(Alliance News) - Kore Potash PLC on Tuesday reported progress on the development of its potash projects, including expectations for the Dougou Extension pre-feasibility study to be completed on budget by April 2020.
In addition, technical studies of the extension at the Sintoukola potash project in the Republic of Congo has identified a number of improvements to be made, that could reduce the capital and operating costs of the project compared to the scoping study.
These improvements include the reduction of circulating brine flow rates by 40%, electrical power requirement by up to 8%, and gas requirements by up to 40%.
In addition, the cavern footprint can be increased by up to 27%, and the life of project extraction ratio could be lifted with the potential to increase the initial project life to 25 years.
As for the optimisation of the Kola project, also located in the Republic of Congo, the bill of quantities exercise by several contractors was concluded in September, and indicated a potential of rates-based savings of more than USD300 million on the feasibility study's capital cost.
A bill of quantities is a document prepared by a quantity surveyor or cost consultant to define the quality and quantity of works required to be carried out by the main contractor to complete a project.
In addition, discussions with European engineering and construction groups have indicated that further optimisation activity could generate additional cost reductions.
"This positive progress on the DX pre-feasibility study is very pleasing to see, the company is progressing high quality work to improve our understanding of the deposit and the chosen processing route. Shifting Kore's focus onto a smaller, less capital intensive project within the wider Sintoukola basin should allow the company to get to production faster and preserves optionality on the other deposits," said Chief Executive Brad Sampson.
Shares in Kore Potash - which is based in the UK - were untraded on Tuesday in Johannesburg, last quoted at ZAR0.28. Meanwhile, its London shares were down 2.1% at 1.15 pence.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kore Potash (KP2)