AI assistant
TURNSTONE RESOURCES LTD — Capital/Financing Update 2017
May 14, 2017
65958_rns_2017-05-14_a59dd3af-6e8e-46c4-9103-f25a114ad103.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
Davenport Resources Ltd
May 2017
**ASX
Announcement** 15
May
2017
==> picture [165 x 37] intentionally omitted <==
Progress to drilling approval at Küllstedt
COMPANY DETAILS
Davenport
Resources
Limited ABN :
64
153
414
852 ASX
CODE: DAV
PRINCIPAL
AND REGISTERED
OFFICE (&
Postal
Address) Davenport
Resources
Limited Level
14, 31
Queen
Street Melbourne
VIC
3000
W: www.davenportresources.com.au E: [email protected] P: +61
(0)
415
065
280
Capital
Structure 74.0M
Ordinary
shares 33.85M
First
milestone
shares 33.85M
Second
milestone
shares 6.2M
Unlisted
options
**BOARD
OF
DIRECTORS Patrick
McManus (Non-‐Executive
Chairman) Chris
Bain**
(Managing
Director) Rory
Luff (Non-‐Executive
Director) Angus
Edgar (Non-‐Executive
Director) Chris
Gilchrist (Non-‐Executive
Director)
Highlights
-
All local government meetings completed
-
Final drill tender evaluation underway
-
Environmental Impact Assessment due for completion early June
Davenport continues to make progress working with local government and mining authorities to receive drilling approval at the Küllstedt licence in Germany’s South Harz potash region.
All information meetings with local Mayors and regional administrators have been completed with positive support expressed for the exploration program. The Environmental Impact Assessment requested by the mining authorities is now close to finalisation with all data collection complete. The final document will form part of the information required for drilling approval.
Davenport is pleased with the tender response from experienced European drilling companies and is working with the leading tenderers to refine their proposal and we intend to appoint one shortly to undertake the drilling program. Shortly thereafter, the appointed driller is required under German regulations to submit a detailed operational and safety plan. Together with the Davenport work proposal this will be the basis of the drilling approval application to the Mines Authority and subsequent approvals. Davenport will continue to keep the market updated on the status of these final steps towards approval and subsequently the drilling at Kullstedt.
Managing Director, Chris Bain said “There is significant support and goodwill from local authorities regarding Davenport’s exploration plans. Whilst the Government controls the timing of each step, we are working closely with all levels of authority to educate them on the exploration process and pioneer the pathway within the legislative framework to achieve drilling approval.”
Davenport Resources Ltd
May 2017
About Küllstedt
Davenport has two exploration licences in the South Harz potash region of Thüringen state in central Germany, (Figure 1) Küllstedt (241km2) and Gräfentonna (216km2). Both were granted on 12 January, 2015 for 5 years with an option to renew for an additional three years.
==> picture [382 x 299] intentionally omitted <==
Potash mining in the South Harz Potash District began with the sinking of the first exploration hole in 1888. In the following years, extensive exploration for potash resulted in the successful development of multiple small and medium sized potash mines. The most important and longest operating mines in the South Harz Potash, (Table 1) produced over 180 million tonnes of potash between 1896 and 1993.
| Mine and potash plant |
Operating period |
Final decommissioning |
Total potash produced **as K2O ** |
|---|---|---|---|
| Sondershausen | 1896 - 1991 | 31 December 1991 | 42.8 million tonnes |
| Bischofferode | 1911 - 1993 | 31 December 1993 | 60.8 million tonnes |
| Sollstedt | 1905 - 1991 | 31 December 1991 | 17.6 million tonnes |
| Bleicherode | 1902 - 1990 | 31 December 1991 | 33.1 million tonnes |
| Volkenroda | 1909 - 1991 | 31 December 1991 | 27.4 million tonnes |
Table 1 Past Potash producers of the South Harz region
Davenport Resources Ltd
May 2017
Following German reunification the last active mines and potash processing plants in the South Harz Potash District were closed and decommissioned by 1993. Today the only potash production in the district is the DEUSA International GmbH, Kehmstedt solution operation.
The Küllstedt licence area underwent several phases of past exploration with a total of 34 potash exploration holes drilled through to the late 1970s. The historic information has been analysed by Davenports consultants, ERCOSPLAN and an Exploration Target estimated of between 4.055 and 5.141 billion metric tonnes grading between 7.2% and 25% K2O. (Refer: Davenport Resources Limited Replacement Prospectus 24 October 2016, p30) The Potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration to estimate a mineral resource and it is uncertain if further exploration will result in the estimation of a mineral resource.
Davenport is currently working to obtain drilling approval to drill up to four new holes in the Küllstedt licence to verify the historic data. This is an important first step to upgrading part of the Exploration Target at Küllstedt to a JORC Resource.
ENQUIRIES
Investors: Media: Chris Bain John Beveridge Managing Director Monsoon Communications Davenport Resources Ltd 03 9620 3333 or 0401 998 882 +61 (0) 413 275 756 [email protected] [email protected]