Wrap Text
Review of Operations for the Quarter ended 31 December 2020
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code:KP2
ISIN: GB00BYP2QJ94
(“Kore Potash” or the “Company”)
Review of Operations for the Quarter ended 31 December 2020
Kore Potash plc, the potash development company with 97%-ownership of the Kola and DX Potash
Projects in the Sintoukola Basin, located within the Republic of Congo (“RoC”), provides the following
quarterly update, for the period to 31 December 2020 (the “Quarter”).
Quarterly Highlights:
DX Project Definitive Feasibility Study (“DX DFS”)
• Phase 1 of the DX DFS remains on track for completion in May 2021.
• Drilling productivity and costs during the Quarter were better than budgeted and the
Company is anticipating drilling additional diamond drill holes in the quarter ending 31
March 2021.
• The revised drilling plan aims to drill up to two more diamond drill holes than previously
planned for a total of seven diamond drill holes.
• Diamond drilling is on track to be completed within the quarter ending 31 March 2021.
• Production brine test works being undertaken in the Sociedad Quimica Minera de Chile’s
(“SQM”) laboratory in Chile are on track for completion in the quarter ending 31 March 2021.
• Geomechanical testing of DX core in Germany and the USA is expected to be completed in the
quarter ending 31 March 2021.
The Kola Potash Project
• Discussions continued in the Quarter with a number of potential financiers who have indicated
potential interest in financing the Kola project.
• In addition, the Company continued dialogue with engineering and construction companies
with the capability to conduct further optimisation of the Kola design and capital cost.
Corporate Highlights
• Ms Trinidad Maria Reyes Perez was appointed as a Non-Executive Director of the Board after
nomination by SQM on 24 November 2020. Trinidad replaces Mr Jose Antonio Merino who
resigned from the Board with effect from the same date.
• Following correspondence received from the RoC’s Minister of Mines regarding the
development of Kore’s projects in the Sintoukola Basin, the Company met with and held a
productive dialogue with the Minister of Mines on 28 December 2020 and again on 13 January
2020. These meetings afforded Kore and the Minister the opportunity to constructively
consider options to accelerate the development of the projects.
• As communicated by the Company on 14 December 2020, the Company is progressing the
development of the DX and Kola projects towards production and continues to comply with
its obligations to the Government of the RoC.
• On 31 December 2020, the Company held USD 5.56 million cash at bank.
Brad Sampson, Chief Executive Officer of Kore Potash, commented:
“The Company continues to progress the definitive feasibility study for the DX project as this currently
represents the fastest route to first production and cash generation, which will provide a firm
foundation for the further development of the Sintoukola Basin.
“The larger Kola project remains important for Kore and our stakeholders and dialogue continues with
potential strategic, financial and construction partners on the capital optimisation of Kola and then
construction.”
Operational activities
DX DFS
• On 2 December 2020, the Company provided a progress update on the first phase of the DX
DFS and as at 31 December 2020 progress was:
o Phase 1 remains on track to be completed in May 2021.
o The planned diamond drilling is progressing within the schedule. Mud rotary drilling
of drill holes DX 10, 11, 12, 13 and 14 has been completed to the anhydrite layer and
the holes have been cased and grouted ready for diamond drilling of core samples.
o The diamond drilling and coring of DX 11, 12 and 13 was completed and preparation
of samples for assay testing is underway.
o Geo-mechanical testing of samples from previously drilled core and from core taken
from DX 12 and 13 has commenced. To date Agapito Associates Inc. (“AAI”) has
completed 21 Unconfined Compressive Strength tests and 21 Triaxial Compressive
Strength tests. The test report is expected in the quarter ending 31 March 2021.
o Creep tests at the Institut fur Gebirgsmechanik laboratory in Germany are progressing
with 6 of the 12 tests completed, results expected in the quarter ending 31 March
2021.
o The geomechanical modelling work commenced in December 2020. The modelling
work for eight scenarios has been completed with two more scenarios currently being
modelled. Preliminary geomechanical modelling results are expected to be received
in the quarter ending 31 March 2021.
o Modelling to predict surface subsidence that will be caused by cavern extraction has
commenced and results are expected in the quarter ending 31 March 2021.
o SQM is conducting test works within their pilot plant to improve confidence in the
estimate of the potassium carrying capacity of the production brine. This work has
commenced and is expected to be completed within the ending 31 March 2021.
There were no mining production or construction activities during the Quarter.
Next steps
DX DFS work planned for the quarter ending 31 March 2021 includes the following:
• Completion of the planned diamond drill holes.
• Completion of the geo-mechanical testing and modelling.
• Completion of the subsidence modelling.
• Design of the cavern layout and production extraction sequencing.
• Commencement of an update of the geological model to incorporate the DFS drilling results.
• Completion of the test works being done by SQM to improve confidence in the potassium
carrying capacity of the production brine.
Quarterly cashflow report
In accordance with the ASX Listing Rules, the Company will also lodge its cashflow report for the
Quarter today. Included in those cashflows are non-executive directors’ fees and CEO salary and bonus
of approximately USD371k settled in cash. The Company settled outstanding directors’ fees for the
quarter ended 30 June 2020 and for the quarter ended 30 September 2020 through the issue of
6,566,821 ordinary shares, as announced on 13 October 2020. The Company also settled outstanding
directors’ fees for the quarter ended 31 December 2020 through the issue of 2,909,389 ordinary
shares, as announced on 15 January 2021.
The Company invested USD788k in exploration in the Quarter which comprised USD583k related to
DX DFS design work, USD156k in sourcing DX DFS related drilling consumables, and USD49k DX DFS
management related costs. The Company ended the Quarter with USD5.56 million of cash at bank.
The announcement is available on the JSE’s website at
https://senspdf.jse.co.za/documents/2021/jse/isse/kp2e/QDec20.pdf
and on the Company’s website at https://korepotash.com/investors/announcements/
ENDS
29 January 2021
JSE Sponsor: Rencap Securities (Pty) Limited
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +27 11 469 9140
Brad Sampson – CEO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Jos Simson
Edward Lee
Canaccord Genuity – Nomad and Broker Tel: +44 (0) 20 7523 4600
James Asensio
Henry Fitzgerald-O’Connor
Shore Capital – Joint Broker Tel: +44 (0) 20 7408 4050
Jerry Keen
Toby Gibbs
James Thomas
Tenement Details and Ownership
The Company is incorporated and registered in England and Wales and wholly owns Kore Potash
Limited of Australia. Kore Potash Limited has a 97% holding in SPSA in the RoC. SPSA is the 100%
owner of Dougou Potash Mining S.A. which will hold the Dougou Mining Lease upon the transfer from
SPSA to Dougou Potash Mining S.A. through the issue of a Presidential Decree. In addition, SPSA were
recently awarded the Sintoukola 2 Exploration Permit. The Kola Deposit is located within the Kola
Mining Lease. The Dougou Mining lease hosts the Dougou Deposit and the Dougou Extension Deposit.
Table 1: Schedule of mining tenements (Republic of Congo) *
Project & Type Tenement Issued Company Interest Title Registered to
Kola Decree 2013-412 100% Kola Potash Mining S.A.
Mining of 9 August 2013 potassium rights only
Dougou Decree 2017-139 100% Sintoukola Potash S.A.
Mining of 9 May 2017 potassium rights only
Sintoukola2 Decree 2018-34 100% Sintoukola Potash S.A.
Exploration of 9 February 2018 potassium rights only
* these remain unchanged from the quarter ended 30 September 2020.
Kore’s Potash Mineral Resources and Ore Reserves - Gross and according to future 90% interest (10%
by the RoC government)
KOLA SYLVINITE DEPOSIT
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Mineral Resource Sylvinite Million Average Grade Sylvinite Million Average Grade
million million
Category Tonnes KCl % Tonnes KCl %
tonnes tonnes
Measured 216 34.9 75.4 194 34.9 67.8
Indicated 292 35.7 104.3 263 35.7 93.9
Sub-Total Measured +
508 35.4 179.7 457 35.4 161.7
Indicated
Inferred 340 34.0 115.7 306 34.0 104.1
TOTAL 848 34.8 295.4 763 34.8 265.8
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Sylvinite Million Average Grade Sylvinite Million Average Grade
Ore Reserve Category million million
Tonnes KCl % Tonnes KCl %
tonnes tonnes
Proved 62 32.1 19.8 56 32.1 17.9
Probable 91 32.8 29.7 82 32.8 26.7
TOTAL 152 32.5 49.5 137 32.5 44.6
Ore Reserves are not in addition to Mineral Resources but are derived from them by the application of modifying factors
DOUGOU EXTENSION SYLVINITE DEPOSIT (HWSS and TSS)
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Mineral Resource Sylvinite Million Average Grade Sylvinite Million Average Grade
million million
Category Tonnes KCl % Tonnes KCl %
tonnes tonnes
Measured - - - - - -
Indicated 79 39.1 30.8 71 39.1 27.7
Sub-Total Measured +
79 39.1 30.8 71 39.1 27.7
Indicated
Inferred 66 40.4 26.7 59 40.4 24.0
TOTAL 145 39.7 57.5 130 39.7 51.8
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Sylvinite Million Average Grade Sylvinite Million Average Grade
Ore Reserve Category million million
Tonnes KCl % Tonnes KCl %
tonnes tonnes
Proved - - - - - -
Probable 17.7 41.7 7.4 16 41.7 6.6
TOTAL 17.7 41.7 7.4 16 41.7 6.6
Ore Reserves are not in addition to Mineral Resources but are derived from them by the application of modifying factors
DOUGOU CARNALLITE DEPOSIT
Gross Net Attributable (90% interest)
Mineral Resource Million Tonnes Average Grade Contained KCl Million Tonnes Contained KCl
Average Grade KCl
Categor carnallit KCl million carnal million
%
y e % tonnes lite tonnes
Measured 148 20.1 29.7 133 20.1 26.8
Indicated 920 20.7 190.4 828 20.7 171.4
Sub-Total Measured
+
1,068 20.6 220.2 961 20.6 198.2
Indicate
d
Inferred 1,988 20.8 413.5 1789 20.8 372.2
TOTAL 3,056 20.7 633.7 2750 20.7 570.3
KOLA CARNALLITE DEPOSIT
Gross Net Attributable (90% interest)
Mineral Resource Million Tonnes Average Grade Contained KCl Million Tonnes Contained KCl
Average Grade KCl
Categor carnallit KCl million carnal million
%
y e % tonnes lite tonnes
Measured 341 17.4 59.4 307 17.4 53.5
Indicated 441 18.7 82.6 397 18.7 74.4
Sub-Total Measured
+
783 18.1 142.0 705 18.1 127.8
Indicate
d
Inferred 1,266 18.7 236.4 1140 18.7 212.8
TOTAL 2,049 18.5 378.5 1844 18.5 340.6
Competent Persons Statements
All Mineral Resource and Ore Reserves are reported in accordance with the JORC Code (2012 edition). Numbers are rounded to the
appropriate decimal place. Rounding ‘errors’ may be reflected in the “totals”. The Kola Mineral Resource Estimate was reported 6 July 2017
in an announcement titled ‘Updated Mineral Resource for the High -Grade Kola Deposit’. It was prepared by Competent Person Mr. Garth
Kirkham, P.Geo., of Met-Chem division of DRA Americas Inc., a subsidiary of the DRA Group, and a member of the Association of
Professional Engineers and Geoscientists of British Columbia. The Dougou carnallite Mineral Resource estimate was reported on 9 February
2015 in an announcement titled ‘Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade for the Dougou Potash
Deposit’. It was prepared by Competent Persons Dr. Sebastiaan van der Klauw and Ms. Jana Neubert, senior geologists and employees of
ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH and members of good standing of the European Federation of
Geologists. The Dougou Extension sylvinite Mineral Resource Estimate is reported herein. Ms. Vanessa Santos, P.Geo. of Agapito
Associates Inc., for the Exploration Results and Mineral Resources. Ms. Santos is a licensed professional geologist in South Carolina
(Member 2403) and Georgia (Member 1664), USA, and is a registered member (RM) of the Society of Mining, Metallurgy and Exploration,
Inc. (SME, Member 04058318). The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves that all
material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and
have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented
have not been materially modified from the original market announcement.
Forward-Looking Statements
This release contains certain statements that are "forward-looking" with respect to the financial condition, results of operations, projects and
business of the Company and certain plans and objectives of the management of the Company. Forward-looking statements include those
containing words such as: “anticipate”, “believe”, "expect," “forecast”, “potential”, "intends," "estimate," "will", “plan”, “could”, “may”, “project”,
“target”, “likely” and similar expressions identify forward-looking statements. By their very nature forward-looking statements are subject to
known and unknown risks and uncertainties and other factors which are subject to change without notice and may involve significant
elements of subjective judgement and assumptions as to future events which may or may not be correct, which may cause the Company’s
actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements,
which are not guarantees of future performance. Neither the Company, nor any other person, gives any representation, warranty, assurance
or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will occur. Except as required by law,
and only to the extent so required, none of the Company, its subsidiaries or its or their directors, officers, employees, advisors or agents or
any other person shall in any way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatever
nature arising in any way out of, or in connection with, the information contained in this document.
Date: 29-01-2021 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
