Reward Minerals Ltd holds three Exploration Permits covering 790km2 within the Adavale Basin in Queensland which were granted in December 2008.
The area held by Reward Minerals Ltd covers an elongate northeast-trending structure west of the Warrego Fault and contains Bury 1 and Stafford 1 oil exploration wells. In Bury 1, the salt horizon top was at a depth of 1,770m and salt thickness of 580m. Minor Potash mineralisation was encountered in Bury 1 between 1,810 – 1,811m and 1,968 – 1,971m depths. Potassium values up to 4% were observed in thin layers (15cm) within these intervals. However, much of the evaporite horizon was not analysed for potassium. On the down throw side of this fault, a series of minor horsts and grabens are developed sub paralleling the major trend direction. It has been interpreted from seismic surveys that the evaporite horizon is up to 900m thick, coming to within 900m of surface in places. Figure 5 displays the gravity low associated with the Boree Salt Member adjacent to the Warrego Fault. The exploration strategy is to drill several 1,500m to 2,000m holes to intersect the uplifted salt horizon to ascertain the concentration and extent of potash mineralisation within the unit. The project area is near the coal mining site of Blackall 600km inland from Gladstone. In addition to their Potash potential the Adavale deposits could readily provide salt for the manufacture of caustic soda which is utilised in substantial quantities at the Gladstone Alumina operations of Comalco Ltd. Data available suggests that annual imports of caustic soda to Gladstone are of the order of 1.5 million tonnes at a cost in excess of $500 million.
Reward’s Adavale Potash Project tenements are over Freehold land. The Company had executed Access Agreements with holders of the two pastoral leases covering the Adavale prospect area and received clearance from the Queensland Department of Mines & Energy. During the December 2010 quarter, in line with recent legislation, Reward Minerals Ltd sought Heritage clearance for the two drill sites from the relevant Traditional Owners of the area. The Company has been advised that the Bidjara people wish to invoke Native Title Protection Conditions (NTPC’s) over all three of Reward’s tenements. The resultant delay of Heritage clearance for the proposed drill hole (Bury 1A), means the Access Agreements with the Freehold Title Owners have now expired and are currently being renewed. The Company is also presently involved in negotiations with several parties interested in farming in to the Adavale prospect tenements. The Company will advise the market and shareholders should these negotiations result in a satisfactory outcome.