Wrap Text
Kola and Dougou ESIA approval extended for 25 years
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”)
Kola and Dougou ESIA approval extended for 25 years
Kore Potash, the potash exploration and development company whose flagship asset is the 97%-
owned Sintoukola Potash Project (“Sintoukola” or the “Project”), located within the Republic of Congo
(“RoC”), is pleased to announce that Certificates of Environmental Compliance (“Certificates”) were
issued on 31 March 2020 by the Ministry of Tourism and Environment of the Republic of Congo, each
with a 25 year validity. These Certificates relate to the Environmental and Social Impact Assessments
(“ESIA”) for both the Dougou and Kola Mining Licences and relax the previous requirement for periodic
compliance certificates.
Highlights:
• The Minister of Tourism and Environment of the Republic of Congo issued certificates on 31
March 2020 granting 25 year approvals to the ESIAs for both the Dougou and the Kola Mining
Licences.
• The ESIA’s for both licences previously required reapproval on an annual or 3 yearly basis.
• The 25 year period of ESIA certification better aligns with the initial term of the mining licences
and the Mining Convention.
• The Company anticipates completion of the Preliminary Feasibility Study (“PFS”) on the
Dougou Extension (“DX”) Project this quarter.
• The Company plans in the future to seek approval for amendments to the ESIA for the Dougou
Mining Licence to include the planned mining and processing of the DX sylvinite Deposit which
sits within the Dougou Mining Licence.
Brad Sampson, Chief Executive of Kore Potash, commented:
“We are pleased with the continued support of the Government of the Republic of Congo. The 25 year
ESIA period is now aligned with the timeframe of the Mining Convention between Kore and the
Government of the Republic of Congo, which was passed into law. This offers improved certainty for
all parties and stakeholders.”
“As we progress the development of the DX project and move towards first potash production we will
apply for amendments to the Dougou ESIA as part of the DX permitting process. We are particularly
mindful of the Government’s support during the difficult current global situation with covid-19. In
response to covid-19 Kore has temporarily closed its office in the Congo and our staff are working
productively from home and continue to progress our activities including the DX PFS in line with our
planning.“
Kola ESIA
The ESIA for the Kola Mining Licence was first approved by the Minister of Tourism and Environment
of the Republic of Congo on 10 October 2013 and required annual re-approval until construction of a
mine on the licence commences. The ESIA was subsequently re-approved in 2014 for 3 years until 10
October 2017.
During 2018 and 2019 the Kola ESIA was amended to include the full scope described in the definitive
feasibility study for the Kola project.
On 31 March 2020, the Minister of Tourism and Environment of the Republic of Congo granted a 25-
year approval of the ESIA, in accordance with the provisions of the Mining Convention formed
between the Government of the Republic of Congo and Kore.
The approved Kola ESIA covers the planned mining and processing of the Kola sylvinite Deposit, in line
with the scope of the Kola definitive feasibility study including:
• Mine area
• Plant area
• High-voltage transmission line corridor
• Gas pipeline corridor
• Conveyor and service road corridor
Dougou ESIA Certification
The ESIA for the Dougou Mining Licence was first approved by the Minister of Tourism and
Environment of the Republic of Congo on 13 July 2018. This ESIA approval was valid for one year and
required annual re-approval until construction of a mine on the licence begins. On 31 March 2020, the
Minister of Tourism and Environment of the Republic of Congo granted a 25 year approval of the ESIA,
thus aligning with the provisions of the Mining Convention.
Approval of an ESIA is a prerequisite to beginning construction of a mining project in the Republic of
Congo.
The ESIA approval currently covers the potential mining and processing of the Dougou carnallite
Deposit.
The Company plans in the future to seek approval for amendments to this ESIA to include planned
mining and processing of the DX sylvinite Deposit which sits within the Dougou mining licence.
The Company also plans to utilise the high-voltage power line, gas pipeline and conveyor and service
road corridors, approved in the Kola ESIA, as service corridors for the DX project.
Project Development
The Company anticipates completion of the Preliminary Feasibility Study (“PFS”) on the DX Project this
quarter.
DX presents the quickest pathway to potash production and cash generation for the Company and the
larger Kola project is planned for development subsequent to first production from DX.
The granting of a 25 year term of approval of the ESIAs by the Ministry of Tourism and Environment is
indicative of the strong alignment between the Company and the Government of the Republic of
Congo to realise the potential of the Republic of Congo potash basin for the benefit of all stakeholders.
ENDS
6 April 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
About Kore Potash’s Projects
Kore Potash is an advanced stage mineral exploration and development company whose primary asset
is 97%-owned interest in the Sintoukola project, a potash project located in the Republic of Congo.
The Sintoukola project comprises the Dougou Extension sylvinite Deposit, the Kola sylvinite and
carnallite Deposits, and the Dougou carnallite Deposit . These deposits are within the Dougou and Kola
Mining Licenses. The Sintoukola project also includes the Sintoukola 2 Exploration License.
Sintoukola is located approximately 80 km to the north of the city of Pointe Noire which has a major
port facility, and within 30 km of the Atlantic coast. Sintoukola has the potential to be among the
world’s lowest-cost potash producers and its location near the coast offers a transport cost advantage
to global fertilizer markets.
The Dougou Extension sylvinite Deposit contains a total sylvinite Mineral Resource Estimate of 232 Mt
grading 38.1% KCl, hosted by two seams. Dougou Extension is located 15 km southwest of Kola. The
deposit is open laterally; an Exploration Target for the northward extension of sylvinite was
announced on the 21 November 2018.
The Kola sylvinite Deposit has a Measured and Indicated sylvinite Mineral Resource Estimate of 508
million tonnes grading 35.4% KCl. The results of a Definitive Feasibility Study (“DFS”) were announced
on 29 January 2019, which determined Ore Reserves of 152 Mt with an average grade of 32.5% KCl.
The deposit is open laterally; an Exploration Target for the Southward extension of sylvinite was
announced on the 21 November 2018.
The Dougou Extension and Kola sylvinite Deposits are considered high grade relative to most potash
deposits globally and have the advantage of having very low content of insoluble material, less than
0.3% which provides a further processing advantage.
Forward-Looking Statements
This report contains statements that are "forward-looking". Generally, the words "expect,"
“potential”, "intend," "estimate," "will" and similar expressions identify forward-looking statements.
By their very nature and whilst there is a reasonable basis for making such statements regarding the
proposed placement described herein; forward-looking statements are subject to known and
unknown risks and uncertainties that may cause our 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. Statements in this report regarding the Company's business or
proposed business, which are not historical facts, are "forward looking" statements that involve risks
and uncertainties, such as resource estimates 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.
Investors are cautioned not to place undue reliance on forward-looking statements, which speak only
as of the date they are made.
Competent Person Statement
The information relating to Exploration Targets, Exploration Results, Mineral Resources or Ore
Reserves in this report is based on, or extracted from previous reports referred to herein, and available
to view on the Company’s website www.korepotash.com. 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 Ore Reserve Estimate for sylvinite at Kola was
first reported 29 January 2019 in an announcement titled ‘Kola Definitive Feasibility Study’ and was
prepared by Met-Chem; the Competent Person for the estimate is Mr. Molavi, member of good
standing of Engineers and Geoscientists of British Columbia. The Dougou carnallite Mineral Resource
Estimate was reported 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 was reported 20 August 2018 in an announcement titled ‘Maiden Sylvinite Mineral Resource
at Dougou Extension’. It was prepared by Competent Person Mr. Andrew Pedley when he was a full-
time employee of Kore Potash, a registered professional natural scientist with the South African
Council for Natural Scientific Professions and member of the Geological Society of South Africa.
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.
Date: 06-04-2020 08:18:00
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