SAMPLES from the Sino-Lao Potash Project are being tested as part of FYI Resources’ due diligence investigations for the project. FYI is considering a joint venture in the project, which is southeast of Vientiane and directly across the Mekong River from its major target areas in Thailand.

The sample shipment has been received and checked by Metallurgy Pty Ltd at their laboratory in Western Australia. The sample material from the underground workings has been split and will go to two separate testing streams – geoanalytical and metallurgical.

The first stream involving multi-element analysis, specific gravity testwork, soluble and insoluble digestion, moisture content, etc is aimed at testing potash grades and verification of underground mine and production grade checks. The testing of these analytes will provide key information for FYI’s project assessment.

The first round of metallurgical test work in the second stream will focus on the characterisation, liberation, dissolution rates and flotation rates of the underground material. This stream involves analysis of preliminary flowsheet test work for expanded production scenarios.

This preliminary work will be conducted to pre-feasibility study levels which will provide FYI with indicative technical information that could be used for a more detailed feasibility study.

The initial dual test work program is designed to support FYI’s due diligence review of the project and assist in establishing the principal technical parameters for a possible expansion of the project from trial to commercial production targeting between 500,000 to 1,000,000 tonnes per annum of final product.

FYI has also been drilling as part of the due diligence. The drill program is designed to test the extent of the targeted mineralised potash zone and to assist in verifying the historic drilling. Down hole geophysics have also been conducted.

The decision to commit to the drilling program was made following an inspection of the underground production and development drives and supporting infrastructure at the project.

FYI is targeting shallow, thick, high grade deposits typically associated with the geology of the basin regions in Thailand and Laos. The company and in-country management groups believe the targeted project areas have the potential to host world-class potash deposits.

FYI signed an MoU earlier this year with the Yuntianhua Group, which is headquartered in Yunnan Province, concerning collaboration on resource development and potential production at the Sino-Lao project. Yuntianhua, via subsidiary Sino-Lao Mining Development and Investment Co, majority owns the project, which includes an established trial production facility and infrastructure as well as a significant potash deposit.

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