Wrap Text
Approval of Environmental and Social Impact Assessment
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”)
Approval of Environmental and Social Impact Assessment for Dougou licence area
Kore Potash plc, the potash development company whose flagship asset is the 97%-owned Sintoukola
Potash Project (“Project”), is pleased to announce that the Environmental and Social Impact
Assessment (“ESIA”) for its Dougou Mining Licence has been approved.
A copy of this announcement including diagrams is available on the Company’s website at
http://www.korepotash.com/wp-content/uploads/2018/08/Approval-of-Environmental-and-Social-
Impact-Assessment-for-Dougou-licence-area-Digrams.pdf
Highlights
- The ESIA for the Dougou Mining Licence was approved by the Minister of Tourism and Environment
of the Republic of Congo on 13 July 2018.
- Approval of an ESIA is a prerequisite to commence construction of a mining project in the Republic of
Congo.
- The ESIA authorises the development of the potential mining project at the Dougou carnallite Deposit
and could be extended in future to include the Dougou Extension sylvinite Deposit.
- Permitting for the development of the Dougou Deposits creates potential to utilise potash from these
deposits to increase the production rate or extend the project life at the nearby Kola Project, currently
the subject of a Definitive Feasibility Study.
- The ESIA approval is granted for a 12-month period and is renewable annually until construction of a
project commences.
Brad Sampson, CEO of Kore, commented:
“Kore Potash’s mining licences in the Republic of Congo have the potential produce potash for the
global market at very low cost for generations, and it is pleasing to have achieved another important
milestone with ESIA approval for the Dougou Mining Licence.
“The Company’s key strategic ambition is to bring the flagship Kola Project into production, and it is
important to keep the potential scale of the potash basin in mind.
“Following completion of the Definitive Feasibility Study for the Kola Project, the Company intends
further assess the strategic options to unlock the value of the Dougou Deposits.”
Approval of the ESIA
The ESIA for the Dougou Mining Licence was approved by the Minister of Tourism and Environment
of the Republic of Congo on 13 July 2018. The ESIA is valid for one year and renewable annually until
construction of a mine on the licence begins.
Approval of an ESIA is a prerequisite for beginning construction of a mining project in the Republic of
Congo.
The application for the ESIA was submitted on 26 August 2016 to the Minister following approval of
the Dougou ESIA terms of reference on 9 June 2016.
The ESIA approval covers the potential mining and processing of the Dougou carnallite Deposit, and
application may be made in future to include mining and processing of the Dougou Extension sylvinite
Deposit with the approval of the Regulator.
The Dougou Mining Licence
The Dougou Mining Licence is adjacent to the Company’s flagship Kola Mining Licence and to the
Company Sintoukola 2 Exploration License (Figure 1). Together the two Mining Licenses and the
Exploration License comprise the Sintoukola Potash Project which cover 955 km2 of this emerging
globally important potash basin.
Within the Dougou Mining Licence are two potash deposits, the Dougou Carnallite Deposit, and the
Dougou Extension sylvinite Deposit. A Mining Permit for the Dougou Licence was granted on 9 May
2017. The Mineral Resources of these deposits are shown in Table 1.
Sylvinite is a rock comprised predominantly of the mineral sylvite (KCl) and halite (NaCl). Carnallite is
a potash mineral with formula KMgCl 3·6(H2O).
Sylvinite is usually found in horizontal seams and mined via conventional continuous mining at depths
below 1000m – and in the case of Kore’s Kola Project much shallower depths of around 350m.
Carnallite is also usually found in horizontal seams and commonly extracted via solution mining – a
process which involves water being pumped into the deposit to dissolve the carnallite before being
pumped to surface for processing.
Permitting for the development of the Dougou Deposits creates potential to utilise potash from these
deposits to increase the production rate or extend the project life at the nearby Kola Project, currently
the subject of a Definitive Feasibility Study.
The approval of the ESIA by the Ministry of Tourism and Environment is indicative of the Company and
the Government of the Republic of Congo alignment to realise the potential of the Congo potash basin
for the benefit of all stakeholders.
The Company remains focused on the development of the nearby Kola sylvinite deposit and currently
has not formalised a development plan for Dougou. The Company intends to further consider the
strategic opportunities created by the Dougou Deposits after completion of the Kola Definitive
Feasibility Study.
Figure 1. Map showing Kore’s Projects in the RoC and license and ESIA status (see
http://www.korepotash.com/wp-content/uploads/2018/08/Approval-of-Environmental-and-Social-
Impact-Assessment-for-Dougou-licence-area-Digrams.pdf)
– ENDS –
Contacts:
Brad Sampson Jos Simson / Edward Lee
Chief Executive Officer Tavistock (UK media enquiries)
Tel: +27 11 469 9144 Tel: +44 (0) 207 920 3150
info@korepotash.com kore@tavistock.co.uk
www.korepotash.com
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 Kola sylvinite Deposit, Dougou Extension sylvinite Deposit and
the Dougou carnallite Deposit. These deposits are within the Kola and Dougou Mining Licenses. The
Sintoukola project also includes the Sintoukola 2 Exploration Licence.
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 Kola sylvinite Deposit has a Measured and Indicated sylvinite Mineral Resource Estimate of 508
Mt grading 35.4 % KCl. A Definitive Feasibility Study (“DFS”) is being conducted by a consortium of
French engineering and construction companies.).
The Dougou Carnallite Deposit has a Measured and Indicated Potash Mineral Resource of 1.1 billion
tonnes grading 20.6% KCl (at a depth of between 400 and 600 metres) hosted by 35-40 metres of
carnallitite within 4 flat-lying seams. A Scoping Study was completed in February 2015. This Study
indicated that a Life of Mine operating cost of US$68 per tonne MoP was achievable.
The Dougou Extension sylvinite Deposit contains a total sylvinite Mineral Resource Estimate of 232 Mt
grading 38.1% KCl, hosted by two seams. The resource includes 67 Mt grading 60.1 % KCl. Dougou
Extension is located 15 km southwest of Kola. A large zone that is prospective for sylvinite extends a
further 25 km northwards, within the Dougou Mining License and onto the ‘Sintoukola 2’ Exploration
License.
Table 1. Kore’s Potash Mineral Resources provided as Gross and Net Attributable (to Kore’s 97% holding)
KOLA SYLVINITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured 216 34.9 75 209 34.9 73
Indicated 292 35.7 104 283 35.7 101
Sub-Total Measured +
508 35.4 180 492 35.4 174
Indicated
Inferred 340 34.0 116 330 34.0 112
TOTAL 848 34.8 295 822 34.8 286
DOUGOU EXTENSION SYLVINITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured - - - - - -
Indicated 111 37.2 41 108 37.2 40
Sub-Total Measured +
111 37.2 41 108 37.2 40
Indicated
Inferred 121 38.9 47 117 38.9 46
TOTAL 232 38.1 88 225 38.1 85
TOTAL SYLVINITE, KOLA & DOUGOU EXTENSION DEPOSITS COMBINED
Measured + Indicated +
1,080 35.5 384 1,048 35.5 372
Inferred
DOUGOU CARNALLITE DEPOSIT
Gross Net Attributable
Million Contained KCl Million Grade KCl Contained KCl
Mineral Resource Category Grade KCl %
Tonnes million tonnes Tonnes % million tonnes
Measured 148 20.1 30 144 20.1 29
Indicated 920 20.7 190 892 20.7 185
Sub-Total Measured +
1,068 20.6 220 1,036 20.6 214
Indicated
Inferred 1,988 20.8 414 1,928 20.8 401
TOTAL 3,056 20.7 634 2,964 20.7 615
KOLA CARNALLITE DEPOSIT
Gross Net Attributable
Million Contained KCl Grade KCl Contained KCl
Mineral Resource Category Grade KCl % Million Tonnes
Tonnes million tonnes % million tonnes
Measured 341 17.4 59 331 17.4 58
Indicated 441 18.7 83 428 18.7 80
Sub-Total Measured +
783 18.1 142 760 18.1 138
Indicated
Inferred 1,266 18.7 236 1,228 18.7 229
TOTAL 2,049 18.5 378 1,988 18.5 367
Table 1 Notes:
- The Mineral Resource Estimates are reported in accordance with the JORC code 2012 edition.
- Table entries are rounded to the appropriate significant figure.
- The Kola Mineral Resource Estimate was reported on the 6 July 2017. The Competent Person (CP) is Garth Kirkham of Met-
Chem division of DRA Americas Inc., a subsidiary of the DRA Group. It was reported using a cut-off grade (CoG) of 10% KCl.
- The Dougou Extension Mineral Resource Estimate was reported on the 20 of August 2018; the CP is Mr. Andrew Pedley of
Kore Potash. The Dougou Extension MRE is reported using a CoG of 15% KCl.
- The Dougou Mineral Resource Estimate was reported on the 9 February 2015; the Competent Persons are Dr. Sebastiaan
van der Klauw and Ms. Jana Neubert of ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (“ERCOSPLAN“).
- The form and context of the Competent Person’s findings as presented in this document have not materially changed since
the resource was first reported.
Forward-Looking Statements
This release 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 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 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, and the results of economic studies, is extracted from previous reports, as referred to in the
footnotes of Table 1 herein, and available to view on the Company’s website. 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.
28 August 2018
JSE Sponsor: Rencap Securities (Pty) Limited
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