Exploration Licence Application – EL007227

On 18 February 2020, Munta Salt Pty Ltd (ACN 605 566 032) (“the Company”) lodged an application for an Exploration Licence in the vicinity of Chinkapook, approximately 50km North West of Swan Hill in the Local Government Area of Tyrell, as indicated on the map below. The application was accepted by the Department of Jobs, Precincts and Regions on 4 June 2020.

Exploration Rationale

Historic open file information includes kaolin and/or clay occurrences throughout the region west of Chinkapook. Data sources include existing drilling completed in the late 1980s – 2000 and, historic water bore records. Exploration in the region has been focussed on predominantly mineral sands, with drilling results identifying units of clay beds, interpreted as Blanchtown clay and Gerra clay units.

The Company intends to review existing data, interpret available geological information and assess potential for a kaolin or other clay type deposit. If the desktop study is positive, an air core drilling program would be completed to assess lithology, extent and thickness of a potential clay bed.

This program is considered appropriate for clay exploration as it assesses the regional area, application area and then focusses on exploration targets. Clay deposits that formed from weathering or depositional processes can vary in thickness laterally so, potential future work would likely include initial large spaced air core drilling, with infill drilling in areas of greatest kaolin and clay thickness.

Proposed Exploration Program

Initial exploration activities would include a desktop study to review any information available from previous exploration activities historically conducted within the vicinity of the application lease area. This would include historic annual reports, any laboratory reports, open geophysical data and geological modelling data.

Subject to positive results of the desktop study, stakeholder engagement would progress, along with a site reconnaissance visit to assess location and ground conditions with the aim to identify potential drill targets. A Strategic Environmental Assessment (SEA) would be conducted to investigate key environmental and socio-economic criteria associated with the area.  A key focus will be to identify opportunities and constraints to determine future work programs. The SEA process will safeguard environmental considerations are integrated into strategic decision-making in support of environmentally sound management principles, best practice techniques and sustainable development. A key deliverable of the SEA process is to determine if potential environmental impacts or effects of a proposed development by the Company may require an Environment Effects Statement under the Victorian Environment Effects Act 1978.

The next stage of exploration would be focused on drill planning and completion of an air-core drill program. Initial drill targets would focus on large spaced reconnaissance style drilling with infill holes as required based on results. Air-core samples would be logged on site during the drilling campaign.

Assessment of results would include geological modelling and, if extent of clay is assessed to have potential, resource modelling would take place. The Company would then complete a scoping engineering study based on geological, environmental and socio-economic information collected during the SEA process.

Proposed Timing Of Exploration Activities


Environmental Management Strategy

The Company will operate in accordance with its internal Environmental Management System. This includes environmental compliance under ISO 14001 to which it is accredited.

All rehabilitation will be carried out as soon as practicable after exploration activities have taken place and in line with the current Guidelines for environmental management in exploration and mining. The Company will ensure all staff and contractors are aware of all sit specific environmental sensitives and/or constraints and, will undertake any work in accordance with any necessary environmental compliance obligations as required by Victorian Government legislation and regulations.

The Company will ensure to minimise  where possible, adverse environmental impact. It  will work in accordance with the Guidelines as determined by the Victorian Government and will facilitate effective rehabilitation of any disturbed areas.

Community Engagement Strategy

The Company’s Community Engagement Strategy for EL007227 is broadly focused on the following:

Identify individuals or groups who may be impacted by the operations on the Exploration Licence. This would involve determining affected landholders, persons living on or in the vicinity of the licence and other community groups which may be impacted by the operations. Groups such as the Victorian Farmers Federation or local Field Naturalists Club, Government Departments, Federal, State or Local and other Government bodies with a particular interest in the land on which the licence is situated should also form part of the consultation group.

Engagement with members of the community may include direct face to face consultation and consideration and assessment of the full impact of the proposed works on these individuals and groups.

Following consultation with the community, the full impact is assessed by guidelines provided by the Department of Jobs, Precincts and Regions. An assessment is then made as to what level of community input and involvement can be achieved.

Any contact or complaints will be recorded and where possible, the Company may make suitable arrangements to contact the complainant. If matters cannot be settled between the two parties, the local Inspector or Mining Warden can be requested to assist in resolving an issue or mediating on the matter.

The community is welcomed for their interest and input into ensuring that there are minimum adverse impacts to the amenity of the area, or a negative impact on the expectation of the community for the enjoyment of their local environment.

The Company is mindful of the need to maintain good community relations and confirm the channels of communication between the Company and the community in which it operates are kept open.

Location map of EL007227