To view the PDF file, sign up for a MySharenet subscription.

KORE POTASH PLC - Maiden Sylvinite Mineral Resource at Dougou Extension

Release Date: 20/08/2018 12:08
Code(s): KP2     PDF:  
Wrap Text
Maiden Sylvinite Mineral Resource at Dougou Extension

Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code:KP2
(“Kore Potash” or the “Company”)

Maiden Sylvinite Mineral Resource at Dougou Extension

Kore Potash plc, the potash development company whose flagship asset is the 97%-owned Sintoukola
Potash Project (“Kola” or the “Project”), is pleased to provide the first sylvinite Mineral Resource
Estimate for the Dougou Extension Deposit (the “Deposit”), following drilling completed in 2017, and
interpretation of earlier drilling and seismic survey data.

A copy of this announcement including diagrams is available on the Company’s website at

The Dougou Extension Deposit is located southwest of the Company’s Kola sylvinite Deposit which has
Measured and Indicated Mineral Resources of 508 Mt grading 35.4% KCl. Sylvinite is a rock type
comprised primarily of the potash mineral sylvite (KCl) and halite (NaCl). Sylvinite is the most
important source of Potash worldwide.


   •        Total sylvinite Mineral Resources at Dougou Extension of 232 Mt of sylvinite grading
             38.1% KCl, comprised of:
             o Indicated Mineral Resource of 111 Mt sylvinite grading 37.2% KCl, and
             o Inferred Mineral Resource of 121 Mt sylvinite grading 38.9 %KCl.

   •        The Deposit is contained within two horizontal or gently dipping sylvinite seams, the
             Hangingwall Seam (HWS) and the Top Seam (TS). The Hangingwall Seam is very high grade,
             containing 67 Mt grading 60.1% KCl.

   •        Dougou Extension is the Company’s third potash Deposit along with the Kola sylvinite
             Deposit and the Dougou carnallite Deposit and takes Kore’s total sylvanite Mineral
             Resource to 1 billion tonnes.

   •        The shallow seams within this new Deposit are 310 metres and 490 metres below surface
             and are situated at the southern end of an area approximately 30 km long and up to 12
             km wide, that remains prospective for additional sylvinite mineralisation (Figure 1).

    •      The Deposit is situated 15 km from the Company’s planned processing and export facility
            for the Kola Project, on the Atlantic coast. The sylvinite has extremely low amounts of
            insoluble material and magnesium, less than 0.3% and 0.1% respectively, which is
            advantageous for low cost Muriate of Potash (MoP) production.

           •    This Deposit adds to the Company’s Kola sylvinite Deposit, increasing the Company’s total
                   sylvinite Mineral Resources by 27% to 1.08 billion tonnes with an average grade of 35.5%
                   KCl (Table 4).

           •       The Dougou Extension Mineral Resource has potential to provide additional feed to
                   increase the processing life at the planned Kola Project and/or to contribute to an increase
                   in scale of the Kola project. These options are planned to be assessed by the Company
                   following completion of the Kola Definitive Feasibility Study.

       Brad Sampson, CEO of Kore, commented:

       “The maiden sylvinite Mineral Resources at Dougou Extension brings a third deposit within our permits
       in the Republic of Congo, and reinforces our view that this new basin hosts large globally important,
       shallow, and high-grade potash deposits. We remain excited with the potential for these deposits to
       supply potash to African and international agrinutrient markets for multiple generations.”

       “With the development of Kola our primary focus, this new Deposit creates potential for sylvinite from
       Dougou Extension to be processed at the planned Kola facility and provides yet more evidence that the
       start of production from this world-class basin will be a disruptive force in the fertiliser sector for
       decades to come.”

       Table 1. Sylvinite Mineral Resource Estimate for the Dougou Extension Deposit, dated 20 August 2018
       using a 15% KCl cut-off grade, reported in accordance with JORC 2012.

Seam               Category         Million Tonnes of Sylvinite     Grade (KCl %)     Average seam thickness (m)
HWS                Indicated                    30                       58.8                    3.8
HWS                Inferred                     37                       61.2                    3.4
HWS                TOTAL                         67                       60.1                      3.6
TS                 Indicated                     81                       29.3                      5.4
TS                 Inferred                      84                       29.0                      5.1
TS                 TOTAL                         165                      29.1                      5.2

TOTAL INDICATED                                  111                      37.2                      5.0
TOTAL INFERRED                                   121                      38.9                      4.6
TOTAL INDICATED + INFERRED                       232                      38.1                      4.7

The Dougou Extension Sylvinite Deposit is located in the Kouilou District of the Republic of Congo,
within the Company’s Dougou mining permit. The Deposit is situated approximately 15 km southeast
of the Company’s Kola Deposit, close to the infrastructure corridor linking Kola with the planned
process plant and export facility on the Atlantic coast (Fig. 1).

Strategic Importance

Historically, the Republic of the Congo was an important supplier of MOP to international markets.
Between 1969 and 1977 one mining operation in the RoC produced up to 450,000 tonnes per annum
of MoP and the presence of potash in the RoC is well known.

The Company’s Preliminary Feasibility Study for the Sintoukola Project (“Kola”) indicated that a mining
and processing operation to produce MOP at Kola could produce MOP to supply international markets
at very low costs of production. The Company subsequently engaged a consortium of French
engineering companies who are currently completing a Definitive Feasibility Study on the Kola Project.

Dougou Extension is the Company’s third potash Deposit along with the Kola sylvinite Deposit and the
Dougou carnallite Deposit (Table 4).

The Dougou Extension Mineral Resources increase the Company’s total sylvinite Mineral Resources by
27% to 1.08 billion tonnes with an average grade of 35.5% KCl (Table 4).

This Deposit is located approximately 15 km from the potash processing plant the Company is planning
to construct for the Kola project (Figure1). With transport distances to the planned processing plant
approximately half that of Kola sylvinite and similar chemical properties to the Kola sylvinite, this
Deposit may be suitable to supply feed into the planned Kola plant.

Potential exists for sylvinite from this Deposit to increase the operating life and/or the production rate
of Kore’s planned operations in the RoC.

Kore Potash’s permits shown in Figure 1 cover 955 km2 of the onshore Congo sedimentary Basin and
the Company’s exploration activity has confirmed that these permits hosts extensive sylvinite and
carnallite potash mineralisation. Dougou Extension is at the southern end of a zone 30 km in length
and 5 to 12 km wide (Figure 1), recognised by the Company as being prospective for additional sylvinite
based on the structural setting interpreted from 2D seismic survey data.

The Company intends to assess these strategic options further after the completion of the Kola
Definitive Feasibility study which is underway.

Figure 1. Dougou Extension Deposit location at the southern end of the prospective zone for sylvinite


The sylvinite at Dougou Extension is contained within two seams, the Hangingwall Seam (HWS) and
the Top Seam (TS), separated by between 10 and 15 m of rock-salt (Figures 2 and 3). The seams are at
a depth of between 310 m and 490 m below surface. These seams sit within the upper part of a 400-
500 m thick Salt Member (or ‘Salt). The Salt is capped by a thick layer (10-16 m) of clay and anhydrite
(Figure 3).

Figure 2. Cross-section through part of the Dougou Extension Deposit (looking north) (see

At Dougou Extension, sylvinite formed via replacement of pre-existing carnallitite (carnallitite is a rock
type comprised primarily of the potash mineral carnallite (KMgCl3·6H2O) and halite) within the upper
40-80 m of the Salt. Below this depth the TS and HWS are carnallitite. The Mineral Resource Estimate
excludes all carnallitite. The HWS and TS are flat or gently dipping (mostly less than 5 degrees) and
have an average thickness of 3.6 and 5.2 m respectively. The Mineral Resources within the HWS are
approximately twice the grade of those contained in the TS, being comprised of approximately 60% of
the mineral sylvite.

Figure 3. Close-up of part of figure 2 showing important aspects of the resource model in cross-
section (see

Sylvinite is overlain by massive rock-salt and as at the nearby Kola Deposit, the sylvinite and immediate
host rock have extremely low amounts of insoluble material and magnesium. All drill-hole
intersections of the HWS and TS at Dougou Extension contain less than 0.3% insolubles and less than
and 0.1% of magnesium.

The eastern extent of the Deposit is bound by the Dougou carnallitite Deposit, in which carnallitite is
contained within the HWS, TS and two deeper seams.

Exploration Data

The Mineral Resource Estimate was based upon data for 13 holes within or around the deposit area,
drilled by Kore or previous explorers. The interpretation of approximately 160 line km of oil-industry
2D seismic survey data aided modelling of surfaces between the drill-holes. Six drill-holes within the
Mineral Resource extent intersected sylvinite in either the HWS or TS or in both seams. These
intersections are listed in Table 3. Kore’s drill-holes were made by diamond coring of the Salt, using a
tri-salt brine to achieve over 95% recovery. Core is either of PQ or HQ size (85 or 65 mm diameter)
and samples were sawn half-core of between 0.1 and 0.2 m length. All samples were submitted to
Intertek in Perth where they were crushed to a nominal 2 mm size and then riffle split to derive a 100
g sample for ‘pulping’ then analysis by ICP-OES. All of Kore’s assay data was subject to Industry
Standard QA-QC procedure, from sampling through to analysis. Holes DX_05B and DX_06 stopped
above the Salt Member.

Mineral Resource Model and Estimate
The Mineral Resources were estimated by Kore and the MSA Group of Johannesburg (MSA), prepared
in accordance with the JORC 2012 guidelines.

The important surfaces were modelled from the drill-hole and seismic data, these being the roof of
the Salt and the roof of the HWS and TS. Seam mineralogy (sylvinite or carnallitite) and the seam
thickness was then modelled using drill-hole intersections coupled with surfaces for the top and base
of the ‘sylvinite zone’, based on the drill-hole data, as illustrated in Figures 2 and 3. Estimation of the
thickness of the seams and intervening rock-salt used inverse distance weighting cubed (IDW3). Within
the ‘sylvinite zone’, if the seams are present they are sylvinite. Below the ‘sylvinite zone’ the seams
are carnallitite and above it, immediately below the Salt roof the seams are leached (no KCl content).
To reflect the unconformity at the top of the Salt the seam model was ‘truncated’ by the Salt roof
surface. The lateral extent of the sylvinite was also controlled in plan-view by the ‘maximum extent of
sylvinite’ shown as a dashed pink line on Figure 4, which is a conservative limit for sylvinite
mineralization based on interpretation of seismic and drill-hole data, and also forms the boundary
with the Dougou carnallitite Deposit.

Figure 4. Top seam and Hangingwall Seam sylvinite in plan-view, and limits of the Indicated and
Inferred Mineral Resources. Figure 2 provides the cross section along the “line of section” (see

The potash grade (KCl %) was estimated by inverse distance weighting squared (IDW2) of composited
‘assay data’ for sylvinite intersections, into a 50 by 50 m block model.

The average bulk density of the HWS sylvinite is 2.02 g/cm3 and the TS is 2.11 g/cm3. The bulk densities
were based on grade as KCl% is directly proportional to the proportion of the minerals sylvite (density
1.99 g/ cm3) and halite (density 2.16 g/ cm3) present, and are supported by a large amount of
pycnometer and other check data.

All blocks with a height of less than 1 m were excluded from the MRE. An additional 10% reduction of
the MRE tonnage was made to account for un-modelled geological losses that may or may not affect
the deposit.

Mineral Resource Classification

The limits of Inferred and Indicated Mineral Resources are based on the support data spacing
summarised below. Seismic survey data on 1.5 to 2.4 km spaced lines is present over both the Inferred
and Indicated Mineral Resources.

    •       Indicated Mineral Resources limited to sylvinite within an area guided by a1.0 km radius
            of the drill-holes DX_01, K62, ED_03, ED_01
    •       Inferred Mineral Resources limited to sylvinite within an area guided by a 2.5 km radius
            of inner holes, and a 1.5 km radius beyond ‘outer’ holes, and excludes the Indicated
            Mineral Resource area.

Both Inferred and Indicated ‘outlines’ were then cut by a boundary interpreted to be the maximum
extent of sylvinite.
         Appendix 1 contains the JORC 2012 ‘Table 1’ Checklist for the reporting of Exploration results, Mineral
         Resources and Ore Reserves.

         Table 2. Drill-hole collar positions for all holes within the Dougou Extension Deposit area. (UTM zone
         32 S, WGS84 datum). All holes were drilled vertically.

                     Company          BH ID       East m      North m      Elevation m    Depth m
                     Kore Potash      ED_01        791145     9529491         55.29        525.15
                     Kore Potash      ED_03        789849     9528941         62.94        492.15
                     Kore Potash      DX_01        787204     9529046         54.08        551.73
                     Kore Potash      DX_02        782841     9529280         43.10        484.38
                     Kore Potash      DX_03        790477     9533344         55.50        421.88
                     Historic         K52          791163     9529489         56.57         1050
                     Historic         K62          789179     9530654         59.79          531

         Table 3. All intersections of the TS and HWS within the Dougou Extension Deposit area.

                                                            Depth From     Depth To
Drill-hole       Seam                      Mineralogy                                     Thickness      KCl % by assay
                                                               (m)           (m)

ED_01            Top Seam                  Sylvinite          403.98         409.14          5.16             31.8
                 Hangingwall Seam          Sylvinite          421.93         426.40          4.47             57.7

ED_03            Top Seam                  halite             385.60         387.60          2.00             0.0
                 Hangingwall Seam          Sylvinite          398.95         403.16          4.21             59.5

DX_01            Top Seam                  Sylvinite          428.84         437.59         8.75              27.2
                 Hangingwall Seam          Carnallitite       449.40         462.35         12.95             24.6

DX_02            Top Seam                  truncated             -              -              -                -
                 Hangingwall Seam          Sylvinite          429.40         430.43          0.93             61.6

DX_03            Top Seam                  Sylvinite          309.43         314.30         4.87              29.9
                 Hangingwall Seam          Sylvinite          323.90         324.51         0.61              62.9
                 Hangingwall Seam          Carnallitite       324.51         336.90         12.39             25.1

K52 Historic     Top Seam                  Sylvinite          406.15         411.02          4.87             31.9
potash hole
(twinned by                                                   423.55         427.16          3.61             57.5
ED_01)           Hangingwall Seam          Sylvinite

K62 Historic     Top Seam                  Carnallitite       440.41         449.10          8.69             19.1
potash hole      Hangingwall Seam          Carnallitite       455.42         461.98          6.56             24.3
Table 4. Kore’s Potash Mineral Resources, provided as Gross and Net Attributable (to Kore’s 97%

                                          Gross                             Net Attributable
                                                     Contained                             Contained
  Mineral Resource         Million     Grade KCl                    Million     Grade
                                                     KCl million                           KCl million
  Category                 Tonnes         %                         Tonnes      KCl %
                                                      tonnes                                 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


                                          Gross                             Net Attributable
                                                     Contained                             Contained
  Mineral Resource         Million     Grade KCl                    Million     Grade
                                                     KCl million                           KCl million
  Category                 Tonnes         %                         Tonnes      KCl %
                                                      tonnes                                 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

  Measured + Indicated
                           1,080     35.5         384       1,048                35.5             372
  + Inferred

                                          Gross                             Net Attributable
                                                     Contained                                     Contained
  Mineral Resource         Million     Grade KCl                    Million     Grade
                                                     KCl million                           KCl million
  Category                 Tonnes         %                         Tonnes      KCl %
                                                      tonnes                                 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

                                                   Gross                                    Net Attributable
                                                                 Contained                                 Contained
  Mineral Resource               Million        Grade KCl                           Million     Grade
                                                                 KCl million                               KCl million
  Category                       Tonnes            %                                Tonnes      KCl %
                                                                  tonnes                                     tonnes
  Measured                          341             17.4             59              331         17.4          58
  Indicated                         441             18.7             83              428         18.7          80
                                    783             18.1             142              760            18.1                138
  Measured + Indicated
  Inferred                        1,266             18.7             236             1,228           18.7                229

  TOTAL                           2,049             18.5             378             1,988           18.5                367

    •        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 20 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.

Competent Person Statement

All information in this report that relates to the Mineral Resource Estimate for the Dougou Extension
Deposit is based on information compiled by Mr. Andrew Pedley, the Chief Geologist for Kore Potash
and a full time employee of the Company. Mr Pedley is a registered scientist (Pr. Sci. Nat) with the
South African Council for Natural Scientific Professions (reg No. 400311/13) and is a member of the
Geological Society of South Africa. Mr. Pedley has sufficient experience that is relevant to the style of
mineralisation and type of Deposit under consideration and to the activity he is undertaking to qualify
as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr. Pedley consents to
the inclusion in this report of the matters based on his information in the form and context in which
it appears.

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.


             For further information, please visit 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
 Martin Davison
 James Asensio

 Fivemark Partners                                               Tel: +61 422 602 720
 Michael Vaughan


About Kore Potash’s Projects

Kore Potash (ASX: KP2) 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 carnallitite Deposit. These deposits are within the Kola and Dougou Mining
These projects are 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. The Projects have the potential to be among
the world’s lowest-cost potash producers and their 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. The deposit is ‘open’ laterally; future exploration, if carried out may support
further increase in the extent of the deposit. A Definitive Feasibility Study (“DFS”) which is underway,
being conducted by a consortium of world class engineering and construction companies consisting
of Technip France, Vinci Construction Grands Projets, Egis International and Louis Dreyfus Armateurs
SAS (the “French Consortium” or the “FC”). The DFS contract was signed on 28 February 2017 and the
study will be presented to Kore for review in September 2018.

The Dougou Extension sylvinite Deposit contains a total sylvinite Mineral Resource Estimate of 232 Mt
grading 38.1% KCl (as reported herein), hosted by two seams. The resource includes 67 Mt grading
60.1 Mt. Dougou Extension is located 15 km southwest of Kola. The deposit is ‘open’ to the north;
future exploration, if carried out may support an increase in the size of the deposit.

The Dougou carnallite Deposit, immediately east of Dougou Extension, is very large, having 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 by ERCOSPLAN of Germany in February 2015. This Study indicated that
a low capital cost, low operating cost (Life of Mine operating cost of US$68 per tonne MoP), and quick
to production carnallite solution mine could be established at Dougou, taking advantage of the
Deposit quality and availability of low cost energy in the RoC.

     APPENDIX 1. JORC 2012 Table 1
     Abbreviations used:
         o       DX:         Dougou Extension
         o       MRE:        Mineral Resource Estimate
         o       TS:         Top Seam
         o       HWS:        Hangingwall Seam

                                       Section 1 - Sampling Techniques and Data
 JORC Criteria          JORC Explanation                                Commentary
 1.1 SAMPLING               •    Nature and quality of sampling (eg         •   Sampling of Kore’s holes was carried
 TECHNIQUES                      cut channels, random chips, or                 out according to a standard
                                 specific specialised industry standard         operating procedure (SOP)
                                 measurement tools appropriate to               beginning at the drill rig. Diligent
                                 the minerals under investigation,              implementation of the SOP is
                                 such as down hole gamma sondes, or             monitored internally, and has been
                                 handheld XRF instruments, etc).                reviewed by external parties. Holes
                                 These examples should not be taken             were drilled to either PQ or HQ size
                                 as limiting the broad meaning of               (85 or 65 mm core diameter).
                                 sampling.                                  •   Sample intervals were between 0.1
                            •    Include reference to measures taken            and 2.0 metres and sampled to
                                 to ensure sample representivity and            lithological boundaries. All were
                                 the appropriate calibration of any             sampled as half-core and cut using
                                 measurement tools or systems used.             an Almonte© core cutter without
                            •    Aspects of the determination of                water, with the blade and core
                                 mineralisation that are Material to            holder cleaned down between
                                 the Public Report. In cases where              samples. Samples were individually
                                 ‘industry standard’ work has been              bagged and sealed.
                        done this would be relatively simple       •   In all cases, core was cut along a
                        (eg ‘reverse circulation drilling was          ‘centre-line’ marked such that both
                        used to obtain 1 m samples from                halves are as close to identical as
                        which 3 kg was pulverised to produce           possible, most relevant where layers
                        a 30 g charge for fire assay’). In other       are gently dipping.
                        cases more explanation may be              •   At the laboratory samples were
                        required, such as where there is               crushed to nominal 2 mm then riffle
                        coarse gold that has inherent                  split to derive a 100 g sample for
                        sampling problems. Unusual                     analysis.
                        commodities or mineralisation types        •   Historical holes were drilled by
                        (eg submarine nodules) may warrant             Mines de Potasse d’ Alsace S.A
                        disclosure of detailed information.            (MDPA) during the late 1960’s and
                                                                       early 1970’s. There is no description
                                                                       of the sampling methodology for
                                                                       these holes. K52 was the only
                                                                       historical hole used in the estimate
                                                                       of grade for the DX MRE and was
                                                                       twinned by Kore’s hole ED_01 (20 m
                                                                       away) to validate the historic grade
                                                                       and geology data.
                                                                   •   Further discussion on sampling
                                                                       representivity is provided in section
1.2. DRILLING       •   Drill type (eg core, reverse               •   Holes were drilled in two stages.
TECHNIQUES              circulation, open-hole hammer,                 Rotary Percussion (12 then 8 inch or
                        rotary air blast, auger, Bangka, sonic,        similar diameter) through the 'cover
                        etc) and details (eg core diameter,            sequence', stopping in the Anhydrite
                        triple or standard tube, depth of              Member and cased and grouted to
                        diamond tails, face-sampling bit or            this depth. Holes were then
                        other type, whether core is oriented           advanced using diamond coring with
                        and if so, by what method, etc).               the use of tri-salt (K, Na, Mg) mud to
                                                                       ensure acceptable recovery (over
                                                                       95%). Coring was HQ (65 mm core
                                                                       diameter) or PQ (85 mm core
                                                                       diameter). All holes were drilled

1.3. DRILL SAMPLE   •   Method of recording and assessing          •   Core recovery was recorded for all
RECOVERY                core and chip sample recoveries and            cored sections of Kore Potash’s
                        results assessed.                              holes by recording the drilling
                    •   Measures taken to maximise sample              advance against the length of core
                        recovery and ensure representative             recovered. Recovery is between 95
                        nature of the samples.                         and 100% for the evaporite and all
                    •   Whether a relationship exists                  potash intervals. A fulltime mud
                        between sample recovery and grade              engineer was recruited to maintain
                        and whether sample bias may have               drilling mud chemistry and physical
                        occurred due to preferential                   properties. Mud properties are
                        loss/gain of fine/coarse material.             recorded in drilling reports for each
                                                                   •   Core is wrapped in cellophane sheet
                                                                       soon after it is removed from the
                                                                       core barrel, to avoid dissolution in
                                                                       the atmosphere, and is then
                                                                       transported at the end of each shift
                                                                       to a de-humidified core storage
                                                                       room where it is stored
                                                                   •   Recovery data is not available for all
                                                                       historic boreholes. Those that are
                                                                       available report >95%. K52 is the
                                                                       only historical hole used in the grade
                                                                       estimate and was twinned by ED_01
                                                                       (20 m away; the results of which
                                                                    strongly support the reliability of the
                                                                    K52 assay data.
                                                                •   Reflecting the good core recovery
                                                                    there are no concerns relating to
                                                                    bias due to selection recovery/loss.
                                                                    The twin-hole data indicates that
                                                                    this is also applicable to K52.

1.4. LOGGING       •   Whether core and chip samples have       •   The entire length of Kore’s holes
                       been geologically and geotechnically         were logged geologically, from
                       logged to a level of detail to support       rotary chips in the ‘cover sequence’
                       appropriate Mineral Resource                 and from the core in the evaporite,
                       estimation, mining studies and               according to an SOP and using a set
                       metallurgical studies.                       format. Logging is qualitative and
                   •   Whether logging is qualitative or            supported by quantitative downhole
                       quantitative in nature. Core (or             geophysical data including gamma,
                       costean, channel, etc.) photography.         acoustic televiewer images, which
                   •   The total length and percentage of           provides an additional check on
                       the relevant intersections logged.           conventional core logging due to the
                                                                    clear gamma response of the potash
                                                                    layers; the gamma data also clearly
                                                                    identifies sylvinite from carnallitite.
                                                                •   Both potash types are easily
                                                                    identified in core; sylvinite is
                                                                    typically reddish or pinkish in colour
                                                                    and medium grained. Carnallitite is
                                                                    coarser grained, greasy and orange
                                                                    in colour.
                                                                •   Due to the conformable nature of
                                                                    the evaporite stratigraphy and the
                                                                    observed continuity and abrupt
                                                                    nature of contacts, recognition of
                                                                    the potash seams can be made with
                                                                    a high degree of confidence. Core
                                                                    was photographed to provide an
                                                                    additional reference and record.
                                                                •   High quality geological logs were
                                                                    available for historic potash
                                                                    exploration holes used in the model,
                                                                    based on cored holes. The
                                                                    Company’s twinning of K52 provided
                                                                    confirmation of the reliability of
                                                                    these historic logs. For historic oil
                                                                    well Yangala-1 the original
                                                                    geological logging was based on
                                                                    rotary cuttings and so is less
                                                                    detailed. The positions of the seams
                                                                    in these holes was interpreted by

1.5 SUB-SAMPLING   •   If core, whether cut or sawn and         •   Kore’s samples were sawn as
TECHNIQUES AND         whether quarter, half or all core            described above, into two halves.
SAMPLE                 taken.                                       One half was retained at site as a
PREPARATION        •   If non-core, whether riffled, tube           record, and one half sent in a batch
                       sampled, rotary split, etc and               of samples to the laboratory,
                       whether sampled wet or dry.                  Intertek of Perth.
                   •   For all sample types, the nature,        •   Care was taken to orient the core
                       quality and appropriateness of the           before cutting so that the retained
                       sample preparation technique.                and submitted halves are as similar
                   •   Quality control procedures adopted           as possible. For at least 1 in 20
                       for all sub-sampling stages to               samples both halves were
                       maximise representivity of samples.          submitted, as two separate samples
                                                                    – an original and (field) duplicate
                    •   Measures taken to ensure that the            sample. The results of the duplicate
                        sampling is representative of the in         analyses indicate no observable bias.
                        situ material collected, including for   •   The field duplicates and the
                        instance results for field                   laboratory duplicate data supports
                        duplicate/second-half sampling.              that the sample size and the sub-
                    •   Whether sample sizes are                     sampling procedures are
                        appropriate to the grain size of the         appropriate. This is partially a
                        material being sampled.                      reflection of the massive layered
                                                                     nature of the mineralisation, with
                                                                     layering that is generally close to
                                                                     perpendicular to the core axis.

1.6 QUALITY OF      •   The nature, quality and                  •   All analyses were carried out at
ASSAY DATA AND          appropriateness of the assaying and          Intertek in Perth. At the laboratory,
LABORATORY              laboratory procedures used and               samples were crushed to nominal 2
TESTS                   whether the technique is considered          mm then riffle split to derive a 100 g
                        partial or total.                            sample for analysis. K, Na, Ca, Mg. S
                    •   For geophysical tools, spectrometers,        were determined by ICP-OES. Cl is
                        handheld XRF instruments, etc, the           determined volumetrically.
                        parameters used in determining the           Insolubles (INSOL) were determined
                        analysis including instrument make           by filtration of the residual solution
                        and model, reading times,                    and slurry on 0.45 micron
                        calibrations factors applied and their       membrane filter, washing to remove
                        derivation, etc.                             residual salts, drying and weighing.
                    •   Nature of quality control procedures         Loss on drying by Gravimetric
                        adopted (eg standards, blanks,               Determination (LOD/GR) was also
                        duplicates, external laboratory              completed as a check on the mass
                        checks) and whether acceptable               balance.
                        levels of accuracy (i.e. lack of bias)   •    A full QA-QC programme of
                        and precision have been established.         insertion of blanks, duplicates and
                                                                     standards to assess repeatability of
                                                                     the sampling procedure and the
                                                                     precision and accuracy of the
                                                                     laboratory preparation and analyses.
                                                                     QA-QC data has been assessed and
                                                                     is found acceptable. QA-QC samples
                                                                     make up 17% of the total number of
                                                                     samples submitted which is in line
                                                                     with industry norms. Sample chain
                                                                     of custody was secure from point of
                                                                     sampling to point of reporting
                                                                 •   In addition to Kore’s drill-holes one
                                                                     historical hole K52 was used for the
                                                                     grade estimation. This hole was
                                                                     ‘twinned’ by Kore’s hole ED_01
                                                                     which strongly supports the K52
                                                                     data reliability. Assay data for other
                                                                     historic hole within the deposit area,
                                                                     K62 was not used in the grade
                                                                     estimation, both the TS and HWS
                                                                     being of carnallitite (and hence not
                                                                     within the sylvinite wireframe.

1.7. VERIFICATION   •   The verification of significant          •   Sampling data is captured into MS
OF SAMPLING AND         intersections by either independent          Excel then imported along with
ASSAYING                or alternative company personnel.            assay data into a customised MS
                    •   The use of twinned holes.                    Access database. On import, checks
                    •   Documentation of primary data, data          on data are made for errors such as
                        entry procedures, data verification,         overlapping intervals, gaps,
                        data storage (physical and electronic)       duplicate intervals.
                        protocols.                               •   The support data for the grade and
                    •   Discuss any adjustment to assay              thickness of the mineralised
                        data.                                        intervals used for the MRE was
                                                                      repeatedly checked. Assay data was
                                                                      also plotted against gamma data,
                                                                      which provides an additional check
                                                                      of the depth of the seams and their
                                                                      thickness and a secondary check on
                                                                      the grade as the total gamma-ray
                                                                      count, when converted to API units
                                                                      is directly proportional to potassium
                                                                      content, if the correct corrections
                                                                      for hole diameter, mud density and
                                                                      are made.
                                                                  •   All drill-hole data is stored in the
                                                                      Company’s MS Access database
                                                                  •   As stated, K52 was the only historic
                                                                      hole for which assay data was used
                                                                      in the MRE. To validate the data, this
                                                                      historic hole was twinned by ED_01,
                                                                      which confirmed the accuracy of the
                                                                      K52 data.

1.8. LOCATION OF    •   Accuracy and quality of surveys used      •   Within the DX deposit area, drill-
DATA POINTS             to locate drill holes (collar and down-       hole collars for ED_01, ED_03,
                        hole surveys), trenches, mine                 DX_01, K62 were surveyed by a
                        workings and other locations used in          professional surveyor using a DGPS,
                        Mineral Resource estimation.                  and expected to be accurate to
                    •   Specification of the grid system used.        within 100 mm in X, Y and Z. DX_02
                    •   Quality and adequacy of topographic           and DX_03 were surveyed using a
                        control.                                      handheld GPS and elevation control
                                                                      from a SRTM DTM data, and are
                                                                      likely to be accurate to within 5-8 m
                                                                      laterally and vertically. Variation of
                                                                      this amount is not considered to
                                                                      impact on the Mineral Resource
                                                                      Estimate due to the large scale and
                                                                      fact that the model is ‘hung’ from
                                                                      the roof of salt, but only holes
                                                                      surveyed by DGPS were used in the
                                                                      Indicated MRE area.
                                                                  •   The drill-hole positions are given in
                                                                      UTM zone 32 S using WGS 84 datum
                                                                      (Table 2 of the announcement).
                                                                  •   Topographic elevation is from SRTM
                                                                      90 satellite data, though of relatively
                                                                      low resolution, it is sufficient at this
                                                                      stage, as the deposit is an
                                                                      underground mining project.

1.9. DATA SPACING   •   Data spacing for reporting of             •   Figure 4 of the announcement
AND DISTRIBUTION        Exploration Results.                          shows the location of the drill-holes.
                    •   Whether the data spacing and                  Those influencing the MRE are
                        distribution is sufficient to establish       spaced between 1.4 and 4 km apart.
                        the degree of geological and grade        •   Between drill-holes, oil-industry
                        continuity appropriate for the                seismic data was important in
                        Mineral Resource and Ore Reserve              modelling the geometry of key
                        estimation procedure(s) and                   surfaces between holes. Seismic
                        classifications applied.                      lines are between1.5 and 2.4 km
                    •   Whether sample compositing has                apart and extend across all parts of
                        been applied.                                 the deposit in different orientations,
                                                                      as shown in figure 4 of the
                                                                  •   Owing to the continuity of the
                                                                      depositional setting of the seam
                                                                      contacts and other surfaces can be
                                                                    easily correlated hole-to-hole. The
                                                                    change from sylvinite to carnallitite
                                                                    is obvious in drill-holes. Between
                                                                    drill-holes, on seismic data the
                                                                    general geometry of the evaporite
                                                                    layering is discernable, along with
                                                                    the reflector at the top of the Salt.
                                                                    The change from sylvinite to
                                                                    carnallitite is not visible. As
                                                                    described in Section 3.5, a method
                                                                    of modelling of this contact between
                                                                    holes was developed, based on the
                                                                    geological controls on sylvinite.
                                                                •   The CP has sufficient confidence that
                                                                    the data spacing and the methods
                                                                    used in the modelling are sufficient
                                                                    to support grade and geological
                                                                    continuity that is consistent with the
                                                                    classification applied.

1.10. ORIENTATION   •   Whether the orientation of sampling     •   The potash layers are massive and of
OF DATA IN              achieves unbiased sampling of               relatively uniform grade distribution,
RELATION TO             possible structures and the extent to       being controlled by the original
GEOLOGICAL              which this is known, considering the        horizontally layered sedimentary
STRUCTURE               deposit type.                               deposition of the potash mineral
                    •   If the relationship between the             carnallite.
                        drilling orientation and the            •   Intersections have a sufficiently low
                        orientation of key mineralised              angle of dip, and drill-holes are
                        structures is considered to have            vertically drilled; a correction of
                        introduced a sampling bias, this            thickness for apparent thickness is
                        should be assessed and reported if          not warranted for the MRE. The
                        material.                                   intersected thickness is taken as the
                                                                    true thickness.

1.11. SAMPLE        •   The measures taken to ensure            •   The chain of custody of samples is
SECURITY                sample security.                            secure. At the rig, the core is under
                                                                    full-time supervision of Company
                                                                    geologists, working around the
                                                                    clock. At the end of each drilling
                                                                    shift, the core is transported by Kore
                                                                    Potash staff to a secure site where it
                                                                    is stored in a locked room.
                                                                •   Sampling and packing of samples is
                                                                    carried out under the observation of
                                                                    Company staff; packed samples are
                                                                    transported directly from the site by
                                                                    Company staff to DHL couriers in
                                                                    Pointe Noire 3 hours away. From
                                                                    here DHL airfreight all samples to
                                                                    the laboratory in Perth.

1.12. AUDITS OR     •   The results of any audits or reviews    •   Kore’s sampling standard operating
REVIEWS                 of sampling techniques and data.            procedures for logging and sampling
                                                                    have been audited on several
                                                                    occasions by external parties, for the
                                                                    completion of the MRE for the Kola
                                                                    and Dougou Deposits.
                                                                •   The supporting data has been
                                                                    thoroughly checked by the CP,
                                                                    including inspection of all logging
                                                                    sheets and laboratory analysis
                                                                    certificates, and all other data
                                                                    supporting the MRE. Data has not
                                                                            been specifically reviewed by any
                                                                            external parties.
                                                                       •    The MSA Group carried out standard
                                                                            drill-hole database validations when
                                                                            importing the data into Datamine
                                                                            software for the MRE.

                                Section 2 - Reporting of Exploration Results
JORC Criteria     JORC Explanation                                   Commentary
2.1 MINERAL           •    Type, reference name/number,                 •    The Dougou Extension Deposit is
TENEMENT AND               location and ownership including                  entirely within the Dougou Mining
LAND TENURE                agreements or material issues with                Permit (issued on the 9th May 2017
STATUS                     third parties such as joint ventures,             under decree No. 2017-139) which is
                           partnerships, overriding royalties,               held 100% by the local company
                           native title interests, historical sites,         Dougou Mining SARL which is in turn
                           wilderness or national park and                   held 100% by Sintoukola Potash SA
                           environmental settings.                           RoC, which Kore Potash holds a 97%
                      •    The security of the tenure held at the            share.
                           time of reporting along with any             •    There are no impediments on the
                           known impediments to obtaining a                  security of tenure.
                           license to operate in the area.

2.2 EXPLORATION       •    Acknowledgment and appraisal of             •    Potash exploration was carried out
DONE BY OTHER              exploration by other parties.                    in the area in the1960's by Mines de
PARTIES                                                                     Potasse d’ Alsace S.A. Holes K52 and
                                                                            K62 are within the Deposit area
                                                                            (intersections summarised in Table 3
                                                                            of the announcement). High quality
                                                                            geological logs are available for
                                                                            these holes. Hole K52 intersected
                                                                            Sylvinite HWS and was the initial
                                                                            reason for Kore’s interest in the
                                                                            area, beginning with the twin-hole
                                                                            drilling of K52 in 2012 by ED_01.
                                                                       •    Oil exploration well Yangala-1
                                                                            (outside of the DX deposit) was
                                                                            drilled in 1961 by Societe des
                                                                            Petrole d’Afrique Equatoriale
                                                                       •    2D Seismic data was acquired by oil
                                                                            exploration companies British
                                                                            Petroleum Congo and Chevron
                                                                            during the 1980’s and by Morel et
                                                                            Prom in 2006. The Company
                                                                            acquired SEG-Y files for these
                                                                            surveys and this data has guided the
                                                                            exploration and deposit modelling at
                                                                            Dougou Extension.

2.3. GEOLOGY                                                           •    The potash seams are hosted by the
                                                                            400-500 m thick Loeme Evaporite
                                                                            formation, comprised of
                                                                            sedimentary evaporite rocks with
                                                                            minor clastic layers. These rocks are
                                                                            within the Congo Basin which
                                                                            extends from the Cabinda enclave of
                                                                            Angola to southern Gabon, from
                                                                            approximately 50 km inland,
                                                                            extending some 200-300 km
                                                                            offshore. The evaporites were
                                                                            deposited during the Aptian epoch
                                                                            of the Lower Cretaceous, probably
                                                                            between 125 and 112 million years
    ago, within a sub-sea level basin
    following the break-up of Gondwana
    into the African and South American
    continents. Importantly, the
    sedimentation was in a post-rift
    setting leading to the development
    of evaporite layers with significant
•   In terms of classification
    nomenclature, the evaporite is of
    the basin-wide ‘mega-halite’ type,
    formed by the cyclic evaporation of
    sea-water sourced, seepage-fed
    brines in an extensive subsiding
    basin, each cycle generally following
    the expected brine evolution and
    resultant mineral precipitation
    model: dolomite then gypsum then
    halite then the bitterns of Mg and K
    as chlorides (as opposed to
    sulphates). To precipitate the thick
    potash beds the system experienced
    prolonged periods within relatively
    narrow a range of high salinity.
•   Reflecting the chloride-Mg-K
    dominated brine composition, halite
    (NaCl), carnallite (KMgCl3·6H2O) and
    bischofite (MgCl2·6H2O) account for
    over 90% of the evaporite rocks.
    Sylvinite is only found close to the
    top of the Salt. Carnallitite is a rock
    comprised predominantly of
    carnallite and halite. Sylvinite is a
    rock comprised predominantly of
    sylvite (KCl) and halite. The term
    ‘rock-salt’ is used to refer to a rock
    comprising of halite without
    appreciable other
•   Importantly, bischofite does not
    occur in the floor or roof of the HWS
    and TS, in fact the nearest is over
    130 m below these seams.
•   The Salt was deposited in a cyclic
    manner; 11 cycles have been
    recognised, of which most are
    preserved at Dougou Extension, the
    important ‘Top Seam’ (TS) and
    ‘Hangingwall Seam’ (HWS) potash
    seams are within the mid to upper
    part of cycle 9.
•   All layers in the Salt member have
    good continuity and the thickness of
    the interval between them is
    consistent. Even narrow mm-scale
    layers or sub-layers can be
    correlated many km. In most holes
    all potash layers are present and
    have a low angle of dip (<15
•   Where sylvinite, the TS and HWS
    have an average thickness of 5.2 and
    3.6 metres respectively. The HWS is
    relatively high grade being
    comprised of a single massive bed of
    approximately 60% sylvite. The TS is
    made up of a number of narrow
    high grade sylvinite layers
    interbedded with rock-salt and so
    has a lower overall grade than the
•   Similar to the Company’s Kola
    Deposit, at Dougou Extension the
    evaporite stratigraphy is slightly
    elevated and slightly thinned
    relating to the presence of a horst
    block forming a paleo-topographic
    high in the underlying pre and syn-
    rift rocks referred to as the ‘Yangala
•   Capping the salt dominated part
    (Salt Member or ‘Salt’) is low
    permeability layer of anhydrite,
    gypsum and clay (the Anhydrite
    Member) between 10 and 16 m
    thick over the deposit. It is at a
    depth of between 290 and
    approximately 520 m at DX.
    Importantly, the contact between
    the Anhydrite Member and the
    underlying salt is an unconformity.
    Reflecting this, and that the layers of
    the Salt are gently undulating, in
    some areas there is a greater
    thickness of Salt above the seams
    than in others, or the seams may be
    ‘truncated’ (illustrated in Fig. 2 and 3
    of the announcement).
•   The Anhydrite Member is covered
    by a thick ‘cover sequence’ of
    carbonate rocks and clastic
    sediments (Fig. 2 of the
    announcement) of Cretaceous age
    (Albian) to recent.
•   The potash seams were originally
    deposited as carnallitite but have
    been replaced in some areas by
    sylvinite, by a process of non-
    destructive leaching of Mg, OH and
    some NaCl from carnallite,
    converting it to sylvite. This process
    has taken place preferentially over
    the Yangala High, initiating at the
    top of the Salt Member and typically
    not advancing further than 40 m
    below this contact, but rarely as
    much as 80 m (as in drill-hole
    ED_01). The thickness of the Salt
    above the seams is the principal
    control on the whether the seam is
    sylvinite or carnallitite, and thus the
    extent of the sylvinite Mineral
    Resources. The process advanced on
    a downward moving ‘front’ and was
    very efficient; when converted no
    residual carnallite remains within
                                                                      the sylvinite. Un-replaced
                                                                      carnallitite may occur below the
                                                                      sylvinite (never above it) but the
                                                                      contact is always abrupt and easily
                                                                      identified in core. As a general rule,
                                                                      the conversion leads to a halving of
                                                                      thickness and a doubling of grade.
                                                                  •    Very close to the roof of the Salt the
                                                                      sylvinite may be further ‘leached’,
                                                                      leaving reddish coloured halite with
                                                                      no or residual KCl, referred to as
                                                                      ‘ghost seams’ but still identifiable, as
                                                                      is the case for the TS in ED_03..

2.4. DRILL HOLE    •   A summary of all information               •   The borehole collar positions of the
INFORMATION            material to the understanding of the           holes are provided in Table 2 of the
                       exploration results including a                announcement, along with the final
                       tabulation of the following                    depth. Holes were drilled vertically
                       information for all Material drill             and no significant deviation was
                       holes:                                         reported in drill-hole downhole
                             •    easting and northing of the         surveys.
                                  drill hole collar               •   Positions of the holes in relation to
                             •    elevation or RL (Reduced            other holes are shown in Figure 4 of
                                  Level – elevation above sea         the announcement. All drill-holes
                                  level in metres) of the drill       are shown on the map and the
                                  hole collar                         potash intersections (or absence of)
                             •    dip and azimuth of the hole         for all holes within the deposit area,
                             •    down hole length and                including historic holes, are listed in
                                  interception depth                  Table 3 of the announcement. No
                             •    hole length.                        information is excluded.
                   •   If the exclusion of this information is
                       justified on the basis that the
                       information is not Material and this
                       exclusion does not detract from the
                       understanding of the report, the
                       Competent Person should clearly
                       explain why this is the case.

2.5 DATA           •   In reporting Exploration Results,          •   For the calculation of the grade over
AGGREGATION            weighting averaging techniques,                the full thickness of the seams, the
METHODS                maximum and/or minimum grade                   standard ‘length-weighted’
                       truncations (e.g. cutting of high              compositing method was used to
                       grades) and cut-off grades are                 combine individual results within
                       usually Material and should be                 each seam intersection.
                       stated.                                    •   No selective cutting of high or low
                   •   Where aggregate intercepts                     grade material was carried out as is
                       incorporate short lengths of high              not justified given massive nature of
                       grade results and longer lengths of            the potash mineralization and
                       low grade results, the procedure               absence of localised high/low grade
                       used for such aggregation should be            areas.
                       stated and some typical examples of        •   For the TS some of the sub-seams
                       such aggregations should be shown              making up the seam are relatively
                       in detail.                                     narrow but the composite intervals
                   •   The assumptions used for any                   selected do not include unjustifiably
                       reporting of metal equivalent values           thick intervals of low grade material.
                       should be clearly stated.                  •   No metal equivalents were

2.6 RELATIONSHIP   •   These relationships are particularly       •   Core and acoustic televiewer images
BETWEEN                important in the reporting of                  provide a reliable measurement of
MINERALISATION         Exploration Results.                           dip (and the latter provides
WIDTHS AND                                                            azimuth). Seams have sufficiently
                                                                      low degree of dip, and drill-holes are
INTERCEPT      •   If the geometry of the mineralisation         vertical so correction of thickness
LENGTHS            with respect to the drill hole angle is       for apparent thickness is not
                   known, its nature should be reported.         warranted.
               •   If it is not known and only the down
                   hole lengths are reported, there
                   should be a clear statement to this
                   effect (eg ‘down hole length, true
                   width not known’).

2.7 DIAGRAMS   •   Appropriate maps and sections (with       •   Relevant diagrams are provided in
                   scales) and tabulations of intercepts         the announcement including a map
                   should be included for any significant        showing the extent of sylvinite of
                   discovery being reported These                the TS and HWS, and a
                   should include, but not be limited to         representative cross-section.
                   a plan view of drill hole collar
                   locations and appropriate sectional

2.8 BALANCED   •   Where comprehensive reporting of          •   All relevant exploration data is
REPORTING          all Exploration Results is not                reported. All intersections including
                   practicable, representative reporting         carnallitite and leached seams
                   of both low and high grades and/or            within the deposit area are provided
                   widths should be practiced to avoid           in Table 3 of the announcement.
                   misleading reporting of Exploration

2.9 OTHER      •   Other exploration data, if meaningful     •   Though process or geotechnical test-
SUBSTANTIVE        and material, should be reported              work has not been carried out on
EXPLORATION        including (but not limited to):               the DX sylvinite, based on
DATA               geological observations; geophysical          observations of the core, it is similar
                   survey results; geochemical survey            in mineral composition, texture and
                   results; bulk samples – size and              grain size as the sylvinite at Kola for
                   method of treatment; metallurgical            which testing has been completed,
                   test results; bulk density,                   for the Kola Pre-Feasibility and
                   groundwater, geotechnical and rock            Definitive Feasibility Studies. The
                   characteristics; potential deleterious        HWS hosts part if the Indicated MRE
                   or contaminating substances.                  at Kola.
                                                             •   The Anhydrite Member at DX
                                                                 appears to be of relatively uniform
                                                                 thickness which would be positive in
                                                                 terms of hydrogeology, as this unit is
                                                                 a very effective aquitard, separating
                                                                 the Salt from potential aquifers in
                                                                 the ‘Cover Rocks’.
                                                             •   Holes DX_05B and DX_06 were
                                                                 stopped above the Salt due to
                                                                 drilling difficulties relating to loss of
                                                                 drilling fluid.
2.10 FURTHER   •   The nature and scale of planned           •   No further exploration work is
WORK               further work (eg tests for lateral            planned at present.
                   extensions or depth extensions or         •   If further work is carried out, this
                   large-scale step-out drilling).               may be aimed at expanding the
               •   Diagrams clearly highlighting the             deposit, by carrying out additional
                   areas of possible extensions,                 drilling, initially in the vicinity of
                   including the main geological                 ‘failed holes’ DX_05B and DX_06
                   interpretations and future drilling           (Figure 4 of the announcement)
                   areas, provided this information is       •   Additional holes between DX_01
                   not commercially sensitive.                   and DX_02 may support conversion
                                                                 of Inferred Mineral Resources in
                                                                 that area to Indicated.
                                                             •   It may be helpful to carry out some
                                                                 new seismic surveying ahead of
                                                                 drilling, to better guide the latter.
                                                                         •   DGPS surveys for the collars for
                                                                             DX_02, DX_03 and other holes not
                                                                             yet surveyed is important for holes
                                                                             that may support possible future
                                                                             expansions of the Indicated MRE
                                                                         •   Mineralogical work is
                                                                             recommended, to further support
                                                                             the similarity of the DX sylvinite with
                                                                             that of the Kola deposit. If studies
                                                                             are carried out, the work
                                                                             programme should include
                                                                             geotechnical, hydrogeological and
                                                                             process characterisation and test

                              Section 3 – Estimation and Reporting of Mineral Resources
JORC Criteria      JORC Explanation                                Commentary
3.1. DATABASE          •    Measures taken to ensure that data          •   Geological data is recorded in
INTEGRITY                   has not been corrupted by, for                  hardcopy then captured digitally.
                            example, transcription or keying                During import into Micromine©
                            errors, between its initial collection          software, an error file is generated
                            and its use for Mineral Resource                identifying any overlapping
                            estimation purposes.                            intervals, gaps and other forms of
                       •    Data validation procedures used.                error. The data is then compared
                                                                            visually in the form of strip logs
                                                                            against geophysical data.
                                                                        •   Laboratory data was imported from
                                                                            csv files into an Access database,
                                                                            where sorting of ‘original’ and QA-
                                                                            QC samples was carried out, and for
                                                                            checking for errors as part of the
                                                                            import process. Original laboratory
                                                                            result certificates are kept in pdf
                                                                        •   For the MRE a ‘stratigraphic file’ was
                                                                            generated, as synthesis of key
                                                                            geological units including the seam
                                                                            contacts and the roof of the Salt,
                                                                            based on geological, geophysical
                                                                            and assay data.
                                                                        •   The grade, depth and thickness data
                                                                            for all mineralised intervals and
                                                                            other important surfaces used in the
                                                                            MRE were repeatedly checked to
                                                                            ensure no errors were present.

3.2. SITE VISITS       •    Comment on any site visits                   •   The CP, has visited the site on
                            undertaken by the Competent Person               numerous occasions between 2012
                            and the outcome of those visits.                 and present, to set-up and monitor
                       •    If no site visits have been undertaken           exploration procedures, and to
                            indicate why this is the case.                   develop a geological understanding
                                                                             of the deposit and the controls on
                                                                             sylvinite mineralisation.

3.3. GEOLOGICAL        •    Confidence in (or conversely, the            •   Recognition and correlation of
INTERPRETATION              uncertainty of) the geological                   potash and other important layers
                            interpretation of the mineral deposit.           or contacts in and between drill-
                       •    Nature of the data used and of any               holes is straightforward and did not
                            assumptions made.                                require assumptions to be made;
                       •    The effect, if any, of alternative               each being distinct when thickness,
                            interpretations on Mineral Resource              grade distribution, and stratigraphic
                            estimation.                                      position relative to other layers is
                 •   The use of geology in guiding and          considered. Correlation is further
                     controlling Mineral Resource               aided by the use of downhole
                     estimation.                                geophysical data. The abrupt nature
                 •   The factors affecting continuity both      of the contacts between rock-salt,
                     of grade and geology.                      carnallitite and sylvinite aids the
                                                                confident ‘picking’ of seams.
                                                             •  Between drill-holes there is reliance
                                                                on seismic data to guide the
                                                                geometry of the seams, which in
                                                                turn influences the extent of
                                                                sylvinite. Some uncertainty is
                                                                inherent in seismic interpretation,
                                                                especially further away from control
                                                                points (drill-holes); this is reflected
                                                                in the allocation of the Indicated or
                                                                Inferred categories.
                                                             •  The addition of more seismic and
                                                                drill-hole data may result in a
                                                                change to the model and estimate in
                                                                the Inferred area, but it is unlikely
                                                                that change would be severe, with a
                                                                similar chance of an updated model
                                                                resulting in a larger or smaller
                                                             •  The geological model for the
                                                                formation of sylvinite at DX is
                                                                summarised in section 2.3. It is well
                                                                understood. This geological model
                                                                was applied in the creation of the
                                                                model for the MRE, as described in
                                                             •  Where sylvinite, the grade and other
                                                                attributes of each seam is relatively
                                                                consistent. The factors affecting
                                                                continuity are as follows:
                                                               o Where the seams are truncated at
                                                                  the unconformity at the top of the
                                                                  Salt Member the seams are
                                                                  absent (as illustrated in Fig. 2 of
                                                                  the announcement)
                                                               o Beyond the replacement ‘front’
                                                                  the sylvinite stops and carnallitite
                                                                  is found. This is an abrupt change
                                                                  affecting the continuity. (as
                                                                  illustrated in Fig. 2 of the
                                                               o Close to the roof of the Salt, the
                                                                  sylvinite may be ‘leached’ and is
                                                                  barren. This was excluded from
                                                                  the model.
                                                             •  No faults have been interpreted
                                                                within the Salt, within the deposit
3.4 DIMENSIONS   •   The extent and variability of the       •  The DX deposit extent covers an
                     Mineral Resource expressed as              area of approximately 4 by 10 km
                     length (along strike or otherwise),        (Fig. 4 of the announcement). The TS
                     plan width, and depth below surface        and HWS are found at a depth of
                     to the upper and lower limits of the       approximately 310 to 490 m below
                     Mineral Resource.                          surface. Dip of the seams is low,
                                                                rarely greater than 5 degrees.
                                                             •  Within this area the sylvinite is not
                                                                continuous; there are large internal
                                                                areas where the seams are
                                                                 carnallitite, generally in areas
                                                                 where, due to gentle undulation, the
                                                                 seams are a greater distance from
                                                                 the top of the Salt Member.
                                                             •   The thickness of the sylvinite is
                                                                 relatively consistent, averaging 5.2
                                                                 m for the TS and 3.6 m for the HWS.
3.5 ESTIMATION   •   The nature and appropriateness of       •   All drill-holes within and
AND MODELLING        the estimation technique(s) applied         surrounding the deposit were used
TECHNIQUES           and key assumptions, including              for the construction of the model
                     treatment of extreme grade values,          (Figure 4 of the announcement).
                     domaining, interpolation parameters         Even if not sylvinite, the holes
                     and maximum distance of                     around the deposit contain the
                     extrapolation from data points. If a        same seams (TS and HWS) and the
                     computer assisted estimation                ‘roof of Salt’ and are therefore
                     method was chosen include a                 useful in guiding the contacts and
                     description of computer software            surfaces at the margins and beyond
                     and parameters used.                        the deposit extent.
                 •   The availability of check estimates,    •   The seismic data was imported in
                     previous estimates and/or mine              SEG-Y format into Micromine™ 2013
                     production records and whether the          software and viewed in section and
                     Mineral Resource estimate takes             in 3D. A velocity of between 3900
                     appropriate account of such data.           and 4200 m/s was used to depth
                 •   The assumptions made regarding              adjust the seismic data, ‘hanging’ it
                     recovery of by-products.                    from the top of the Salt Member, an
                 •   Estimation of deleterious elements or       obvious reflector that can be ‘tied’
                     other non-grade variables of                to the same contact in drill-hole
                     economic significance (eg sulphur for       data.
                     acid mine drainage characterisation).   •   The ‘roof of Salt’ and the ‘roof of
                 •   In the case of block model                  HWS’ surfaces were modelled as
                     interpolation, the block size in            ‘strings’ by Kore (in Micromine
                     relation to the average sample              2013). Between holes the seismic
                     spacing and the search employed.            data was used to model the ‘roof of
                 •   Any assumptions behind modelling of         the HWS’ and the’ roof of Salt’. MSA
                     selective mining units.                     imported these into Leapfrog Geo to
                 •   Any assumptions about correlation           create surfaces. Then (in Datamine
                     between variables.                          Studio 3) using the surface for the
                 •   Description of how the geological           ‘roof of HWS’ as a reference horizon,
                     interpretation was used to control          the floor of the HWS then the floor
                     the resource estimates.                     and roof of the TS were created, by
                 •   Discussion of basis for using or not        ‘gridding’ using Inverse Distance
                     using grade cutting or capping.             Weighting cubed (IDW3) of the
                 •   The process of validation, the              thickness (as intersected in the drill-
                     checking process used, the                  holes) of the interval between these
                     comparison of model data to drill           surfaces from the ‘roof of HWS’
                     hole data, and use of reconciliation        reference horizon. By this method
                     data if available.                          ‘seam models’ for the HWS and TS
                                                                 (irrespective of whether they are
                                                                 carnallitite or sylvinite) were
                                                             •   To determine the extent and
                                                                 thickness of the sylvinite, the
                                                                 ‘downward’ limit of the process
                                                                 leading to sylvinite formation was
                                                                 recorded in drill-holes, for example
                                                                 at the contact of sylvinite over
                                                                 carnallitite. The thickness of this
                                                                 interval was gridded using IDW3 to
                                                                 create a sub-horizontal surface
                                                                 ‘suspended’ from the ‘roof of Salt’
                                                                 surface, then used to cut the earlier
                                                                 seam models, resulting in surfaces
                                                                 for the top and base of the sylvinite
    portion of the HWS and the TS. In an
    identical method, the thin zone of
    leaching of the potassium from the
    sylvinite at the very top of the Salt
    Member was also cut from the
    model. The products of these steps
    were ‘sylvinite-only’ wireframes for
    the HWS and the TS. Within the
    wireframe adjustments were made
    to remove the influence of thickness
    derived from carnallitite
    intersections of TS and HWS outside
    of the sylvinite wireframes. These
    wireframes were checked against all
    borehole intersections on screen in
    Micromine. Figures 2 and 3 of the
    announcement illustrate the final
    wireframes used for the estimation,
    along with other key geological
•   Blocks of 50 by 50 metres, with
    variable height were created within
    the HWS and TS sylvinite
    wireframes. Grade (KCl%) was then
    estimated into these blocks by IDW2,
    using the composited drill-hole
    assay data. Typical spacing between
    holes is between 1 .4 and 4.0 km
    apart. Density was calculated for
    each block, based on the grade, as
    discussed in section 3.11.
•   In the CPs view, the model reflects
    the geological controls well, and is
    more appropriate to the deposit
    type than the potash industry
    standard method of using circles
    around holes for 2D polygonal
    estimation. Given the well
    understood controls, it provides an
    estimation of tonnes and grade
    appropriate to the respective
•   The overall vertical grade variation
    within both the HWS and the TS is
    minimal and so the grade model did
    not require adjusting for the
    proportion/part of the seam
    present, if not complete for a given
•   There are no ‘outlier’ in terms of
    grade, relating to the massive
    layered nature of the sylvinite and
    its high grade and lateral continuity
    within the sylvinite. No top or
    bottom cutting was carried out. The
    CP is confident in the grade
    estimation method used, aided by
    the fact that the grade variation
    between holes is not significant.
    More complex methods such as
    kriging were not deemed necessary
    or appropriate given the relatively
                                                          small data-set and relatively uniform
                                                      •   The block model estimated grades
                                                          were checked in cross-section in
                                                          Micromine, comparing against the
                                                          supporting assay data, for all drill-
                                                      •   Both Mg and insoluble material are
                                                          considered deleterious elements but
                                                          are only present in very small
                                                          quantities in all intersections; less
                                                          than in most deposits globally. They
                                                          were not estimated into the block
                                                          model. In all intersections they are
                                                          <0.1 and <0.3% respectively.
                                                      •   The eastern and southern limits of
                                                          the deposit were cut by a ‘sylvinite
                                                          extent’ (Fig. 4 of the announcement)
                                                          interpreted from seismic data but
                                                          also strongly supported by the
                                                          resource model itself. Beyond this
                                                          extent, the seams are considered to
                                                          be carnallitite-only, to th eest of DX
                                                          within the adjacent Dougou
                                                          carnallite Deposit. The ‘sylvinite
                                                          extent’ reflects the limit of the
                                                          influence of the Yangala High, as
                                                          described in section 2.3.
                                                      •   Extrapolation beyond data points is
                                                          limited to a distance deemed
                                                          appropriate in terms of the
                                                          confidence of the classification into
                                                          Inferred and Indicated, as described
                                                          in section 3.13
                                                      •   A check estimate was made, using a
                                                          volume created by multiplying the
                                                          average thickness of the sylvinite
                                                          with the extent of the sylvinite (as
                                                          determined by a proportional
                                                          representation of sylvinite to
                                                          carnallitite within the deposit area).
                                                          The check supports the reported
3.6 MOISTURE                                          •   The sylvinite seams are dry and the
                                                          estimate is on a dry basis. Moisture
                                                          content was checked by weighing
                                                          before and after ‘drying’.

3.7 CUT-OFF    •   The basis of the adopted cut-off   •   In all cases, the transition from high
PARAMETERS         grade(s) or quality parameters         grade sylvinite to barren rock-salt or
                   applied.                               carnallitite is abrupt, typically over a
                                                          10 mm interval. Due to this ‘binary’
                                                          nature of the material, a standard
                                                          cut-off grade approach is not really
                                                          applicable. However, for reporting, a
                                                          15% KCl cut-off was used though no
                                                          blocks in the model fall below this.
                                                          The cut-off for the nearby Kola
                                                          deposit is 10% KCl as determined
                                                          from an application of modifying
                                                          factors from feasibility work;
                                                          therefore for DX, 15% KCl is
                                                          considered conservative. The Mg
                                                               and insoluble content is so low and
                                                               consistent at DX that it is not a
                                                               consideration in cut-off.

3.8 MINING    •   Assumptions made regarding               •   The feasibility work for the nearby
FACTORS OR        possible mining methods, minimum             Kola deposit provides guidance due
ASSUMPTIONS       mining dimensions and internal (or, if       to the apparent similarities of the
                  applicable, external) mining dilution.       deposits.
                  It is always necessary as part of the    •   DX would likely be suited to
                  process of determining reasonable            conventional underground mining
                  prospects for eventual economic              using a room and pillar layout. This
                  extraction to consider potential             is the planned method for the
                  mining methods, but the                      nearby Kola deposit which is similar
                  assumptions made regarding mining            in terms of seam thickness and
                  methods and parameters when                  geometry, and is also sylvinite.
                  estimating Mineral Resources may             Pillars are left in place for long term
                  not always be rigorous. Where this is        stability of the mine openings.
                  the case, this should be reported with   •   The absence of ‘difficult’ lithologies
                  an explanation of the basis of the           such as bischofite or clay/shale rich
                  mining assumptions made.                     layers is advantageous in terms of
                                                               geotechnical stability of the roof and
                                                               floor of the mine.
                                                           •   At Kola, drum-cutting continuous
                                                               mining machines (CMs) are planned;
                                                               these would likely be the preferred
                                                               choice of machine for DX. Minimum
                                                               mining height for these machines is
                                                               typically between 1.5 and 2.5 m
                                                               depending on the size of CM used.
                                                           •   At DX, the average height of the
                                                               HWS and TS is 4.7 metres. For the
                                                               DX MRE, all blocks with a height of
                                                               less than 1.0 m were excluded from
                                                               the estimate. Given the high grade
                                                               of the deposit, an additional 0.5 m
                                                               or more could be accepted as
                                                               planned dilution in these areas.
                                                           •   As at Kola, a vertical shaft would
                                                               likely be the most suitable means of
                                                               accessing the DX deposit, being the
                                                               lowest risk option for passing the
                                                               poorly consolidated weathered
                                                               sediments of the ‘cover rocks’.
                                                           •   Of importance is that the DX deposit
                                                               appears to be overlain by a thick 10
                                                               to 16 m thick layer of anhydrite and
                                                               clay, providing a low permeability
                                                               hydrogeological barrier (an aquitard)
                                                               separating possible aquifers in the
                                                               Cover Rocks from the Salt Member.
                                                               This would need to be further tested
                                                               and modelled.
                                                           •   The thickness of rock-salt between
                                                               the TS and the HWS is always in
                                                               excess of 8 metres thus providing a
                                                               thick ‘sill pillar’ between the seams.
                                                               Based on test work and 2D and 3D
                                                               geotechnical modelling at Kola, a ‘sill
                                                               pillar’ of this thickness is likely to be
                                                               more than sufficient to allow mining
                                                               of both seams even where
3.9                 •   The basis for assumptions or             •   Sylvinite is the most commonly
METALLURGICAL           predictions regarding metallurgical          mined and processed ore of potash
FACTORS OR              amenability. It is always necessary as       globally.
ASSUMPTIONS             part of the process of determining       •   A large amount of process test work
                        reasonable prospects for eventual            carried out for the nearby Kola
                        economic extraction to consider              deposit for feasibility studies. The
                        potential metallurgical methods, but         sylvinite at DX appears to be similar,
                        the assumptions regarding                    being comprised of medium to
                        metallurgical treatment processes            coarse-grained sylvite and halite,
                        and parameters made when                     with consistently low quantities of
                        reporting Mineral Resources may not          insoluble material and magnesium.
                        always be rigorous. Where this is the    •   Given the similarity (as observed in
                        case, this should be reported with an        core) of the DX sylvinite with that at
                        explanation of the basis of the              the Kola Deposit, it is likely that the
                        metallurgical assumptions made.              DX ore is similarly amenable to
                                                                     conventional flotation and this
                                                                     should be confirmed by test-work if
                                                                     the project is advanced further.
3.10                •   Assumptions made regarding               •   The deposit area is outside of the
ENVIRONMENTAL           possible waste and process residue           ‘Integral’ zone Conkuati Douali
FACTORS OR              disposal options. It is always               National Park. It is within the
ASSUMPTIONS             necessary as part of the process of          ‘buffer’ and ‘economic
                        determining reasonable prospects for         development’ zones of the park. A
                        eventual economic extraction to              comprehensive Environmental
                        consider the potential environmental         Social Impact Assessment (ESIA) was
                        impacts of the mining and processing         prepared and approved, for the
                        operation. While at this stage the           Dougou Mining Permit.
                        determination of potential               •   At the mine site, infrastructure
                        environmental impacts, particularly          would be limited to the shaft related
                        for a greenfields project, may not           infrastructure, and conveyance of
                        always be well advanced, the status          the ore. Processing of sylvinite
                        of early consideration of these              would be at the planned plant for
                        potential environmental impacts              Kola, located at the coast, 15 km
                        should be reported. Where these              south of DX (figure 1 of the
                        aspects have not been considered             announcement) which is permitted
                        this should be reported with an              for the production of Mt Muriate of
                        explanation of the environmental             Potash (MoP).
                        assumptions made.                        •   Waste from possible mining and
                                                                     processing is dissolved halite (salt-
                                                                     water), which is then diluted and
                                                                     discharged into the ocean.
                                                                 •   Any future scoping or feasibility
                                                                     work for DX would benefit
                                                                     significantly from the large amount
                                                                     of social and environmental
                                                                     assessment and planning work
                                                                     carried out for the Kola feasibility

3.11 BULK DENSITY   •   Whether assumed or determined. If        •   Conventional ‘Archimedes Principle’
                        assumed, the basis for the                   density measurements are
                        assumptions. If determined, the              problematic due to the soluble
                        method used, whether wet or dry,             nature of the core. At nearby Kola, it
                        the frequency of the measurements,           has been shown that density of
                        the nature, size and                         sylvinite is directly correlated to the
                        representativeness of the samples.           relative proportion of sylvite and
                    •   The bulk density for bulk material           halite (which have known densities
                        must have been measured by                   of 1.99 and 2.16 g/cm3 respectively),
                        methods that adequately account for          which can be determined from the
                        void spaces (vugs, porosity, etc),           KCl content. This density is referred
                        moisture and differences between             to as the ‘mineralogically
                        rock and alteration zones within the         determined density’ and is a method
                        deposit.                                     is used routinely in some operating
                 •   Discuss assumptions for bulk density           potash mines. At DX the method is
                     estimates used in the evaluation               made simpler due to the extremely
                     process of the different materials.            small amounts (<2.5%) of other
                                                                    minerals. An equation and ‘curve’
                                                                    for the conversion of KCl to density
                                                                    was developed, based on
                                                                    pycnometer density and the
                                                                    ‘mineralogically determined density’
                                                                    data. Based on this curve, a density
                                                                    was assigned to each block for the
                                                                    HWS and TS using the formula
                                                                    DENSITY= (KCL-742.53)/(-337.53).
                                                                    The average for the seams is 2.02
                                                                    and 2.11 g/cm3 for the HWS and TS
                                                                    respectively. This is similar to
                                                                    sylvinite density of deposits
                                                                    elsewhere, typically between 2.00
                                                                    and 2.15 g/cm3.

3.12             •   The basis for the classification of the    •   The bulk of the DX deposit is
CLASSIFICATION       Mineral Resources into varying                 classified as Inferred, being
                     confidence categories.                         supported by relatively widely-
                 •   Whether appropriate account has                spaced drill-hole and seismic data.
                     been taken of all relevant factors (i.e.       Within this area grade and
                     relative confidence in tonnage/grade           geological continuity is implied but
                     estimations, reliability of input data,        will require additional data-points to
                     confidence in continuity of geology            verify.
                     and metal values, quality, quantity        •   A relatively small area of the deposit
                     and distribution of the data).                 has sufficient drill-hole control and
                 •   Whether the result appropriately               seismic data to be able to assume
                     reflects the Competent Person’s view           continuity of grade and geology
                     of the deposit.                                sufficient for it to be classified as
                                                                    Indicated Mineral Resources.
                                                                •   For the extent of the Mineral
                                                                    Resources within the Inferred and
                                                                    Indicated categories, the following
                                                                    was deemed appropriate by the CP,
                                                                    based on an understanding of the
                                                                    controls on the sylvinite, and
                                                                    confidence in the model in relation
                                                                    to data points:
                                                                •   Indicated Mineral Resource:
                                                                    sylvinite within a polygon guided by
                                                                    a 1 km radius of the drill-holes
                                                                    DX_01, K62, ED_03, ED_01
                                                                •   Inferred Mineral Resource: sylvinite
                                                                    within a polygon guided by a 2.5 km
                                                                    radius of inner holes and a 1.5 km
                                                                    radius beyond ‘outer’ holes, and
                                                                    with the removal of the area of the
                                                                    Indicated MRE.
                                                                •   Both the Indicated and Inferred
                                                                    extents were ‘cut’ by the limit of
                                                                    ‘maximum extent of sylvinite’
                                                                    (described in section 3.5 and shown
                                                                    in Figure 4 of the announcement).
                                                                •   Indicated Mineral Resources are
                                                                    supported by drill-holes with collar
                                                                    positions surveyed by a DGPS.
                                                                •   Mineral Resources for the different
                                                                    categories for each seam within the
                                                                    DX Deposit are shown in Table 1 of
                                                                    the announcement.
 3.13 AUDITS OR          •   The results of any audits or reviews          •    In using MSA to assist with the
 REVIEWS                     of Mineral Resource estimates.                     resource model, there has been 3rd
                                                                                party review of the drill-hole data,
                                                                                the resource model, and estimation
                                                                           •    An external audit has not been
                                                                                carried out.

Glossary of Terms

  Term                          Explanation

  agrinutrient                  nutrients applied to crops to assist with their growth and health
                                The uppermost subdivision of the Early/Lower Cretaceous epoch/series. Its
                                approximate time range is 113.0 ± 1.0 Ma to 100.5 ± 0.9 Ma (million years ago)
  anhydrite                     Anhydrous calcium sulphate, CaSO4.
                                a subdivision of the Early or Lower Cretaceous epoch or series and encompasses the
                                time from 125.0 ± 1.0 Ma to 113.0 ± 1.0 Ma
                                An underground layer of water-bearing permeable rock, rock fractures or
                                unconsolidated materials (gravel, sand, or silt)
                                A zone within the earth that restricts the flow of groundwater from one aquifer to
                                in this case refers to the analysis of the chemical composition of samples in the
                                Hydrous magnesium chloride minerals with formula, MgCl2·6H2O and
  brine                         Brine is a high-concentration solution of salt in water
                                a tool used to measure the width of an opening or object, in this case the diameter
                                of the hole or the width of the drill core
  carbonate                     any rock composed mainly of carbonate minerals such as calcite or dolomite
                                an evaporite mineral, a hydrated potassium magnesium chloride with formula
                                KMgCl. 3· 6(H2O)
  carnallitite                  a rock comprised predomiantly of the minerals carnallite and halite
                                Clastic rocks are composed of fragments, or clasts, of pre-existing minerals and
  clay                          A fine-grained sedimentary rock.
  collars (drill-hole)          the top of the drill-hole
                                an interval of uniform length for which attributes such as grade are determined by
  composite (sample)            combining or cutting original samples of greater or lesser length, to obtain a uniform
                                support size
  conformable                   refers to layers of rock between which there is no loss of the geological record
                                a mining machine that uses a rotting cutting devise, typically a drum or a boring unit,
  continuous miner
                                to cut the ore
  core (drill)                  the cylindrical length of rock extracted by the process of diamond drill coring
                                the last of the three periods of the Mesozoic Era. The Cretaceous began 145.0
                                million years ago and ended 66 million years ago
  cross-section                 an image showing a slice (normally vertical) through the sub-surface
                                the method of extracting cores of rock by using a circular diamond-tipped bit
  diamond coring
                                (though may be tungsten carbide)
                                in this case refers to the angle of inclination of a layer of rock, measured in degrees
                                or % from horizontal
                             anhydrous carbonate mineral composed of calcium magnesium carbonate, ideally
dolomite                     CaMg(CO3)2. The term is also used for a sedimentary carbonate rock composed
                             mostly of the mineral dolomite.mineral form is indicated by italic font
                             a spatial zone within which material is modelled/expected to be of a type or types
domain (mineral)
                             that can be treated in the same way, in this case in terms of resource estimation
                             a hole drilled to obtain samples of the mineralization and host rocks, also known as
                             boreholes or just holes
euhedral                     crystals with well defined crystal form
                             Sediments chemically precipitated due to the evaporation of an aqueous solution
                             or brine
                             refers to the amount if mineralized material mined as a ratio of the amount that is
extraction ratio
                             left in place
                             A planar fracture or discontinuity in a volume of rock, across which there has been significant
                             displacement as a result of rock mass movement.
                             A gamma ray or gamma radiation is penetrating electromagnetic radiation arising from the
                             radioactive decay of atomic nuclei.
                             Refers to the physical behavior of rocks, particularly relevant for the Mine design requiring
                             geotechnical engineering
                             Gondwana or Gondwanaland, was a supercontinent that formed from the unification of several
Gondwana                     cratons in the Late Neoproterozoic, merged with Euramerica in the Carboniferous to form
                             Pangaea, and began to fragment in the Mesozoic
                             A graben is a basin bound by normal faults either side, formed by the subsidence of the basin
                             due to extension
                             a term used to refer to estimation of data into a grid of cells from data values spaced more
                             widely than the cells
                             soft sulfate mineral composed of calcium sulfate dehydrate, with the chemical formula
                             CaSO. 4·2H2O.
halite                       The mineral form of sodium chloride (NaCl), salt.
                             Halokinesis is refers to salt tectonics, which includes the mobilization and flow of subsurface
                             salt, and the subsequent emplacement and resulting structure of salt bodies
                             sometimes spelt as haematite, it is the mineral form of iron(III) oxide (Fe 2O3), one of several
                             iron oxides.
                             a horst is a raised fault block bounded by normal faults. A horst is a raised block of the Earth's
horst                        crust that has lifted, or has remained stationary, while the land on either side (grabens) have
                             is the area of geology that deals with the distribution and movement of groundwater in the
                             In this text refers to the basin being hydrographically isolated, being without an open water
                             connection to the sea
                             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
Indicated Mineral Resource
                             through appropriate techniques from locations such as outcrops, trenches, pits, workings and
                             drillholes, 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
Inferred Mineral Resource    appropriate techniques from locations such as outcrops, trenches, pits, workings and
                             drillholes. 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.
insoluble material           in this report, refers to material that cannot be dissolved by water such as clay, quartz, anhydrite
                             Inverse distance weighting (IDW) is a type of deterministic method for multivariate
Inverse Distance weighting   interpolation with a known scattered set of points. The assigned values to unknown points are
                             calculated with a weightedaverage of the values available at the known points.
                            The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
JORC                        Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of
                            Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia
                            Limestone is a sedimentary rock. Its major materials are the minerals calcite and aragonite
limestone                   which are different crystal forms of calcium carbonate (CaCO3), mostly derived or in the form
                            of skeletal fragments of marine organisms such as coral, forams and molluscs
lithological                refers to the observed characteristics if a rock type (or lithology)
                            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 drillholes, 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.
                            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
Mineral Reserve             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
                            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),
Mineral Resource            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.
                            a method of drilling using a rotating destructive bit to penetrate the rocks and using water with
                            various additives referred to as the drilling fluid or 'mud'
muriate of potash (MoP)     The saleable form of potassium chloride, comprising a minimum of 95% KCl
                            is a geologic epoch of the Paleogene Period and extends from about 33.9 million to 23 million
                            years before the present
                            in this report refers to material of organic origin such as plant debris or peat, or bituminous
                            a term used in evaporite geology that refers to the movement of ions our of a layer in the
                            evaporite by fluid (or brine) initially under saturated with respect to that ion
overburden                  a general term referring to rocks above the rocks hosting the ore.
                            the columns of rock left in place in mining to support the Mine opening, either within the mined
pillars (in mining)
                            out areas (rooms) or adjacent to them
                            refers to any of various mined and manufactured salts that contain potassium in water-soluble
                            form. In this report generally refers to the potassium bearing rock types
                            The Precambrian (or Pre-Cambrian, sometimes abbreviated p?, or Cryptozoic) is the earliest
                            part of Earth's history, set before the current Phanerozoic Eon, between 4600 to 541 Ma
pycnometer                  A laboratory device used for measuring the density of solids.
                            refers to the amount of core recovered as a % of the amount that should have been recovered
recovery (of drill core)
                            if no loss ws incurred.
                            when minerals dissolve or partly dissolve and then re-form typically with a different size and
                            refers to the splitting apart of the earth's crust due to extension, typically resulting in crustal
                            thinning and normal faulting
rock-salt                   rock comprising predominantly of the mineral halite
                            a method of mining whereby the ore is extracted in blocks, leaving pillars of rock behind to
                            support the opening
                            A naturally occurring material that is broken down by processes of weathering and erosion,
sediment                    and is subsequently transported by the action of wind, water, or ice, and/or by the force of
                            gravity acting on the particles.
                               in this case seismic reflection, a method of exploration geophysics that uses the principles of
                               seismology to estimate the properties of the Earth's subsurface from reflected seismic waves.
                               The method requires a controlled seismic source of energy, such as dynamite or Tovex blast,
                               a specialized air gun or a seismic vibrator
                               Stratigraphy is a branch of geology concerned with the study of rock layers (strata) and layering
                               (stratification). It is primarily used in the study of sedimentary and layered volcanic rocks

                               refers to the direction of preferred control of the mineralization be it structural or depositional.
                               In this direction it is expected that there be greater correlation of attributes
                               in evaporite geology refers to the process of erosion by dissolution along a surface that is within
                               the sub-surfaces, in this case at the top of the Salt Member
  sylvinite                    a rock type comprised predomintly of the mineral sylvite and halite
  sylvite                      an evaporite mineral, potassium chloride (KCl)
                               refers to the relationship between a layer and the layer below it, when the contact between
                               them is an unconformity
                               An unconformity is a buried erosional or non-depositional surface separating two rock masses
                               or strata of different ages, indicating that sediment deposition was not continuous

20 August 2018
JSE Sponsor: Rencap Securities (Pty) Limited

For further information, please visit or contact:

 Kore Potash                                                                          Tel: +27 (11) 469 9140
 Sean Bennett – CEO

 Tavistock Communications                                                             Tel: +44 (0) 20 7920 3150
 Jos Simson
 Edward Lee

 Canaccord Genuity – Nomad and Broker                                                 Tel: +44 (0) 20 7523 4600
 Martin Davison
 James Asensio

 Renaissance Capital – JSE Sponsor                                                    Tel: +27 (11) 750 1448
 Yvette Labuschagne

Date: 20/08/2018 12:08:00 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.

Email this JSE Sens Item to a Friend.

Share This Story