Last checked at 14 Oct 2020 07:00
14 October 2020
Kore Potash Plc
("Kore Potash" or the the Company")
Government approval to drill at DX Project
Kore Potash plc, the potash development company with 97%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, is pleased to announce that it has received authorisation from the Government of the Republic of the Congo to commence the planned drilling programme for the Definitive Feasibility Study ("DFS") for the Company's DX Project ("DX").
Highlights
· Ministry of Tourism and Environment has authorised the environmental management plan for the DFS drilling on Kore's DX Project
· All Government approvals required for the planned DFS work programme now in place
· A drilling programme consisting of the drilling and analysis of up to 5 new holes is planned to begin this month - these will improve confidence in the value of DX
· A number of local and international consultants have been engaged to support the environmental and technical aspects of the DFS
· SQM, a global scale lithium and potassium producer and one of Kore's major shareholders, is providing technical support for key aspects of the DX DFS
· Phase One of the DX DFS is planned for completion in May 2021
Background
The terms of reference of an Impact Notice for the environmental and social aspects of the planned DX drilling programme were submitted to the Director General of Tourism and Environment ("Director General") on 17 September 2020.
These terms of reference were drafted following public participation meetings held with interested and affected parties.
Kore has received written authorisation from the Director General for the drilling of up to 5 additional drill holes in the Dougou permit area. This authorisation also confirms that the conditions of the Environmental Conformity Certificate for the Dougou permit area dated 31 March 2020, with a duration of 25 years, will continue to apply.
Drilling Programme
The Company is planning to drill up to 5 additional diamond drill holes within the DX Deposit which sits within the Dougou Permit area.
The drilling programme is designed to improve confidence in the Mineral Resources and Ore Reserves of the DX Deposit. The drill holes are designed to intersect the targeted potash seams approximately 400 metres below surface. The sylvinite seams at DX are at shallow depths compared to other potash deposits globally.
The drilling will be undertaken using drill rigs and equipment that the Company owns and that are on site at the Sintoukola camp.
Key personnel have been mobilised to site and the drilling programme remains on track for commencement of drilling before the end of October 2020.
Brad Sampson, Chief Executive of Kore Potash, said:
"We thank the Government of the Republic of the Congo, who continue to actively support the development of the Company's projects in the Sintoukola basin, for reviewing this application and responding quickly, during what is a difficult period for all Governments globally."
"We have seen improvements in the DX project as each phase of work has progressed, and we are excited to be moving forward with the DFS."
Authorised for release by the Board of Directors.
ENDS
For further information, please visit www.korepotash.com or contact:
Kore Potash Brad Sampson - CEO
| Tel: +27 11 469 9140 | |
Tavistock Communications Jos Simson Edward Lee
| Tel: +44 (0) 20 7920 3150 | |
Canaccord Genuity - Nomad and Broker James Asensio Henry Fitzgerald-O'Connor
| Tel: +44 (0) 20 7523 4600 | |
Shore Capital - Joint Broker Jerry Keen Toby Gibbs James Thomas | Tel: +44 (0) 20 7408 4050 |
About Kore Potash's Projects
Kore Potash is an advanced stage mineral exploration and development company whose primary asset is 97%-owned interest in the Sintoukola project, a potash project located in the Republic of Congo. The Sintoukola project comprises the Dougou Extension sylvinite Deposit, the Kola sylvinite and carnallite Deposits, and the Dougou carnallite Deposit. These deposits are within the Dougou and Kola Mining Licenses. The Sintoukola project also includes the Sintoukola 2 Exploration License.
Sintoukola is located approximately 80 km to the north of the city of Pointe Noire which has a major port facility, and within 30 km of the Atlantic coast. Sintoukola has the potential to be among the world's lowest-cost potash producers and its location near the coast offers a transport cost advantage to global fertilizer markets.
The Dougou Extension sylvinite Deposit contains a total sylvinite Mineral Resource Estimate of 145 Mt grading 39.7% KCl, hosted by two seams. The results of a Pre- Feasibility Study ("PFS") were announced on 13 May 2020, which determined Ore Reserves of 17.7 Mt with an average grade of 41.7% KCl. Dougou Extension is located 15 km southwest of Kola. The deposit is open laterally; an Exploration Target for the northward extension of sylvinite was announced on the 21 November 2018.
The Kola sylvinite Deposit has a Measured and Indicated sylvinite Mineral Resource Estimate of 508 million tonnes grading 35.4% KCl. The results of a Definitive Feasibility Study ("DFS") were announced on 29 January 2019, which determined Ore Reserves of 152 Mt with an average grade of 32.5% KCl. The deposit is open laterally; an Exploration Target for the Southward extension of sylvinite was announced on the 21 November 2018.
The Dougou Extension and Kola sylvinite Deposits are considered high grade relative to most potash deposits globally and have the advantage of having very low content of insoluble material, less than 0.3% which provides a further processing advantage.
Glossary of Terms & Abbreviations
Term | Explanation |
classification (of Resources and Reserves) | The determination of the level of confidence of the estimations, in this case using the categories of the JORC Code |
(Definitive) Feasibility Study | A (Definitive) Feasibility Study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable Modifying Factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study. |
Indicated Mineral Resource | An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Ore Reserve. |
Inferred Mineral Resource | An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. |
Measured Mineral Resource | A 'Measured Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to confirm geological and grade (or quality) continuity between points of observation where data and samples are gathered. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proved Ore Reserve or under certain circumstances to a Probable Ore Reserve. |
Mineral Deposit | A mineral deposit is a natural concentration of minerals in the earth's crust. |
Mineral Reserve | the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified |
Mineral Resource | A 'Mineral Resource' is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. |
Muriate of Potash (MoP) | The saleable form of potassium chloride, comprising a minimum of 95% KCl |
Ore and orebody | Ore is the economically and technically mineable material. The orebody is the mineable part of the deposit comprising the Ore Reserves |