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KORE POTASH PLC - Dougou Extension (DX) Project drilling results and progress update

Release Date: 27/05/2021 08:00
Code(s): KP2     PDF:  
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Dougou Extension (DX) Project drilling results and progress update

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”)

27 May 2021


                Dougou Extension (DX) Project drilling results and progress update

Kore Potash plc, the potash development company with 97%-ownership of the Kola and Dougou
Extension (“DX”) Potash Projects in the Sintoukola Basin, Republic of Congo (“RoC”), is pleased to
announce an update on the DX Potash Solution Mining Project Definitive Feasibility Study (“DFS”) and
the recent drilling programme.



Highlights

   •   The drilling program for phase 1 of the DX DFS has been completed, and assay results received.

   •   Seven diamond drill holes were completed in the DFS phase 1 drilling program and assays sent
       for geochemical testing.

   •   Analysis of the drill hole logs and assay results from the drilling campaign has:
          o Confirmed the locations of the targeted Hanging wall and Top potash seams.
          o Improved confidence in the distribution of sylvinite within the Top Seams (“TS”).
          o Demonstrated that the sylvinite / carnallite boundary within the Hanging Wall Seam
               (“HWS”) is structurally controlled and the sylvinite distribution is more complex than
               modelled in the Pre-Feasibility Study.
          o Identified areas containing carnallite that will be excluded and not considered for
               extraction in future mine planning for the DX project.
          o Indicated that further drill hole and seismic information may be required to have
               confidence in the distribution of sylvinite in the HWS.

   •   Key technical studies and laboratory test work for Phase 1 of the DX DFS that are complete
       include:
           o Dissolution testwork to provide improved data for temperature brine-modelling.
           o Laboratory testing of rock mechanics properties to assist in determination of cavern
                stability, the possible extent of reservoir mining and expected subsidence over the
                project life.
           o Production well design to provide specifications for future capital cost estimating.
           o Cavern blanket design parameters (to control cavern formation) to provide
                specifications for future capital cost estimating.

   •   Work completed in Phase 1 of the DX DFS has been completed within the planned budget.

   •   Before proceeding further with the DX DFS, the Company plans to:
           o Develop a new geological model for the DX deposit incorporating the results of the
               recent drilling campaign.
             o     Determine using the new modelling whether further drill hole and seismic information
                   may be required to further improve confidence in the distribution of Sylvinite and
                   Carnallite within the DX Deposit.

    •   Work has commenced on the development of the new geological model and this work is
        expected to be completed before the end of 2021.

Brad Sampson, CEO, commented: “The recent drilling campaign at our DX project has improved our
knowledge of the location of the sylvinite and carnallite potash mineralisation which was the main
objective for the drilling. This further data will be used to incorporate an updated geological model as
part of the DFS work we are undertaking for this shallow solution mining project. The update of the
DX geological model will happen in parallel with the ongoing capital optimisation and financing activity
for the development of the Kola project which is currently the Company’s main focus.”



Drilling results

The Top Seam Sylvinite (“TSS”) and the Hanging Wall Seam Sylvinite (“HWSS”) located within the Cycle
IX of the Salt Member were the key targeted potash seams for this drilling program.

The drilling of seven diamond drill holes (labelled DX_10 through DX_14, DX_15B and DX_16)
commenced in October 2020 and finished in February 2021. The laboratory assay of samples of core
from this drilling programme encountered some quality assurance issues that delayed transmission of
approved results to Kore until May 2021.

The positions of all holes are shown in Table 1, and Figure 1 illustrates the DX area and location of all
drill holes completed.

Table 1. Positions of drill holes DX_10 to DX_16. All holes were drilled vertically. Projection/datum:
WGS84 UTM zone 32S, using DGPS.

                                    Easting     Northing   Elevation     Depth
                          BHID        (m)         (m)       (masl)        (m)
                          DX_10     790763.9    9529746     57.914       438.86
                          DX_11     790206.9    9529432      57.453      417.12
                          DX_12     790388.2    9529947      53.712      422.85
                          DX_13      791192     9529212      64.359      454.72
                          DX_14     790366.2    9530309      52.873      379.54
                         DX_15B     790503.2    9528717      73.548      457.22
                          DX_16      790199     9528386      83.424      502.19


   Figure 1: Map showing DX project area, relative to Pointe Noire and other Kore project areas
                              (available at www.korepotash.com)



                           Figure 2: Map showing DX DFS Phase 1 drilling area
                                   (available at www.korepotash.com)
             


Figure 3: Map showing positions of all DX drill-holes, seismic lines and drilling status, respectively
                                           (available at www.korepotash.com)



             Core Logging

             Recovery of core was excellent from all drill holes, and all core was logged immediately upon recovery
             by a qualified field geologist and photographed. Upon completion of the drilling of each hole, detailed
             downhole geophysical logging was undertaken.



             Core sampling and lab analyses

             A total of 431 samples of core from five drill holes were prepared and dispatched for analysis at SGS
             Lakefield laboratory in Canada.

             The assay results of targeted seams intersected in the five drill holes, and their corresponding
             mineralogy were received in May 2021 and are provided in Table 2.



             Summary of results of drilling, logging and assaying

                 •   Two drill holes (DX_11 and DX_13) intersected sylvinite in both TSS & HWSS horizons. Within
                     drill hole DX_11, the results indicate leaching of the potassium has occurred, resulting in low-
                     grade sylvinite. Drill hole DX_13 intersected well-developed sylvinite in the Top Seams and
                     the Hangingwall Seam with high KCl grade.

                 •   In three drill holes (DX_10, DX_12 and DX_15B) well developed sylvinite was intersected in
                     the Top Seams and sylvinite overlying carnallite or simply carnallite was intersected in the
                     underlying Hangingwall Seam. The presence of carnallite within the seams effectively excludes
                     that area from solution mining to recover sylvinite.

                 •   In two drill holes (DX_14 and DX_16) sylvinite mineralisation was not intersected. Drill Hole
                     DX_14 intersected the Salt Member below Seam 2 of Cycle IX indicating that both the Top
                     Seam and Hanging Wall Seam were eroded away. Drill hole DX_16 was drilled to over 500m
                     depth and intersected carnallite in the upper portion of Cycle X indicating that Cycle IX and
                     the TS and HWS, which are geologically deeper than Cycle X will be composed of carnallite.



         Table 2. Assays results for targeted seams intersected in DX_10, DX_11, DX_12, DX_13 and DX_15B.



                                  From          To                                 Insoluble
Drill-       Intersected                               Thickness
hole         seams
                                  depth       depth
                                                          (m)         KCl (%)*      content     Mg (%)          Comments
                                   (m)         (m)                                     %
             Top Seam 5-9         381.45      391.94      10.49         24.68        0.140       0.088     TSS
             Top Seam 6-8         381.85      388.09      6.24          30.00        0.142       0.088     TSS
DX_10
             Hangingwall          401.99      404.02      2.03          64.01        0.470       0.056     HWSS
             Seam                 404.02      409.77      5.75          23.80        0.183       7.748     HWSC
                                                                                                          TS completely
           Top Seam 5-9                 365.47   367.81   2.34          <0.1         <0.1       <0.01
                                                                                                          leached out
                                                                                                          TS completely
DX_11      Top Seam 6-8                  0.00     0.00    0.00          0.00        0.000       0.000
                                                                                                          leached out
           Hangingwall                                                                                    HWS completely
                                        378.56   381.42   2.86          <0.1         <0.1       <0.01
           Seam                                                                                           leached out
           Top Seam 5-6                 378.10   382.01   3.91         25.19        0.112       0.038     TSS
           Top Seam 7-9                  0.00     0.00    0.00          0.00        0.000       0.000     Beds not present
DX_12
           Hangingwall                  388.55   390.69   2.14         57.11        0.057       0.092     HWSS
           Seam                         390.69   392.34   1.65         24.86        0.142       8.298     HWSC
           Top Seam 5-9                 402.92   411.17   8.25         24.51        0.094       0.052     TSS
           Top Seam 6-8                 404.13   408.13   4.00         32.18        0.111       0.050     TSS
DX_13
           Hangingwall
                                        420.08   424.09   4.01         58.98        0.067       0.018     HWSS
           Seam
           Top Seam 5-10                429.52   435.10   5.58          26.94       0.140       0.035     TSS
           Top Seam 6-8                 429.94   433.09   3.15          34.62       0.156       0.026     TSS
DX_15B                                                              Not
           Hangingwall                                              Assayed
                                        440.10   446.49   6.39                                            HWSC
           Seam                                                     all
                                                                    Carnallitite
*Equivalent KCl, including KCl from both
Sylvinite and Carnallite.


           Abbreviations for Table 2.

           TSS- Top Seam Sylvinite

           TSC- Top Seam Carnallite

           HWSS- Hanging Wall Seam Sylvinite

           HWSC- Hanging Wall Seam Carnallite




           Technical Studies

           The phase 1 work programme for the DX DFS included the completion of a number of technical studies.

           All of these studies were designed to improve knowledge of some of the key design parameters for
           the DX project.

           These individual studies are complete and further studies will be required in the future prior to
           restatement of the DX production target. The company has not planned to undertake these further
           studies at this point in time.

           The specific studies completed in this Phase 1 are:

                •     Dissolution testwork was done by Agapito Associates Incorporated (AAI). This testwork was
                      completed at 90 degree Celsius with solvent potassium chloride (KCl) concentrations
                      of170,180, 190 and 200 grams per litre (g/l). This testwork was undertaken to determine the
                      ultimate brine concentration when the dissolution rate is near zero, for the range of KCL
                      concentrations. The results of the test work provide inputs for temperature brine-modelling.
                •     Laboratory testing of rock mechanics properties of samples of diamond drill core covering the
                      upper portion of the anhydrite bed overlaying the salt sequence, through to the halite below
                      the HWS. Testing of uniaxial and triaxial compressive strength (UCS and TCS respectively) was
        completed in the AAI rock mechanics laboratory in Grand Junction, Colorado and creep tests
        were undertaken at Institut Fur Gebirgsmechanik GmbH (IfG) in Germany. Geomechanical test
        results will enable modelling of cavern stability during mining, subsidence, and to assess the
        possible extent of reservoir mining. Modelling aides in predicting ultimate subsidence over
        the project life. These properties will be incorporated into the geomechanical modelling in a
        future phase of work.
    •   Geomechanical modelling to evaluate cavern stability during mining has been undertaken on
        a variety of cavern radii and pillar thicknesses to inform the future mine design.
    •   An investigation into the potential interaction between solution mining and known aquifers
        has been completed. This exercise will help predict potential brine leakage and identify
        leakage control options. These findings will be incorporated into the geomechanical modelling
        in a future phase of work.
    •   AAI conducted cavern temperature modelling for the single-well cavern pattern. The
        temperature modelling has included numerical evaluation of steady-state cavern
        temperatures for more accurate prediction of production brine concentration. The cavern
        temperature model will be coupled with the dissolution and geomechanical models for
        production brine grade prediction in a future phase of work.
    •   Production well design based on the modelled heat exchange between the flow in the annulus
        and tubing for single-well cavern solution mining has been completed and specifications
        provided for future capital cost estimating.
    •   Cavern blanket design parameters (to control cavern formation) have been determined to
        provide specifications for future capital cost estimating.


Conclusions from this phase of work and next steps for the DX Project

The information obtained from the diamond drilling programme has:

    •   Confirmed the locations of the targeted Hanging wall seam sylvinite and Top seam sylvinite.
    •   Improved confidence in the distribution of sylvinite within the Top Seams.
    •   Demonstrated that the sylvinite / carnallite boundary within the Hanging Wall Seam is
        structurally controlled and the sylvinite distribution is more complex than modelled in the Pre-
        Feasibility Study.
    •   Identified areas containing carnallite that will be excluded and not considered for extraction
        in future DX project mine planning.
In addition, review of the drilling results indicates that further drill hole and seismic information may
be required to have confidence in the distribution of sylvinite in the HWS.

Before proceeding further with the DX DFS, the Company plans to:
    • Develop a new geological model for the DX deposit incorporating the results of the recent
        drilling campaign.
    • Determine using the new modelling whether further drill hole and seismic information may
        be required to further improve confidence in the distribution of Sylvinite and Carnallite within
        the DX Deposit.
Work has commenced on the development of the new geological model and this work is expected to
be completed before the end of 2021.

Appendix A provides the JORC (2012 edition) CODE Table 1 checklist and assessment of reporting
criteria, sections 1 and 2.

This announcement has been approved for release by the Board.
                                             
                                                          ENDS


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
  Questco Corporate Advisory – JSE Sponsor                             Tel: +27 (11) 011 9208
  Mandy Ramsden

Competent Persons Statement:

All information in this report that relates to Exploration Results is based on information compiled by
Richard Baars, Associate Engineer of Agapito Associates Inc. Mr. Baars is a licensed professional mining
engineer in the state of Colorado, USA, and is a registered member (RM) of the Society of Mining,
Metallurgy and Exploration, Inc. (SME, Member 4276193), a Recognized Professional Organization’
(RPO) included in a list that is posted on the ASX website from time to time.

Mr. Baars has sufficient experience that is relevant to the style of mineralisation and type of Deposit
under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined
in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves” (the JORC Code). Mr. Baars consents to the inclusion in this report of the matters
based on the information in the form and context in which it appears.

Mr. Baars is full time employee of Agapito Associates Inc. and is not associated or affiliated with Kore
Potash or any of its affiliates. Agapito Associates Inc will receive a fee for the preparation of the Report
in accordance with normal professional consulting practices. This fee is not contingent on the
conclusions of the Report and Agapito Associates Inc. Agapito Associates Inc does not have, at the
date of the Report, and has not had within the previous years, any shareholding in or other
relationship with Kore Potash or the Dougou Extension Potash Project and consequently considers
itself to be independent of Kore Potash.
                             

APPENDIX A

JORC CODE Table 1 Checklist of Assessment and Reporting Criteria – sections 1-2
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)

                                                         Section 1 - Sampling Techniques and Data
 JORC Criteria                   JORC Explanation                                                                          Commentary
 1.1 SAMPLING TECHNIQUES             •   Nature and quality of sampling (e.g. cut channels, random chips, or                  •   Sampling of Kore’s holes was carried out according to an industry standard
                                         specific specialised industry standard measurement tools appropriate to                  operating procedure (SOP) beginning at the drill rig.
                                         the minerals under investigation, such as down hole gamma sondes, or                 •   Core drilling was used to provide core samples. Sample intervals were
                                         handheld XRF instruments, etc.). These examples should not be taken as                   between 0.14 and 1.02 metres and sampled to lithological boundaries
                                         limiting the broad meaning of sampling.                                                  where present. Minor lithological intervals (less than 10cm) were generally
                                     •   Include reference to measures taken to ensure sample representivity and                  included within a larger sample.
                                         the appropriate calibration of any measurement tools or systems used.                •   In all cases, core was cut along a ‘center-line’ marked such that both
                                     •   Aspects of the determination of mineralisation that are Material to the                  halves are as close to identical as possible.
                                         Public Report. In cases where ‘industry standard’ work has been done this            •   All were sampled as half-core and cut using an Almonte© core cutter
                                         would be relatively simple (e.g. ‘reverse circulation drilling was used to               without water, and blade and core holder cleaned between samples.
                                         obtain 1 m samples from which 3 kg was pulverised to produce a 30 g                      Samples were individually bagged and sealed in boxes.
                                         charge for fire assay’). In other cases, more explanation may be required,           •   At the laboratory, samples will be crushed to 90% passing 2 mm then riffle
                                         such as where there is coarse gold that has inherent sampling problems.                  split to derive a 250 g sample for pulverizing to 85% passing 75 microns.
                                         Unusual commodities or mineralisation types (e.g. submarine nodules)                 •   Further discussion on sampling representivity is provided in section 1.5.
                                         may warrant disclosure of detailed information.                                      •   Downhole geophysical data including gamma-ray data were collected and
                                                                                                                                  provided a useful check on the depth and thickness of the potash intervals.
 1.2. DRILLING TECHNIQUES             •    Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air           •   Holes were drilled in two to three phases by rotary percussion through the
                                           blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or          'cover sequence' (Phase 1 with 12 ¼” -inch diameter, Phase 2 with 7 7/8” -
                                           standard tube, depth of diamond tails, face-sampling bit or other type,                inch diameter, and where Phase 3 with 5 ½” or 5 7/8” ) stopping 3-5 m into
                                           whether core is oriented and if so, by what method, etc.).                             in the Anhydrite Member and cased and grouted to this depth. Holes were
                                                                                                                                  then advanced using diamond coring with the use of tri-salt (K, Na, Mg)
                                                                                                                                  mud to avoid dissolution and ensure acceptable recovery. All holes were
                                                                                                                                  drilled as close to vertically as possible.

 1.3. DRILL SAMPLE                    •    Method of recording and assessing core and chip sample recoveries and                •    Core recovery was recorded for all cored sections of Kore’s holes by
 RECOVERY                                  results assessed.                                                                         recording the drilling advance against the length of core recovered.
                                      •    Measures taken to maximise sample recovery and ensure representative                      Recovery is between 95 and 100% for the potash intervals. A full-time mud
                                           nature of the samples.                                                                    engineer was recruited to maintain drilling mud chemistry and physical
                                      •    Whether a relationship exists between sample recovery and grade and                       properties.
                                           whether sample bias may have occurred due to preferential loss/gain of               •    Core was wrapped in cellophane sheet soon after it is removed from the
                                           fine/coarse material.                                                                     core barrel, to avoid dissolution in the atmosphere, and was then
                                                                                                                                     transported at the end of each shift to a de-humidified core storage room
                                                                                                                                     where it is stored permanently.
                                                                                                                                •    There are no concerns relating to bias due to recovery or due to
                                                                                                                                     preferential loss of certain size fractions; the sylvinite and halite are of
                                                                                                                                     similar grainsize and hardness.

1.4. LOGGING            •   Whether core and chip samples have been geologically and                         •   The entire length of Kore’s holes was logged geologically, from rotary chips
                            geotechnically logged to a level of detail to support appropriate Mineral            in the ‘cover sequence’ and core in the evaporite. Logging is qualitative
                            Resource estimation, mining studies and metallurgical studies.                       and supported by quantitative downhole geophysical data including
                        •   Whether logging is qualitative or quantitative in nature. Core (or costean,          gamma and acoustic televiewer images, which provide a useful check on
                            channel, etc.) photography.                                                          the conventional core logging.
                        •   The total length and percentage of the relevant intersections logged.            •   Recognition of the potash seams is straightforward and made with
                                                                                                                 confidence.
                                                                                                             •   Core was photographed to provide an additional reference and record.

1.5 SUB-SAMPLING        •   If core, whether cut or sawn and whether quarter, half or all core taken.        •   Kore’s samples were sawn as described above, into two halves. One half
TECHNIQUES AND SAMPLE   •   If non-core, whether riffled, tube sampled, rotary split, etc. and whether           was retained at site as a record, and one half sent in a batch of samples to
PREPARATION                 sampled wet or dry.                                                                  the laboratory.
                        •   For all sample types, the nature, quality and appropriateness of the             •   Care was taken to orient the core before cutting so that the retained and
                            sample preparation technique.                                                        submitted halves were as similar as possible.
                        •   Quality control procedures adopted for all sub-sampling stages to                •   For at least 1 in 20 samples both halves were submitted, as two separate
                            maximise representivity of samples.                                                  samples – an original and (field) duplicate sample.
                        •   Measures taken to ensure that the sampling is representative of the in situ
                            material collected, including for instance results for field duplicate/second-
                            half sampling.
                        •   Whether sample sizes are appropriate to the grain size of the material
                            being sampled.
1.6 QUALITY OF ASSAY    •   The nature, quality and appropriateness of the assaying and laboratory           •   Analyses were carried out at SGS Lakefield in Canada. Water soluble K,
DATA AND LABORATORY         procedures used and whether the technique is considered partial or total.            Na, Ca, Mg and S to be determined by ICP-AES. Insolubles were
TESTS                   •   For geophysical tools, spectrometers, handheld XRF instruments, etc., the            determined by filtration of the residual solution and slurry membrane filter,
                            parameters used in determining the analysis including instrument make                washing to remove residual salts, drying, and weighing.
                            and model, reading times, calibrations factors applied and their derivation,     •   A full quality control and assurance (QA/QC) program was implemented by
                            etc.                                                                                 Kore Potash, to assess repeatability of the sampling procedure and the
                        •   Nature of quality control procedures adopted (e.g. standards, blanks,                precision of the laboratory sample preparation and the accuracy of
                            duplicates, external laboratory checks) and whether acceptable levels of             analyses. SGS Labs carries out its own internal QA/QC program as per
                            accuracy (i.e. lack of bias) and precision have been established.                    labs procedure.
                                                                                                             •   This comprised the insertion of blanks, duplicates, certified reference
                                                                                                                 materials and internal (non-certified) reference material. QA/QC samples
                                                                                                                 make up 13% of the total number of samples submitted, which is in line
                                                                                                                 with industry best-practices. Any non-conforming samples were re-tested
                                                                                                                 by laboratory while remaining samples were under Lab custody.

1.7. VERIFICATION OF    •   The verification of significant intersections by either independent or           •   Sampling and other drilling data is captured into MS Excel, then imported
SAMPLING AND ASSAYING       alternative company personnel.                                                       along with assay data into an MS Access database. On import, checks on
                        •   The use of twinned holes.                                                            data are always made for errors. All original data is archived in original
                        •   Documentation of primary data, data entry procedures, data verification,             format from lab.
                            data storage (physical and electronic) protocols.                                •   Remaining samples, pulps, and hard copies of lab reports will be shipped
                        •   Discuss any adjustment to assay data.                                                from lab to a secure company storage facility for record.
                                                                                                              •   All mineralised intervals used for the MRE are checked and re-checked
                                                                                                                  and compared against lithology and gamma data, which provide a further
                                                                                                                  check of grade and thickness. No adjustments were made to the assay
                                                                                                                  data. All conversions were within statistical tolerances.

1.8. LOCATION OF DATA       •   Accuracy and quality of surveys used to locate drill holes (collar and        •   At completion of drilling, DX_10 to DX_16 was surveyed using a DGPS for
POINTS                          down-hole surveys), trenches, mine workings and other locations used in           location and elevation accuracy. All holes were drilled as close as possible
                                Mineral Resource estimation.                                                      to seismic survey stations which have been surveyed prior to drilling by a
                            •   Specification of the grid system used.                                            surveyor using a DGPS.
                            •   Quality and adequacy of topographic control.                                  •   All mapping including seismic and drill-hole positions are given in WGS 84
                                                                                                                  UTM Zone 32S (32732). (Table in the announcement).
1.9. DATA SPACING AND       •   Data spacing for reporting of Exploration Results.                            •   Figure 2 in the announcement shows the location of the drill-holes and
DISTRIBUTION                •   Whether the data spacing and distribution is sufficient to establish the          current seismic lines.
                                degree of geological and grade continuity appropriate for the Mineral         •   Additional drilling is recommended at this time to expand the MRE.
                                Resource and Ore Reserve estimation procedure(s) and classifications
                                applied.
                            •   Whether sample compositing has been applied.
1.10. ORIENTATION OF DATA   •   Whether the orientation of sampling achieves unbiased sampling of             •   Intersections have a sufficiently low angle of dip and drill-holes were drilled
IN RELATION TO                  possible structures and the extent to which this is known, considering the        vertically; a correction of thickness for apparent thickness was not deemed
GEOLOGICAL STRUCTURE            deposit type.                                                                     necessary. Drill-hole inclination was surveyed to check verticality, it is
                            •   If the relationship between the drilling orientation and the orientation of       close to -90° for the potash intersections.
                                key mineralised structures is considered to have introduced a sampling
                                bias, this should be assessed and reported if material.

1.11. SAMPLE SECURITY       •   The measures taken to ensure sample security.                                 •   The chain of custody of samples was secure. At the rig, the core was
                                                                                                                  under full supervision of a Company geologist. At the end of each drilling
                                                                                                                  shift, the core was transported by Kore Potash staff to a secure site where
                                                                                                                  it is stored within a locked room.
                                                                                                              •   Sampling was carried out under the observation of Company staff; packed
                                                                                                                  samples were transported directly from the site by Company staff to DHL
                                                                                                                  couriers in Pointe Noire, 3 hours away. From there DHL airfreighted all
                                                                                                                  samples to the laboratory in Canada. Samples were weighed before
                                                                                                                  sending and on receipt of the results weights will be compared with those
                                                                                                                  reported by the lab.

1.12. AUDITS OR REVIEWS     •   The results of any audits or reviews of sampling techniques and data.         •   Kore’s sampling procedure has been reviewed on several occasions by
                                                                                                                  external parties, for the MRE for the Kola, Dougou and DX Deposits.
                                                                                                              •   The supporting data has been checked by the external CP, with inspection
                                                                                                                  of logging sheets and laboratory analysis certificates.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)


                                                                                 Section 2 - Reporting of Exploration Results
 JORC Criteria                      JORC Explanation                                                                      Commentary
 2.1 MINERAL TENEMENT                   •   Type, reference name/number, location and ownership including                 •   The DX Deposit is entirely within the Dougou Mining Licence which is held
 AND LAND TENURE STATUS                     agreements or material issues with third parties such as joint ventures,          100% under the local company Dougou Mining SARL which is in turn held
                                            partnerships, overriding royalties, native title interests, historical sites,     100% by Sintoukola Potash SA RoC, of which Kore Potash holds a 97%
                                            wilderness or national park and environmental settings.                           share. The Permit is valid for 25 years from 9th May 2017.
                                        •   The security of the tenure held at the time of reporting along with any       •   There are no impediments on the security of tenure.
                                            known impediments to obtaining a license to operate in the area.

 2.2 EXPLORATION DONE BY                 •     Acknowledgment and appraisal of exploration by other parties.             •      Potash exploration was carried out in the area in the 1960's by Mines
 OTHER PARTIES                                                                                                                  domaniales de Potasse d’ Alsace S.A. High quality geological logs are
                                                                                                                                available for these holes. Hole K52 intersected HWSS and was the initial
                                                                                                                                reason for Kore’s interest in the area, beginning with the twin-hole drilling of
                                                                                                                                ED_01 in 2012 to ‘twin’ historic hole K52.
                                                                                                                         •      Seismic data was acquired by oil exploration companies British Petroleum
                                                                                                                                Congo and Chevron during the 1980’s and by Morel et Prom in 2006.

 2.3. GEOLOGY                                  Deposit type, geological setting and style of mineralisation.             •      The potash seams are hosted by the 400-500 m thick Loeme Evaporite
                                                                                                                                formation of sedimentary evaporite rocks. These are within the Congo Basin
                                                                                                                                which extends from the Cabinda enclave of Angola to southern Gabon from
                                                                                                                                approximately 50 km inland, extending some 200-300 km offshore. The
                                                                                                                                evaporites were deposited during the Aptian epoch of the Lower Cretaceous,
                                                                                                                                between 125 and 112 million years ago.
                                                                                                                         •      The evaporites formed by cyclic evaporation of marine-sourced brines which
                                                                                                                                were fed by seepage into an extensive subsiding basin, each cycle generally
                                                                                                                                following the expected brine evolution and resultant mineral precipitation
                                                                                                                                model: dolomite then gypsum then halite then the bitterns of Mg and K as
                                                                                                                                chlorides. To precipitate the thick potash beds the system experienced
                                                                                                                                prolonged periods within a range of high salinity of brine concentration.
                                                                                                                         •      Sylvinite is a rock comprised predominantly of sylvite and halite. The term
                                                                                                                                ‘rock-salt’ is used to refer to a rock comprising of halite without appreciable
                                                                                                                                potash. Sylvinite is typically reddish or pinkish in colour whereas carnallite is
                                                                                                                                coarse crystalline and typically orange to reddish orange.
                                                                                                                         •      At DX the evaporite stratigraphy is slightly elevated and thinned relating to the
                                                                                                                                presence of an underlying horst block forming a paleo-topographic high in the
                                                                                                                                pre- and syn-rift rocks below the evaporite. This feature is referred to as the
    ‘Yangala High’ and was an important ‘large-scale’ control on the development
    of sylvinite in the DX area.
•   11 evaporite cycles have been recognised, of which most are preserved at
    DX. The ‘Top Seam’ (TS) and ‘Hangingwall Seam’ (HWS) potash seams are
    within the mid to upper part of cycle 9. Where sylvinite these are referred to as
    the TSS and HWSS and where carnallite they are referred to as TSC and
    HWSC.
•   The TSS is made up of several narrow high grade sylvinite layers with barren
    rock-salt layers between them. The individual layers within the TSS are
    numbered 5 to 9 from lowest to uppermost.
•   Capping the salt dominated part of the evaporite (Salt Member or ‘Salt’) is a
    low permeability layer of anhydrite, gypsum and clay (referred to as the
    ‘Anhydrite Member’) between 10 and 16 m thick in drill-holes to date. It is at a
    depth of between 290 and approximately 520 m at DX.
•   The Anhydrite Member is covered by a thick sequence of dolomitic rocks and
    clastic sediments of Cretaceous age (Albian) to recent.
•   The potash seams were originally deposited as carnallite but at DX have been
    replaced in some areas by sylvinite, by a process of non-destructive leaching
    of Mg, OH and some NaCl from carnallite, converting it to sylvite. The
    conversion from carnallite to sylvinite leads to a significant reduction of the
    seam thickness and a concomitant increase of grade. This process has taken
    place preferentially over the Yangala High, initiating from the top of the Salt
    Member. The process advanced on a laterally extensive ‘front’ and was
    efficient; when converted to sylvinite, almost no residual carnallite remains
    within the sylvinite.
•   The zone within which carnallite seams have been converted to sylvinite is
    termed the SYLVINITE zone. This laterally extensive zone starts a short
    distance below the SALT_R and extends down to typically 40-50 m below this
    contact, but rarely as much as 80 m. If the base of the SYLVINITE zone is
    part-way through the potash seam, un-replaced carnallite occurs immediately
    below the sylvinite part. In these situations, the contact between the sylvinite
    and carnallite is abrupt and easily identified in core.
•   In the upper 5-30 m of the Salt Member, the sylvinite may be further ‘leached’,
    leaving pale reddish coloured halite with little to no KCl, referred to as ‘ghost’
    seam and generally still identifiable for lateral correlation purposes. The zone
    within which the sylvinite is leached is termed the LEACH zone.
•   With reference to the above features, the main control on the distribution of
    sylvinite at DX is the position of the seams (in vertical sense) relative to the
    SYLVINITE zone; if the seam is above or below this zone they are ‘ghost’
    (halite) or carnallite respectively.

2.4. DRILL HOLE          •   A summary of all information material to the understanding of the                  •   The new borehole collar positions of the holes are provided in the
INFORMATION                  exploration results including a tabulation of the following information for all        announcement, along with the final depth.
                             Material drill holes:                                                              •   Holes were drilled vertically, at the depth of the intersections the hole dip was
                                    •    easting and northing of the drill hole collar                              greater than -88°.
                                    •    elevation or RL (Reduced Level – elevation above sea level in          •   Positions of the holes in relation to other holes are shown in the map in the
                                         metres) of the drill hole collar                                           announcement.
                                    •    dip and azimuth of the hole
                                    •    down hole length and interception depth
                                    •    hole length.
                         •   If the exclusion of this information is justified on the basis that the
                             information is not Material and this exclusion does not detract from the
                             understanding of the report, the Competent Person should clearly explain
                             why this is the case.

2.5 DATA AGGREGATION     •   In reporting Exploration Results, weighting averaging techniques,                  •   For the calculation of the grade over the full thickness of the seams, the
METHODS                      maximum and/or minimum grade truncations (e.g. cutting of high grades)                 standard length-weighted average method was used to combine results of
                             and cut-off grades are usually Material and should be stated.                          each sample.
                         •   Where aggregate intercepts incorporate short lengths of high-grade results         •   No selective cutting of high or low-grade material was carried out.
                             and longer lengths of low-grade results, the procedure used for such               •   No metal equivalents were calculated.
                             aggregation should be stated and some typical examples of such
                             aggregations should be shown in detail.
                         •   The assumptions used for any reporting of metal equivalent values should
                             be clearly stated.

2.6 RELATIONSHIP         •   These relationships are particularly important in the reporting of                 •   The sylvinite layers have sufficiently low degree of dip, and drill-holes are
BETWEEN MINERALISATION       Exploration Results.                                                                   close enough to vertical that a correction of intersected thickness was not
WIDTHS AND INTERCEPT     •   If the geometry of the mineralisation with respect to the drill hole angle is          deemed necessary; the intersections are considered the ‘true thickness’.
LENGTHS                      known, its nature should be reported.
                         •   If it is not known and only the down hole lengths are reported, there should
                             be a clear statement to this effect (e.g. ‘down hole length, true width not
                             known’).

2.7 DIAGRAMS             •   Appropriate maps and sections (with scales) and tabulations of intercepts          •   A map and tables are provided in the announcement.
                             should be included for any significant discovery being reported These
                             should include, but not be limited to a plan view of drill hole collar locations
                             and appropriate sectional views.

2.8 BALANCED REPORTING   •   Where comprehensive reporting of all Exploration Results is not                    •   Seams of sylvinite intersections in all new holes are reported in Table 2 of the
                             practicable, representative reporting of both low and high grades and/or               announcement.
                             widths should be practiced avoiding misleading reporting of Exploration
                             Results.
2.9 OTHER SUBSTANTIVE   •   Other exploration data, if meaningful and material, should be reported              •   DX_15B is named such as the first attempt to drill this hole failed. Drilling
EXPLORATION DATA            including (but not limited to): geological observations; geophysical survey             DX_15B was completed less than 5 meters away from the same location.
                            results; geochemical survey results; bulk samples – size and method of
                            treatment; metallurgical test results; bulk density, groundwater,
                            geotechnical and rock characteristics; potential deleterious or
                            contaminating substances.

2.10 FURTHER WORK       •   The nature and scale of planned further work (e.g. tests for lateral                •   At end of resource drilling, the completion and reporting of the updated
                            extensions or depth extensions or large-scale step-out drilling).                       Mineral Resource Estimate for DX is the next step.
                        •   Diagrams clearly highlighting the areas of possible extensions, including
                            the main geological interpretations and future drilling areas, provided this
                            information is not commercially sensitive.

Date: 27-05-2021 08:00:00
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