FYI Resources’ (the “Company” or “FYI” is pleased to provide an update to the market on the recently completed twin drill hole at the Sino-Lao Potash Project in Laos, PDR.
Highlights of drill hole RZK-01A RZK-01A confirms potash intercepts reported for historical drill hole ZK-01 and validates the quality of historical data Significant potash interval of ~220m being from 208m–428m @ 10.9% K2O High-grade sylvinite mineralisation at the top of the potash interval (208–210m) @ 26.8% K2O Analysis indicates a predominant carnallitite mineralogy with multiple significant intercepts of greater than 12% K2O Negligible insolubles suggest good process mineralogy likely.
RZK-01A was the first drill hole undertaken by FYI on the Sino-Lao project since committing to transaction discussions and commencing project due diligence. The Company is continuing discussions with the owner of the Sino-Lao project with a view of entering into a joint venture (or other suitable transaction) with the project owner. The Company has no reason at this stage to believe that those discussions will not progress to a binding agreement but can give no assurance that the discussions will be successful.
The drill hole was in the first instance designed to verify the quality and quantity of mineralisation reported for the original drill hole ZK-01 and secondly to provide confidence in the historic drilling and other supporting data on the project.
While the twin drill hole RZK-01A confirmed historical results, the Company is of the view that the thickness of mineralisation is not typical of mineralisation in the project area. The site of the drill hole was chosen because earlier work by the project owner indicated structural thickening of the mineralised horizon in this area due to salt doming. The average thickness of mineralisation across the project has not been confirmed by FYI and requires further drilling.
The laboratory analysis (Table 1) supports the previously reported downhole geophysics results on RZK-01A (ASX release 17 October 2016
FYI Price at posting:
8.4¢ Sentiment: Hold Disclosure: Held
