KORE POTASH PLC - Approval of Environmental and Social Impact Assessment

Release Date: 28/08/2018 09:30
Code(s): KP2
 
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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