(Alliance News) - Kore Potash PLC on Monday reported an update made to the Dougou Extension pre-feasibility study first published in May, following a completed review of the production target by consultants Agapito Inc.
The Dougou Extension is a potash mining project in the Republic of Congo.
The process of completing the update study involved the application of modifying factors to the part of indicated resources that were not converted into ore reserves and inferred resources. The updated study therefore, includes 2.43 million tonnes of muriate of potash from indicated resources and 2.31 million tonnes from inferred resources that were not part of the original mine schedule.
The project life has been extended to 30 years from 18.4 years at a production rate of 400,000 tonnes per annum of muriate of potash, based on probable ore reserves, indicated mineral resources and a portion of the inferred mineral resources.
The attributed net present value, assuming an annual discount rate of 10%, stands at USD412 million. The project has a 23.4% internal rate of return on a real post-tax basis, based a life-of-project average granular MoP price of USD422 per tonne.
This reflects a rise from the previous net present value figure of USD319 million, and internal rate of return of 22.9%.
The MoP produced over the life of the mine has increased to 12.1 million tonnes from 7.4 million tonnes in the original study. The total sylvinite mineral resources of 145 million tonnes at a grade of 39.7% potassium chloride
"We are very pleased to be able to provide updated outcomes for the DX PFS." We were already confident that DX is a world class asset, with very high grades and very low costs; and this update improves that confidence. The DFS for DX is already underway and we fully expect it to confirm the first-rate results we have published today. As we move towards the second phase of the DFS and to production we will be able to further de-risk the project and demonstrate DX's investment case," said Chief Executive Officer Brad Sampson.
Shares in Kore Potash were 0.6% lower at 0.66 pence on Monday in London, while its Johannesburg shares were untraded at ZAR0.15.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kore Potash (KP2)