ASX Release ? 29 January 2009 Maiden JORC Resource ? Lake Chandler Potash Project ActivEX (AIV:ASX) is pleased to announce its maiden resource for the Lake Chandler Potash Project. The project (Mining Lease - M77/22) is located 45 kilometres north of Merredin (300km east of Perth) in the wheatbelt of Western Australia. Potash extraction occurred at the site in the immediate post-war period. ActivEX Limited (?ActivEX?) has requested independent consulting geologists Hellman & Schofield Pty Ltd (?H&S?) of Sydney, Australia to complete a resource estimate for its Lake Chandler Potash Project in Western Australia. The reporting of these new resources is in accordance with the 2004 JORC Code. All resources are in the Inferred Resource category as follows:- Table 1 Lake Chandler Potash Project Inferred Resources Volume (m3) Tonnes K2O % 3,611,891 5,779,025 5.73 (significant figures does not imply precision, no cut off grade used; default bulk density of 1.6t/m3) Infill drilling is required to upgrade the Inferred Resource estimate to Indicated and Measured Resource categories. ActivEX is reviewing mining and treatment options for the deposit and production rates of 150,000 to 300,000 tonnes per annum are being considered. At these rates a mine life of 20 to 30 years is envisaged. Summary The potash mineralisation at Lake Chandler occurs as alunite (KAl3(SO4)(OH)6) mineralisation hosted in a flat lying evaporitic sequence (playa lake) of Recent age. ActivEX plans to review options to mine the potash deposit using an open pit operation and the resources have been classified on this assumption. The new resources are based on rotary air blast (RAB) and aircore drilling results from two exploration campaigns in the 1980s for a total of 112 holes. Drill hole spacing was approximately 200 by 50m (see figure below) with samples taken over 1m intervals to an average depth of 6m. Samples were assayed for K2O using fusion and AAS or ICP methods. Sample recoveries were recorded as ?good? during the drilling campaigns. Results from six twinned holes during the second aircore program indicate good correlation with the RAB drilling for the neighbouring mineral intervals. No analytical standards or duplicate samples 2 were collected during the drilling and no measurements of bulk density were made. A assumption for bulk density (in situ) of 1.6t/m3 has been used for the resources. A digital wireframe was created from a geological interpretation of the prospective grey and white alunitic clays. A total of 315, one-metre composites were used in the resource estimate with the data modelled using Ordinary Kriging. The resources were reported using the wireframe shape as a constraint with no K2O cut off grade. ActivEX plans to mine the whole deposit hence no cut off grade was used. A diagram of composite grade versus the block grade is included below for the 279m level. A historical resource estimate by previous explorers using a sectional polygonal method gave comparable results. 3 0.00 - 4.500 4.500 - 5.500 5.500 - 6.00 6.00 - 6.500 6.500 - 7.00 7.00 - 100.00 model extents K2O range blocks this layer only 9200 9600 10000 10400 19600 20000 20400 20800 Plan Plot of K2O RL slice: 279.0 +/- 0.5 East North 0.00 - 4.500 4.500 - 5.500 5.500 - 6.00 6.00 - 6.500 6.500 - 7.00 7.00 - 100.00 K2O range point data Univariate Statistics mean: 5.18579 variance: 2.37653 coef varn: 0.29727 minimum: 1.6500 1st quart: 4.100 median: 5.600 3rd quart: 6.400 maximum: 7.800 no. of data: 410 Lake Chandler ? Block Grade Distribution and Drillholes 279m RL (local grid bearing 301?to MGA94 Zone 50). There is exploration potential for additional mineralisation peripheral to the current resource within the confines of the lake margin. Future work programs planned by the Company are designed to investigate optimum treatment methods, market potential of the products and the economics of the project.
AIV Price at posting:
6.8¢ Sentiment: Buy Disclosure: Not Held
