Potash West shares jumped by 25 per cent on the Australian Securities Exchange today, after the Perth-based miner reported encouraging initial results from its latest drilling program in the Mid West.
The company announced today it had recorded 20 metre-plus intersects of glauconite rich greensands through drilling on its Dandaragan Trough potash project in the Mid West.
Potash West drilled total of 41 widely spaced holes in November and December, with asset results received from 18 holes drilled in November.
The drilling program is expected to be complete by the end of February.
“These results indicate that our geological model is holding true and that the best target areas for glauconite are on the slopes of hills, where there is less laterite formation,” managing director Patrick McManus said.
“From this work, and the assays to date, we have initially identified two areas which meet our criteria and where we will return for further drilling.
“This will allow identification and resource drilling to commence in April 2012.”
By close of trade today, Potash West shares were up 25 per cent, at 27.5 cents.
Earlier this week, Potash West announced it had succeeded in producing potash from glauconite deposits found at the Dandaragan Trough.
Mr McManus said the company’s research and development program had identified a number of process options to produce potash from glauconite mineralisation which would be further investigated throughout 2012.
