Davenport Potash Project Portfolio (ASX:DAV)

(PWN ~20% shareholding in ASX:DAV)

Parkway Minerals owns ~20% of Davenport Resources (ASX:DAV).
The DAV project portfolio includes ~200km2 of perpetual mining licences across three projects and ~458km2 of exploration licences across two projects, in the South Harz region of Central Germany.
The mining licences were subject to detailed drilling in 1960s and 80s, when the field was owned by the state-owned Potash Mining Corporation of East Germany.
The review of historical drill data has enabled the delineation and reporting of a substantial JORC (2012) compliant Inferred Resource in the order of 5 billion tonnes at an average grade of 10.6% K2O.

Shareholding

Parkway Minerals is the largest shareholder in Davenport Resources and holds a strategic shareholding of:

34,300,000 shares (~20.8% of issued capital as of October 2019), and
7.1 million options (DAVO)

Potash Resource

DAV controls over 4.9 Billion tonnes (grading 10.6% K2O) of JORC Inferred Resource from its Ebeleben and Mühlhausen-Nohra mining and Küllstedt exploration licences, including 1.6 billion tonnes of sylvinite grading 13.1% K2O.
DAV’s portfolio of resources represents Western Europe’s largest potash inventory and contains a number of significant projects.

Acquisition Rationale

The potash resources delineated by DAV, represent a globally significant source of potash, and is of strategic importance for Parkway Minerals. A large proportion of the inferred resources at Ebeleben and Muhlhausen/Kullstedt contain substantial minerals, including carnallite which is likely to be amenable to solution mining, a process which itself is well suited to the application of the aMES™ technology.

Corporate Synergies

Approximately 75% of the potash resource (1,205 million tonnes) at the Küllstedt project consists of carnallitite grading at 10.1% K2O, which may be amenable to primary solution mining.
The aMES™ technology has likely applications in both the primary processing of potash solutions as well as sylvinite waste streams.
Parkway Minerals has previously performed testwork to demonstrate the suitability of the aMES™ technology to process primary and waste brine streams from other potash projects.
Parkway Minerals is exploring collaborative opportunities with DAV to determine potential pathways for adding value to the DAV project portfolio.

Additional Information

For more information about the DAV project portfolio including technical information or to explore potential commercial opportunities, please Contact Us.