Wrap Text
Work commences on Definitive Feasibility Study for the 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”)
Work commences on Definitive Feasibility Study for the 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 following the recent equity fundraise,
work has commenced on the Definitive Feasibility Study (“DFS”) for the Company’s DX Project (“DX”).
Highlights
• The work to complete Phase One of the DFS on Kore’s DX Project has commenced
• A drilling programme consisting of the drilling and analysis of up to 5 new holes is planned to
begin in October 2020 – these will improve confidence in the value of DX
• A number of 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 is planned for completion in May 2021
Background to DX and the DFS
The Company believes DX is one of the highest grade undeveloped potash deposits known globally,
and could potentially have the lowest operating costs per tonne of potassium fertiliser produced of
any global peer. In addition to its high grade, additional benefits are provided by the shallow depth of
the DX deposit, the close proximity to the coast for shipping to market, and suitability for the solution
mining method.
The DFS for DX is divided into two phases. Phase One is focussed on further drilling work to define
Measured Mineral Resources and Proved and Probable Ore Reserves for the project along with
technical design aspects of the mine. This work will assist the Company’s funding plans and
development of DX.
The drilling programme for Phase One will consist of up to an additional 5 holes in the deposit and will
be carried out utilising Company-owned drill rigs already on site at Sintoukola. The mobilisation of the
drilling crew has started, and drilling is due to commence in October 2020.
Appointment of international consultants to the DFS
CM2E, a local environmental consulting company has been appointed to carry out the environmental
work required to commence with the drilling programme. This process has already progressed with
the initial public participation meetings having been held. The submission of the final documentation
to the authorities is due by the end of September 2020.
Kore has a technical services agreement with SQM, one of Kore’s major shareholders. This agreement
gives Kore access to a number of key technical experts within SQM to discuss and review aspects of
the DFS work and consultants’ recommendations. These discussions have commenced. SQM will also
conduct test works within their pilot plant to improve confidence in the estimate of the potassium
carrying capacity of the production brine.
The consulting group, Agapito Associates Inc (“Agapito”) have been appointed as the Competent
Persons for both Mineral Resources (Mr Rick Baars) and Ore Reserves (Dr Michael Hardy) in line with
JORC requirements. The appointment of these consultants covers the revision of the Mineral Resource
estimate once the drilling has been completed, the design of the mine to a DFS level and the revision
of the Ore Reserves on completion of the mine design.
The geomechanical core samples that are required for creep and compressive strength test work have
arrived at the Agapito offices from the Republic of the Congo. Agapito will commence with the
compressive strength testwork and have contracted with Institut Fur Gebirgsmechanick GmbH (IFG)
in Germany to carry out the creep testwork. This testwork will be key in the geomechanical modelling
to be carried out to evaluate cavern stability during mining.
Additional dissolution testwork has also commenced in the Agapito laboratory to determine the
ultimate brine concentration when the dissolution rate is zero for differing solvent concentrations.
This will allow this key design factor to be determined prior to commencing the mine design work.
Brad Sampson, Chief Executive of Kore Potash, said:
“I am very pleased that work on the DX Definitive Feasibility Study has commenced. This is another
important milestone towards bringing the DX project into production as a low cost potash producer
at a time when demand for potash continues to grow.”
“The combination of DX’s high grade and low cost nature is truly unique and we look forward to
continuing to move the project forward.”
“As we complete the constituent parts of the DFS and beyond, Kore gets closer to constructing its
projects. Whilst this is a several years long endeavour for any mine of this scale, I am confident that
we will deliver for shareholders, employees, and all Republic of the Congo stakeholders.”
Authorised for release by the Board of Directors.
ENDS
30 September 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
Mark Percy
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
(Definitive) Feasibility Study 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
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.
Indicated Mineral Resource 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
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.
Inferred Mineral Resource 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
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.
Measured Mineral Resource 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
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.
Mineral Deposit A mineral deposit is a natural concentration of minerals in the
earth's crust.
Mineral Reserve 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
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
Mineral Resource 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
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: 30-09-2020 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
