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 www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) 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 i www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) 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 ii www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) 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 Page 3 www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) 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). Page 4 www.australianpotash.com.au ASX: APC Attachment 3A – Proposed activities (Australian Potash trial evaporation ponds) 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.