Wrap Text
Government approval to drill at DX Project
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”)
Government approval to drill at DX Project
Kore Potash plc, the potash development company with 97%-ownership of the Kola and DX Potash
Projects in the Sintoukola Basin, is pleased to announce that it has received authorisation from the
Government of the Republic of the Congo to commence the planned drilling programme for the
Definitive Feasibility Study (“DFS”) for the Company’s DX Project (“DX”).
Highlights
• Ministry of Tourism and Environment has authorised the environmental management plan
for the DFS drilling on Kore’s DX Project
• All Government approvals required for the planned DFS work programme now in place
• A drilling programme consisting of the drilling and analysis of up to 5 new holes is planned to
begin this month – these will improve confidence in the value of DX
• A number of local and international consultants have been engaged to support the
environmental and technical aspects of the DFS
• SQM, a global scale lithium and potassium producer and one of Kore’s major shareholders, is
providing technical support for key aspects of the DX DFS
• Phase One of the DX DFS is planned for completion in May 2021
Background
The terms of reference of an Impact Notice for the environmental and social aspects of the planned
DX drilling programme were submitted to the Director General of Tourism and Environment (“Director
General”) on 17 September 2020.
These terms of reference were drafted following public participation meetings held with interested
and affected parties.
Kore has received written authorisation from the Director General for the drilling of up to 5 additional
drill holes in the Dougou permit area. This authorisation also confirms that the conditions of the
Environmental Conformity Certificate for the Dougou permit area dated 31 March 2020, with a
duration of 25 years, will continue to apply.
Drilling Programme
The Company is planning to drill up to 5 additional diamond drill holes within the DX Deposit which
sits within the Dougou Permit area.
The drilling programme is designed to improve confidence in the Mineral Resources and Ore Reserves
of the DX Deposit. The drill holes are designed to intersect the targeted potash seams approximately
400 metres below surface. The sylvinite seams at DX are at shallow depths compared to other potash
deposits globally.
The drilling will be undertaken using drill rigs and equipment that the Company owns and that are on
site at the Sintoukola camp.
Key personnel have been mobilised to site and the drilling programme remains on track for
commencement of drilling before the end of October 2020.
Brad Sampson, Chief Executive of Kore Potash, said:
“We thank the Government of the Republic of the Congo, who continue to actively support the
development of the Company’s projects in the Sintoukola basin, for reviewing this application and
responding quickly, during what is a difficult period for all Governments globally.”
“We have seen improvements in the DX project as each phase of work has progressed, and we are
excited to be moving forward with the DFS.”
Authorised for release by the Board of Directors.
ENDS
14 October 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 145 Mt
grading 39.7% KCl, hosted by two seams. The results of a Pre- Feasibility Study (“PFS”) were
announced on 13 May 2020, which determined Ore Reserves of 17.7 Mt with an average grade of
41.7% KCl. Dougou Extension is located 15 km southwest of Kola. The deposit is open laterally; an
Exploration Target for the northward extension of sylvinite was announced on the 21 November 2018.
The Kola sylvinite Deposit has a Measured and Indicated sylvinite Mineral Resource Estimate of 508
million tonnes grading 35.4% KCl. The results of a Definitive Feasibility Study (“DFS”) were announced
on 29 January 2019, which determined Ore Reserves of 152 Mt with an average grade of 32.5% KCl.
The deposit is open laterally; an Exploration Target for the Southward extension of sylvinite was
announced on the 21 November 2018.
The Dougou Extension and Kola sylvinite Deposits are considered high grade relative to most potash
deposits globally and have the advantage of having very low content of insoluble material, less than
0.3% which provides a further processing advantage.
Glossary of Terms & Abbreviations
Term Explanation
classification (of Resources The determination of the level of confidence of the estimations, in
and Reserves) this case using the categories of the JORC Code
A (Definitive) Feasibility Study is a comprehensive technical and
economic study of the selected development option for a mineral
project that includes appropriately detailed assessments of
applicable Modifying Factors together with any other relevant
operational factors and detailed financial analysis that are necessary
(Definitive) Feasibility Study to demonstrate at the time of reporting that extraction is reasonably
justified (economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent or
financial institution to proceed with, or finance, the development of
the project. The confidence level of the study will be higher than
that of a Pre-Feasibility Study.
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource
for which quantity, grade (or quality), densities, shape and physical
characteristics are estimated with sufficient confidence to allow the
application of Modifying Factors in sufficient detail to support mine
planning and evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable
Indicated Mineral Resource exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes, and is sufficient to assume geological and grade (or
quality) continuity between points of observation where data and
samples are gathered. An Indicated Mineral Resource has a lower
level of confidence than that applying to a Measured Mineral
Resource and may only be converted to a Probable Ore Reserve.
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for
which quantity and grade (or quality) are estimated on the basis of
limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade (or quality)
continuity. It is based on exploration, sampling and testing
information gathered through appropriate techniques from
Inferred Mineral Resource locations such as outcrops, trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of confidence than
that applying to an Indicated Mineral Resource and must not be
converted to an Ore Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for
which quantity, grade (or quality), densities, shape, and physical
characteristics are estimated with confidence sufficient to allow the
application of Modifying Factors to support detailed mine planning
and final evaluation of the economic viability of the deposit.
Geological evidence is derived from detailed and reliable
exploration, sampling and testing gathered through appropriate
Measured Mineral Resource techniques from locations such as outcrops, trenches, pits, workings
and drill holes, and is sufficient to confirm geological and grade (or
quality) continuity between points of observation where data and
samples are gathered. A Measured Mineral Resource has a higher
level of confidence than that applying to either an Indicated Mineral
Resource or an Inferred Mineral Resource. It may be converted to a
Proved Ore Reserve or under certain circumstances to a Probable
Ore Reserve.
A mineral deposit is a natural concentration of minerals in the
Mineral Deposit earth's crust.
the economically mineable part of a Measured and/or Indicated
Mineral Resource. It includes diluting materials and allowances for
losses, which may occur when the material is mined or extracted
Mineral Reserve and is defined by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors. Such
studies demonstrate that, at the time of reporting, extraction could
reasonably be justified
A ‘Mineral Resource’ is a concentration or occurrence of solid
material of economic interest in or on the Earth’s crust in such form,
grade (or quality), and quantity that there are reasonable prospects
for eventual economic extraction. The location, quantity, grade (or
Mineral Resource quality), continuity and other geological characteristics of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge, including sampling. Mineral
Resources are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured categories.
The saleable form of potassium chloride, comprising a minimum of
Muriate of Potash (MoP) 95% KCl
Ore is the economically and technically mineable material. The
Ore and orebody orebody is the mineable part of the deposit comprising the Ore
Reserves
Date: 14-10-2020 08:00:00
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