In an exclusive interview with London South East, Emmerson plc CEO Hayden Locke announces a resource upgrade of 72% to 537 million tonnes for its 100% owned Khemisset potash project in Norhern Morocco. The potash has an average grade of 9.24% K2O.This is 'better than expected' said Hayden.
Khemisset is a world class development stage potash project with a minimum mine life of 20 years, industry leading capital costs of production, bottom quartile delivered cost to customer, delivering average annual EBITDA of US$236 million and a post-tax NPV10 of US$1.14 billion.
"70% of the resource has been upgraded to the 'Indicated' category" said Hayden. "What's more, the in situ value of contained potash within the projected mine area is approximately US$30 billion and significant resource upside remains."
"The economic cut-off grade (break even point) is substantially below the cut-off used in the Scoping Study which implies significant further upside potential to the mine life, the project development continues to progress exceptionally well and the Feasibility Study is on track for completion in H1 2020."
"We will now be examining the potential for a Phase 2 expansion to increase production by 50%, which would substantially improve the economics of the project", confirmed Hayden.