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CRGSC014665CAGSC O1FINAL REPORTAND SIX MONTHLY REPORT TO 5TH NOVEMBER, 1986.AUTHORITY TO PROSPECT 4135MA.H. WHITEPoseidon LimitedCH IfcIHCONTENTSPageHistory andFinal Report66929012700Appendix 1Appendix 1669290931545Appendix 2Appendix 2Report on Adavale Basin Potash ProjectJ.D. SapikowskiPotash Potential of Brides Creek ProspectAdavale Basin QueenslandB.C. FullerFiguresLocation Map ATP 4135MStructural Elements Adavale BasinBrides Creek Seismic Survey Shotpoint Location MapSynthetic Seismogram Bury No. 1Time Structure Map Bury LimestoneTime Structure Map Marker above SaltSalt IsochronInterpretation Line PE 85 - 03Interpretation Line PE 85 - 02Interpretation Line PE 85 - 01Boree Salt Potential of Brides creek ProspectMS2179955065462156186170POSEIDON LIMITEDAOAVALE BASiN POTASH PROJECTLOCALITY MAPG?oK>gi?t A m wmiTEScaia > lOOO OOOCrown N Bow?jenCota April 36$n?a’ i'O??OrgmonHISTORY AND FINAL REPORTAuthority to Prospect 4135M was granted to Poseidon on 20th November, 1985 and surrendered on 5th November, 1986. The A - P was taken out over ground previously held by Poseidon in A - P 3481M, in which Poseidon and its Joint venture partner, PPG Industries Inc. had been exploring for potash since 1983. Previous work in A - P 3481M had shown that potash mineralisation occurred in the Early Devonian Boree Salt Member (Table 1) in two petroleum exploration wells, Bury No. 1 and Bonnie No. 1 (Fig. 1).Work completed in ATP 4135M prior to relinquishment consisted of:a review of seismic and sub surface well dataa 47 km 12 fold vibroseis survey (the Brides Creek Survey) part of which fell within ATP 4135M(a) Interpretation and (b) review of the results of the Brides CreekSurvey, incorporatingseismicdata obtained frompreviouspetroleum exploration.All the work up to3(a) wasreported previously.The finalreview of data carriedout by theJoint Venture partners(3(b))is reported below. As a consequence of the final review, the Joint Venture partners decided to surrender ATP 4135M, in view of the high cost of continuing exploration for potash in the tenement, and the pessimistic outlook for the world potash market.AG EPALYNUNITSTRATIGRAPHICUNITLI THOLOGYOBSVCTHICKNESS RA.(m)DEPOSITIONALENVIRONMENTHYDROCARBOhMIDDLE TO LATE DEVONIAN77i5 ii i i77i ii4i i i7BUCKABIE FORMATIONSandstone, siltstone, shale, reddish brown756+ContinentalRed BedsQTABLE 1Adavale Basin STRATIGRAPHYetonvaleFORMATIONShale / siltstone memberSiltstone, shale, sandstone, varicoloured; rare limestone. ? dolomitic,oolitic;rare anhydrite; rare shelly fauna3846 1 2? MarineBoree Soil MemberRock salt, clear to brown; rare sillstone, shale,dolomitic limestone and anhydrite77583EvaporiticBURY LIMESTONE (Limestone facies )Limestone, dolomitic,rare sandstone and siltstone, (carbonates includes dolosparite wackstone, grainstone, packstone); rich marine fauna, some high energy marine influence1 784I8 +Restricted to high energy shallow marineEARLY DEVONIANGUMBARDO FORMATION Red bed unitSandstone, quartzose, recrystallised, feldspathic; arkose, siltstone, shale, varicoloured.IO7+ContinentalRed BedsBASE GUMBARDO FORMATION NOT REACHED IN DRILLINGAPPENDIX 1REPORT ON ADAVALE BASIN POTASH PROJECTby J.D. Sapikowski, Denver U.S.A.Several seismic sets from the Adavale Basin, Queensland, Australia were reviewed. (Fig. 2) The data ranges from poor to good, and included a sonic log from Bury No. 1 well and a check shot survey from Bonnie No. 1. Neither well had a synthetic seismogram, so a synthetic seismogram was constructed for Bury No. 1, (Fig. 3) enabling Bonnie No. 1 to be tied to seismic line P85 - 03 (refer 6 monthly report to 9th May, 1986). Iso velocity contours were also obtained from the seismic processing contractor (Hosking Geophysical) in order to better interpret a potential salt section.After tying several varying data sets together, it was determined that three maps would be needed to analyse the basin;a structural map of the Bury Limestone Member (Fig. 4)a top of potential salt map and (Fig. 5)an isochron of the potential salt interval. (Fig. 6)The synthetic seismogram from Bury No. 1 was tied to SP520, Line P85 - 03. (Fig. 7) The reflector at 1200 ms appears to be the top of the Boree Salt Member and the event at 1430 ms appears to be the top of the Bury Limestone. Correlation of the Bury Limestone around the data sets was straight forward, but the salt correlation is quite tenuous.821055207645Line P85Line P85188150521209003032183765212090crossescrosses2791460203200a fault that cuts the Bury Limestone and the salta fault that cuts the Bury Limestone and the salt825500518795at around SP506.at around SP506.2178685518795West ofWest of2800985509270this point the Bury Limestone continues over athis point the Bury Limestone continues over a825500820420broad structurebroad structure2192655820420and intoand into3024505811530a syncline at SP400. The salt section appearsa syncline at SP400. The salt section appears8299451131570to thin and a newto thin and a new22015451131570reflectorreflector829945135890approximately 1500 ms).approximately 1500 ms).2941955127000This reflector is fairly continuous and isThis reflector is fairly continuous and is829945438150easily mapped. The intervaleasily mapped. The interval3180080433070between the new reflector and the Burybetween the new reflector and the Bury821055135890LimestoneLimestone1657985131445come into contactcome into contact3102610127000at SP366 and the interpreted salt pinches outat SP366 and the interpreted salt pinches outhere.There is a dramatic change in the terracing of the iso-velocity contours on either side of this pinch-out. Also, the interval between the Bury Limestone and the reflector above the salt thins at SP366, from both directions, but the interval from the reflector to the Permian unconformity at approximately 1100 ms thickens. It is concluded that the salt southwest of SP366 is not as widespread or as thick and may not be the same as that to the northeast of SP366.The thickest potential salt west of SP366 is around SP270 between 1600ms and about 1660 ms. The character below the reflector at SP270, approximately 1580 ms differs significantly from the character below SP420, 1550 ms. Southwest towards SP160 the interval between the top of the salt reflector and the Bury Limestone thins markedly. This thinning is clearly seen in the iso velocity contours. The presence of additional strong reflectors between the top of the salt reflector and the Bury Limestone suggests lithological changes and that the interval is not entirely composed of salt.At SP258, line P85 - 02 (Fig. 8) where this line ties with line P85 - 03, the Bury Limestone is approximately at 1610ms and the top of the salt reflector approximately 1530 ms. South of this shotpoint on line P85 - 02 the reflectors grade uniformly into a syncline, but north of SP258 there are several significant changes, the most important of which is a pinch-out of the salt at SP310.A large fault at SP384 with approximately 50 ms of throw cuts the Bury Limestone, with down being north of the fault. Between SP310 and the fault little, if any, salt is interpreted below the reflector at SP360, 1400 ms. The iso velocity contours too have no indication of significant slow velocity material. Between SP386 and SP420 the whole sequence thins and a low angle fault may be present at SP424.By tying P85-02 to P85-01 (Fig. 9) the Bury Limestone at approximately 1600 ms was mapped across several gently rolling structures, the interval between the limestone and the top of salt reflector thins across each structure. On line P85 - 01 the best potential salt section occurs between SP370 and SP440 and is thickest at SP388. Subtle features on this line demonstrate a highly variable depositional environment for the salt. Although the line ties with Bonnie No. 1 at SP172 and some salt is present in the well, this thin salt cannot be carried with confidence throughout the basin. Faulting southeast of Bonnie No. 1 at SP210 and changing character of the reflectors above the Bury Limestone implies that the salt was not uniformly deposited.In summary, while both Bonnie No. 1 and Bury No. 1 wells intersected salt, there were numerous paleo structures which controlled deposition between the two wells, and there is little evidence from the seismic to support the suggestion that salt deposition was uniform and widespread throughout this area. Many areas could be barren of salt.J.D. Sapikowski21/4/86APPENDIX 2Potash Potential of Brides Creek ProspectAdavale Basin, QueenslandAustral i a549719512700April, 1986April, 1986by B. C. FullerFollowing the disappointing results at Boree #2 in October, 1984, I was given the task of trying to identify a second target area in the Adavale Basin. Criteria established for identifying potential target areas were:Gentle to moderate structureTop of Boree Salt less than 8000 ft. below surface.Reasonable salt thickness with a potential for encountering sylvinite mi neral ization.Sufficient areal extent for possible further development.A potential area of approximately 15 square miles was located just south of the Ravensbourne Uplift and lying midway between the Bonnie #1 and Bury #1 wells--which are located roughly 15 miles apart and 19-22 miles SSW from Boree #1. Independent evaluation by Poseidon identified a similar target area.In order to better define this prospect, a proposal was made to shoot a series of three seismic lines which would be tied into the Bonnie & Bury wells. A tentative drill site was proposed at the intersection of the three seismic lines, roughly in the middle of the target area. This seismic program was carried out in Oct./Nov., 1985.76263588903ased on PPG’s interpretation of3ased on PPG’s interpretation of32727904445the seismic data (J. Sapikowski, B. C.the seismic data (J. Sapikowski, B. C.62401450FullerFuller753745320040Jan.-April , 1986), the followingJan.-April , 1986), the following3268345315595statementsstatements4114165315595can be made:can be made:Estimated drill depth to the top of the Boree Salt is 7500-7700ft.belowsurface at the intersection oflines PE 85-01, 02, 03 (T.W.T. =1,5+sec., VfIms = 3050 m/s - 3125 m/s)Strata at that level appear tobe dipping to the south at about10°(900plus ft./mile). Consequently,the top of salt would be intersectedatdepths greater than 8000 ft. within about 0.5 miles south of the proposed dril 1 site.The Boree Salt, where present, is thinner than previously estimated. Whereas prior i nterpretations placed the Boree Salt at 600-1200 ft. thick in this area, it appears that 300-500 ft. is a more realistic figure. Sapikowski hypothesizes that the presence of additional strong reflectors intermediate between the reflectors identified as the top of the Boree Salt and the top of the Bury Limestone suggests changes in lithology within this unit.That the Boree Salt is a continuous feature southwest of a structural high on the Bury Limestone identified at shotpoint 366, line PE 85-03, is speculative. It appears that the Boree Salt has been thickened by flowage in the vicinity of Bury H and that the thickest protion of this salt structure lies to the east of Bury #1 closer to the Warrego fault system, where the likelihood of encountering contorted bedding within the salt is h igh.In the Paradox Basin of Utah and Colorado, where numerous salt anticlines exist, salt has flowed into anticlinal cores resulting in depletion of salt fran adjacent synclinal areas. It is not unreasonable to expect that the thickened salt sequence adjacent to the Pleasant Creek Arch in the Adavale Basin exists at the expense of the salt basin lying to the west.Note that there is a marked change in reflector quality of the supposed Boree Salt horizon on either side of the structural high noted above - from a relatively diffuse pattern on the NE to a more linear, stratified pattern on the SW. In view of the results at Boree #2, this suggests a potential change in lithology and should be viewed with trepidation.Faulting immediately west of Bury (Sp 510), inconsistent reflector quality at supposed top of salt between 8ury and shotpoint 425, and the structural high at Sp 366 all combine to limit confidence in continuity of a thick Boree Salt interval westward frcm the Bury.The extent of the Boree Salt north frcm the proposed drill site is more restricted than previously thought. The Boree Salt appears to pinch out against a Bury Limestone high identified at shotpoint 310, line PE 85-02. Beyond this point, roughly 1 mile north of the proposed drfl 1 site, the presence of Boree Salt is highly unlikely.The Boree Salt cannot be traced southeast of Bonnie #1 on line PE 85-01 with a high degree of confidence. Reflector character immediately to the east of Bonnie H is inconsistent; and there is faulting within a mile east of Bonnie at shotpaint 210, line PE 85-01. It is possible that theBoree Salt may be confined to an isolated fault block at Bonnie #1. Southeast of Bonnie #1 two structural highs have been identified on the Bury Limestone (Sp 350 and Sp 460). The Boree Salt appears to wedge out against these features and be confined to the troughs located in between these paleo highs.Line PE 85-01 roughly parallels the edge of the Ravensbourne Uplift; as a result the Boree Salt is likely to be thin and inconsistent along the 1 ength of this 1 i ne.Faulting immediately east and west of Bonnie #1, inconsistent reflector quality at top of salt, the presence of Bury structural highs, and the intermittent presence of strong extraneous reflectors within the interval confined by the Boree Salt-Bury Limestone reflectors raises serious questions about the character and continuity of the Boree Salt along line PE 85-01.Recall from prior i nterpretations:Interpretation of the Bury geophysical logs suggests a thick section (5920-6775; approx. 850 ft.) containing a multitude of thin potash, salt, and insoluble beds. Individual potash beds appear to be no more than7-10 feet thick at best, and some appear to be carnallitic. Seme beds may be repeated by folding.Two cores were cut through the mineralized interval (core #8, 5938-5945.5; core #9, 6460-6469.4). These cores contain thin sylvinite stringers,traces of carnallite, and bedding inclined fran 20°-40°. Flow distortion structures (recumbent folding, elongated crystal fabric) and the presence of a greasy (bitter) MgC1j solution on the core were also noted. Cores from below the mineralized internal contain thin shale laminations and s imi 1 a rly high di ps.Interpretation of Bonnie geophysical logs suggests the presence of very weak potash mi neral ization, again containing thin intercalated layers of salt, low-grade potash, and insolubles. A single core was cut near the top of the salt section (7354-7364). One sample contained two thin (5.7 cm and 6.6 cm), high-grade (26% IQO) sylvinite stringers. Dissolution pits and a bitter taste on the core surface may indicate traces of carnallite, thin clay laminae dip about 10°.Boree Salt stratigraphy is markedly different between Bonnie #1 and Bury #1. The thick unit (98 ft.) containing 22 ft. of dolomitic limestone and 76 ft. of massive anhydrite at Bury is either absent or considerably thinner at Bonnie. There is a question whether the section at Bonnie represents an unconformity with severe truncation (C. L. Jones) or whether the thinning represents depositional processes (Richter-Bernburg). There are also questions as to the stratigraphic position of the potash unit--i.e., whether the section at Bonnie lies above or below the shale marker found at Bury.The Boree Salt section at Bury #1 ( L80O) appears to have been thickened by flowage and may contain repeated beds. The section at Bonnie (300)may have been severely truncated by solutioning and erosion. What couldreasonably be expected halfway between the two is difficult to surmise.Geochemical analyses and interpretation ( 1983) suggested that the mineralized section at Bury #1 was potentially carnallitic.38557202070100The area south of the Ravensbourne Uplift was not originally identified as the area of best potential for intersecting mineable potash. Most of this area contains a Boree Salt section that is deeper than 8000 ft., potentially distorted by proximity to the Warrego fault, or barren of potash (Alva #1, Stafford #1). The area originally identified as having the best sylvinite potential was that surrounding Boree #1.BCF/1 rhATP 3481MStatement of expenditure for six months ending 5th November, 1986Geological and geophysical interpretation$8,087Administration$808$8,895ffo o o otnmt-i o ootnK)8oo(67240 COOmN— 7230000mN— f220OOnmN(■'210 OOOmN>°’+.'J■3ooo3481JW-,A280r,+BURYf*OA276Qr+rjooo0ADAVALE BASIN POTASH PROJECTBRIDES CREEK SEISMIC SURVEYSHOTPOINT LOCATION MAPScale h *100000Plale N°2tbl/^tn K) o mIo 0'i?<?■o° <8*POSEIDON LIMITEDDrawn: N. BowdenDate : Jon '86Sheet Index: Adavale B.Dra N° 013/146/86181038530492701255903011311255— J24O <XJUmN'§ Qmmi§s -§ 1 oIntitfl m 1■MM/BONNIE NO.— I i io UU mtLsBURY NO1tORIGINAL COMPONENTIN POOR CONDITION(X Ibllq4j0444/w/ w ■/'o□MZ 1firarsot WO 200 tu 10J9Q ?sr? trsQ H! c XCQ far i ftCQO 100- fdlOCKJO mN4-FIGURE 4POSEIDON LIMITEDADAVALE BASIN POTASH PROJECTBRIDES CREEK SEISMIC SURVEYBURY LIMETIME STRUCTURE.? .iuumi■UUIILJU3-5-86 Scale I : 100.00014814551120775183324512382517513306451602927353214370I- .r-.iUBk-v■■■11 111 lln{1-§omRgSI§c1 g O4ftI00An1 7240 OOJmN0(1,i / 5lM?U mNBONNIENO.7220 011 mH— 72IOUQ) mHF-I6Bc>11I \-tO j<ji>‘V,k?Ay.noin w .0EW^jjR?s;sc?^.^7rt:aias' ■: yst: wesson:. sa^K.'* ??:*. r y?? t * ? o’ *■9^,0- .ra>t ? WO^r,r?9 t ~'M!0 07* ■996 i .ffjso 944 1 .998 o .969 i O IDOcv oI u> to a.//C o co b? Ift*R.Tf oK / Lv - * o *o * c7 /o/- ui -a??oOi?l_>oBUBY NO.ORIGINAL COMPONENTIN POOR CONDITIONFIGURE 5POSEIDON LIMITEDADAVALE BASIN POTASH PROJECTBRIDES CREEK SEISMIC SURVEYMARKER ABOVE SALTSTRUCTURE3-5-86Scale I : 100,00092081355952490891095510803890IZiQCLOmH— 7220 OCObM‘n.-- 7^K)aD mNF-167Ifigure 6POSEIDON LIMITED' j.!;■ADAVALE BASIN POTASH PROJECTBRIDES CREEK 8EISMIC SURVEY■ ' J? ' ' - : ■■ ''■ *?‘‘.AJ. ■ ':-'LA'SALTi ■ ■/'-''Xa' a’ XX'X-ISOCHRON-? ’ i ? ?;. .><':n/-,"'--? .i-;j ■3-5-86Scale 1 : 100,000Ii'J235458073025161417050107854791710023317209866630 ................
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