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GALAN LITHIUM LIMITED — Capital/Financing Update 2011
Oct 2, 2011
64995_rns_2011-10-02_833a037b-05ae-4c26-a721-a07b560f2104.pdf
Capital/Financing Update
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ACN 149 349 646
ASX ANNOUNCEMENT
30 September 2011
COMPANY UPDATE
The Directors of Dempsey Minerals Limited (“the Company”) provide an update on recent activities of the Company and the likely events for the Company in the coming months.
New Projects
The Company has elected not to exercise the Cacule Option Agreement following exploration and field reconnaissance work not providing satisfactory encouragement. A small drilling programme provided sub-economic results. The Company incurred approximately AUD$150,000 to undertake works to satisfy requisite due diligence assessment to the Company’s satisfaction over the Cacule Manganese project
In the meantime, the Company is earning into the Dandaragan Phosphate Project and the Cooljarloo Mineral Sands Project and has continued work on the Dandaragan Project while continuing with its corporate strategy to implement a growth strategy and to seek out further exploration, acquisition and joint venture opportunities.
Dandaragan Phosphate Project
The Dandaragan Phosphate (and Glauconite) Project is located approximately 150km north of Perth centred on the town of Dandaragan. The project comprises Exploration Licence E 70/3741 and lies within the Northern Perth Basin which is more renowned as a major mineral sands mining province. The Dandaragan Project hosts numerous Phosphate occurrences occurring within Cretaceous sediments of the Dandaragan Trough. The origin and style of this mineralisation is unlike other major rock Phosphate projects in Australia, such as Phosphate Hill (Incitec Pivot) and Wonarah (Minemakers). Phosphate mineralisation at Dandaragan occurs as nodules and precipitates within sandy sedimentary host rocks similar to that observed in the giant Phosphate deposits of Florida, USA.
Phosphate rock is one of the world’s most important sources of phosphorus which is an essential nutrient for plants and one of the key ingredients in the production of fertilisers for use in agriculture. Phosphate is also used in detergents, deflocculants, animal feeds and metal treatment. By far the largest application is in fertilisers, with Australia importing phosphate rock from countries such as Morroco, Jordan and the USA for the production of superphosphate.
A first-pass aircore exploratory drilling program of 12 drill holes for 980m has been planned for the Dandaragan Phosphate Project for late 2011. The completion of this program is pending Aboriginal Heritage Clearance which is anticipated to be finalised in late-October, with drilling proposed to commence in November pending drill rig availability.
Within the project area several known phosphorous bearing prospects have been identified. These all occur within the more favourable western margin of the trough and are characterised by phosphate nodules and phosphatised wood found within greensand units.
Potential also exists within the area for Potassium (K2O), which is the key component of Potash fertiliser (K2SO4), which occurs within glauconite, the key component of the greensands of the Dandaragan Trough. The market for potash has, in recent times, been similar to the phosphate market following worldwide increase in demand for fertilisers.
Level 2, 38 Richardson Street, West Perth, WA 6005 PO Box 396, West Perth, WA, 6872 Ph. +61 8 9322 6283 Fax. +61 8 9322 6398
Cooljarloo Mineral Sands Project
The Cooljarloo Heavy Mineral Sands (HMS) Project comprises Exploration Licence E70/3065 situated in the Northern Perth Basin of WA. The licence lies approximately 150km north of Perth within an active minerals sands mining district. The Cooljarloo Project abuts Tiwest’s Cooljarloo mine and Image Resources NLs’ Cooljarloo heavy mineral sands discoveries.
The Northern Perth Basin hosts a series of strandlines between the coastline and the Gingin escarpment. HMS mineralisation occurs in three different depositional environments in the Cooljarloo area; Strandline mineralisation close to the surface, so called “mid-level” mineralisation and basement (Mesozoic) mineralisation. These strandlines host large concentrations of heavy mineral sands principally containing ilmenite, rutile and zircon. Tiwest’s Cooljarloo HMS mine has been operating since 1989 and Tiwest has reported production of more than 700,000 tonnes of heavy mineral concentrate a year using a dredging operation and dry mining techniques. The Cooljarloo Project is situated in a particularly active area of mining and recent exploration activity for HMS but has yet to be adequately explored.
For further information contact:
Nathan McMahon Non-Executive Chairman Email: [email protected] Phone: +61 8 9322 6283
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Level 2, 38 Richardson Street, West Perth, WA 6005 PO Box 396, West Perth, WA, 6872 Ph. +61 8 9322 6283 Fax. +61 8 9322 6398 www.dempseyminerals.com.au