosphate resource area Indicated Total Potash Resources Indicated Inferred 20 2 Totals Note: Totals may differ from sum of individual items due to rounding Continental Resource Management Pty Ltd 6

7 Figure 1 Diagrammatic cross-sectional view of resource areas Drill-hole data from Potash West was used to construct the OBM and to estimate the resource. The data comprised drill logs and analyses for 182 air-core drill-holes totalling 6732m and 93 SG samples taken from four PQ diamond holes drilled in August The OBM block grades were estimated by interpolation using the inverse distance squared method. Parent block sizes were 100m x 100m x 1m vertical. The blocks were constrained to a 1% P 2 O 5 envelope within wireframed sub-horizontal sedimentary formations. Figure 2 displays the resource outlines and the air-core drill-hole locations. Figures 3 and 4 are cross-sections displaying ore blocks within the resources. Continental Resource Management Pty Ltd 7

8 Figure 2 Resource plan with drill-hole locations Continental Resource Management Pty Ltd 8

9 Figure 3 Dinner Hill Deposit OBM Cross-section N showing phosphate grades Figure 4 Dinner Hill Deposit OBM Cross-section N showing potash grades Geology and Mineralisation 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 deposit 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. Figure 5 is an east-west cross-sections through the deposit displaying phosphate and potash intersections. Continental Resource Management Pty Ltd 9

10 Figure 5 Dinner Hill Deposit Cross-section N showing intersection grades Continental Resource Management Pty Ltd 10

11 INTRODUCTION AND TERMS OF REFERENCE Introduction This report details a revised resource estimation of Potash West NL s ( Potash West s ) Dinner Hill Phosphate & Potash Deposit, which is located 175km north of Perth in Western Australia. The estimation was carried out by Continental Resource Management Pty Ltd ( CRM ). The estimation is based on drill results from Potash West drilling between December 2011 and March The estimate updates the phosphate resources reported in 2014 and the potash resources reported in The recent drilling extended the north-south length of the resources from 4000m to 7200m and the east-west width in the central portion of the deposit from about 2700m to 3700m. Significantly, the phosphate resources increase in grade to the north within the area of the new drilling. The estimation was carried out by John Doepel, Principal Geologist of CRM. It is reported in accordance with the 2012 Edition of the JORC Code. The estimation employed Inverse Distance Squared (IS2) modelling to produce an ore block model (OBM) of the mineralisation. The mineralisation is occurs in continuous bodies within near-surface, sub-horizontal greensand and chalk formations. The phosphate mineralisation occurs as grains and nodules of fluorapatite. The potash mineralisation occurs as glauconite. Terms of Reference CRM was commissioned by Potash West to provide a revised resource estimate of its Dinner Hill Deposit using exploration information provided by Potash West. The deposit is within Potash West s Dandaragan Project. CRM has acted as an independent consulting geologist to Potash West on occasion since Sources of Information and Field Visits John. Doepel, Principal Geologist of CRM, visited the Dinner Hill Deposit during Potash West s drilling programmes in June and August 2012, April 2013, and March CRM has been provided with: Digital files of the Potash West drilling collar, assay, and geological logging files; Digital files of SG determinations; Original laboratory assay files from Genalysis for the drill sample analyses; Digital files of Dinner Hill Technical Reports; Digital photographic images of the air-core and diamond drill-hole intervals; Metallurgical study conclusions and Ore Reserve study results presented within Scoping Study Reports (Strategic Metallurgy Pty Ltd, 2013 and 2015). Continental Resource Management Pty Ltd 11

12 PROPERTY DESCRIPTION AND LOCATION The Dinner Hill Deposit is located in the Midwest Wheat Belt of Western Australia, some 225km by road north of Perth. The deposit is easily accessed from Perth via the Brand Highway. (Figure 6). Continental Resource Management Pty Ltd 12

13 Figure 6 Dandaragan Project Location map Tenure The Dinner Hill Deposit is within the granted Exploration Licence E70/3987, registered in the name of Richmond Resources Pty Ltd ( Richmond ). A deed is in place between Richmond and Potash West, whereby Potash West holds the rights to Continental Resource Management Pty Ltd 13

14 the glauconite and phosphate minerals within the tenement. Potash West also holds the rights to any by-products produced by processing these minerals. E 70/3987 was granted on 26/07/2011 for a period of five years. The required first three years expenditure has been met and required rent has been paid. The resource is beneath farm land owned by Roseville Nominees, Ronald Shane Love, and Alidade Pty Ltd, with whom compensation agreements have been signed, with the mineral sub-surface rights subsequently being granted both above and below 30m below surface. Continental Resource Management Pty Ltd 14

15 GEOLOGICAL SETTING & PROJECT GEOLOGY The tenements are located in the Perth Basin, a deep linear basin containing Phanerozoic sedimentary rocks extending north-south for over 1000km in the southwest of Western Australia. The Dandaragan Trough, a major depocentre of the onshore Perth Basin, extends for over 500km from north of Bunbury to Geraldton and contains up to 12,000m of Permian and Mesozoic sediments. The trough is fault bound to the east by the regional Darling Fault and to the west by the Eneabba Fault System. Locally, the Project lies on the Dandaragan Plateau and the Yarra Yarra Region. The former is a plateau at an altitude of between 200 m and 300 m above sea level It is bounded to the west and southwest by the Gingin Scarp, an erosional feature that forms a prominent topographic landmark in the area, and to the east by the Darling Fault, which forms the boundary between the Perth Basin to the west and the Archaean crystalline rocks of the Yilgarn Block to the east. The Yarra Yarra Region is a subdued area of internal drainage between the Dandaragan Plateau and the Darling Fault. Outcrop on the Dandaragan Plateau is limited: the surface mostly comprises laterite and sand. The Dinner Hill Deposit is on the western margin of the Dandaragan Plateau (Figure 7). Continental Resource Management Pty Ltd 15

16 Figure 7 Dandaragan Project Physiographic and Structural Setting The project tenements cover three greensand formations within the Cretaceous Coolyena Group: the Poison Hill Greensand, the Molecap Greensand, and the Osborne Formation (Figure 8). Greensand refers to a specific formation, generally sandstone, containing the mineral glauconite. The green colour of greensand is due to the glauconite, a mica containing iron, potassium and aluminium. It has very low resistance to weathering, so greensand formations tend to be weak, friable and readily lateritised. Greensands are characterised by their high total iron content, iron oxide ( Fe 2 O 3 ) and by the high content of K 2 O. The greensands within the Project tenements are both glauconitic and phosphatic. Continental Resource Management Pty Ltd 16

17 Figure 8 Dandaragan Project - Geological Setting The Coolyena Group is exposed in scattered outcrops in a triangular area between the Gingin Scarp in the west and the Darling Fault in the east, and from Bullsbrook in the south to east of Badgingarra in the north. The sediments have shallow dips of the order of only 1 to 2 degrees. The greensand units outcrop as red-brown, ferruginised, clayey sandstones. The Coolyena Group succession is listed, from top to bottom, in Table 2. Continental Resource Management Pty Ltd 17

18 Table 2 Coolyena Group stratigraphy Formation Thickness Features Poison Hill Greensand 54m plus Glauconitic quartz sandstone; shallow marine Gingin Chalk 0-40m Chalk; locally glauconitic Molecap Greensand 10-30m Glauconitic quartz sandstone; shallow marine Osborne Formation m Glauconitic sandstone, siltstone and claystone Poison Hill Greensand The Poison Hill Greensand is a weakly lithified, medium-grained to very coarsegrained, poorly-sorted, clayey, glauconitic sandstone that, in places, has a significant phosphate content. It is over 40 m thick at its type locality, Poison Hill, which is located within E70/3636. Gingin Chalk The Gingin Chalk is weakly glauconitic and locally comprises thinly interbedded greensands. It conformably overlies the Molecap Greensand. It is typical of chalk deposits of this age globally and was deposited on the floor of a shallow, warm sea supporting abundant marine life and with little inflow of terrestrial debris. It also contains, locally, phosphate as grains and nodules. Molecap Greensand The Molecap Greensand is a massive unit composed mainly of coarse- to granulesized quartz and medium-sized dark green glauconite grains (Figure 9). The unit was laid down in shallow sea over an irregular topography and its thickness varies with the underlying topography. As for the overlying formations, it, in parts, has a significant phosphate content. Figure 9 Molecap Greensand Continental Resource Management Pty Ltd 18

19 The unit is deeply weathered where exposed at the surface, but fresh where overlain by the Gingin Chalk. In the Dinner Hill area, there is, in places, a pebble unit at its base, many of the pebbles being phosphate nodules (Figure 10). Figure 10 Drill-core of Phosphate nodule horizon at base of Molecap Greensand Osborne Formation The Osborne Formation is a glauconitic, arkosic sandstone, with minor siltstone and claystone. It, however, conains less glauconite than the overlying greensands. Continental Resource Management Pty Ltd 19

20 MINERALISATION Greensand refers to a specific formation, generally sandstone, containing the mineral glauconite. The green colour of greensand is due to the glauconite, a mica containing iron, potassium and aluminium. The greensands within the Project tenements are both glauconitic and phosphatic. Glauconite Glauconite develops as a consequence of diagenetic alteration of sedimentary deposits containing biotite mica. It forms under reducing conditions in sediments, and such deposits are commonly found in near-shore shallow basin environments. Glauconite typically contains 6.6% potassium oxide ( K 2 O or potash ). Phosphate Regional Distribution The Upper Cretaceous is known to contain phosphate at Dandaragan and at Gingin. At Gingin, granular and nodular phosphate occurs as bands at the top and bottom contacts of the greensands with the chalk unit. Within the Molecap Hill Quarry, dark brown phosphatic nodules are in a layer up to 1 m thick, lying immediately below the chalk contact. Simpson (1948) records that their chief constituent is fluorapatite. Four nodules were analysed and found to contain between 21.8 and 24.0% phosphorous pentoxide ( P 2 O 5 ). Simpson (1948) also described a locality at Poison Hill, where the Poison Hill Greensand contains a layer 3m thick with innumerable 1 to 2cm nodules scattered thickly through it. At Dandaragan, two greensand horizons, each 0.7 m thick, contain approximately 55% phosphatic nodules at the base and top of the Molecap Greensand. The horizons average 14% P 2 O 5. Analyses of 1.5m whole rock samples from GSWA holes drilled through the phosphatic layers gave results of 3.1% P 2 O 5 from the base of the Molecap Greensand in DGH3 and 2.0% P 2 O 5 from the base of the Gingin Chalk in GGH5. East of Dandaragan, exploration drilling intersected a 7.5m horizon at the base of the Poison Hill Greensand averaging 3.1% P 2 O 5. The phosphate is present within collophane, which is present as a cement in the greensand. Dinner Hill Within the area of Potash West s Dinner Hill drilling (Figure 2) the lower portion of the Poison Hill Greensand, the Gingin Chalk, and the Molecap Greensand consistently contain more than 1% P 2 O 5 (see 1% envelope in Figure 5), with the grades being higher and more consistent in the north of the area. The majority of the phosphate is within the >0.5mm fraction, occurring as nodules and grains of fluorapatite. Continental Resource Management Pty Ltd 20

21 EXPLORATION No previous exploration has taken place within the deposit area. Potash West has explored the immediate area of the deposit with air-core drilling programmes in 2011, 2012, 2014, and Potash West s 2011 and 2012 exploration programmes are described by Dalla-Costa (2012a) and Curtis (2012), from which details below are taken. Potash West Exploration 2011 Aircore drilling was carried out within E 70/3987 as part of a regional road verge aircore campaign conducted during the summer of Eighteen vertical NQ aircore holes were competed at approximately 800m spacings, targeting areas of high elevation for preserved occurrences of Upper Cretaceous greensand units. Drilling occurred along North West Rd, Wathingarra Rd, Watheroo Rd, and Coalara Rd. Aircore drilling contractors Drillwise Pty Ltd were used for this program, utilizing a truck mounted Edson aircore rig. Sampling was by rig-mounted cyclone with rotary splitter. Two metre-composite samples were collected in calico bags and submitted to Genalysis Laboratory Services, Maddington ( Genalysis ) for multi-element analysis (310 samples). Geological logging was conducted in the field concurrent with the drilling. A small portion of the laboratory sample was speared from the calico bag for geological logging of lithology, colour, grain-size, sorting, and weathering. Logging samples were routinely laid out on an inspection table for reference; the inspection table was also photographed at the conclusion of each hole as a record. A portion of each sample was catalogued in a chip tray. Drilling along Wathingarra Rd within E70/3987 intersected the Molecap Greensand close to the surface in four holes over a north-south distance of 2200m. PWAC035 and PWAC036 returned intervals of 4.5% K 2 O from 10m and from 6m depth respectively. The Molecap Greensand lithology was of dark-green, friable, glauconite-rich sandy clay. The non-glauconite sand fraction is sub-rounded, moderately-sorted quartz grains. The formation had an apparent dip to the south of about 0.25 o. The Molecap Greensand is underlain by the Osborne Formation, locally consisting of an upper unit of about 44-50m of highly oxidized quartz sands and lesser clays, below which is up to at least 20m of glauconitic clays and siltstones (the basal 20m of PWAC034 averaged 3.3% K 2 O from 60m to 80m). Potash West Exploration 2012 Metallurgical Sample Holes Three holes were drilled to obtain samples for metallurgical test-work. The holes were located to twin existing road verge holes along Wathingarra Rd that intersected fresh Molecap Formation close to surface. 57m was drilled in holes PWAC186 PWAC188. Continental Resource Management Pty Ltd 21

22 Aircore Drill Programme An aircore drilling programme of 83 vertical NQ holes for 3215m was carried out in June 2012 over a 10km 2 area immediately to the east of Wathingarra Rd. Hole locations up to the end of 2012 are shown on Figure 11. Figure 11 Plan of aircore drill-holes after 2012 drilling at Dinner Hill Deposit Continental Resource Management Pty Ltd 22

23 The drilling was carried out to enable the estimation of Mineral Resources within the greensand units. The programme was based on a 400m by 400m grid, with a small area of infill drilling on 200m x 200m spacing. A total of 2262 samples (1m splits) were submitted for assay to Genalysis from this drilling. Two drilling contractors were used during this programme: Bostech Drilling Australia completed 32 holes for 1288m, using a Bostech DrillBoss 200 truck-mounted aircore rig with a rig-mounted cyclone and rotary splitter; Easternwell Minerals completed 51 holes for 1927m, using a Rotomec R50 truck-mounted aircore rig. Geological logging was carried out as for the 2011 programme. The units intersected above the Osborne Formation are summarised below. Surficial cover The Coolyena Group sediments are overlain by an average depth of 11m of surficial cover, primarily comprising quartz sands with lesser clayey sands, which are in turn overlain in places by ferricrete, alluvium, and colluvium. Poison Hill Greensand The drilling defined continuity of the Poison Hill Greensand at an average thickness of about 11m across the deposit; thickening to a maximum of 30m in one location. The Poison Hill Greensand typically presented as an oxidised, firm, glauconitic, sandy claystone. Gingin Chalk Where present, the chalk was up to 11m in thickness. CRM interprets that the upper surface of the chalk was, in places, eroded before the deposition of the overlying greensand. Molecap Greensand The drilling defined excellent continuity of the Molecap Greensand at an average thickness of 9m; thickening to a maximum of 14m to the south and to a minimum of 4m to the north. It is virtually horizontal, with slight apparent dips of about 0.7 o to the east and 0.15 o to the south. In the centre of the drilled area its top surface is at an elevation of approximately 335m. The average depth over the drilled area from surface to the top of the Molecap Greensand is 24m, varying from near surface along the western margin to a maximum of 46m beneath Dinner Hill. The Molecap Greensand typically presented as dark green to black, friable, glauconite-rich, moderately sorted sandy clay, rarely observed as unconsolidated greensands. Nodule horizon The drilling defined the presence of a brown, oxidized, pebbly nodule horizon at the base of Molecap Greensand formation. It averages about 2m in thickness. Chemically, it is characterised by a high phosphate content (two ~15cm core samples assayed 15.1% and 11.9% P 2 O 5 ). Continental Resource Management Pty Ltd 23

24 Diamond Core Programme A diamond core programme of four holes for 148m was carried out during August The programme was primarily to obtain core samples for bulk density determinations of the greensand units. The programme is described in detail by Curtis (2012). The holes, PWDD001 to 004, were drilled close to June 2012 aircore holes. Drillhole locations are shown on Figure 10. The drill contractor was Macrodrill Pty Ltd, which used a G&K 850 rig and PQ3 coring to recover core with nominal 83mm diameter. Core-hole locations are shown on Figure 12. Figure 12 Dinner Hill Deposit Diamond drill-hole locations (blue) and aircore collars (yellow) over satellite image Continental Resource Management Pty Ltd 24

25 A total of 75.1m of core was collected from the lower portions of the four holes and 93 samples were submitted to Metallurgy Labs, Welshpool for density determinations. The core samples selected for density determination, approximately 15cm in length were wrapped in glad-wrap. The remaining core was inserted into a plastic sleeves for transport and storage for possible metallurgical test-work. Potash West Exploration 2014 A further twelve air-core holes for a total of 495m were drilled within the southern portion of the deposit during 2014 (Holes PWAC330, 331, and 353 to 362) (See Appendix 2). Drilling, logging, and sampling protocols were carried out in the same manner as for the earlier air-core programmes. Potash West Exploration 2015 A further 79 exploration air-core holes for a total of 2395m were drilled within the central, eastern and northern portions of the deposit during 2015 (Holes PWAC406 to 457 and 469 to 495) (See Appendix 2 for details and Figure 2 for drill-hole locations). Drilling, logging, and sampling protocols were carried out in the same manner as for the earlier air-core programmes. Holes PWAC458 to 468, drilled within the deposit were for metallurgical test-work samples and were not assayed. Figures 13 to 15 are east-west sections across the deposit displaying the geological units along with phosphate and potash intersections. Figure 13 Geological cross-section N with intersection grades Continental Resource Management Pty Ltd 25

26 Figure 14 Geological cross-section N with intersection grades Figure 15 Geological cross-section N with intersection grades Continental Resource Management Pty Ltd 26

27 SAMPLING, SAMPLE PREPARATION, AND ANALYSIS Sample Protocols Full details of sampling protocols are given by Dalla-Costa (2012a). Aircore Samples Samples were taken by rotary splitter or by scoop sampling. Sample size was 3 to 4kg. Sample Preparation Samples preparation was at Genalysis Laboratory Services Pty Ltd facility in Maddington. The preparation protocol was: Dry; Total pulverisation. Analyses Analyses were by Genalysis s Phosphate Major Element Suite by the method FB1, an X-ray fluorescence ( XRF ) method that uses a lithium borate fusion, plus Loss on Ignition ( LOI ) at 1000 o C. Analyses were reported for K 2 O, P 2 O 5, Al 2 O 3, SiO 2, Na 2 O, MgO, CaO, TiO 2, MnO, Cr 2 O 3, Fe 2 O 3, SO 3, and LOI. Potash West Protocols In CRM s opinion that the sampling, sample preparation, and analytical procedures employed by Potash West were planned and performed to high industry standards. Continental Resource Management Pty Ltd 27

28 QUALITY CONTROL AND ASSURANCE During the 2011 and 2012 drilling programmes Potash West instituted comprehensive QAQC measures. Full details of the measures and of the QAQC results are given in Dalla-Costa, 2012b. The same QAQC procedures were used for the 2014 and 2015 drilling and are reported by Della-Costa (2015). The details below are summarised from the two reports. Duplicate Field Splits Duplicate field splits were submitted for analysis in the ratio of 1:18. Field duplicates were generated for every sample ending in 19, 39, 59, 79 and 99. These consisted of a re-split of the previous sample 18, 38, 58, 78 and 98. Field duplicates were taken via a rotary splitter attached to the aircore drill rig up to sample ID 17359, after which point scoop sampling was employed due to a change in drill contractors; 123 field duplicates were taken in total during the 2011 and 2012 programmes and 143 during the 2014 and 2015 programmes. Figure 16 displays the duplicate P 2 O 5 analyses (Y axis) plotted against the primary sample analyses (X axis) for the latter programmes. CRM is of the opinion that the close correlation (R 2 = 0.98) indicates the robustness of the sampling process, of the laboratory preparation, and of the analytical procedure. Similarly robust agreement was obtained for the duplicate samples from the earlier programme, for which a R 2 correlation coefficient of 0.96 was obtained. Figure 17 displays the duplicate K 2 O analyses (Y axis) plotted against the primary sample analyses (X axis) for the latter programmes. CRM is of the opinion that the close correlation (R 2 = 0.98) indicates the robustness of the sampling process, of the laboratory preparation, and of the analytical procedure. Similarly robust agreement was obtained for the duplicate samples from the earlier programme, for which a R 2 correlation coefficient of 0.99 was obtained. Continental Resource Management Pty Ltd 28

29 Figure 16 Correlation plot of P 2 O 5 % for primary samples versus their duplicate field splits Figure 17 Correlation plot of K 2 O% for primary samples versus their duplicate field splits Continental Resource Management Pty Ltd 29

30 Field Standards Certified reference material standard pulps were submitted in the ratio of 1:18 samples. Three phosphate standards were used, GPO-11 (3.02% K 2 O and 9.72% P 2 O 5 ) and GPO-13, (3.75% K 2 O and 4.94% P 2 O 5 ) during the earlier programmes and GPO-12 (1.55% K 2 O and 19.29% P 2 O 5 ) and GPO-13 during the later programmes. The standards were alternated in each programme. Figures 18 and 19 display histograms of the analytical results for P 2 O 5 and K 2 O for standard GPO-13 for the programmes. For the P 2 O 5 the mean of the analytical results was 4.94%, which is the same as the nominal standard mean (4.94%). For K 2 O the mean of the analytical results was 3.76%, which compares closely with the nominal standard mean of 3.75%. CRM is of the opinion that the small range in values is an indication of high laboratory precision and that the means of the results, which are virtually identical to the standard values, are an indication of high laboratory accuracy. Similar high degrees of accuracy and precision were obtained for the earlier programmes. Figure 18 P 2 O 5 analytical results for field standard pulp GPO-13 (assay mean 4.94%; standard mean 4.94%) Continental Resource Management Pty Ltd 30

31 Figure 19 K 2 O analytical results for field standard pulp GPO-13 (assay mean 3.76%, standard mean 3.75%) Continental Resource Management Pty Ltd 31

32 DENSITY DETERMINATIONS Density determinations were carried out on 93 PQ core samples by Metallurgy Pty Ltd ( Metallurgy ), Welshpool in September The samples were sourced from the four diamond holes drilled into the Dinner Hill Deposit (Figure 12). The samples, as delivered, were encased in gladwrap and were moist. The procedure used was: Ensure the gladwrap was sealed and tightly enclosed the core with no air spaces present (where necessary the core was trimmed with a blade to provide flat ends); Weigh sample in air; Weigh sample in water; Pat dry and weigh sample in air (as check); Calculate moist density; Place sample on tray and remove gladwrap-spreading sample for ease of drying; Weigh moist sample; Dry sample in oven at 110 o C for 8 to 10 hours; Weigh dry sample; Calculate % moisture. The dry sample was sent to Genalysis for analysis. CRM calculated the dry density of the samples from the moist density and moisture content of each sample, using the formula: dry density = moist density x ((100 -% moisture)/100) e.g if dry density =2 and moisture = 10%, then dry density = 2 x ((100-10) / 100) = 1.80 The dry density was used for the resource estimation as the input assays are reported from dried samples. The results are summarised in Table 3. Table 3 Density determinations Unit Samples Dry Density Moisture Range Median Mean Used (%) Poison Hill Greensand Gingin Chalk Molecap Greensand * 17.2 Nodule horizon ** 14.9 * Mean without outlying high and low values = 1.63 (range without outliers ) ** The nodule horizon was modelled in conjunction with the Molecap Greensand Continental Resource Management Pty Ltd 32

33 CO-ORDINATE SYSTEM, SURVEY CONTROL, AND DTM The coordinate system used is based on MGA projection Zone 50 and the datum is GDA94. Potash West drill holes were located using a handheld Garmin GPS76 GPS receiver. A regional survey within the Dandaragan Potash Project using governmental standard survey markers found accuracy to be within 2m of surveyed points (Dalla-Costa, 2012a). A Digital Terrain model ( DTM ) over the entire Dandaragan Potash Project was produced by consulting firm Remote Sensing and Geological Services. Topographic contours for the DTM were produced from Shuttle Radar Topographic Mapper ( SRTM ) imagery at 5 metre vertical resolution, rectified to MGA Zone 50 - GDA94 specifications. SRTM is a synthetic aperture radar system in use since February Satellite data for the contour set was originally acquired from Geoimage Pty Ltd. Continental Resource Management Pty Ltd 33

34 MINERAL RESOURCE ESTIMATION Previous Resource Estimates Previous resource estimates have been carried out on the portion of the deposit that is south of N by CRM (Doepel, 2012 and 2014) (Figures 2 and 45). The present estimate incorporates further drilling to the north and also infill holes drilled in the areas of the previous resources. The 2012 estimate was of potash resources, which were reported as total Indicated Resources of 3.0% K 2 O and 1.6% P 2 O 5 and total Inferred Resources of 3.6% K 2 O and 1.9% P 2 O 5. The primary target unit, the Molecap Greensand was reported to contain Indicated Resources of 4.6% K 2 O and 1.8% P 2 O 5 and total Inferred Resources of 4.4% K 2 O and 2.2% P 2 O 5. The 2014 estimate was of a phosphate resource, which were reported above a cut-off grade of 2.15% P 2 O 5 to be an Indicated Mineral Resource of 120Mt at 2.8% P 2 O 5, 3.1% K 2 O, and 8.2% CaO. Estimation Procedure CRM carried out this resource estimation for the Dinner Hill Deposit. The estimation was made by John Doepel, Principal Geologist. It is reported in accordance with the 2012 Edition of the JORC Code. The estimation employed Inverse Distance Squared (IDS) modelling to produce ore block models (OBMs) of the mineralisation. Micromine Version software was used for the production of the OBMs. The phosphate mineralisation was modelled within a 1% recoverable P 2 O 5 wireframe. (Weathering of nearer surface sections of the Poison Hill Greensand, has resulted in changes to the dominant phosphate mineral, fluorapatite, which render it at least partially insoluble in the proposed phosphate extraction process. The changes involve the leaching of Ca from the mineral, which when fresh has a CaO:P 2 O 5 ratio of Upon the advice of Strategic Metallurgy: Any intersection with a CaO:P 2 O 5 ratio of <0.66 was considered to not contain recoverable phosphate; P 2 O 5 analyses with accompanying CaO:P 2 O 5 ratios of between 0.66 and were adjusted to give a recoverable P 2 O 5 % value by means of the formula % P 2 O 5 x CaO:P 2 O 5 ratio / ; and P 2 O 5 analyses with accompanying CaO:P 2 O 5 ratios of or greater were considered to be of fresh mineralisation. Both P 2 O 5 values and CaO:P 2 O 5 ratios were modelled. Recoverable P 2 O 5 values were later calculated for each ore block from each pair of modelled values. The potash mineralisation was modelled separately within 1% K 2 O wireframes that were restricted to areas that had Fe 2 O 3 :K 2 O ratios of <10. (Oxidization of glauconite, which locally occurs throughout much of the Poison Hill Formation and the Gingin Chalk, increases the ratio and would preclude the use of the proposed magnetic separation to recover a glauconite concentrate.) Both K 2 O and Fe 2 O 3 :K 2 O ratios were modelled for each ore block. Continental Resource Management Pty Ltd 34

35 A digital terrain model (DTM) of the surface (TOPO) was provided by Potash West. Input Files Input files, which are within the Drillhole Database 1504 DH USED, were COLLAR 15 DH USED.DAT and ASSAY 15 DH.DAT. Geological logging was provided by Potash West and is within GEOLOGY 15 DH.DAT. The drill-holes included in the database are listed in Appendix 1. Their collars are shown in plan view on Figures 2 and 45. Wireframes CRM created a phosphate mineralisation wireframe (Name: P 1 2) based on a 1% recoverable P 2 O 5 lower cut-off grade. The wireframe was created from strings named P 1 (the upper surface) and P 2 (the lower surface) and restricted by string P restrict. Restriction was to a distance of 200m from the outer mineralised drillholes (i.e. to N to the north, a maximum of E to the east, and N to the south). To the west the maximum extent was constrained by topography and tenure and was E. In the northeast the maximum extent was constrained by a Department of Conservation Reserve. Potash mineralisation wireframes were created separately within the three mineralised formations. Within the Molecap Greensand, which is fresh throughout the area of the deposit except in the very north, the wireframe enclosed virtually the entire drilled area of the unit, as it is all above 1% K 2 O. The wireframe (Name: K Mlcp 1 2) was created from strings named K Mlcp 1 and K Mlcp 2 and restricted by string K Mlcp restrict. Restriction was to a distance of 200m from the outer mineralised drillholes (i.e. to N to the north, a maximum of E to the east, and N to the south). To the west the maximum extent was constrained by topography and tenure and was E. Within the Gingin Chalk only intersections with Fe 2 O 3 :K 2 O ratios of <10 were included. The wireframe (Name: chalk 1 2) was created from strings named chalk 1 and chalk 2 and restricted by string chalk restrict. For the purposes of the wireframes, the gradational boundary between the Gingin Calk and the Molecap Greensand was taken to be 7% free CaO, as above this level the Fe 2 O 3 :K 2 O ratio increases significantly ( free CaO% was calculated by the formula CaO minus (P 2 O 5 x 1.317), which formula removes the Ca contained in the fluorapatite). Within the Poison Hill Greensand only intersections with Fe 2 O 3 :K 2 O ratios of <10 were included. The wireframe (Name: K PH 1 2) was created from strings named K PH 1 and K PH 2 and restricted by string K PH restrict. Upper Cuts CRM is of the opinion that no upper cuts are necessary. Figure 20 displays a log probability plot of the P 2 O 5 analyses within the phosphate wireframe. It is evident that there are no high outlier values. Continental Resource Management Pty Ltd 35

36 Figure 21 displays a log probability plot of the K 2 O analyses within the Molecap Greensand wireframe. Again it is evident that there are no high outlier values. Figure 20 P 2 O 5 analyses Log-probability plot Figure 21 K 2 O analyses Log-probability plot Variograms The wireframe and assays were levelled to the horizontal before variography was carried out. Figures 22 to 24 display variograms for P 2 O 5 analyses from drill samples within the phosphate wireframe. Ranges of about 800m towards 0 o, 590m towards 90 o, and 2m Continental Resource Management Pty Ltd 36

37 down-hole were obtained. A high nugget effect is present, as would be expected for units containing mineralisation in nodular horizons. Figure 22 P 2 O 5 Horizontal log variogram bearing 0 o Figure 23 P 2 O 5 Horizontal log variogram bearing 90 o Continental Resource Management Pty Ltd 37

38 Figure 24 P 2 O 5 Down-hole log variogram Figures 25 to 27 display variograms for K 2 O analyses from drill samples within the Molecap Greensand. Ranges of about 800m towards 0 o, 590m towards 90 o, and 3m down-hole were obtained. A very low nugget effect is present, due to the consistency of the glauconite content within the greensand. Figure 25 K 2 O% in Molecap Greensand Horizontal log variogram bearing 0 o Continental Resource Management Pty Ltd 38

39 Figure 26 K 2 O% in Molecap Greensand Horizontal log variogram bearing 90 o Figure 27 K 2 O% in Molecap Greensand Down-hole log variogram Figures 28 to 30 display variograms for K 2 O analyses from drill samples within the potash wireframe in the Poison Hill Greensand. Ranges of about 400m towards 0 o, 400m towards 90 o, and 2m down-hole were obtained. A very low nugget effect is present, due to the consistency of the glauconite content within the greensand. Continental Resource Management Pty Ltd 39

40 Figure 28 K 2 O% in Poison Hill Greensand Horizontal log variogram bearing 0 o Figure 29 K 2 O% in Poison Hill Greensand Horizontal log variogram bearing 90 o Figure 30 K 2 O% in Poison Hill Greensand Down-hole log variogram Continental Resource Management Pty Ltd 40

41 Figures 31 to 33 display variograms for K 2 O analyses from drill samples within the potash wireframe in the Gingin Chalk. Ranges of about 400m towards 0 o, 460m towards 90 o, and 2m down-hole were obtained. A low nugget effect is again present. Figure 31 K 2 O% in Gingin Chalk Horizontal log variogram bearing 0 o Figure 32 K 2 O% in Gingin Chalk Horizontal log variogram bearing 90 o Continental Resource Management Pty Ltd 41

42 Figure 33 K 2 O% in Gingin Chalk Down-hole variogram OBMs An initial blank block model was created, BBM15, which was restricted to the wireframes P 1 2, K Mlcp 1 2, K chalk 1 2, and K PH 1 2. Parent block dimensions were 100m EW, 100m NS, and 1m vertical. Sub-blocking of 2 x 2 x 2 was used for blocks on the margins of the wireframes. The centroid of the lowest southwestern parent block (the origin of the OBMs) was E, N, and 300.5RL. Separate OBMs were then modelled within: The phosphate wireframe (P 1 2); the output OBM being OBM 15 PC.DAT; The potash mineralisation within the Molecap Greensand wireframe (K Mlcp 1 2); the output OBM being OBM 15 KMC.DAT; The potash mineralisation within the Gingin Chalk wireframe (K chalk 1 2); the output OBM being OBM 15 C.DAT; The potash mineralisation within the Poison Hill Greensand wireframe (K PH 1 2); the output OBM being OBM 15 HPC.DAT. The four OBMs were merged within the blank block model to produce the final output OBM: OBM 15 FINAL C.DAT. Search Ellipsoids Search ellipsoids were in-put into Micromine 3D modelling using the Geostatistical in-put screen. Search criteria for P 2 O 5 and CaO:P 2 O 5 ratio were saved as search P 15 : 800m to 0 o ; Plunge 0.25 o to south; 570m to 90 o ; Dip 0.7 o to 90 o ; and 2m vertical. Continental Resource Management Pty Ltd 42

43 Search criteria for K 2 O and Fe 2 O 3 :K 2 O ratio within the Molecap Greensand were saved as search K 15 : 800m to 0 o ; Plunge 0.25 o to south; 570m to 90 o ; Dip 0.7 o to 90 o ; and 3m vertical. Search criteria for K 2 O and Fe 2 O 3 :K 2 O ratio within the Poison Hill Greensand were saved as search PN 15 : 400m to 0 o ; Plunge 0.25 o to south; 400m to 90 o ; Dip 0.7 o to 90 o ; and 3m vertical. Search criteria for K 2 O and Fe 2 O 3 :K 2 O ratio within Gingin Chalk were saved as search C 15 : 400m to 0 o ; Plunge 0.25 o to south; 400m to 90 o ; Dip 0.7 o to 90 o ; and 2m vertical. Specific Gravities Specific gravities were allocated to each formation as follows: Poison Hill Greensand: 1.50; Gingin Chalk: 1.50; Molecap Greensand: 1.63; and Resources Resources were estimated to the east of E, which is the approximate easting of the western boundary of Roseville Nominees Property, and to the west of E, which is 250m east of the extent of the aircore drill pattern. The phosphate mineralisation is closed to the west by topography and tenure, is open to the north and east of the resource, and continues with lower grade to the south. Figures 34 to 41 are sections through the deposit displaying ore blocks coloured by phosphate and potash grade. It is evident that: Phosphate grades are generally higher within the northern portion of the deposit; Potash grades are generally higher within the southern portion; The mineralisation is thinner at the northern end of the deposit; The mineralisation has been closed off by drilling in the north; The mineralisation is closed off by topography in the west; and The mineralisation is open to the east and to the south. Continental Resource Management Pty Ltd 43

44 Figure 34 OBM Cross-section N displaying phosphate grades Figure 35 OBM Cross-section N displaying phosphate grades Figure 36 OBM Cross-section N displaying phosphate grades Continental Resource Management Pty Ltd 44

45 Figure 37 Long-section E displaying phosphate grades Figure 38 OBM Cross-section N displaying potash grades Figure 39 OBM Cross-section N displaying potash grades Continental Resource Management Pty Ltd 45

46 Figure 40 OBM Cross-section N displaying potash grades Figure 41 OBM Long-section E displaying potash grades Validation The OBM has been validated visually against the drill-hole analyses and CRM is of the opinion that the block grades reflect the drill-hole grades. Resource grades and tonnages within the phosphate and Molecap Greensand wireframes have also been compared with those of average in-put analyses within the wireframes and tonnages calculated from the wireframe volumes, as follows: Phosphate wireframe: In-puts: 2.66% P 2 O 5 Resource above 0% P 2 O 5 : 2.70% P 2 O 5 Molecap Greensand wireframe: In-puts: 3.97% K 2 O Resource above 0% K 2 O: 4.02% K 2 O. The close correlation of the above figures is considered to be a result of the regular grid pattern of the drilling, the excellent continuity of the mineralisation, and the suitability of the estimation method. Resource Classification The phosphate resource and the potash resource within the Molecap Greensand are classified as Indicated Resources, as Continental Resource Management Pty Ltd 46

47 There is a high degree of confidence in the geological interpretation, as the stratigraphy is both visually and chemically distinct and continuous; There is a high degree of confidence in the grade continuity across the resources; and The density data adequately reflects that of the deposit; but is considered to require more investigation before it can be used to classify those areas of the resource drilled on the 200m by 200m grid as Measured Resources. The potash resources within the Poison Hill Greensand and the Gingin Chalk are classified as Inferred Resources, as although there is good potash grade continuity within these units, there is less confidence in the continuity of the less weathered horizons within them. Continental Resource Management Pty Ltd 47

48 Resource Details Phosphate resources The phosphate resources are listed in unrounded form at various lower-cut off grades in Table 4 and in appropriately rounded form in Table 5. They are classified as Indicated Resources. Table 4 Indicated phosphate resources by cut-off grade (unrounded) Lower Cut-off Grade (% P 2 O 5 ) Tonnes Grade (% P 2 O 5 ) Grade (% Recovered P 2 O 5 ) ,236, ,324, ,426, ,487, ,270, ,336, ,652, ,067, ,689, ,380, ,460, ,822, ,061, Table 5 Indicated phosphate resources by cut-off grade (rounded) Lower Cut-off Grade (% P 2 O 5 ) Tonnes (Mt) Grade (% P 2 O 5 ) Grade (% Recovered P 2 O 5 ) Figure 42 displays a grade-tonnage curve for the mineralisation, based on the lower block cut-off grade. The choice of 1.45% as the lower cut-off grade for reporting purposes is because this grade shell confines a large relatively high-grade continuous area suitable for bulk mining and encloses mineralisation with an average grade of 2.9% and a nominal recoverable grade of 2.8%: grades that scoping studies have indicated to be economic. Continental Resource Management Pty Ltd 48

49 Figure 42 Phosphate resource - Grade-tonnage curve Potash resources The potash resources occur both within the phosphate resource envelope and adjacent to it (within the Molecap Greensand) (Figure 43). Those within the Molecap Greensand are classified as Indicated Resources. Those within the Poison Hill Greensand and the Gingin Chalk are classified as Inferred Resources. Figure 43 Relationship of potash and phosphate resources Continental Resource Management Pty Ltd 49

50 The potash resources that are within both the Molecap Greensand and the phosphate resource envelope are listed in unrounded form at various lower-cut off grades in Table 6 and in appropriately rounded form in Table 7. Table 6 Indicated potash resources within Molecap Greensand and phosphate resource envelope by cut-off grade (unrounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (% K 2 O) ,750, ,296, ,102, ,746, ,332, ,847, ,283, ,310, ,310, Table 7 Indicated potash resources within Molecap Greensand and phosphate resource envelope by cut-off grade (rounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (Mt) (% K 2 O) Figure 44 displays a grade-tonnage curve for the mineralisation, based on the lower block cut-off grade. It is apparent that there is virtually no relatively low-grade material present within the target greensand. The choice of 1% as the lower cut-off grade for reporting purposes is thus arbitrary and is chosen to maintain consistency with previous reports. Continental Resource Management Pty Ltd 50

51 Figure 44 Indicated potash resource - Grade-tonnage curve Continental Resource Management Pty Ltd 51

52 The potash resources that are within the Molecap Greensand but not within the phosphate resource envelope are listed in unrounded form at various lower-cut off grades in Table 8 and in appropriately rounded form in Table 9. Table 8 Indicated potash resources within Molecap Greensand but outside phosphate resource envelope by cut-off grade (unrounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (% K 2 O) 4.5 2,948, ,687, ,066, ,287, ,037, ,870, ,184, ,186, ,186, Table 9 Potash resources within Molecap Greensand but outside phosphate resource envelope by cut-off grade (rounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (Mt) (% K 2 O) Continental Resource Management Pty Ltd 52

53 The total Indicated potash resources (the potash resources within the Molecap Greensand) are listed in unrounded form at various lower-cut off grades in Table 10 and in appropriately rounded form in Table 11. Table 10 Total Indicated potash resources (unrounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (% K 2 O) ,698, ,984, ,168, ,034, ,370, ,718, ,468, ,497, ,497, Table 11 Total Indicated potash resources (rounded) Lower Cut-off Grade (% P 2 O 5 ) Tonnes (Mt) Grade (% K 2 O) Fe 2 O 3 : K 2 O ratio Continental Resource Management Pty Ltd 53

54 Only the modelled potash mineralisation within the Poison Hill Greensand that is within the potash resource envelope is considered to be a resource, as it is relatively low-grade and under the proposed mining and treatment schedule it is not considered viable to mine it for its potash content alone (Strategic Metallurgy Pty Ltd, 2015). The Inferred Resource is listed in unrounded form at various lower-cut off grades in Table 12 and in appropriately rounded form in Table 13. Table 12 Inferred potash resources within Poison Hill Greensand and within phosphate resource envelope (unrounded) Lower Cut-off Grade (% P 2 O 5 ) Tonnes Grade (% K 2 O) Fe 2 O 3 : K 2 O ratio , , ,920, ,923, ,047, ,064, ,171, ,171, Table 13 Inferred potash resources within Poison Hill Greensand and within phosphate resource envelope (rounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (Mt) (% K 2 O) Although the Poison Hill Greensand potash resources are relatively low-grade in comparison to those within the Molecap Greensand and of higher iron content, their contained glauconite might be separated during the processing of the associated phosphate mineralisation. Continental Resource Management Pty Ltd 54

55 The modelled potash mineralisation within the Gingin Chalk is all within the potash resource envelope and is considered to be a resource, although it is relatively lowgrade and has a relatively high iron content, as its contained glauconite might be separated during the processing of the associated phosphate mineralisation. The Inferred Resource is listed in unrounded form at various lower-cut off grades in Table 14 and in appropriately rounded form in Table 15. Table 14 Inferred potash resources within Gingin Chalk (unrounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (% K 2 O) , ,957, ,694, ,726, ,726, Table 15 Inferred potash resources within Gingin Chalk (rounded) Lower Cut-off Grade Tonnes Grade Fe 2 O 3 : K 2 O ratio (% P 2 O 5 ) (Mt) (% K 2 O) Above a cut-off grade of 1% K 2 O, the total Inferred potash resources (the potash resources within the Poison Hill Greensand and the Gingin Chalk) total 21,898,125 tonnes at a grade of 1.87% K 2 O with a Fe 2 O 3 :K 2 O ratio of Appropriately rounded the Inferred potash resources are 2% K 2 O with a Fe 2 O 3 :K 2 O ratio of 7. Continental Resource Management Pty Ltd 55

56 Resource Statement The Dinner Hill Deposit has, above a cut-off grade of 1.45% P 2 O 5, an Indicated Mineral Resource of 250Mt at 2.9% P 2 O 5. Within this phosphate resource there is an Indicated Mineral Resource of 155Mt at 4.1% K 2 O and an Inferred Mineral Resource of 20Mt at 2% K 2 O. An additional Indicated Mineral Resource of 18Mt at 3.8% K 2 O occurs marginal to the phosphate resource. The resources are set out in Table 16 and their location is shown in Figure 45. Table 16 Dinner Hill Deposit Resource Summary Resource Category Tonnes (Mt) P 2 O 5 (%) K 2 O (%) Phosphate Indicated Potash Potash resources included within Indicated the phosphate resource area Inferred 20 2 Totals Potash resource outside the phosphate resource area Indicated Total Potash Resources Indicated Inferred 20 2 Totals Note: Totals may differ from sum of individual items due to rounding Continental Resource Management Pty Ltd 56

57 Figure 45 Resource plan and drill-hole locations Continental Resource Management Pty Ltd 57