Wrap Text
DX Project Definitive Feasibility Study 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”)
DX Project Definitive Feasibility Study progress update
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”), is pleased to provide a
progress update on the Dougou Extension Project (”DX”) Definitive Feasibility Study (“DFS”) Phase 1.
A summary of the progress is presented herein.
Highlights
• Phase 1 of the definitive feasibility study remains on track to be completed in May 2021
• The drilling campaign is progressing on schedule. Mud rotary drilling of drill holes DX 10 and
DX 11 has been completed to the anhydrite layer and the holes have been cased and grouted
ready for diamond drilling of core
• Geo-mechanical testing of samples from previously drilled core has commenced with
unconfined compressive strength (“UCS”) and triaxial compressive strength (“TCS”) tests in
the Agapito Associates Inc. (“AAI”) laboratory in the United States of America and creep tests
at the Institut fur Gebirgsmechanik (“IFG”) laboratory in Germany
• The planned dissolution test work has been completed at AAI’s laboratory in the United
States of America.
• The dissolution test results indicate that production brine can be produced with KCl
concentrations in the range of 170–200 g/l which creates potential to improve on the 165g/l
determined in the Pre-Feasibility Study (“PFS”).
• Further work is now planned to determine the optimum residence time/ production brine
grade to maximise economic return
• This information will be used to create an updated brine model to predict production of KCl
from the caverns over the life of mine
Brad Sampson, CEO of Kore, commented:
“The work programme in Phase 1 of the DX Definitive Feasibility study is focused on improving our
knowledge of a number of the key drivers for the success of this project.”
“We are pleased that the programme is progressing on schedule and look forward to being able to
report the full results of this work and the expected positive impact on the project economics.”
“The DX project stands out as a very low cost producer of MoP, with compelling economics and close
proximity to port and to our target markets, the more work we do, the more convinced we are that
this is potentially one of the world’s very best potash assets.”
DX Definitive Feasibility Study Phase 1 update
The work programme including the planned diamond drilling campaign for the First phase of the DX
DFS remains on track for completion in May 2021 and within budget.
Drilling programme
The mud rotary drilling of drill hole DX 10 has been completed to the anhydrite layer which directly
overlays the salt layers hosting the potash deposit. This drill hole has been cased and grouted ready
for diamond drilling of core. The anhydrite level was at 338m below natural ground level.
The mud rotary drilling of DX 11 has been completed to the anhydrite layer and cased and grouted.
The anhydrite level was at 364m below natural ground. The diamond drill rig has been positioned
over drill hole DX 11 and diamond coring of the salt and potash layers has commenced.
Mud rotary drilling of the upper part of drill hole DX 12 is planned to commence before the end of
November.
Positions of Dx 10, 11 and 12 are shown on Figure 1.
Geo-mechanical testing
19 of the 24 unconfined compressive strength (UCS) tests have been completed on samples of core
from holes previously drilled at DX.
The 19 samples provided for UCS testing included 5 from the halite salt back overlying the potash
seams, 4 from the top seam sylvinite (TSS), 3 from the halite interbed, 5 from the hanging wall seam
sylvinite (HWSS) and 2 from the halite below the HWSS.
It is planned to deliver additional samples representing 3 anhydrite layer samples from the current
drilling program and 1 additional TSS and 1 additional sample from the halite below the HWSS from
existing samples taken from the previous drilling program.
Preparation of samples for the triaxial compressive strength (TCS) tests have commenced on 22
samples. The DX core samples provided included 1 from the anhydrite layer, 3 from the halite salt
back, 6 from the TSSS, 3 from the halite interbed, 6 from HWSSS and 3 from the halite below HWSS.
Creep tests have commenced at the IFG laboratory in Germany, with 6 core samples being tested
currently and another 6 planned for testing commencing in late December.
Dissolution test work
Selective dissolution testing was conducted on 36 quarter-core samples, acquired from the DX Potash
Project site, in AAI’s laboratory in Grand Junction, Colorado. The test results are shown in the Table in
Appendix A.
The positions of the holes from where the samples were taken for dissolution test work are shown in
Figure 1.
Figure 1. Map of the DX deposit area showing the positions of drill-holes
(available at www.korepotash.com)
Dissolution testing was performed at a temperature of 90°C, with pre-concentrated solvents of 170,
180, 190, and 200g/l KCl and saturated NaCl. These tests generated data to improve understanding of
the relationship between dissolution rate and KCl concentration. Understanding this relationship is
important to support the prediction of expected brine concentrations during commercial solution-
mining operations. The dissolution test results are shown in the Table in Appendix A.
The dissolution test results for the DX potash samples indicated that the dissolution rates with high
solvent concentrations (170–200 g/l) are lower than the dissolution rates observed during the 2019
testing program with lower solvent concentrations (100–160 g/l). These results suggest that the
optimal production brine concentration will be in the range of 160-180 g/l KCl.
The dissolution test results showed consistent dissolution rates when the solvent KCl concentration
was high (170–200 g/l). This suggests that brine can be produced with KCl concentrations in the range
of, or even higher than, 170–200 g/l. Kore’s consultants have indicated that these results are in line
with other potash operations and indicate the previous PFS assumption for production brine
concentration of 165 g/l KCl was reasonable. The final optimal production brine concentration will be
an outcome of the cavern brine grade model in Phase 1.
An updated cavern brine grade model, incorporating the results of this test work is planned for
development as part of this Phase 1 of the DFS. Production brine KCl concentration will be balanced
with the required cavern residence time for optimal project economics.
The updated brine model will become the basis for the updated production plan in the DFS.
This announcement has been approved by the Board of Kore Potash plc.
END
2 December 2020
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
Competent Persons Statement:
Information in this report that relates to the Dissolution Test Report program, is based on information
approved by Michael Hardy, a Competent Person who is a registered member in good standing
(Member #01328850) of Society for Mining, Metallurgy and Exploration (SME) which is recognized
and accepted under the JORC Code.
Michael Hardy president of Agapito Associates Inc 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, Michael Hardy will receive no other benefit for
the preparation of the Report. Michael Hardy does not have any pecuniary or other interests that
could reasonably be regarded as capable of affecting their ability to provide an unbiased opinion in
relation to the Dougou Extension Potash Project. 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.
Michael Hardy has sufficient experience that is relevant to the style of mineralization and type of
deposit under consideration and to the activity being undertaken 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). Michael Hardy consents to the inclusion of the results
of the Dissolution Test Report based on information in the form and context in which it appears.
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.
In particular, statements in this release regarding the Company's business or proposed business, which
are not historical facts, are "forward-looking" statements that involve risks and uncertainties, such as
Mineral Resource estimates market prices of potash, capital and operating costs, changes in project
parameters as plans continue to be evaluated, continued availability of capital and financing and
general economic, market or business conditions, and statements that describe the Company's future
plans, objectives or goals, including words to the effect that the Company or management expects a
stated condition or result to occur. Since forward-looking statements address future events and
conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such statements. Shareholders are
cautioned not to place undue reliance on forward-looking statements, which speak only as of the date
they are made. The forward-looking statements are based on information available to the Company
as at the date of this release. Except as required by law or regulation (including the ASX Listing Rules),
the Company is under no obligation to provide any additional or updated information whether as a
result of new information, future events or results or otherwise.
Summary information
This announcement has been prepared by Kore Potash plc. This document contains general
background information about Kore Potash plc current at the date of this announcement and does
not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe
for, sell or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise
acquire, issue, subscribe for, sell, or otherwise dispose of any securities. The announcement is in
summary form and does not purport to be all-inclusive or complete. It should be read in conjunction
with the Company’s other periodic and continuous disclosure announcements which are available to
view on the Company’s website www.korepotash.com.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted
by law and therefore persons in such jurisdictions into which this announcement is released, published
or distributed should inform themselves about and observe such restrictions.
Not financial advice
This document is for information purposes only and is not financial product or investment advice, nor
a recommendation to acquire securities in Kore Potash plc. It has been prepared without considering
the objectives, financial situation or needs of individuals. Before making any investment decision,
prospective investors should consider the appropriateness of the information having regard to their
own objectives, financial situation and needs and seek legal and taxation advice appropriate to their
jurisdiction.
APPENDIX A: Dissolution Sampling and Test Work results
KCl in
KCl in prepared Dissolution @
Sample Solvent 90 Deg C
Drill-hole Sample ID Seam From (m) To (m) (%) (g/l) Lithology (10-4 g/(cm2*s))
ED_01 ED_01_HWSS_01 HWS 422.43 422.58 60.31 170 sylvinite 0.278
ED_01 ED_01_HWSS_01 HWS 422.43 422.58 61.10 180 sylvinite 0.352
ED_01 ED_01_HWSS_02 HWS 422.80 422.93 43.06 190 sylvinite 0.453
ED_01 ED_01_HWSS_02 HWS 422.80 422.93 40.05 200 sylvinite 0.253
ED_01 ED_01_HWSS_03 HWS 423.15 423.25 59.20 170 sylvinite 0.394
ED_01 ED_01_HWSS_03 HWS 423.15 423.25 56.83 180 sylvinite 0.332
ED_01 ED_01_HWSS_04 HWS 423.48 423.59 43.69 190 sylvinite 0.302
ED_01 ED_01_HWSS_04 HWS 423.48 423.59 40.37 200 sylvinite 0.242
ED_01 ED_01_HWSS_05 HWS 424.00 424.15 47.02 170 sylvinite 0.234
ED_01 ED_01_HWSS_06 HWS 426.15 426.25 76.78 180 sylvinite 0.366
ED_03 ED_03_HWSS_06 HWS 403.04 403.16 56.83 190 sylvinite 0.352
ED_03 ED_03_HWSS_06 HWS 403.04 403.16 57.30 200 sylvinite 0.448
ED_03 ED_03_HWSS_05 HWS 402.52 402.63 57.62 170 sylvinite 0.411
ED_03 ED_03_HWSS_05 HWS 402.52 402.63 59.68 180 sylvinite 0.339
ED_03 ED_03_HWSS_02 HWS 400.17 400.27 62.85 190 sylvinite 0.366
ED_03 ED_03_HWSS_02 HWS 400.17 400.27 61.10 200 sylvinite 0.436
ED_03 ED_03_HWSS_04 HWS 401.38 401.51 62.21 170 sylvinite 0.296
ED_03 ED_03_HWSS_04 HWS 401.38 401.51 62.37 180 sylvinite 0.244
ED_01 ED_01_TSS_03 TS 401.46 401.62 81.68 170 sylvinite 0.500
ED_01 ED_01_TSS_03 TS 401.46 401.62 73.29 180 sylvinite 0.368
ED_01 ED_01_TSS_05 TS 404.52 404.68 27.70 190 sylvinite 0.196
ED_01 ED_01_TSS_05 TS 404.52 404.68 32.45 200 sylvinite 0.187
ED_01 ED_01_TSS_06 TS 405.21 405.31 46.86 170 sylvinite 0.333
ED_01 ED_01_TSS_06 TS 405.21 405.31 58.73 180 sylvinite 0.226
ED_01 ED_01_TSS_08 TS 408.53 408.63 72.82 190 sylvinite 0.357
ED_01 ED_01_TSS_08 TS 408.53 408.63 72.66 200 sylvinite 0.395
ED_01 ED_01_TSS_09 TS 408.78 408.88 71.87 170 sylvinite 0.398
ED_01 ED_01_TSS_11 TS 411.26 411.36 52.87 180 sylvinite 0.266
ED_01 ED_01_TSS_11 TS 411.26 411.36 50.81 190 sylvinite 0.280
ED_01 ED_01_TSS_12 TS 411.88 411.98 51.29 200 sylvinite 0.304
DX_01 DX_01_TSS_02 TS 425.17 425.29 45.12 170 sylvinite 0.138
DX_01 DX_01_TSS_02 TS 425.17 425.29 47.6483 180 sylvinite 0.262
DX_01 DX_01_TSS_06 TS 432.14 432.25 57.7795 190 sylvinite 0.215
DX_01 DX_01_TSS_09 TS 436.93 437.04 65.8528 200 sylvinite 0.305
DX_01 DX_01_TSS_10 TS 437.26 437.37 69.8103 170 sylvinite 0.372
DX_01 DX_01_TSS_12 TS 439.63 439.74 70.7601 180 sylvinite 0.234
Appendix B: JORC 2012 Table 1
Abbreviations used:
o DX: Dougou Extension
o MRE: Mineral Resource Estimate
o TS: Top Seam
o HWS: Hanging wall Seam
Section 1 - Sampling Techniques and Data
JORC Criteria JORC Explanation Commentary
1.1 SAMPLING • Nature and quality of sampling (eg cut channels, • Core samples were selected from holes ED_01 (for the Hanging Wall Seam [HWS] and Top Seam [TS]), ED_03 (for
TECHNIQUES random chips, or specific specialised industry HWS), and DX_01 (for TS), and were either half PQ (85 millimeter [mm] diameter) or half HQ (64 mm diameter).
standard measurement tools appropriate to the • In AAI’s laboratory, the core samples were selected and prepared based on the criteria that (1) the sample length
minerals under investigation, such as down hole was about 5 centimeters (cm); (2) the sample had smooth surfaces; and (3) the sample contained homogeneous
gamma sondes, or handheld XRF instruments, core pieces with no sharp interfaces between insolubles, halite, and other potash minerals. After selection, each
etc). These examples should not be taken as half-core was cut roughly into even quarter-cores, which were used for dissolution rate testing. The selected
limiting the broad meaning of sampling. samples were labelled and stored in sealed plastic bags. Before testing, the top and bottom surfaces of the
• Include reference to measures taken to ensure samples were sealed with a moisture-resistant epoxy and the remaining exposed surfaces were sanded to a
sample representivity and the appropriate smooth finish. When dissolution testing was complete, the 36 tested samples, along with the pre-concentrated
calibration of any measurement tools or systems solvent samples, were sent to SRC for further mineral components assay.
used. • In all cases, the original whole core was cut along a ‘center-line’ marked such that both halves are as close to
• Aspects of the determination of mineralisation identical as possible, most relevant where layers are gently dipping. In this way the dissolution samples are
that are Material to the Public Report. In cases representative, as were the original samples.
where ‘industry standard’ work has been done
this would be relatively simple (eg ‘reverse
circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay’). In other
cases more explanation may be required, such as
where there is coarse gold that has inherent
sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may
warrant disclosure of detailed information.
1.2. DRILLING • Drill type (eg core, reverse circulation, open- • Holes were drilled in two stages. Rotary Percussion (12 then 8 inch or similar diameter) through the 'cover
TECHNIQUES hole hammer, rotary air blast, auger, sequence', stopping in the Anhydrite Member and cased and grouted to this depth. Holes were then advanced
Bangka, sonic, etc) and details (eg core using diamond coring with the use of tri-salt (K, Na, Mg) mud to ensure acceptable recovery (over 95%). Coring
diameter, triple or standard tube, depth of was HQ (65 mm core diameter) or PQ (85 mm core diameter). All holes were drilled vertically.
diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by
what method, etc).
1.3. DRILL • Method of recording and assessing core and chip • Core recovery was recorded for all cored sections of Kore Potash’s holes by recording the drilling advance against
SAMPLE sample recoveries and results assessed. the length of core recovered. Recovery is between 95 and 100% for the evaporite and all potash intervals. A
RECOVERY • Measures taken to maximise sample recovery and fulltime mud engineer was recruited to maintain drilling mud chemistry and physical properties. Mud properties
ensure representative nature of the samples. are recorded in drilling reports for each hole.
• Whether a relationship exists between sample • Core was wrapped in cellophane sheet soon after removal from the core barrel, to avoid dissolution in the
recovery and grade and whether sample bias may atmosphere, and was then transported at the end of each shift to a de-humidified core storage room where it was
have occurred due to preferential loss/gain of stored until sampled for the dissolution test work.
fine/coarse material. • Reflecting the good core recovery there are no concerns relating to bias due to selection recovery/loss.
1.4. LOGGING • Whether core and chip samples have been • All the core sent to AAI for dissolution testing were individually described by a geologist at the drill site, recording
geologically and geotechnically logged to a level the lithology, mineralogy and grainsize.
of detail to support appropriate Mineral Resource • In all cases each sample was sylvinite rich. The sylvinite rock-types are straightforward to distinguish based on
estimation, mining studies and metallurgical colour, gamma-ray data and close observation in the hand.
studies. • Quality photographs of each of the dissolution samples were taken, to provide a reference, important given that
• Whether logging is qualitative or quantitative in no core remains for these intervals.
nature. Core (or costean, channel, etc.)
photography.
• The total length and percentage of the relevant
intersections logged.
1.5 SUB- • If core, whether cut or sawn and whether quarter, • The half core samples sent to AAI for dissolution testing comprise the remaining half core from previously
SAMPLING half or all core taken. sampled and assayed core.
TECHNIQUES • If non-core, whether riffled, tube sampled, rotary • Samples intervals were choses to provide a suite a samples representative of the sylvinite layers. Effort was made
AND SAMPLE split, etc and whether sampled wet or dry. to submit samples with a range of KCl content as estimated visually and with guidance from previous grade data
PREPARATION • For all sample types, the nature, quality and and gamma-ray data.
appropriateness of the sample preparation • In AAI’s laboratory, the core samples for dissolution testing were selected and prepared based on the criteria that
technique. (1) the sample length was about 5 centimetres (cm); (2) the sample had smooth surfaces; and (3) the sample
• Quality control procedures adopted for all sub- contained homogeneous core pieces with no sharp interfaces between insolubles and halite and other potash
sampling stages to maximise representivity of minerals.
samples. • Each half-core was cut roughly into even quarter-cores, which were used for dissolution rate testing.
• Measures taken to ensure that the sampling is • The top and bottom surfaces of the samples were sealed with a moisture-resistant epoxy and the remaining
representative of the in situ material collected, exposed surfaces were sanded to a smooth finish.
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 • The nature, quality and appropriateness of the • The quarter-core samples were weighed and recorded on a precision electronic scale, with accuracy to 1%, before
ASSAY DATA AND assaying and laboratory procedures used and and after dissolution rate testing.
LABORATORY whether the technique is considered partial or • Sample surfaces were sketched on the data sheet, and the surface areas were then calculated by digitizing the
TESTS total. borders using AutoCAD™.
• For geophysical tools, spectrometers, handheld • A 50-ml sample of the pre-concentrated KCl and NaCl solution was extracted before testing for chemical analysis.
XRF instruments, etc, the parameters used in • At the laboratory scale, the calculation of dissolution rate is based on weight loss, immersion time, and the
determining the analysis including instrument vertical dissolution surface area of the core sample.
make and model, reading times, calibrations
factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established.
1.7. • The verification of significant intersections by • The intersections sampled for the dissolution samples were previously reported and verified at that time.
VERIFICATION OF either independent or alternative company • The descriptions of the dissolution samples were stored in an MS Excel sheet listing the ‘from’ depth, ‘to’ depth
SAMPLING AND personnel. and the geological observations for each.
ASSAYING • The use of twinned holes.
• Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.
• Discuss any adjustment to assay data.
1.8. LOCATION • Accuracy and quality of surveys used to locate drill • The dissolution samples were taken from three drill-holes within the DX deposit; ED_01, ED_03 and DX_01. The
OF DATA POINTS holes (collar and down-hole surveys), trenches, positions of these holes were determined by a professional surveyor using a DGPS, and expected to be accurate
mine workings and other locations used in to within 100 mm in X, Y and Z.
Mineral Resource estimation. • The drill-hole positions are as follows, given in UTM zone 32 S using WGS 84 datum. They are shown on figure 1 of
• Specification of the grid system used. the announcement.
• Quality and adequacy of topographic control.
1.9. DATA • Data spacing for reporting of Exploration Results. • Figure 1 of the announcement shows the location of these drill-holes.
SPACING AND • Whether the data spacing and distribution is
DISTRIBUTION sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
• Whether sample compositing has been applied.
1.10. • Whether the orientation of sampling achieves • The potash layers are massive and of relatively uniform grade distribution, being controlled by the original
ORIENTATION OF unbiased sampling of possible structures and the horizontally layered sedimentary deposition of the potash mineral carnallite.
DATA IN extent to which this is known, considering the • Intersections have a sufficiently low angle of dip, and drill-holes are vertically drilled; the intersected thickness is
RELATION TO deposit type. assumed to be the true thickness.
GEOLOGICAL • If the relationship between the drilling orientation
STRUCTURE and the orientation of key mineralised structures
is considered to have introduced a sampling bias,
this should be assessed and reported if material.
1.11. SAMPLE • The measures taken to ensure sample security. • The chain of custody of the dissolution samples was secure. At the rig, the core was under full-time supervision of
SECURITY Company geologists, working around the clock. At the end of each drilling shift, the core was transported by Kore
Potash staff to a secure site where it was stored in a locked room.
• Sampling and packing of the samples were 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 here
DHL airfreight all samples to the laboratory in the U.S.
1.12. AUDITS OR • The results of any audits or reviews of sampling • Kore’s sampling standard operating procedures for logging and sampling have been audited on several occasions
REVIEWS techniques and data. by external parties, for the completion of the MRE for the Kola, Dougou and DX Deposits.
Section 2 - Reporting of Exploration Results
JORC Criteria JORC Explanation Commentary
2.1 MINERAL • Type, reference name/number, location and • The Dougou Extension Deposit is entirely within the Dougou Mining Permit (issued on the 9th May 2017 under
TENEMENT AND ownership including agreements or material issues decree No. 2017-139) which is held 100% by the local company Dougou Mining SARL which is in turn held 100%
LAND TENURE with third parties such as joint ventures, by Sintoukola Potash SA RoC, which Kore Potash holds a 97% share.
STATUS partnerships, overriding royalties, native title • There are no impediments on the security of tenure.
interests, historical sites, wilderness or national
park and environmental settings.
• The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a license to operate in the area.
2.2 • Acknowledgment and appraisal of exploration by • Potash exploration was carried out in the area in the1960's by Mines de Potasse d’ Alsace S.A. Holes K52 and K62
EXPLORATION other parties. are within the Deposit area. High quality geological logs are available for these holes. Hole K52 intersected
DONE BY OTHER Sylvinite HWS and was the initial reason for Kore’s interest in the area, beginning with the twin-hole drilling of
PARTIES K52 in 2012 by ED_01.
• Oil exploration well Yangala-1 (outside of the DX deposit) was drilled in 1961 by Societe des Petrole d’Afrique
Equatoriale (SPAFE).
• Previous 2D 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 • The potash seams are hosted by the 400-500 m thick Loeme Evaporite formation, comprised of sedimentary
evaporite rocks with minor clastic layers. The evaporites were deposited during the Aptian epoch of the Lower
Cretaceous, probably between 125 and 112 million years ago, within a sub-sea level basin following the break-up
of Gondwana into the African and South American continents.
• In terms of classification nomenclature, the evaporite is of the basin-wide ‘mega-halite’ type, formed by the cyclic
evaporation of sea-water sourced, seepage-fed brines in 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 (as opposed to sulphates). To precipitate the thick potash beds
the system experienced prolonged periods within relatively narrow a range of high salinity.
• Reflecting the chloride-Mg-K dominated brine composition, halite (NaCl), carnallite (KMgCl3·6H2O) and bischofite
(MgCl2·6H2O) account for over 90% of the evaporite rocks. Sylvinite is only found close to the top of the Salt.
Carnallitite is a rock comprised predominantly of carnallite and halite. Sylvinite is a rock comprised predominantly
of sylvite (KCl) and halite. The term ‘rock-salt’ is used to refer to a rock comprising of halite without appreciable
other minerals/materials.
• The Salt was deposited in a cyclic manner; 11 cycles have been recognised, of which most are preserved at
Dougou Extension, the important ‘Top Seam’ (TS) and ‘Hanging wall Seam’ (HWS) potash seams are within the
mid to upper part of cycle 9.
• All layers in the Salt member have good continuity and the thickness of the interval between them is consistent.
Even narrow mm-scale layers or sub-layers can be correlated many km. In most holes all potash layers are
present and have a low angle of dip (<15 degrees).
• Where sylvinite, the TS and HWS have an average thickness of 5.2 and 3.6 metres respectively.
• Capping the salt dominated part (Salt Member or ‘Salt’) is low permeability layer of anhydrite, gypsum and clay
(the Anhydrite Member) between 10 and 16 m thick over the deposit. It is at a depth of between 290 and
approximately 520 m at DX. Importantly, the contact between the Anhydrite Member and the underlying salt is
an unconformity. Reflecting this, and that the layers of the Salt are gently undulating, in some areas there is a
greater thickness of Salt above the seams than in others, or the seams may be ‘truncated’
• The potash seams were originally deposited as carnallitite but 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. This process
has taken place preferentially over the Yangala High, initiating at the top of the Salt Member and typically not
advancing further than 40 m below this contact, but rarely as much as 80 m (as in drill-hole ED_01). The thickness
of the Salt above the seams is the principal control on the whether the seam is sylvinite or carnallitite, and thus
the extent of the sylvinite Mineral Resources. The process advanced on a downward moving ‘front’ and was very
efficient; when converted no residual carnallite remains within the sylvinite. Un-replaced carnallitite may occur
below the sylvinite (never above it) but the contact is always abrupt and easily identified in core.
2.4. DRILL HOLE • A summary of all information material to the • The drill-hole positions are as follows, given in UTM zone 32 S using WGS 84 datum. Holes were drilled vertically,
INFORMATION understanding of the exploration results including and no significant deviation was reported in drill-hole downhole surveys.
a tabulation of the following information for all
Material drill holes: Final
• easting and northing of the drill hole collar BHID Easting Northing Elevation
Depth
• elevation or RL (Reduced Level – elevation
ED_01 791144.8 9529491 55.29 525.15
above sea level in metres) of the drill hole
collar ED_03 789848.8 9528941 62.94 492.15
• dip and azimuth of the hole DX_01 787201.2 9529046 54.64 551.73
• 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 • In reporting Exploration Results, weighting • No selective cutting of high- or low-grade material was carried out as is not justified given massive nature of the
AGGREGATION averaging techniques, maximum and/or minimum potash mineralization and absence of localised high/low grade areas.
METHODS grade truncations (e.g. cutting of high grades) and • No aggregation of grades was carried out for the reporting of the dissolution samples.
cut-off grades are usually Material and should be • No metal equivalents were calculated.
stated.
• Where aggregate intercepts incorporate short
lengths of high-grade results and longer lengths of
low grade results, the procedure used for such
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 • These relationships are particularly important in • The drill-core and acoustic televiewer images provide a reliable measurement of dip (and the latter provides
RELATIONSHIP the reporting of Exploration Results. azimuth). Seams have sufficiently low degree of dip, and drill-holes are vertical so correction of thickness for
BETWEEN • If the geometry of the mineralisation with respect apparent thickness is not warranted.
MINERALISATION to the drill hole angle is known, its nature should
WIDTHS AND be reported.
INTERCEPT • If it is not known and only the down hole lengths
are reported, there should be a clear statement to
LENGTHS
this effect (eg ‘down hole length, true width not
known’).
2.7 DIAGRAMS • Appropriate maps and sections (with scales) and • Relevant diagrams are provided in the announcement including a map showing the drill-holes from which the
tabulations of intercepts should be included for dissolution samples were collected.
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 • Where comprehensive reporting of all Exploration • The integration of seismic data into the geological model was incorporated into the PFS as reported in “Dougou
REPORTING Results is not practicable, representative reporting Extension (Dx) Project Ore-Feasibility Study on 13 May 2020.
of both low and high grades and/or widths should
be practiced to avoid misleading reporting of
Exploration Results.
2.9 OTHER • Other exploration data, if meaningful and No other substantive exploration data was considered.
SUBSTANTIVE material, should be reported including (but not
EXPLORATION limited to): geological observations; geophysical
DATA survey 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 • The nature and scale of planned further work (eg • The dissolution test work results will be incorporated into the ongoing Phase 1 of the DFS for the DX deposit
WORK tests for lateral extensions or depth extensions or
large-scale step-out drilling).
• 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: 02-12-2020 09:00:00
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