Chandler Salt Project Company overview Tellus Holdings (Tellus) is a public unlisted project development company in mine evaluation stage with an attractive portfolio of rock salt and kaolin deposits, including its flagship Chandler rock salt project in the Northern Territory. Website: www.tellusholdings.com.au Resource: Salt Contact details Tellus Holdings Mr Duncan van der Merwe Group Managing Director T: +61 2 8257 3395 E: [email protected] Australia Northern Territory Government Department of Primary Industry and Resources Investment Attraction Division Ms Fiona Park Director Investment Attraction T: +61 8 8999 1385 E: [email protected] For more information on this project or others available in the Northern Territory, visit www.core.nt.gov.au Project overview The Chandler project is located 120 km south of Alice Springs in central Australia. Since its initiation in 2012, the project has been fast-tracked using the results from previous oil and gas exploration programs in the area to identify a large salt resource. The previous oil and gas industry exploration program looked for salt beds and domes because the salt often acts as a trap for petroleum. The in-situ resource grade across the project area is 80–95% halite and with post-processing can achieve a grade of more than 97% making it a salt deposit suitable for industrial and edible salt products. Rock salt from the project can be used for chloralkali and synthetic soda ash production, food and food processing, livestock feedstuffs, water treatments and other applications. The Chandler deposit is potentially Australia’s largest underground multi-mineral rock salt deposit. The project has a JORC Measured, Indicated and Inferred category mineral resources of 4,540 Mt sodium chloride (NaCl). The project offers a dual revenue business model. This involves mining the salt to a depth of approximately 850 m and using the voids left from mining as storage for equipment, archives or long- term temporary storage of waste. This business model mirrors world’s best practice solutions operating in the United Kingdom, Europe, the United States and Canada. Geology and exploration activity to date Tellus evaluated six salt provinces in geological basins across Australia before selecting the Amadeus Basin in central Australia as the most suitable. The rock salt mineralisation within the project area is hosted in the Precambrian Gillen Member and the Cambrian Chandler Formation, separated and overlain by sand, siltstones and dolomites. The 500 million year old Chandler salt bed is 18 km wide, 700–800 m deep and 200–300 m thick, making it large in global terms. The project area has been subject to 145 km of seismic and 6.6 km of core drilling from past oil and gas exploration (A$6.5 million historic spend). In January 2014, Tellus completed a further 1.9 km of diamond drilling. NaCI KATHERINE Chandler 0 100 km Railway Major road Major town Gas pipeline TENNANT CREEK ALICE SPRINGS DARWIN
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Chandler Salt Project
Company overviewTellus Holdings (Tellus) is a public unlisted project development company in mine evaluation stage with an attractive portfolio of rock salt and kaolin deposits, including its flagship Chandler rock salt project in the Northern Territory.
Website: www.tellusholdings.com.au Resource: Salt
Contact detailsTellus HoldingsMr Duncan van der MerweGroup Managing DirectorT: +61 2 8257 3395E: [email protected]
Australia Northern Territory Government Department of Primary Industry and Resources Investment Attraction DivisionMs Fiona Park Director Investment Attraction T: +61 8 8999 1385 E: [email protected] For more information on this project or others available in the Northern Territory, visit www.core.nt.gov.au
Project overviewThe Chandler project is located 120 km south of Alice Springs in central Australia. Since its initiation in 2012, the project has been fast-tracked using the results from previous oil and gas exploration programs in the area to identify a large salt resource. The previous oil and gas industry exploration program looked for salt beds and domes because the salt often acts as a trap for petroleum. The in-situ resource grade across the project area is 80–95% halite and with post-processing can achieve a grade of more than 97% making it a salt deposit suitable for industrial and edible salt products. Rock salt from the project can be used for chloralkali and synthetic soda ash production, food and food processing, livestock feedstuffs, water treatments and other applications.The Chandler deposit is potentially Australia’s largest underground multi-mineral rock salt deposit. The project has a JORC Measured, Indicated and Inferred category mineral resources of 4,540 Mt sodium chloride (NaCl). The project offers a dual revenue business model. This involves mining the salt to a depth of approximately 850 m and using the voids left from mining as storage for equipment, archives or long-term temporary storage of waste. This business model mirrors world’s best practice solutions operating in the United Kingdom, Europe, the United States and Canada.
Geology and exploration activity to dateTellus evaluated six salt provinces in geological basins across Australia before selecting the Amadeus Basin in central Australia as the most suitable. The rock salt mineralisation within the project area is hosted in the Precambrian Gillen Member and the Cambrian Chandler Formation, separated and overlain by sand, siltstones and dolomites. The 500 million year old Chandler salt bed is 18 km wide, 700–800 m deep and 200–300 m thick, making it large in global terms. The project area has been subject to 145 km of seismic and 6.6 km of core drilling from past oil and gas exploration (A$6.5 million historic spend). In January 2014, Tellus completed a further 1.9 km of diamond drilling.
NaCI
KATHERINE
Chandler 0 100 km
RailwayMajor road
Major townGas pipeline
TENNANT CREEK
ALICESPRINGS
DARWIN
InfrastructureThe sealed Stuart Highway and the Adelaide to Darwin railway pass within 30 km of the proposed Chandler mine site. Tellus plans to transport salt by rail to the Port of Darwin for export. The company’s planned supply chain infrastructure will include a shipping container pad and transfer station near the East Arm Wharf at the Port of Darwin. Hydrology and hydrogeology studies done in 2012 found that there appears to be sufficient groundwater in the project area to meet the mine’s base case demand.
Project economics• In 2012, the company completed a prefeasibility study that found
the project to be technically viable and commercially feasible. • In 2014 Tellus completed an update to the prefeasibility study,
reconfirming the technical and commercial viability of the project with updated assumptions. In September 2014, the project was awarded Major Project status by the Northern Territory Government.
• The large scale of the Chandler salt resource provides for a potential 500-year mine life. The project is underpinned by an advantageous dual-revenue model, in which the voids created by salt mining provide valuable storage space for industrial and other waste. This business model has been successfully employed across Europe and North America.
Project status and development timeline• The Chandler project has been awarded Major Project Facilitation
Status by both the Northern Territory Government and the Australian Government.
• Tellus Holdings is well advanced with applications for the environmental and other approvals and permits needed before construction of the project can commence.
Investment soughtTellus is seeking sales and marketing partners for the planned 0.5 Mtpa industrial and edible salt products from the Chandler project.
JORC Resource EstimatesThe Measured, Indicated and Inferred mineral resources reported on 8 June 2012 (no maximum or minimum cut-off used) comprised:Category NaCl
(Mt)NaCl Grade
%Density(g/cm2)
Measured 309.43 88.56 2
Indicated 1,128.63 88.64 2
Inferred 3,103.80 88.64 2
TOTAL 4,541.86
Disclaimer: This document includes information provided by third parties. The information is general in nature and is for information purposes only. The Northern Territory Government makes no representation about the veracity or accuracy of information provided by third parties. You must rely on your own due diligence before proceeding. You should consider seeking independent professional advice.
© Northern Territory Government, 2017
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