REWARD MINERALS LTD - ASX: RWD

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Description

Reward Minerals is a potash, base metals and gold exploration company listed on the Australia stock exchange (ASX Code: RWD). Reward Minerals has an impressive portfolio of advanced exploration projects located within Australia.

Adavale Project

The Adavale prospect area is known to host a very large salt deposit which in some areas contains significant potash values (Potassium Chloride – MOP). The project area is near the coal mining site of Blackall 600km inland from Gladstone. In addition to their Potash potential the Adavale deposits could readily provide salt for the manufacture of caustic soda which is utilised in substantial quantities at the Gladstone Alumina operations of Comalco Ltd. Data available suggests that annual imports of caustic soda to Gladstone are of the order of 1.5 million tonnes at a cost in excess of $500 million.

Reward’s Adavale Potash Project tenements are over Freehold land. The Company had executed access agreements with holders of the two pastoral leases covering the Adavale prospect area and received clearance from the Queensland Department of Mines & Energy. During the December quarter, in line with recent legislation, Reward sought Heritage clearance for the two drill sites from the relevant Traditional Owners of the area. The Company has been advised that the Bidjara people wish to invoke Native Title Protection Conditions (NTPC’s) over all three of Reward’s tenements.

The resultant delay of Heritage clearance for the proposed drill hole (Bury 1A), the access agreements with the Freehold Title Owners have now expired and are currently being renewed. The Company is also presently involved in negotiations with several parties interested in farming in to the Adavale prospect tenements. The Company will advise the Market and Shareholders should these negotiations result in a satisfactory outcome.

Gascoyne Project

The Gascoyne project comprises 13 granted Exploration Licenses, covering approximately 2600 sq km’s, within the Carnarvon Basin in the Western Australia.

The Carnarvon Basin has a geological setting similar to the Canadian Basins that host the Saskatchewan deposits. Logistically the project is adjacent to the National Highway and has existing port facilities and salt works nearby. The oil exploration efforts in the area have defined the basin which Reward has use for its modelling and defined its potash drilling targets.

Officer Project

The Officer project comprises 8 Exploration Licenses, covering approximately 1500 sq km’s, within the Officer Basin in the Western Australia. The Officer Basin is a very large sedimentary basin with extensive salt horizons, thus having the potential to host a ‘world class’ potash deposit. Major salt diapers are present at surface (Madley and Browne) and seismic survey have delineated sub surface areas of salt uplift.

Rodinga Project

The Rodinga project comprises 6 granted Exploration Licenses, covering approximately 5000 sq km’s, within the Amadeus Basin in the Northern Territory. The basin geometry is akin to the Spanish basins that host the Cardona deposit/s. Seismic surveys conducted for oil and gas exploration have interpreted the evaporites close to the surface, facilitating economical exploration and subsequent exploitation of potential potash horizons. Potash (sylvite) has been logged in oil wells drilled in the area suggesting the basin ‘went to dryness’ and thus hosts a deposit.

Willara Project

The Willara project comprises 5 Exploration Licenses, covering approximately 1400 sq km’s, within the Canning Basin in the Western Australia. The Canning Basin was the subject of a potash exploration programme carried out by BHP in the 1980’s. Whilst no potash was encountered the drilling delineated extensive salt horizons at depths of between 900 and 1800 metres. Open file reports on the programme concluded that the area was highly prospective and further drilling was warranted. No further work was done however. Reward has pegged what it believes to be the most prospective areas. Subsequent pegging by Rio Tinto surround Rewards holdings and has the basin completely covered.

Lake Disappointment Project

The Lake Disappointment project is comprised of 7 Exploration Licenses covering 1600sqkm’s over the playa lake of the same name. An Access and Heritage agreement was executed, in February 2006, between the Martu People and the Company in respect of Exploration Licenses E69/2156-2159 and E45/2801-04. The resource estimates for total contained Sulphate of Potash (SOP) are as follows:

Lower estimate - 7,705 Mt @ 3.17kg/t for 24.43 Mt K2SO4
Upper estimate - 8,635 Mt @ 3.17kg/t for 27.37 Mt K2SO4

The difference between the upper and lower figure relates to depth and area assumptions for the lake margins.

The average potassium sulphate (SOP) content per tonne of lakebed sediment is derived from the analysis of the whole drill core. The average of 3.17kg/t translates to 6.17kgSOP/m3 of lakebed material. Higher grade areas of the lake reported 10.40 kgSOP/m3. In practice the recovery of SOP will be via the (solar) evaporation of the entrained brines. Brine samples drawn from drill holes have returned SOP values as high as 20.01g/L. Of significance is the average (arithmetic mean) SOP value of 12.56g/L for all brine samples collected. Vigorous brine flow was encountered in all of the holes drilled. Brine flow parameters are currently being determined.

Mine For

potash, base metals, gold

Location of operation(s)

Western Australia, Northern Territory, Queensland

Australian Basins

Officer, Carnavron, Amadeus, Canning

Address

159 Stirling Hwy
NEDLANDS, WA, AUSTRALIA

Phone

(08) 9386 4699

Email

Website

http://www.rewardminerals.com

Last Updated

17/1/2011