Attachment 2: Premises location (in violet); proposed disturbance area shown in red.

Lake Wells Potash Project Pilot Evaporation Pond Trial

Appendix 3A (proposed activities)

Work Approval application submitted by Australian Potash Limited for the conduct of solar salt production trials on tenements E38/2742

21 December 2016

Version Author Changes Date

0.1 MS Draft 1 21 December 2016

: 31 Ord Street, West Perth WA 6005 postal: PO Box 1941, West Perth WA 6872 +61 8 9322 1003

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Table of Contents 1 Introduction ...... 3 1.1 Ownership ...... 3 1.2 Project Objectives ...... 3 2 Scope and scale of proposed activities ...... 4 2.1 Pilot Evaporation Ponds ...... 4 2.1.1 Size ...... 4 2.1.2 Construction method ...... 5 2.1.3 Source of construction material ...... 6 2.1.4 Operational management plan ...... 6 3 Key infrastructure, equipment and processes ...... 7 4 Emissions discharge points ...... 7 5 Unique or non-industry standard processes or operations ...... 8 6 Risk Assessment ...... 8 7 Existing Environment ...... 9 7.1 Geology ...... 9 7.2 Topography and soils ...... 10 7.3 Climate ...... 11 7.6.1 Regional context ...... 14 7.6.2 Local conditions ...... 15 7.7 Fauna and fauna habitats ...... 16 7.8 Conservation Areas / Specified Ecosystems ...... 16 8 References ...... 20

List of Figures Figure 1-1: Lake Wells surface geology and tenure ...... 3 Figure 2-1 – Proposed pilot pond layout ...... 5 Figure 2-2: Schematic cross section of pond and perimeter berm ...... 6 Figure 7-1: Lake Wells surface topography ...... 12 Figure 7-2: Palaeochannel stratigraphy – schematic cross-section ...... 13 Figure 7-3: Inferred palaeochannel position beneath Lake Wells playa ...... 13 Figure 7-4: Location of nearest registered water bore, relative to trial pond site ...... 14 Figure 7-5: Vegetation communities identified in proposed pilot trial area ...... 18

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List of Tables Table 2-1: Key characteristics (Category 5 prescribed premises) ...... 4 Table 6-1: Risk Matrix ...... 8 Table 6-2: Likelihood definitions ...... 8 Table 6-3: Consequence definitions ...... 9 Table 7-1: Rainfall intensities (mm/h) - various durations and recurrence intervals ..... 11 Table 7-2: Remaining Beard Vegetation Associations within Western Australia (DAFWA, 2011) ..... 15 Table 7-3: Vegetation Communities identified within the survey area ...... 15 Table 7-5: Assessment of clearing for pilot trial activities against native vegetation clearing principles ...... 18

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1 Introduction

The Lake Wells Potash Trial (LWPT) is located in the north eastern part of the Eastern Goldfields of Western Australia, approximately 160 km NNE of Laverton (Figure 1). The project area is accessed from the township of Laverton via the Cosmo Newbery Road, thence north on the Prenti Downs Road, and then eastward on the Lake Wells Station access road. Access within the project area is via existing station tracks, cleared fence lines and historic gridlines. The land is characterised by sparse vegetation and relatively flat terrain around playa lake areas.

1.1 Ownership The LWPT is located on tenement E38/2742, an exploration tenement held by Lake Wells Exploration Pty Ltd (Figure 1-1). Tenement details and occupier status information are provided in Attachment 1A. Australian Potash Ltd (formerly Goldphyre Resources Limited) entered into an agreement with Lake Wells Exploration Pty Ltd in December 2015 to facilitate potash exploration (including, if required, bulk sampling) by Australian Potash on E38/2742. A copy of the agreement is provided in Attachment 11. The tenement on which the proposed trial will take place is located on Vacant Crown Land and overlies the Lake Wells Pastoral Lease. The 237,989 ha station, owned by Mr Les Smith and Ms Jenny Smith, is currently stocked.

Figure 1-1: Lake Wells surface geology and tenure

1.2 Project Objectives The purpose of the proposed works is to generate a bulk sample of potassium salt under field conditions. Information obtained during the trial will contribute to Australian Potash’s understanding of factors influencing operational efficiency and product quality. The proposed trial builds on an earlier programme of production well pump testing carried out in October 2016, under a Programme of Works (POW number 60071) approved by the

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Department of Mines and Petroleum. Information from the proposed trial will be used to inform detailed project design, assessment and planning.

2 Scope and scale of proposed activities

This works approval and licence application relates to a pilot trial for production of potassium sulphate (potash) by solar evaporation. Details of key characteristics relevant to Category 5 prescribed premises activities are summarised in Table 2-1. Table 2-1: Key characteristics (Category 5 prescribed premises)

Project Element Description

Operational purpose Pilot trial

Location of operations Approximately 160 km NNE of Laverton, in the Shire of Laverton

Annual production 20 tonnes of potash salts

Project duration 12 months

Processing method Solar evaporation

Tailings No tailings will be produced

Waste Up to 500 tonnes of waste salts (halite) will be produced

Reagents and fuels Diesel will be used to fuel a generator to drive the pump used to abstract brine. No other reagents are required.

Product transport Product will be transported to Perth by road in 1 tonne bulka bags

Workforce 1 – 2 people, who will be accommodated at the local pastoral station

Brine abstraction 650m3

Insignificant – domestic (potable) water requirements will be provide at the pastoral Other water requirement station accommodation

Power requirement Minimal power required for operation of the brine bore pump for initial pond filling

Estimated ground Up to 0.8 ha disturbance

Land rehabilitation At completion of the trial, disturbed areas will be backfilled and used as a rehabilitation trial area to test procedures for re-establishment of typical lake edge vegetation.

2.1 Pilot Evaporation Ponds 2.1.1 Size The proposed size of the pilot evaporation pond complex will be a total of 52m wide by 85m long. The pond complex will consist of 4 individual ponds as shown in Figure 2-1. It is proposed that the total disturbance area will be in the order of 80m wide by 100m long to allow for laydown areas, topsoil stockpile zones and an access track around the pilot pond facility. The total estimated disturbance arising from project implementation will be 8,000m² (0.8 ha).

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Figure 2-1 – Proposed pilot pond layout

2.1.2 Construction method The pilot ponds will be constructed using a front-end loader. The proposed area will first be stripped to remove a nominal 150mm thickness of top soil. The topsoil will be stored in stockpiles or windrows around the external perimeter of the pilot ponds. The height of the topsoil stockpiles will not exceed 2m. The exposed subsoil within the area of the ponds will then be pushed outwards to form the perimeter berm walls of the ponds, while ensuring that the floors of the ponds are flat and horizontal. The berm walls will be 0.8m high and will have a 1m wide crest and 1:1.5 side slopes on both the inner and outer faces of the berm (Figure 2-2). The internal area of the ponds will be fully lined with 1.5mm HDPE liner (or equivalent geosynthetic material). The liner will be laid in sheets and welded in situ to form an impermeable barrier to brine seepage. The liner will be keyed into the berms walls along the top of the crest to ensure that the liner does not slip.

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Figure 2-2: Schematic cross section of pond and perimeter berm

The pilot pond complex will consist of 4 ponds with the following internal dimensions:  Pond 1 – 45m x 45m  Pond 2 – 6.7m x 7.5m  Pond 3 – 5m x 5m  Pond 4 – 5m x 5m Once the ponds have been constructed, an access platform made from timber will be installed. This will permit access to the central area of the ponds to facilitate level measurement and the taking of brine samples. The platform will extend 3m into the pond from the pond wall. This platform will be fabricated off site and delivered to site and installed. An existing access track will need to be diverted around the new pilot ponds. 2.1.3 Source of construction material Construction material for the pilot ponds will be sourced from local in situ soils. Subsoil within the pond footprints will be excavated from the base area of the ponds and used to construct the berms. The 1.5mm HDPE liner used to line the ponds will be purchased and delivered to site. 2.1.4 Operational management plan The primary operational aspects of the pilot ponds are outlined below. Once the ponds have been constructed, the first and largest pond will be filled with brine from an existing production well located within 50m of the pilot complex. Process water from the production bore will be pumped into the first pond (the “pre-concentration pond”) at a flow rate of around 6 L/s. It is expected that a pond will be filled to a depth of approximately 0.4 m in 2 to 3 days. Brine in the pre-concentration pond will be allowed to evaporate, concentrating the amount of potassium in the brine by initially precipitating sodium and chloride out of solution. The brine will continue to evaporate in the pre-concentration pond until just before the point of potassium salt precipitation. Once this target point is achieved, the brine, which will be enriched in potassium and magnesium, relative to the brine feedstock, will be transferred to the second largest pond for the precipitation of potassium minerals. The approximate ponding depth of the pre-concentration pond will be 0.3-0.4m, giving a working volume of about 650 cubic meters of brine, plus an allowance for storage of rainfall up to approximately the 1 in 50 year, 24 hour storm event. Over the course of 6-8 months (depending on evaporation rate), the brine will be concentrated and transferred in succession to the smaller test ponds for controlled precipitation of the salts. During this time the brine will be sampled weekly in order to

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www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) evaluate the rate of evaporation and to forecast the progression of the brine through the various ponds. Mobile pumps and hoses will be used to transfer the brine between ponds. Upon completion of the evaporation cycle, approximately 20 tonnes of product salts will be harvested and reclaimed from the smallest test ponds using equipment such as a small- sized back-hoe or bobcat loader. The harvested salts will be stored in 1 tonne bulk bags for later use in laboratory testing. By the end of the trial up to 500 tonnes of predominantly halite salt (sodium chloride - NaCl) will have deposited in the largest pre-concentration pond. The waste salt will also include a small proportion (less than 5%) of bitterns (magnesium and calcium salts). The waste salt is a by-product and is not required for process development use. The halite- dominated waste salt will be retained in the lined ponds and covered first with subsoil by pushing in berms and then with topsoil salvaged during the initial stripping operation. The rehabilitated pond area will be used to test the effectiveness of revegetation procedures. Information from the rehabilitation trials will be used in developing a mine rehabilitation and closure plan, in the event the project progresses to commercial scale operations.

3 Key infrastructure, equipment and processes

The key infrastructure associated with the proposed trial will be the pilot ponds themselves. Other existing infrastructure and equipment that will be used in the process of constructing and operating the pilot ponds include:  Front end loader – will be used for the construction of the pilot ponds, stockpiling of top soil and the diversion of the existing access track;  Existing bore and pump – these are located alongside the proposed pilot ponds and will be used to initially fill the pilot ponds with brine;  Existing access track – this will be used to access the pilot ponds. The existing track will need to be partially re-aligned around the new pilot pond facility;  Portable pump, genset and hose – this will be used from time to time to pump the brine from one pond to another;  Bobcat – this will be used from time to time to push the precipitated halite into small stockpiles within the pond promote drainage of the entrained brine. The bobcat will also be used to harvest the salts from the product ponds and load them into 1 tonne bulka bags.

4 Emissions discharge points

No emissions to atmosphere, to groundwater or to the playa surface are likely, except for the possible generation of dust during earthworks for pond construction. The extent of proposed clearing is very small (up to 0.8ha) and the impacts of dust deposition beyond the disturbance footprint are not likely to be significant. Australian Potash will avoid clearing operations during very windy conditions. If necessary, dust can be controlled by conventional means (water sprays and/or water cart). No airborne emissions are likely from the salt ponds. The ponds are mostly wet and some degree of crusting is expected to occur as the salt dries, making the surface less susceptible to wind erosion. All ponds will be fully lined with a low permeability geosynthetic liner (1.5 mm HDPE or equivalent) to prevent brine seepage through the base or sides of the ponds.

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5 Unique or non-industry standard processes or operations

The proposed trial will not involve any unique or non-industry standard processes or operations.

6 Risk Assessment

Australian Potash has completed a preliminary risk assessment of the activities proposed under this works approval / licence application. The assessment does not pre-empt the DER’s own assessment of this project, but is offered to identify the potential environmental issues assessed in Attachment 6 of this works approval application. No inherently “High” or “Extreme” risk events have been identified in connection with the proposed trial. Of the 11 risk events considered, 5 were classified as “Medium” and 6 were classified as “Low”. With proposed management controls in place, all residual risks were classified as “Low”. Information on the biophysical setting within which the trial would take place is provided in Section 7, below. Selected technical studies used to prepare the “Existing Conditions” summary are appended to the works approval (refer Attachments 9A, 9B and 9C). Table 6-1 presents the risk matrix used in in conducting the preliminary risk assessment. The risk matrix is sourced from DER Guidance Risk Assessments - Part V, Division 3, Environmental Protection Act 1986 (November 2016). Tables 6-2 and 6-3 present probability and consequence definitions used recommended by the DER and used by Australian Potash when conducting the preliminary risk assessment for the Lake Wells potash trial. A risk register with further details on inherent and residual risk assessments for construction and operations of the Lake Wells potash trial is presented in Attachment 6 of the works approval application.

Table 6-1: Risk Matrix

Consequence Likelihood Slight Minor Moderate Major Severe Almost certain Medium High High Extreme Extreme Likely Medium Medium High High Extreme Possible Low Medium Medium High Extreme Unlikely Low Medium Medium Medium High

Rare Low Low Medium Medium High

Table 6-2: Likelihood definitions

Likelihood Scale Description Almost certain The event is expected to occur in most circumstances Likely The event will probably occur in most circumstances Possible The event may occur at some time Unlikely The event may occur only in exceptional circumstances Rare The event is not expected

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Table 6-3: Consequence definitions

Consequence Description (environmental) Description (public health & scale amenity)

 Catastrophic on-site impacts  Loss of life  High level (or more severe) impacts off-  Health impacts require high site, but in close proximity to site level or ongoing medical  Mid-level, wide scale impacts off-site treatment Severe  Medium term or longer (including  Specific consequence criteria permanent) impacts on an area of high (for public health) are conservation value or special significance significantly exceeded  Specific consequence criteria (for  Local scale impacts: environment) are significantly exceeded permanent loss of amenity  High level on-site impacts  Health impacts require mid-  Mid-level off-site impacts at local scale level or frequent medical  Low level off-site impacts over wide area treatment  Specific consequence criteria Major  Short term impact to an area of high conservation value or special significance (for public health) are exceeded  Specific consequence criteria (for environment) are exceeded  Local scale impacts: high level impact to amenity  Mid- level on-site impacts  Health impacts require low-  Low-level off-site impacts at local scale level or occasional medical  Minimal off-site impacts over wide area treatment  Specific consequence criteria Moderate  Specific consequence criteria (for environment) at risk of not being met (for public health) are at risk of not being met  Local scale impacts: mid- level impact to amenity  Low level on-site impacts  Specific consequence criteria  Low-level off-site impacts at local scale (for public health) are met  Local scale impacts: low level Minor  No detectable off-site impacts over wide area impact to amenity  Specific consequence criteria (for environment) are met  Minimal on-site impacts  Specific consequence criteria (for public health) are met Slight  Specific consequence criteria (for environment) are met  Local scale: minimal impacts amenity

7 Existing Environment

7.1 Geology The proposed pilot trial area is underlain by Archaean greenstone basement rocks. The Archaean rocks are unconformably overlain by either very gently dipping to flat-lying Proterozoic Earaheedy Group rocks (Nabberu Basin) or unconformable flat lying Permian (Paterson Formation) remnants. Most of the Archaean rocks underlying the LWPP are obscured by Cainozoic (dominantly Quaternary) deposits of kopi dunes and playa lake sediments. These sediments consist of Quaternary sheet wash (silt, sand, gravel), kopi and quartz sand dunes, silcrete, calcrete and transported pisolitic laterite. The sand dunes form irregular groups with dominant E to NE trends. The lake sediment cover in the area proposed for the trial ponds comprises soft interbedded clay and poorly sorted quartz sand and grit. The dune systems surrounding the playa consist of white-light grey friable to cemented in part kopi (gypsiferous) material and red-brown fine to medium grained well rounded, mainly well sorted quartz sand of aeolian origin.

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7.2 Topography and soils The topography in the project area is predominantly of low relief and is characterised by ephemeral salt lakes and low kopi dunes (Plate 1). Archaean outcrop is practically non- existent except for occasional low ridges of resistant rock. Based on geographic information provided by DAFWA (2014), the proposed pilot trial area is located within the Leemans Sandplain Zone 274 of the Murchison Province 27. The zone is located in the south-western arid interior between Lake Wells and Minigwal to the east of Laverton (Tille, 2006). The Leemans Sandplain Zone is characterised by sandplains (with some gravel plains, mesas and salt lakes) on granitic rocks of the Yilgarn Craton (Eastern Goldfields Superterrane). The pilot trial area lies within the Carnegie soil landscape system (274Ca). The Carnegie System is characterised by salt lakes with fringing saline alluvial plains, kopi dunes and sandy banks, supporting halophytic shrublands and Acacia tall shrublands (Tille, 2006). Soil types are dominated by transported regolith on and adjacent to playa lakes. Coarse- grained evaporite deposits (halite, gypsum) are common on the playa surface, with surficial silts, sands and clay deposits on the margins of the playa system. Brown-grey, soft, plastic clays are common on some playa lake surfaces. Sparse to variably vegetated (Spinifex sp, Acacia sp and Eucalypt sp) sand and kopi dunes lie adjacent to the playa surface. Very fine grained, friable to cemented kopi material and red-yellow, moderately well sorted, weak to moderately well consolidated quartz sand (minor clay/silt component) form interlayered dune systems.

Plate 1: Lake Wells landscape: playa edge in foreground, kopi dune in background

Published maps of acid sulphate soil risk show the Lake Wells playa as an area having a high probability of acid sulphate soil (ASS) occurrence. Australian Potash commissioned Galt Environmental to conduct a preliminary ASS assessment of the proposed pilot trial area. The investigation found no evidence of ASS in the proposed works area. A copy of the ASS investigation report is provided in Attachment 9C.

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7.3 Climate The region has a semi-arid climate characterised by low rainfall and a large temperature range. The average annual rainfall is approximately 200mm, but may vary annually from 100 to 500 mm. The winter months of May to August have the highest and most reliable average rainfall, but intense rainfall can occur periodically in the summer months of December to April as a result of tropical cyclones. Rainfall intensity, frequency and duration information for the project area is summarised in Table 7-1. The project area experiences hot dry summers and cold winters, with average maximum temperatures of around 300C. Day time temperatures can exceed 400C during the summer (December to February), with overnight temperatures below zero are possible during the winter (June to August). Pan evaporation rates for the area are estimated to be 3,600mm/year1. As such, the potential evaporation rates in the area far exceed the annual rainfall depth

Table 7-1: Rainfall intensities (mm/h) - various durations and recurrence intervals

Duration 1 Year 2 Year 5 Year 10 Year 20 Year 50 Year 100 Year Duration (mins) ARI ARI ARI ARI ARI ARI ARI (hours) 5 77.3 105 156 189 232 291 339 0.083 10 71.8 97.5 145 177 216 272 317 0.167 20 58.5 79.8 120 147 180 228 266 0.33 30 43.1 59.1 90.1 111 138 175 205 0.5 60 35 48.1 74 91.7 114 146 172 1 120 22.9 31.7 49.7 62.2 78 100 119 2 180 13.9 19.4 31.2 39.5 50 65.2 77.9 3 360 10.2 14.3 23.2 29.7 37.9 49.8 59.7 6 720 5.85 8.28 13.9 18 23.2 30.9 37.5 12 1440 3.43 4.88 8.36 11 14.3 19.2 23.4 24 2880 2.08 2.97 5.12 6.73 8.78 11.8 14.5 48 4320 1.26 1.8 3.08 4.04 5.26 7.08 8.63 72

7.4 Surface Hydrology The LWPT is located on and adjacent to the south western part of the Lake Wells playa. Surface flows reporting the southwest arm of the playa are estimated to have a contributing catchment area of approximately 6,600km2, with the majority of the surface flow coming from the west. The southwest arm of Lake Wells has an approximate surface area of 170km2. The overall palaeochannel network at Lake Wells and downstream is part of a much larger internally draining system draining towards Lake Carnegie some 100 km to the north of Lake Wells. Channel gradients along the palaeochannel in the vicinity of the project site are very low: east-west gradients along the palaeochannel are in the order of 0.1 m/km, while those in the north-south direction are slightly higher at around 0.3 to 0.5 m/km (Golder, 2016, refer Attachment 9C). The Lake Wells playa surface has an extensive series of relatively large and deep depressions, some up to around 3 m to 4 m in depth (Figure 7-1). These depressions provide significant storage during flood events and would also attenuate peak flows. Inundation on the playa surface tends to be concentrated around the depressions for more frequent return interval flood events, for example, the 1 in 10 year flood. For more extreme (less frequent) events, inundation would extend further across the playa surface,

1 Luke, G J, Burke, K L, and O'Brien, T M. (1987), Evaporation data for Western Australia. Department of Agriculture and Food, Western Australia. Report 65.

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Approximate location of trial ponds

Figure 7-1: Lake Wells surface topography, showing surface depressions (2 m contours)

7.5 Groundwater The major aquifers in the Laverton area of the northeastern goldfields comprise fractured rock aquifers. The depth of these fracture systems is often less than 80 m, but they may extend to 140 m (K.H. Morganand Assoc., 1995a – cited in Johnson et al, 1999). The regional groundwater system generally flows in a southeasterly direction along the palaeodrainage system. In places, ephemeral watercourses have formed along fracture zones and alluvial aquifers of limited yield and extent may exist where superficial alluvium has infilled the drainage lines. Aquifer recharge to the fractured rock and unconfined alluvial aquifers occurs by direct infiltration of rain during major, infrequent rain events. Rainfall infiltrates areas of outcrop and recharges shallow alluvium along creek beds. Exploratory drilling by Australian Potash at Lake Wells has confirmed the presence of a deep Tertiary valley infilled with predominantly lacustrine clays and minor sand interbeds to depths of up to 140 mbgl (Figure 7-2, Figure 7-3: Inferred palaeochannel position (dashed blue line) beneath Lake Wells playa). The lacustrine clay (with sandy interbeds) is overlain by a mixed alluvial sequence comprising sand, clay, evaporite and precipitate deposits. The sequence overlying the clay is highly variable although there is a reasonably consistent unit of predominantly sand at the base of this sequence.

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The drill-holes on the margins of the palaeovalley encountered basement, which provided control on the width and cross sectional shape of the valley system. Eight of the exploration drill holes encountered sand at the base of the Tertiary palaeovalley sequence. The sand occurred at depths of between 100 mbgl and 140 mbgl in the eastern part of the project area and 160 mbgl and 170 mbgl in the west of the project area. The depth to the base of the sand has been used to calibrate interpretation of the passive seismic geophysical survey and extend the interpreted palaeochannel system. The thickness of the basal sand units varies from 10m to 30m.

Figure 7-2: Palaeochannel stratigraphy – schematic cross-section

Figure 7-3: Inferred palaeochannel position (dashed blue line) beneath Lake Wells playa

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Water quality in the palaeochannel targeted by Australian Potash is very saline, with TDS values typically in the order of 200,000 mg/L. The brine concentration is relatively consistent throughout the profile (ie, no conspicuous halocline has been observed). Groundwater used by the local pastoralist is sourced from a different aquifer system to the one from which brine for the proposed pilot trial would take water. The brine that would be abstracted by Australian Potash is too salty for stock watering use. The distance between the proposed trial ponds and the nearest registered pastoral bore (Diorite bore) is approximately 7.8km (Figure 7-4).

Approximate position of trial ponds

Figure 7-4: Location of nearest registered water bore, relative to trial pond site

7.6 Flora and vegetation 7.6.1 Regional context The survey area lies within the Eremaean Province of WA. Based on the Interim Biogeographic Regionalisation of Australia (IBRA) the Eremaean Province is divided into Bioregions with the survey area located within the Great Victoria Desert Bioregion of Western Australia. The Great Victoria Desert Bioregion is further divided into four subregions; Shield, Central, Maralinga and Kintore. The survey area is located within the Shield (GVD1) subregion. The proposed trial area is located within the Helms Botanical District (as described by Beard, 1990) which comprises a mosaic of tree and shrub steppe between sand hills and on sandplains, consisting of Marble gum, mallee and spinifex (Eucalyptus gongylocarpa, E. youngiana, Triodia basedowii). E. gongylocarpa is comparatively scarce with E. youngiana replaced by E. kingsmillii and Acacia aneura and A. linophylla becoming frequent on the sandplain (Beard, 1990; Cowan, 2001, cited in Botanica 2016 – refer Attachment 9A). The Department of Agriculture and Food WA (DAFWA) GIS file (2011) indicates that the survey area is located within Pre-European Beard vegetation association Great Victoria Desert 125. Details on this vegetation association as described by the DAFWA are provided in Table 7-2.

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Table 7-2: Remaining Beard Vegetation Associations within Western Australia (DAFWA, 2011)

Great Victoria Vegetation Pre- Current Pre-European % of current Desert description European extent in WA, extent extent within Vegetation extent in ha remaining, % DPaW- Association WA, ha managed lands

125 Bare areas; salt lakes 54843 54843 100 0

Areas retaining less than 30% of their pre-European vegetation extent generally experience exponentially accelerated species loss, while areas with less than 10% are considered “endangered”. Development within the survey area will not significantly reduce the extent of this vegetation association at a local or regional scale. 7.6.2 Local conditions Level 2 flora and vegetation surveys have been completed over the project area. Ground- based surveys were carried out in early December 2015 and in October 2016 (Botanica, 2016 a, b). Two vegetation communities were identified within the proposed pilot trial area as listed in Table 7-3. Neither of these communities represent a TEC as listed under the EPBC Act or PEC as listed by DPaW. A map of the vegetation communities within the survey area is provided in Figure 7-5. Table 7-3: Vegetation Communities identified within the survey area

Code Vegetation Area Area Image Community (ha) (%)

CD-CSSSF1 Dense low 0.56 63.6 shrub of Tecticornia indica subsp. bidens in playa

D-CFW1 Forest of 0.24 36.4 Casuarina pauper over open low scrub of Acacia burkittii and open dwarf scrub of Atriplex vesicaria/ Rhagodia eremaea on gypsum dune.

No Threatened Flora listed under the Commonwealth Environment Protection and Biodiversity Conservation (EPBC) Act 1999 or the Wildlife Conservation (WC) Act 1950 were identified within the survey area. No Priority Flora listed by the Department of Parks and Wildlife (DPaW) were identified within the survey area.

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Overall, the proposed clearing of 0.8ha of vegetation for the implementation of Australian Potash’s pilot trial is unlikely to result in significant impacts on flora or vegetation. An assessment of the proposed clearing in the context of native vegetation clearing principles listed under Schedule 5 of the EP Act 1986 is presented in

Figure 7-5: Vegetation communities identified in proposed pilot trial area

Note: Area labelled “turkeys nest” was cleared in October 2016 under PoW 60071

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Table 7-4.

7.7 Fauna and fauna habitats Phase one of a two season Level 2 Fauna survey was carried out within Lake Wells Project area between the 10 September and the 20 September 2016. The Level 1 fauna survey, which included consideration of vertebrate and invertebrate terrestrial fauna, was planned and implemented in accordance with the following guidelines:  EPA Guidance Statement 56 - Terrestrial fauna surveys for environmental impact assessment in Western Australia (EPA 2004),  EPA Guidance statement 20 - Sampling of Short Range Endemic Invertebrate Fauna for Environmental Impact in Western Australia (EPA, 2009),  EPA Guidance Statement 54 - Consideration of Subterranean Fauna in groundwater and caves during environmental assessment in Western Australia (EPA, 2003)  EPA guidance statement 54A - Sampling Methods and Survey Considerations for Subterranean Fauna in Western Australia (EPA 2007), and  EPA Environmental Assessment Guideline EAG 12- Consideration of subterranean fauna in environmental impact assessment in Western Australia (EPA 2013).

The fauna assessment identified broad habitat types, based mainly on landform and to a lesser extent on vegetation structure. The two dominant habitat types in the proposed trial area are:  Lake Bed - Salt crust bordered by dense low shrub of Tecticornia indica  Gypsum Dunes - Forest of Casuarina pauper over open low scrub and open dwarf scrub. During the September survey 124 fauna species were recorded within a nominal 37,510ha survey area (including the proposed 0.8 ha disturbance area for the pilot trial). The fauna recorded included 23 mammals (including eight bat and six introduced species), 61 birds, 39 reptiles and one frog. No threatened fauna taxa, pursuant to subsection (2) of section 23F of the Wildlife Conservation (WC) Act 1950 and the Commonwealth Environment Protection and Biodiversity Conservation (EPBC) Act 1999 were identified within the survey area. No Department of Parks and Wildlife (DPaW) listed Priority Fauna were recorded. The playa surface making up Lake Wells may have the potential to harbour “salt lake specialists” such as wolf spiders, tiger beetles, crickets, ants, and earwigs. Taxonomic identifications of some potential terrestrial short range endemic (SRE) invertebrates collected during baseline surveys are still pending. On the basis of information currently available, it appears that potential SRE species are unlikely to be restricted to the proposed pilot trial area, given the continuity of playa habitat well beyond the proposed 0.8 ha disturbance footprint. Groundwater under the Lake Well playa is hypersaline and the Level 1 assessment has therefore concluded that subsurface conditions are unlikely to be suitable for stygofauna (subterranean, water dwelling species). The high water table levels present suggest that troglofauna (air breathing/open void dwelling subterranean species) are also unlikely to be present (Botanica, 2016).

7.8 Conservation Areas / Specified Ecosystems The survey area is not located within an Environmentally Sensitive Area (ESA) as listed under the Environmental Protection (EP) Act 1986. The survey area is not located within a ‘specified ecosystem’ as described in the Department of Environment Regulation (DER), Environmental Siting Guidelines (2016) with the survey area not located within a Conservation Reserve/ DPaW managed land (including Threatened or Priority Ecological

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Community), Ramsar Site, Significant/ Nationally Important Wetland or a Bush Forever Site. The nearest known specified ecosystem is the De La Poer Range Nature Reserve, which is managed by DPaW, located approximately 12km to the west of the of the survey area. This specified ecosystem is not proposed to be impacted by development within the survey area.

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Figure 7-5: Vegetation communities identified in proposed pilot trial area

Note: Area labelled “turkeys nest” was cleared in October 2016 under PoW 60071

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Table 7-4: Assessment of clearing for pilot trial activities against native vegetation clearing principles

Principle Assessment Outcome (a) Native vegetation should not be cleared Vegetation identified within the survey area is not considered to be Development within the survey if it comprises a high level of biological of high biological diversity, and is well represented outside of the area is unlikely to be at variance diversity. proposed impact area. to this principle

(c) Native vegetation should not be cleared No Threatened Flora taxa, pursuant to subsection (2) of section 23F Development within the survey if it includes, or is necessary for the of the WC Act 1950 and the EPBC Act 1999 were identified within area is unlikely to be at variance continued existence of rare flora. the survey area to this principle (d) Native vegetation should not be cleared No TEC listed under the EPBC Act 1999 or by the DPaW occur within Development within the survey if it comprises the whole or part of, or is the survey area. area is unlikely to be at variance necessary for the maintenance of a to this principle threatened ecological community (TEC). (e) Native vegetation should not be cleared According to DAFWA (2011), the survey area occurs in pre- Development within the survey if it is significant as a remnant of native European Beard vegetation association Great Victoria Desert 125 area is unlikely to be at variance vegetation in an area that has been which retains approximately 100% of the original vegetation to this principle extensively cleared extent. (f) Native vegetation should not be cleared The survey area is located within Lake Wells. Lake Wells is Development within the survey if it is growing, in, or in association with, described by Geoscience Australia (2001) GIS data as a non- area is unlikely to be at variance an environment associated with a perennial/ intermittent/ fluctuating inland water which covers an to this principle watercourse or wetland area of approximately 49,700 ha. The clearing proposed by the development (0.8ha) constitutes a maximum impact of 0.0001% on the total area of Lake Wells. (g) Native vegetation should not be cleared According to DAFWA (2011), the survey area occurs in pre- Development within the survey if the clearing of the vegetation is likely European Beard vegetation association Great Victoria Desert 125 area is unlikely to be at variance to cause appreciable land degradation. which retains approximately 100% of the original vegetation to this principle extent. Clearing within these vegetation associations is not likely to lead to land degradation issues such as salinity, water logging or acidic soils. (h) Native vegetation should not be cleared Development within the survey The survey area is not located within a conservation area. No PEC if the clearing of the vegetation is likely area is unlikely to be at variance as listed by DPaW is located within the survey area. to have an impact on the environmental to this principle values of any adjacent or nearby conservation area.

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7.9 Social Environment 7.9.1 Surrounding land users and uses The proposed trial ponds lie within land that is part of the Lake Wells pastoral lease. The Lake Wells station homestead is approximately 9.2 km ESE of the proposed trial ponds. Australian Potash has established a good working relationship with the pastoral landholders. The station owners have provided accommodation for Australian Potash staff and visitors during the exploration phase of the project. 7.9.2 Aboriginal heritage and Native Title No Native Title claim exists over the project area; accordingly, there is no single representative body with which to consult over Aboriginal heritage matters. Local Aboriginal elders have been closely involved with the assessment of significant cultural sites at Lake Wells. A heritage survey of the project area and surrounds was conducted with six senior law men in August 2016. The presence of a known (registered) heritage site on E38/2472 was confirmed. No other heritage sites were discovered on the tenement. A copy of the heritage survey report is provided in Attachment 11B. Australian Potash has requested that this report not be made available to the general public, in order to respect cultural sensitivities.

8 References

Botanica Consulting (2016). Flora and Fauna Assessment of the Pilot Pond and Turkeys Nest Development - Lake Wells Project, unpublished report prepared for Australian Potash Limited, Tenement: E38/2742, 20 December 2016. Daniel De Gand & Associates Pty Ltd (2016). Report on an Aboriginal Heritage Assessment of the Lake Wells Project, unpublished report prepared for Goldphyre Resources Ltd, 28 November 2016. Galt Environmental Pty Ltd (2016). Technical memorandum: preliminary acid sulfate soil study - Proposed potash project, Lake Wells, document number J1601242 002 TM Rev1, 20 December 2016. Golder Associates Pty Ltd (2016). Draft report: Lake Wells Potash Project Hydraulic Study, unpublished report prepared for Goldphyre Resources Limited, 19 December 2016. Department of Agriculture and Food Western Australia (DAFWA). (2011), Pre-European Vegetation - Western Australia (NVIS Compliant Version GIS file).

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Consent required Legislation Administering Permit number Agency Programme of works Mining Act 1978 Department of Mine Trial pond area (PoW) – approval to & Petroleum (DMP) includes 0.21ha of disturb ground using turkey nest dam mechanical plant already cleared under PoW 60071 (copy attached). Remainder of trial area to be permitted under a second PoW (Not yet applied for – PoW application to be lodged early January 2017). Works approval and Part V of Department of This application licence – construction, Environmental Environmental commissioning and Protection Act Regulation (DER) operation of solar salt 1986 works Vegetation clearing Part V of Department of Mine Not required: exempt permit Environmental & Petroleum (DMP) clearing when PoW is Protection Act approved 1986 5C licence to take Rights in Water & Department of Water GWL182487/1 (copy groundwater Irrigation Act (DoW) attached) 1914 S18 consent to access / Aboriginal Department of Not required: area use area of Aboriginal Heritage Act 1972 Aboriginal Affairs has been surveyed. heritage significance No heritage sites will be impacted by the proposed works. Refer Attachment 11B

ENVIRONMENT DIVISION

ONLINE APPLICATION DATE RECEIVED: 05-Aug-16

Registration ID: 60242 User ID: EX13377 Operator Reference:

PROGRAMME OF WORK - EXPLORATION (MINING ACT 1978) Applicant/Company Name: GOLDPHYRE RESOURCES PTY LIMITED Contact Person: Mr. Brenton Siggs PO BOX 1941, AUSTRALIA Address: Position: Exploration Manager WEST PERTH WA 6872 Email: [email protected] Tel: 08 9422 9502

Mob: Fax: 08 9389 2199

Tenement Details Holder Tenement Registered Holder (Name and Agreement File Tenure Types* No/s. Holder? Address) Name E 38/2742 No LAKE WELLS 20151129 Sale & EXPLORATION PTY LTD Split Commodity UCL/VCL C/- M & M WALTER Agreement LWE CONSULTING PL_Creasy.pdf Pastoral Lease PO BOX 8197 Notified: When: 05-Aug-16 How: SUBIACO EAST WA 6008 post

*Landowner consent and Surface Rights are required (Section 29, Mining Act). Please check your tenement conditions. ⌂Ground disturbing activities within Reserves (e.g. Water Reserves, Road Reserves) may require consent from the vested authority, and/or Ministerial consent. Please check your tenement conditions.

Please note the following:  Please ensure your PoW is complete and that you have checked and complied with tenement conditions prior to lodging your PoW with the Department of Mines and Petroleum (DMP). Incomplete applications will be rejected.  Requests for further information will have a time limit of 10 working days to respond to the Department.  All bond requests will remain valid for a period of 3 months. This PoW will be rejected 3 months after the date of issue of the bond request letter.  Please allow sufficient time for this proposal to be assessed (at least 30 business days). If all required information is not supplied, or if consultation with other agencies is required, then the assessment time frame may increase.  The Mines Safety and Inspections Act 1994 requires an Exploration Operation Notification form to be submitted to Resources Safety Division of DMP prior to the proposed activities (see section 6) taking place. http://www.dmp.wa.gov.au/6711.aspx#7074  DMP have a Memorandum of Understanding (MoU) with the EPA, certain criteria may trigger DMP to seek advice from other agencies. The MoU document is available at: http://www.dmp.wa.gov.au/documents/MOU.PDF  Please do not modify this form.  This application will be made available to other government agencies as required.

______1. Tenement Conditions

If exploring for Iron Ore, have you checked your conditions to see if you have Iron Ore endorsement? I have addressed all relevant tenement conditions for this Programme of Work application.

Page 1 of 6 ______2. Proposed Dates

Approval will be valid for 48 months from date on Approval letter*

Commencement Date: 26-Aug-16 Completion Date: 25-Aug-20

* “If approved, the programme will be granted for 48 months from the date shown on the approval letter. Application for an extension to timeframe can be made to an Environmental Officer prior to the expiry of the approval. A PoW is only valid on live tenure. Rehabilitation is to be undertaken within 6 months of the date the ground disturbance occurred to comply with tenement conditions. Justified extensions require written approval from DMP. ______3. Aboriginal Heritage Management

I have completed a query of the Register of Aboriginal Sites at http://www.daa.wa.gov.au for the area subject to this application.

The Programme, if approved, does not remove the need to obtain any approvals required under the Aboriginal Heritage Act 1972

The proposal partly or wholly intersects the boundary of a registered site.

Consultation has commenced with the Department of Aboriginal Affairs (DAA).*

Further referrals may be required under the Environmental Protection Act 1986. * To facilitate consultation, DAA will require (i) a description and map (GDA94 co-ordinates) showing the proposed activities and the affected mining tenements, (ii) the title, author and date of any Aboriginal heritage survey conducted over the area, and (iii) a copy of this survey if not already provided to DAA. Do not submit this application to DMP until you have commenced consultation with DAA or your application may be rejected. ______4. Minerals Being Explored

Mineral Brief Description POTASH ______5. Proposed Activities

Tenement Number: E 38/2742 Activity Type: Drilling Type of Drilling Rig: Other Drilling # Drill holes proposed: 1 Max Depth of holes (m): Spacing (m): 40 Is this infill / resource drilling?: *1 220 N # Drill pads: 1 Length (m): 10 Width (m): 5 Line / Track Clearing Length (m): Width (m): Is the drilling likely to encounter groundwater? *3 Y # Sumps: 2 Length (m): 250 Width (m): 4 Depth(m): 0.8 Cut & fill pad construction required?: N # Cut & fill Pads: Length: Width (m): Slope (°): S.G: Cut & fill tracks construction required?: *2 N # Cut & fill tracks: Length: Width (m): Slope (°): S.G: Total Area Disturbed 0.21 Total Tonnage 0 (Ha) Disturbed

Page 2 of 6 *1 If proposing infill / resource drilling, it is recommended you conduct waste characterisation to assist in mine planning. Waste characterisation is required when seeking approval to mine. Please refer to the “Guidelines for Mining Proposals in Western Australia” on the DMP website. *2 Please ensure the additional information includes the number of pads, pad dimensions (length x width) and specific gravity, specific for each gradient. If you are having difficulties please contact an Environmental Officer (EO), DMP for assistance. The Departmental Hillside Tonnage Calculator (used as a guide to calculate tonnage estimates for cut and fill activities associated with exploration/prospecting activities) is available on the DMP website. *3 Refer to the "Guidelines for the protection of surface and groundwater resources during exploration drilling". If the proposed drilling has potential to intercept artesian aquifers, consultation and permitting from the Department of Water (DoW) may also be required. *4 If yes, please provide a covering letter detailing; camp facilities (number of dongas, size of camp etc), environmental management (e.g. waste disposal, surface water management, etc), other relevant approvals (e.g. Shire), rehabilitation procedures of the facility and an additional map illustrating the site layout. *5 Note that tonnage limits on P’s and E’s apply to tonnage disturbed for excavations (costeans, test pits, etc), cut and fill pads, access tracks and larger than normal sumps. If unsure, please consult the Regional EO, DMP. ______6. Summary of Areas and Tonnage Disturbed

E 38/2742

Total Disturbance Area (Ha) 0.21 Total Disturbance Tonnage 0 Previous Disturbance (Ha) 2.42 Cumulative Tonnage Disturbed 300.000 Excess Tonnage Approval N/A Comments Please find attached cover letter outlining proposed activities for long sumps.

Note that tonnage limits on P’s and E’s apply to tonnage disturbed for excavations (costeans, test pits, etc), cut and fill pads, access tracks and larger than normal sumps. If unsure, please consult the Regional EO, DMP.

*Disturbance exceeding 500 tonnes on a Prospecting Licence (Section 48c Mining Act 1978) or 1,000 tonnes on an Exploration Licence (Section 66c Mining Act) requires delegated approval from the Director, Mineral Titles Division (MTD). Please note that disturbed tonnage is cumulative for the life of the tenement. Any excess over 50,000 tonnes requires Ministerial approval. The tenement holder is required to contact (MTD). ______7. Maps

The plan should clearly show the location of the following:

Number of Map Files Uploaded : 1 Map File Name : LW_PoW_Prop_Long_Sump_A4_19072016.pdf

NOTE: plans using a topographical map or aerial photo are required, with GDA94 co-ordinates.

 Proposed activities and disturbance (showing drill holes and/or lines)  Line and track clearing  Major landforms and topographical features  Existing tracks / route onto tenement and route to proposed drill holes/costeans  Tenement boundaries and labels  Freehold land / Reserve location boundaries and relevant cadastral information  Legend

______

Page 3 of 6 8. Environment Protection Authority (EPA)

Are the activities proposed in this Programme of Work located within an area currently under formal assessment by the EPA under Part IV of the Environmental Protection Act 1986?:

Yes No

Has the area subject to this PoW ever previously been assessed by the Environmental Protection Authority (EPA) under Part IV of the Environmental Protection Act 1986?

Yes No

______9. Clearing of native vegetation

Does your proposal involve the clearing of native vegetation?

Yes No

Clearing for exploration purposes is exempt from requiring a clearing permit provided it is not within an Environmentally Sensitive Area (ESA), and is conducted under an authority granted under the Mining Act 1978 (e.g. an approved Programme of Work). This exemption is found at item 25 of the Environmental Protection (Clearing of Native Vegetation) Regulations 2004.

The Native Vegetation Map Viewer provides a guide to the locations of ESA's. http://maps.dec.wa.gov.au/idelve/nv/index.jsp. Instructions on using the Map Viewer can be found on the DMP website at http://www.dmp.wa.gov.au/17202.aspx

Environmentally Sensitive Areas are defined in regulation 6 of the Environmental Protection (Clearing of Native Vegetation) Regulations 2004. Some examples of ESA's are Bush Forever Sites, areas listed on the Register of National Estate for natural values, the area within 50 m of Declared Rare Flora, and the area covered by a Threatened Ecological Community

If you have any queries regarding clearing permits please contact the DMP – Native Vegetation Assessment Branch (9222 3570) i) Is the clearing of native vegetation that you propose within an Environmentally Sensitive Area? If known, please state the type of ESA (e.g. Bush Yes Forever Site, Threatened Ecological Community etc); No (Please go to Section 10)

______10. Environmental Management

Page 4 of 6 Note: If relevant Environmental Management and Rehabilitation Practices for all activities selected under section 5 “Proposed Activities” are not selected, this may extend the assessment timeframe as further information will be sought.

10.1 Environmental Management and Methods of Minimising Disturbance

Use of raised blade for clearing tracks & drill pads Using existing tracks where available Avoiding significant vegetation e.g. large trees, thickets, mulga groves Vegetation stockpiled separately for use in rehabilitation when constructing drill pads Topsoil and vegetation stockpiled separately for use in rehabilitation when constructing sumps and/or costeans Excavations (sumps, costeans etc.) appropriately ramped to allow fauna egress Use of liners and drip trays under rigs to minimise risk of hydrocarbon spillage Use of sumps of appropriate size to contain all water and sediment encountered during drilling (sump to be located away from significant vegetation, and water courses) Use of appropriate machinery to minimise impacts (excavator instead of bulldozer, wheeled machinery instead of tracked, specialist drill rig etc…) Vehicle hygiene maintained to prevent the spread of plant pathogens (e.g. Phytophthora sp.) and/or invasive species. (check requirements of tenement conditions for specific management, e.g. Dieback Management Plan) Other (please specify):

10.2 Rehabilitation Practices and Timing

Drill holes secured immediately after drilling (capped/plugged) Drill holes securely plugged below ground at minimum depth of 400mm within 6 months of drilling (If not using concrete, conical plugs, please specify type in Other)

Scarifing/Ripping of compacted areas on the contour Blocking access to tracks Drill sample piles rehabilitated or buried Sample bags removed within 6 months of drilling All rubbish removed from site (including any hydrocarbon spills) Excavations (e.g. sumps, costeans etc.) backfilled and respread with topsoil and cleared vegetation Other (please specify):

Tenement conditions require that all rehabilitation must be completed within 6 months of drilling. Any extension of this timeframe requires the written approval of an Environment Officer before the six month period expires.

10.3 Describe Existing Environment and Vegetation

(E.g. Mulga scrublands, Eucalypt / saltbush woodland, Spinifex grassland, Jarrah forest, Farmland, etc.) playa lake area

10.4 Describe Landform

Page 5 of 6 (E.g. flat alluvial plain, greenstone, range, creek/drainage lines, hillsides etc.) playa lake area, flat alluvial plain

10.5 Do the proposed activities occur on isolated hills / ranges in the Midwest or Yilgarn (banded iron formations) (BIF)?

Yes No

10.6 Is your exploration program likely to encounter Radioactive Material?

Yes No

10.7 Is your exploration program likely to encounter fibrous materials such as asbestos?

Yes No

10.8 Does the proposed activity interfere with the Beds and/or Banks of a watercourse?

Yes No ______

All statements made and information given in this certified application is true and correct. I acknowledge that this application will be rejected if I have not addressed all relevant tenement conditions and/or sufficient information is not supplied.

Yes

Name: Brenton Siggs

Position: Exploration Manager

Date: 05-Aug-16

Page 6 of 6

Our ref: Registration ID: 60071 Enquiries: Rob Irwin (08) 9222 3705 Email: [email protected]

The Registered Manager Lake Wells Exploration Pty Ltd PO Box 1492 WEST PERTH WA 6872

Attention: Jyotsna Chhabra

Dear Madam

PROGRAMME OF WORK APPROVAL FOR EXPLORATION ON E 38/2742 REGISTRATION ID: 60071 I refer to your Programme of Work (PoW) application dated 20 July 2016, for exploration on E 38/2742. Approval is granted for the use of mechanised equipment for exploration purposes as outlined in your PoW. This approval is valid for a period of four years from the date of this approval letter. Extensions to this timeframe will be considered by the Department of Mines and Petroleum (DMP) provided an extension request is submitted to a DMP Environmental Officer prior to the expiry of the PoW. Please be reminded that you are required to report disturbance data on an annual basis and pay any corresponding levy in accordance with the Mining Rehabilitation Fund Act 2012 and associated Regulations. This approval does not remove the need for any necessary approvals from other authorities. The approval also does not supersede any other applicable provisions of the Mining Act 1978, Mining Regulations 1981, Mines Safety and Inspection Act 1994 and Mines Safety and Inspection Regulations 1995. Ground disturbance should be minimised where possible to reduce the environmental impact and maximise natural rehabilitation. You are reminded of the need to comply with all tenement conditions including the requirement to rehabilitate all exploration disturbances within 6 months of the disturbance occurring. In this regard it is recommended that an internal compliance audit programme is implemented to ensure compliance with the Mining Act 1978. DMP also requests that you submit an Exploration Rehabilitation Report once all rehabilitation work has been completed. A proforma report has been attached for easy reference.

000251.Rob.IRWIN Mineral House 100 Plain Street East Perth Western Australia 6004 Cnr Hunter and Broadwood Streets, Locked Bag 405 Kalgoorlie Western Australia 6433 www.dmp.wa.gov.au ABN 69 410 335 356 Please note, this letter does not constitute a Clearing Permit under Part V Division 2 of the Environmental Protection Act 1986, for clearing of native vegetation. A Clearing Permit must be gained independently through the DMP if required. Yours faithfully

Adam Ashby ______Adam Ashby | Environmental Officer Operations, Environment 09 August 2016

Enc: Exploration Rehabilitation Report Proforma

Attachment 4B_Stakeholder consultation

Table 2: Summary of consultation for proposed works

Stakeholder Form of consultation Date(s) Outcome Mr Les and Ms Jenny Smith – Phone call conversations with Mr 24 December 2016 I outlined for Mr Smith the proposed plans for the pastoral land holders Les Smith on a number of occasions development of the proposed works, including over the months leading up to the location, size and rehabilitation plan on completion last conversation Saturday 24 of the trial. Mr Smith indicated he was aware of the December 2016 plan from previous conversations, and was comfortable with the Company’s proposed works to proceed. Traditional owners (senior law Field surveys and discussions with 15 to 19 August 2016 One previously registered Aboriginal Heritage men: no Native Title claim exists six senior law men (“council of tribal Sites on tenement E38/2742 was confirmed. No over project area) elders”) were conducted at Lake other sites were identified. The proposed trial Wells. The surveys included ponds will have no impact on the registered participation by an Australian Potash heritage site. representative and a specialist heritage advisor. Department of Mines & Petroleum Face to face meetings with Ms Laura 28 January 2016 The Company discussed its proposed works Copeland and Mr Luke Lovell et al throughout the year, with DMP personnel being 21 June 2016 informed of plans to conduct various test works, 28 July 2016 including those the subject of the current proposal. 30 September 2016 Department of Environment Meeting in Kalgoorlie with Ms Fiona Regulation (Kalgoorlie office) Sharpe, Thursday 23 June 2016

Email request for advice on how to 16 December 2016 Works approval to be submitted in electronic submit works approval format, using Dropbox because of large file sizes. Office of the EPA Pre-referral briefing presentation in 22 September 2016 Agreed that referral relied on further investigations Perth and trials; referral unlikely before Q2 2017; assessment at API level possible. Department of Water Face to face meeting with DOW Late 2015 The Company outlined for DOW personnel the personnel in late 2015 project, with reference to the product proposed to be produced.

Attachment 4B_Stakeholder consultation

Shire of Laverton Face to face meeting with Shire 6 December 2016 The Company outlined for the Shire the proposed CEO, Mr Steven Duckett project test work, including reference to the proposed works the subject of this application.

MATT SHACKLETON

Executive Chairman Matt is a resources executive and Chartered Accountant with 20 years’ experience in senior management and board roles. Previously the Managing Director of ASX listed Western Australian gold developer Mount Magnet South NL, Mr Shackleton was the founding director of ASX listed and West African gold and bauxite explorer Canyon Resources Limited, and previously an Executive Director with Brazilian gold explorer Mineralis Limited. He has also held senior roles with Bannerman Resources Limited, a uranium developer, Skywest Airlines, iiNet Limited and DRCM Global Investors in London. Matt holds a B.Comm. (Economics & Accounting) from Murdoch University in Western Australia, an MBA from The University of Western Australia, and is a Fellow of the Institute of Chartered Accountants, Australia & New Zealand. BRENTON SIGGS

Technical Director Brenton is a geologist with over twenty four years’ experience in the Australian mineral exploration and mining industry and has worked on a range of gold, nickel, petroleum, mineral sands, coal and phosphate projects throughout Australia. He has extensive experience in all stages of regional and near-mine exploration project management, particularly in Western Australia, from conceptual targeting and ground acquisition through to resource definition drilling programs and open cut mining geology.

Brenton has held Senior Geologist and Project Leader roles with a variety of Australian and major international companies including Newcrest Mining Ltd., Inco Australia, VALE, Sons of Gwalia Ltd, Central Norseman Gold Corporation Ltd and Belvedere Coal Management Pty Ltd. Brenton’s exploration successes include senior geology roles in Western Australian gold discoveries at Racetrack, Golden Funnel and Black Lady (Mount Pleasant), Dingo Range, Norseman and Menzies (Lady Irene). Other technical highlights include senior roles in resource upgrades at significant nickel laterite (Ravensthorpe Project and Kalgoorlie Nickel Project, Western Australia) and coal projects (Belvedere Coal Project, Queensland).

Brenton holds a B.App.Sc. (Applied Geology) degree from the University of South Australia and is a Member of the Australian Institute of Geoscientists (MAIG) and the Society of Economic Geologists (SEG).

DEAN GOODWIN

Non-executive Director Dean is a geologist with over twenty five years’ exploration experience which has included acting as Head of Geology at Focus Minerals Limited and a six year period as Managing Director of Barra Resources Ltd (2004-2010). He has also spent six years as an exploration geologist with Western Mining Corporation Ltd and was involved with discovering the Intrepid, Redoutable and Santa Anna gold deposits at Lake Lefroy with WMC. Whilst with WMC he worked closely with the nickel exploration team.

In 1994 he joined Resolute Ltd as Senior Exploration Geologist, spending five years in Kalgoorlie managing exploration for the Chalice, Higginsville, Bullabulling and Bulong projects. In 1999 Mr Goodwin was appointed as Senior Exploration Geologist with LionOre Limited and whilst at the Bounty Gold Mine operations he was responsible for the discovery of several small gold deposits.

: 31 Ord Street, West Perth WA 6005 postal: PO Box 1941, West Perth WA 6872 +61 8 9322 1003

www.australianpotash.com.au ASX: APC More recently, he has been working as an independent contract geologist exploring for nickel sulphides throughout Western Australia.

Dean holds a B.App.Sc. (Applied Geology) degree from Curtin University in Western Australia and is a Member of the Australian Institute of Geoscientists (MAIG).

LEIGH-AYN ABSOLOM

Company Secretary Leigh-Ayn is a Chartered Accountant and Chartered Secretary with 16 years’ experience in auditing, accounting and company secretarial roles within public practice and the resources industry. She commenced her career with Deloitte, originally in South Africa and then Australia, before moving into the mining sector with Murchison Metals Ltd. Leigh-Ayn has held positions as Group Financial Controller and Company Secretary with uranium development company Bannerman Resources Limited, and Manager – Corporate with nickel explorer Resource Mining Corporation Limited.

Leigh-Ayn is an Associate Member of the Governance Institute of Australia and the South African Institute of Chartered Accountants.

: 31 Ord Street, West Perth WA 6005 postal: PO Box 1941, West Perth WA 6872 +61 8 9322 1003

www.australianpotash.com.au ASX: APC Australian Potash Limited - Lake Wells Trial Evaporation Ponds

Emission / impact Specific emission / impact Distance to receptor from Inherent risk Mitigated risk Receptors Potential impact Proposed controls source event point of emission Likelihood Consequence Risk score Likelihood Consequence Risk score

Loss of conservation Conservation significant Immediate clearing Harm to flora / vegetation / Level 2 surveys of project footprint and surrounds have Ground clearing Unlikely Moderate Medium significant flora or fauna flora / vegetation/ fauna footprint fauna found no conservation significant flora / fauna / vegetation Rare Slight Low Immediate clearing Impact on archeological / Heritage surveys with senior law men has confirmed no Ground clearing Aboriginal heritage values Unlikely Major Medium footprint ethnographic site heritage sites Rare Slight Low

Nuisance dust: impact is Equipment Surrounding vegetation; Homestead is unlikely to be discernible, due Active management unlikely to be required: limit vehicle Dust generation during pond movement; soil nearest human receptor is approximately 9 km ESE of to short duration of earthworks, Possible Slight Low speeds and drop heights; if necessary, apply water to Unlikely Slight Low construction handling Lake Wells homestead the ponds small disturbance footprint and minimise dust generation. distance to homestead.

Salt depostion on plants or other surfaces: impact unlikely Surrounding vegetation; Homestead is to be discernible - playa surface Windblown Particulate emissions from nearest human receptor is approximately 9 km ESE of is naturally very saline; ponds Unlikely Slight Low No active controls proposed Unlikely Slight Low particulates evaporation ponds Lake Wells homestead the ponds will mostly be wet to moist and crusting of evaporite surface will limit dust generation

Nuisance dust: impact is Surrounding vegetation; Homestead is unlikely to be discernible, due Particulates from stockpiled Soil stockpiles nearest human receptor is approximately 9 km ESE of to small size of topsoil Unlikely Slight Low No active controls proposed Unlikely Slight Low materials Lake Wells homestead the ponds stockpiles and distance to homestead. No active controls required: pastoral bores access a Nearest registered bore is Groundwater drawdown from Lower water availability at different aquifer; dewatering period is very short (days); Brine abstraction Pastoral bores ~8 km east of production Rare Slight Low Rare Slight Low brine abstraction pastoral bore distance between brine abstraction and pastoral bore is bore substantial. Mounding of groundwater Sparse playa vegetation Base and upstream faces of pond embankments will be Seepage through base or walls Reduced vegetation health if Brine storage affects surrounding immediately surrounding Possible Minor Medium lined with 1.5mm HDPE (or equivalent geosynthetic Unlikely Minor Low of ponds mounding is prolonged vegetation proposed ponds material) to limit seepage.

Height of lined berms is approximately ~500mm above Sparse playa vegetation highest level of brine surface, providing storage for up to Overtopping of pond during Brine storage Salt damage to vegetation immediately surrounding Impact on vegetation health Possible Minor Medium the 1 in 50 year, 24 hr storm (event has <1% probability for Unlikely Minor Low extreme storm event proposed ponds a nominal 6 month trial). Playa vegetation is very salt tolerant: playa has salt crust in places.

Daily inspection of ponds to check for evidence of instability or liner slippage: repairs to be effected within Failure of perimeter Sparse playa vegetation 48 hrs, if required. Playa vegetation is very salt tolerant: Brine storage embankment allows release Salt damage to vegetation immediately surrounding Impact on vegetation health Unlikely Minor Medium Rare Minor Low playa has salt crust in places. Failure of berms is unlikely of concentrated brine. proposed ponds due to shallow depth of brine ponding (minimal pressure on embankments).

Brine concentration is very high: fauna unlikely to ingest No conservation significant Ponded water attracts birds, Toxicity to fauna if brine is significant quantities. Trace element concentrations in Brine storage fauna observed during site Impact on fauna health Unlikely Slight Low Unlikely Slight Low herbivores or other fauna ingested groundwater are unlikely to result in acute or chronic surveys toxicity effects.

Increased herbivory, No conservation significant Brine concentration is very high: fauna will not use as Brine storage causing damage to local flora observed during site Grazing damage to vegetaion Unlikely Slight Low Unlikely Slight Low Ponded water attracts birds, water source. vegetation surveys herbivores or other fauna Australian Potash Limited - Lake Wells Trial Evaporation Ponds

Waste type Quantity Storage Location (MGA Zone 51 (GDA 94)) Halite, mixed salt (<5% Lined, above ground bitterns) 500 tonnes over the life of the project pond 492,478mE; 6,983,768mS Distance from proposed premises to Lake Wells homestead is 9.2 km (straight line).

Flora and Fauna Assessment of the Pilot Pond and Turkeys Nest Development Lake Wells Project

For Australian Potash Limited Tenement: E38/2742

December 2016

Prepared by: Botanica Consulting PO Box 2027 Boulder WA 6432 90930024

Disclaimer This document and its contents are to be treated as confidential and are published in accordance with and subject to an agreement between Botanica Consulting (BC) and the client for whom it has been prepared and is restricted to those issues that have been raised by the client in its engagement of BC. Neither this document nor its contents may be referred to or quoted in any manner (report or other document) nor reproduced in part or whole by electronic, mechanical or chemical means, including photocopying, recording or any information storage system, without the express written approval of the client and/or BC.

This document and its contents have been prepared utilising the standard of care and skill ordinarily exercised by Environmental Scientists in the preparation of such documents. All material presented in this document is published in good faith and is believed to be accurate at the time of writing. Any person or organisation who relies on or uses the document and its contents for purposes or reasons other than those agreed by BC and the client without primarily obtaining the prior written consent of BC, does so entirely at their own risk. BC denies all liability in tort, contract or otherwise for any loss, damage or injury of any kind whatsoever (whether in negligence or otherwise) that may be endured as a consequence of relying on this document and its contents for any purpose other than that agreed with the client.

Quality Assurance An internal quality review process has been implemented to each project task undertaken by BC. Each document and its contents is carefully reviewed by core members of the Consultancy team and signed off at Director Level prior to issue to the client. Draft documents are submitted to the client for comment and acceptance prior to final production.

Prepared by: Lauren Pick Environmental Consultant Botanica Consulting

Reviewed by: Andrea Williams Director Botanica Consulting

Approved by: Jim Williams Director

Contents 1 Introduction 1 1.1 Project Description 1 2 Regional Biophysical Environment 3 2.1 Regional Environment 3 2.2 Topography & Soils 3 2.3 Vegetation 3 2.4 Climate 4 3 Results 5 3.1 Vegetation Communities 5 3.2 Flora of Conservation Significance 7 3.3 Fauna of Conservation Significance 7 3.4 Conservation Areas/ Specified Ecosystems 7 4 Native Vegetation Clearing Principles 7

Tables Table 1: Remaining Beard Vegetation Associations within Western Australia (DAFWA, 2011) ...... 4 Table 2: Vegetation Communities identified within the survey area ...... 5 Table 3: Assessment of exploration activities against native vegetation clearing principles ...... 8

Figures Figure 1: Regional Map of the survey area...... 2 Figure 2: Mean monthly rainfall and temperature (January 1900 to December 2016) for the Laverton weather station (#12045) (BOM, 2016) ...... 4 Figure 3: Vegetation Communities identified within the survey area ...... 6

Goldphyre Resources Limited Flora and Fauna Assessment: Pilot Pond & Turkeys Nest

1 Introduction

1.1 Project Description Botanica Consulting (BC) was commissioned by Australian Potash Limited (formerly Goldphyre Resources Limited) to undertake a Level 2 Flora and Fauna assessment of the Lake Wells Potash Project covering an area of approximately 37,510ha. The survey was conducted from the 10th to 16th September 2016. Results of the full Level 2 assessment are still pending however this document outlines the findings of the flora and fauna assessment of an area of approximately 0.8ha within the Level 2 survey area. The nominal 0.8ha described in this report (referred to as the ‘survey area’) is proposed to be cleared for development of a turkey’s nest and pilot pond. The survey area is located within tenement E38/2742 which is located approximately 160km north north-east of Laverton W.A and approximately 78km north of Cosmo Newbery W.A (Figure 1). BC understands that the nominal turkey nest area was cleared in November 2016 to allow implementation of a test pumping event approved under a Programme of Works approved by the Department of Mines and Petroleum (PoW 60071) and a 5C licence (GWL182487) approved by the Department of Water.

The aim of the assessment reported in this document was to provide a brief description of the vegetation/ fauna habitat within the survey area and identify the potential environmental significance of the area including documenting and mapping locations of any Threatened Ecological Communities (TEC), Priority Ecological Communities (PEC), Threatened or Priority Flora and Fauna species or other areas of conservation significance.

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Figure 1: Regional Map of the survey area

Botanica Consulting 2 Goldphyre Resources Limited Flora and Fauna Assessment: Pilot Pond & Turkeys Nest

2 Regional Biophysical Environment 2.1 Regional Environment The survey area lies within the Eremaean Province of WA. Based on the Interim Biogeographic Regionalisation of Australia (IBRA) the Eremaean Province is divided into Bioregions with the survey area located within the Great Victoria Desert Bioregion of Western Australia. The Great Victoria Desert Bioregion is further divided into four subregions; Shield, Central, Maralinga and Kintore. The survey area is located within the Shield (GVD1) subregion (Barton & Cowan, 2001a; Barton & Cowan, 2001b).

2.2 Topography & Soils The Great Victoria Desert bioregion forms the southern part of the anti-clockwise whorl of dune fields of Australia. The dominating landforms are dunes and swales. There are local occurrences of playa lakes, associated lee-sided mounds (lunettes) and rocky prominences (Commonwealth Government, 2008b). Playa lakes are a minor, but locally significant landform in the desert, occurring in topographically low- lying regions and many represent the dried remnants of former drainage channels (Shephard, 1995). The bioregion consists of active sand-ridge desert of deep Quaternary (less than 65 million years ago) aeolian sands overlying Permian (251 – 298 million years ago) and Mesozoic (65 - 251 million years ago) units of the Office Basin (Commonwealth Government, 2008b). The GVD is underlain on its eastern, western and northern margins by an ancient crystalline basement comprising rocks at least 1000 million years old (Shephard, 1995).

The western end of the Shield subregion is underlain by the Yilgarn Craton. Here there is a higher proportion of sandplains in comparison to the entire bioregion. To the east is an arid active sand-ridge desert of deep Quaternary aeolian sands overlying Permian and Mesozoic strata of the Officer Basin. Landforms consist of salt lakes and major valley floors with lake derived dunes. The sandplains occur with patches of seif dunes running east-west and areas of moderate relief without-cropping and silcrete-capped mesas and plateaus (breakaways). The subregion contains a major palaeochannel of Ponton Creek (Cowan, 2001).

Based on geographic information provided by DAFWA (2014), the survey area is located within the Leemans Sandplain Zone 274 of the Murchison Province 27. The Leemans Sandplain Zone is characterised by sandplains (with some gravel plains, mesas and salt lakes) on granitic rocks of the Yilgarn Craton (Eastern Goldfields Superterrane). The zone is located in the south-western arid interior between Lake Wells and Minigwal to the east of Laverton (Tille, 2006). These zones are further divided into soil landscape systems, with the survey area located within the Carnegie System (274Ca). The Carnegie System is characterised by salt lakes with fringing saline alluvial plains, kopi dunes and sandy banks, supporting halophytic shrublands and Acacia tall shrublands (Tille, 2006).

Soils comprise red sandy earths with red loamy earths and some red deep sands, red-brown hardpan shallow loams and calcareous loamy earths. Vegetation is predominantly spinifex grasslands with marble gum, mallee and mulga shrublands (and some halophytic shrublands).

2.3 Vegetation The survey area is located within the Helms Botanical District (as described by Beard, 1990) which comprises a mosaic of tree and shrub steppe between sand hills and on sandplains, consisting of Marble gum, mallee and spinifex (Eucalyptus gongylocarpa, E. youngiana, Triodia basedowii). E. gongylocarpa is comparatively scarce with E. youngiana replaced by E. kingsmillii and Acacia aneura and A. linophylla becoming frequent on the sandplain (Beard, 1990; Cowan, 2001). Botanica Consulting 3 Goldphyre Resources Limited Flora and Fauna Assessment: Pilot Pond & Turkeys Nest

The Department of Agriculture and Food WA (DAFWA) GIS file (2011) indicates that the survey area is located within Pre-European Beard vegetation association Great Victoria Desert 125. Details on this vegetation association as described by the DAFWA are provided in Table 1.

Areas retaining less than 30% of their pre-European vegetation extent generally experience exponentially accelerated species loss, while areas with less than 10% are considered “endangered”. Development within the survey area will not significantly reduce the extent of this vegetation association at a local or regional scale.

Table 1: Remaining Beard Vegetation Associations within Western Australia (DAFWA, 2011)

Pre- % of Current Pre- European extent within Vegetation Vegetation Current European extent DPaW Description (Beard, association Extent (ha) Extent (ha) remaining managed 1990) (%) lands Great Victoria 54842.71 54842.71 100 0 Bare areas; salt lakes Desert 125

2.4 Climate The climate of the Great Victoria Desert is characterised as arid with summer and winter rain averaging 150 –190mm per annum (Cowan, 2001; Barton & Cowan, 2001). Average weather conditions can be interpreted from weather data collected from the closest Bureau of Meteorology weather station; the Laverton weather station (#12045) located approximately 160km south south-west of the Lake Wells survey area (Figure 2).

Figure 2: Mean monthly rainfall and temperature (January 1900 to December 2016) for the Laverton weather station (#12045) (BOM, 2016) Botanica Consulting 4 Goldphyre Resources Limited Flora and Fauna Assessment: Pilot Pond & Turkeys Nest 3 Results

3.1 Vegetation Communities Two vegetation communities were identified within the survey area as listed in Table 2. A map of the vegetation communities within the survey area is provided in Figure 3. Neither of these communities represent a TEC as listed under the EPBC Act or PEC as listed by DPaW. Table 2: Vegetation Communities identified within the survey area

Area Area Image Code Vegetation Community (ha) (%)

CD- Dense low shrub of Tecticornia 0.56 63.6 CSSSF1 indica subsp. bidens in playa

Forest of Casuarina pauper over open low scrub of Acacia burkittii D-CFW1 and open dwarf scrub of Atriplex 0.24 36.4 vesicaria/ Rhagodia eremaea on gypsum dune.

Total 0.8 100

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Figure 3: Vegetation Communities identified within the survey area

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3.2 Flora of Conservation Significance No Threatened Flora listed under the Commonwealth Environment Protection and Biodiversity Conservation (EPBC) Act 1999 or the Wildlife Conservation (WC) Act 1950 were identified within the survey area. No Priority Flora listed by the Department of Parks and Wildlife (DPaW) were identified within the survey area.

3.3 Fauna of Conservation Significance No Threatened Fauna listed under the Commonwealth EPBC Act 1999 or the WC Act 1950 were identified within the survey area. No Priority Fauna listed by DPaW were identified within the survey area.

3.4 Conservation Areas/ Specified Ecosystems The survey area is not located within an Environmentally Sensitive Area (ESA) as listed under the Environmental Protection (EP) Act 1986. The survey area is not located within a ‘specified ecosystem’ as described in the Department of Environment Regulation (DER), Environmental Siting Guidelines (2016) with the survey area not located within a Conservation Reserve/ DPaW managed land (including Threatened or Priority Ecological Community), Ramsar Site, Significant/ Nationally Important Wetland or a Bush Forever Site. The nearest known specified ecosystem is the De La Poer Range Nature Reserve, which is managed by DPaW, located approximately 12km to the west of the of the survey area. This specified ecosystem is not proposed to be impacted by development within the survey area.

4 Native Vegetation Clearing Principles

Based on the outcomes from the assessment undertaken, as presented in this report, BC provides the following comments regarding the native vegetation clearing principles listed under Schedule 5 of the EP Act 1986 (Table 3).

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Table 3: Assessment of exploration activities against native vegetation clearing principles

Letter Principle Assessment Outcome Development within the Vegetation identified within the survey area is not considered to be of high Native vegetation should not be cleared if it survey area is unlikely to (a) biological diversity, and is well represented outside of the proposed impact comprises a high level of biological diversity. be at variance to this area. principle

Development within the Native vegetation should not be cleared if it No Threatened Flora taxa, pursuant to subsection (2) of section 23F of the WC survey area is unlikely to (c) includes, or is necessary for the continued Act 1950 and the EPBC Act 1999 were identified within the survey area be at variance to this existence of rare flora. principle

Native vegetation should not be cleared if it Development within the comprises the whole or part of, or is No TEC listed under the EPBC Act 1999 or by the DPaW occur within the survey area is unlikely to (d) necessary for the maintenance of a survey area. be at variance to this threatened ecological community (TEC). principle

Development within the Native vegetation should not be cleared if it is According to DAFWA (2011), the survey area occurs in pre-European Beard survey area is unlikely to (e) significant as a remnant of native vegetation vegetation association Great Victoria Desert 125 which retains approximately be at variance to this in an area that has been extensively cleared 100% of the original vegetation extent. principle

The survey area is located within Lake Wells. Lake Wells is described by Native vegetation should not be cleared if it is Development within the Geoscience Australia (2001) GIS data as a non-perennial/ intermittent/ growing, in, or in association with, an survey area is unlikely to (f) fluctuating inland water which covers an area of approximately 49,700 ha. The environment associated with a watercourse be at variance to this clearing proposed by the development (0.8ha) constitutes a maximum impact or wetland principle of 0.0001% on the total area of Lake Wells.

According to DAFWA (2011), the survey area occurs in pre-European Beard Development within the Native vegetation should not be cleared if the vegetation association Great Victoria Desert 125 which retains approximately survey area is unlikely to (g) clearing of the vegetation is likely to cause 100% of the original vegetation extent. Clearing within these vegetation be at variance to this appreciable land degradation. associations is not likely to lead to land degradation issues such as salinity, principle water logging or acidic soils. Native vegetation should not be cleared if the Development within the clearing of the vegetation is likely to have an The survey area is not located within a conservation area. No PEC as listed by survey area is unlikely to (h) impact on the environmental values of any DPaW is located within the survey area. be at variance to this adjacent or nearby conservation area. principle

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