Wrap Text
Retraction of Announcement dated 17 December 2019
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code:KP2
ISIN: GB00BYP2QJ94
(“Kore Potash” or the “Company”)
Retraction of Announcement dated 17 December 2019
Kore Potash refers to the ASX announcement made on 17 December 2019, Announcement Title: “Kore
Potash PLC – Projects Update”. The company retracts the above release as a result of the inclusion of
metrics for the Dougou Extension and Kola Project without information required under Listing Rules
5.16 and 5.17 and metallurgical test results and references to 2D seismic data without information
required under Listing Rule 5.7 and therefore the Company does not yet have a reasonable basis to
state those results.
Investors should not rely on the retracted release as a basis for an investment decision.
Please find attached the revised announcement for Kore Potash PLC – Projects Update.
30 December 2019
JSE Sponsor: Rencap Securities (Pty) Limited
ENDS
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +27 11 469 9140
Brad Sampson – CEO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Jos Simson
Edward Lee
Canaccord Genuity – Nomad and Broker Tel: +44 (0) 20 7523 4600
James Asensio
Henry Fitzgerald-O’Connor
Shore Capital – Joint Broker Tel: +44 (0) 20 7408 4090
Jerry Keen
Toby Gibbs
James Thomas
Forward-Looking Statements
This report 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 report regarding the Company's business or proposed business,
which are not historical facts, are "forward looking" statements that involve risks and uncertainties,
such as 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.
Project Update
Kore Potash, the potash exploration and development company whose flagship asset is the 97%-
owned Sintoukola Potash Project (“Kola” or the “Project”), located within the Republic of Congo
(“RoC”), provides the following update on completion of dissolution test work and seismic survey.
Highlights:
• Dougou Extension (“DX”) Pre-feasibility Study
• Pre-feasibility study (PFS) on track to be completed on budget in April 2020 with
potentially improved financial outcomes.
• Technical studies completed for the PFS include the metallurgical and exploration
results respectively from:
- Dissolution test work has been completed and the brine KCl concentration
parameter has been established for pre-feasibility design
- Acquisition and processing of 60 km of 2D seismic surveying was completed.
This data will be used for the update to the Mineral Resource Estimate planned
as part of the PFS.
Brad Sampson, Chief Executive of Kore Potash, said:
“This positive progress on the DX pre-feasibility study is very pleasing to see, the Company is progressing
high quality work to improve our understanding of the deposit and the chosen processing route.
Shifting Kore’s focus onto a smaller, less capital intensive project within the wider Sintoukola basin
should allow the Company to get to production faster and preserves optionality on the other deposits.
We believe that DX is one of the highest grade potash deposits anywhere in the world. This is part of
the reason why we will have extremely competitive operating costs, further reinforced by our proximity
to the coast and commensurately lower shipping costs to target markets than Northern Hemisphere
producers.
Our focus continues to centre on building a project that is environmentally and economically
sustainable, which is particularly important as we work on issues related to project design.”
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +27 11 469 9140
Brad Sampson – CEO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Jos Simson
Edward Lee
Canaccord Genuity – Nomad and Broker Tel: +44 (0) 20 7523 4600
James Asensio
Henry Fitzgerald-O’Connor
Shore Capital – Joint Broker Tel: +44 (0) 20 7408 4090
Jerry Keen
Toby Gibbs
James Thomas
DX Pre-feasibility Study
The Company reports the following progress on the pre-feasibility study:
• The DX PFS is on track for completion in April 2020 within budget.
• Dissolution test work results:
- Dissolution test work was performed by Agapito Associates Inc. (“Agapito”) in
their laboratory in Grand Junction, Colorado. The dissolution tests were
conducted on 72 quarter-core samples, acquired from the DX Potash Project
site.
- Testing was performed using selective dissolution (of KCl) at solvent
temperatures of 50, 70 and 90°C, with pre-concentrated solvents of 100, 120,
140 and 160 g/l KCl and saturated NaCl. These tests established the relationship
between dissolution rate and solvent KCl concentration, enabling the prediction
of expected production brine concentrations during commercial solution-
mining operations. The full test results are attached in Appendix C of this report.
- Of the two target seams hosting high grade sylvinite mineralisation, the
Hanging Wall Seam (HWS) and the Top Seam (TS), only modeling of the brine
grade for the HWS has been done.. Modeling of the TS has not been completed
but given its lower grade we can expect that the brine grade will be lower than
for the HWS.
? Further modelling of brine behavior is in progress to improve confidence in the
optimum production brine concentration. Additional dissolution testing at
higher brine KCl concentrations is planned to be included in the DFS scope of
work.
• 2D Seismic Survey Program
- During September 2019 DMT GmbH & Co. KG (DMT) of Germany acquired over
60 line-kilometers of 2D seismic reflection data on a grid covering
approximately a 4 km by 6 km area of the DX Potash Project. These incudes the
area of the deposit that was the focus of the Scoping Study and remains the
focus of the current PFS.
- The 2D seismic data was processed by DMT Petrologic GmbH & Co. KG
(Petrologic) of Germany. Processing was completed during November 2019.
Petrologic also provided interpretation of key reflectors within the evaporite.
The quality of the data ranges from moderate to excellent.
- The 2D seismic survey data is an important input for the modelling of the
stratigraphy and structure of the host evaporite rocks and the distribution of
the sylvinite of the two target seams hosting high grade sylvinite mineralisation;
the Hanging Wall Seam (HWS) and the Top Seam (TS). It will be used as input
data for an updated Mineral Resource Estimate to be undertaken early in Q1
2020.
Figure 1. Map of the DX deposit area showing the positions of drill-holes and seismic survey lines.
A copy of this announcement including the diagrams, tables and schematics referred to in this
announcement are available on the Company’s website hosted at http://www.korepotash.com/wp-
content/uploads/2019/12/Figure-One.jpg
ENDS
Forward-Looking Statements
This report 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 report regarding the Company's business or proposed
business, which are not historical facts, are "forward looking" statements that involve risks and
uncertainties, such as 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.
Appendix A: Competent Persons Statement
Information in this report that relates to the Dissolution Test Report program, is based on
information approved by Michael Hardy, a Competent Person who is a registered member
in good standing (Member #01328850) of Society for Mining, Metallurgy and Exploration
(SME) which is recognized and accepted under the JORC Code.
Michael Hardy president of Agapito Associates Inc is not associated or affiliated with Kore
Potash or any of its affiliates. Agapito Associates Inc will receive a fee for the preparation
of the Report in accordance with normal professional consulting practices. This fee is not
contingent on the conclusions of the Report and Agapito Associates Inc, Michael Hardy
will receive no other benefit for the preparation of the Report. Michael Hardy does not
have any pecuniary or other interests that could reasonably be regarded as capable of
affecting their ability to provide an unbiased opinion in relation to the Dougou Extension
Potash Project. Agapito Associates Inc does not have, at the date of the Report, and has
not had within the previous years, any shareholding in or other relationship with Kore
Potash or the Dougou Extension Potash Project and consequently considers itself to be
independent of Kore Potash.
Michael Hardy has sufficient experience that is relevant to the style of mineralization and
type of deposit under consideration and to the activity being undertaken 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). Michael
Hardy consents to the inclusion of the results of the Dissolution Test Report based on
information in the form and context in which it appears.
Information in this report that relates to the seismic program for the Dougou Extension
Deposit is based on information compiled by Andrew Pedley, a consultant geologist
contracted to Kore Potash on a part time basis for the Dougou Extension PFS. Andrew
Pedley will receive a fee for the preparation of the Report in accordance with normal
professional consulting practices. This fee is not contingent on the conclusions of the
Report and Andrew Pedley will receive no other benefit for the preparation of the Report.
Andrew 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.
Andrew. 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). Andrew
Pedley consents to the inclusion in this report of the matters based on his information in
the form and context in which it appears.
Appendix B: JORC 2012 Table 1
Abbreviations used:
o DX: Dougou Extension
o MRE: Mineral Resource Estimate
o TS: Top Seam
o HWS: Hanging wall Seam
Section 1 - Sampling Techniques and Data
JORC Criteria JORC Explanation Commentary
1.1 SAMPLING • Nature and quality of • The samples selected for dissolution testing
TECHNIQUES sampling (eg cut were all half core, either PQ (85 mm diameter)
channels, random or HQ (65 mm diameter) size. They were
chips, or specific collected at site from intervals in three
specialised industry previously sampled and reported drill-holes,
standard ED_01, ED_03 and DX_01. The samples sent to
measurement tools Agapito Associates Inc (“AAI”) for dissolution
appropriate to the rate testing each comprise the half-core that
minerals under remained in the core trays
investigation, such as • The half core sample intervals for dissolution
down hole gamma rate testing were between 0.09 and 0.36
sondes, or handheld metres and sampled to lithological boundaries.
XRF instruments, etc). Samples were individually bagged and sealed.
These examples should A total of 51 half core samples were collected
not be taken as and sent to AAI for the dissolution test work.
limiting the broad • In all cases, the original whole core was cut
meaning of sampling. along a ‘center-line’ marked such that both
• Include reference to halves are as close to identical as possible,
measures taken to most relevant where layers are gently dipping.
ensure sample In this way the dissolution samples are
representivity and the representative, as were the original samples.
appropriate
calibration of any
measurement tools or
systems used.
• Aspects of the
determination of
mineralisation that are
Material to the Public
Report. In cases where
‘industry standard’
work has been done
this would be relatively
simple (eg ‘reverse
circulation drilling was
used to obtain 1 m
samples from which 3
kg was pulverised to
produce a 30 g charge
for fire assay’). In other
cases more
explanation may be
required, such as
where there is coarse
gold that has inherent
sampling problems.
Unusual commodities
or mineralisation types
(eg submarine
nodules) may warrant
disclosure of detailed
information.
1.2. DRILLING • Drill type (eg core, • Holes were drilled in two stages. Rotary
TECHNIQUES reverse circulation, Percussion (12 then 8 inch or similar diameter)
open-hole hammer, through the 'cover sequence', stopping in the
rotary air blast, auger, Anhydrite Member and cased and grouted to
Bangka, sonic, etc) and this depth. Holes were then advanced using
details (eg core diamond coring with the use of tri-salt (K, Na,
diameter, triple or Mg) mud to ensure acceptable recovery (over
standard tube, depth 95%). Coring was HQ (65 mm core diameter) or
of diamond tails, face- PQ (85 mm core diameter). All holes were
sampling bit or other drilled vertically.
type, whether core is
oriented and if so, by
what method, etc).
1.3. DRILL • Method of recording • Core recovery was recorded for all cored
SAMPLE and assessing core and sections of Kore Potash’s holes by recording
RECOVERY chip sample recoveries the drilling advance against the length of core
and results assessed. recovered. Recovery is between 95 and 100%
• Measures taken to for the evaporite and all potash intervals. A
maximise sample fulltime mud engineer was recruited to
recovery and ensure maintain drilling mud chemistry and physical
representative nature properties. Mud properties are recorded in
of the samples. drilling reports for each hole.
• Whether a relationship • Core was wrapped in cellophane sheet soon
exists between sample after removal from the core barrel, to avoid
recovery and grade dissolution in the atmosphere, and was then
and whether sample transported at the end of each shift to a de-
bias may have humidified core storage room where it was
occurred due to stored until sampled for the dissolution test
preferential loss/gain work.
of fine/coarse • Reflecting the good core recovery there are no
material. concerns relating to bias due to selection
recovery/loss.
1.4. LOGGING • Whether core and chip • All the core sent to AAI for dissolution testing
samples have been were individually described by a geologist at
geologically and the drill site, recording the lithology,
geotechnically logged mineralogy and grainsize.
to a level of detail to • In all cases each sample was sylvinite rich. The
support appropriate sylvinite rock-types are straightforward to
Mineral Resource distinguish based on colour, gamma-ray data
estimation, mining and close observation in the hand.
studies and • Quality photographs of each of the dissolution
metallurgical studies. samples were taken, to provide a reference,
• Whether logging is important given that no core remains for these
qualitative or intervals.
quantitative in nature.
Core (or costean,
channel, etc.)
photography.
• The total length and
percentage of the
relevant intersections
logged.
1.5 SUB- • If core, whether cut or • The half core samples sent to AAI for
SAMPLING sawn and whether dissolution testing comprise the remaining half
TECHNIQUES quarter, half or all core core from previously sampled and assayed
AND SAMPLE taken. core.
PREPARATION • If non-core, whether • Samples intervals were choses to provide a
riffled, tube sampled, suite a samples representative of the sylvinite
rotary split, etc and layers. Effort was made to submit samples with
whether sampled wet a range of KCl content as estimated visually and
or dry. with guidance from previous grade data and
• For all sample types, gamma-ray data.
the nature, quality and • In AAI’s laboratory, the core samples for
appropriateness of the dissolution testing were selected and prepared
sample preparation based on the criteria that (1) the sample length
technique. was about 5 centimetres (cm); (2) the sample
• Quality control had smooth surfaces; and (3) the sample
procedures adopted contained homogeneous core pieces with no
for all sub-sampling sharp interfaces between insolubles and halite
stages to maximise and other potash minerals.
representivity of • Each half-core was cut roughly into even
samples. quarter-cores, which were used for dissolution
• Measures taken to rate testing.
ensure that the • The top and bottom surfaces of the samples
sampling is were sealed with a moisture-resistant epoxy
representative of the in and the remaining exposed surfaces were
situ material collected, sanded to a smooth finish.
including for instance
results for field
duplicate/second-half
sampling.
• Whether sample sizes
are appropriate to the
grain size of the
material being
sampled.
1.6 QUALITY • The nature, quality and • The quarter-core samples were weighed and
OF ASSAY appropriateness of the recorded on a precision electronic scale, with
DATA AND assaying and accuracy to 1%, before and after dissolution
LABORATORY laboratory procedures rate testing.
TESTS used and whether the • Sample surfaces were sketched on the data
technique is sheet, and the surface areas were then
considered partial or calculated by digitizing the borders using
total. AutoCAD™.
• For geophysical tools, • A 50-ml sample of the pre-concentrated KCl
spectrometers, and NaCl solution was extracted before testing
handheld XRF for chemical analysis.
instruments, etc, the • At the laboratory scale, the calculation of
parameters used in dissolution rate is based on weight loss,
determining the immersion time, and the vertical dissolution
analysis including surface area of the core sample.
instrument make and
model, reading times,
calibrations factors
applied and their
derivation, etc.
• Nature of quality
control procedures
adopted (eg
standards, blanks,
duplicates, external
laboratory checks) and
whether acceptable
levels of accuracy (i.e.
lack of bias) and
precision have been
established.
1.7. • The verification of • The intersections sampled for the dissolution
VERIFICATION significant samples were previously reported and verified
OF SAMPLING intersections by either at that time.
AND independent or • The descriptions of the dissolution samples
ASSAYING alternative company were stored in an MS Excel sheet listing the
personnel. ‘from’ depth, ‘to’ depth and the geological
• The use of twinned observations for each.
holes.
• Documentation of
primary data, data
entry procedures, data
verification, data
storage (physical and
electronic) protocols.
• Discuss any
adjustment to assay
data.
1.8. • Accuracy and quality • The dissolution samples were taken from three
LOCATION OF of surveys used to drill-holes within the DX deposit; ED_01, ED_03
DATA POINTS locate drill holes (collar and DX_01. The positions of these holes were
and down-hole determined by a professional surveyor using a
surveys), trenches, DGPS, and expected to be accurate to within
mine workings and 100 mm in X, Y and Z.
other locations used in • The drill-hole positions are as follows, given in
Mineral Resource UTM zone 32 S using WGS 84 datum. They are
estimation. shown on figure 1 of the announcement.
• Specification of the • The position of the new 2D seismic survey lines
grid system used. are shown in figure 1 of the announcement.
• Quality and adequacy The 2D seismic survey line spacing ranges from
of topographic control. 240 to 800 metres. The station and receiver
spacing was 10 m.
1.9. DATA • Data spacing for • Figure 1 of the announcement shows the
SPACING AND reporting of location of these drill-holes and the new
DISTRIBUTION Exploration Results. seismic data.
• Whether the data • The new seismic data has not been integrated
spacing and into the geological model and this will be done
distribution is during the completion of the PFS. The seismic
sufficient to establish data acquisition has been done on a spacing
the degree of range between 240 to 800 meters which is
geological and grade closer than that used in the original seismic
continuity appropriate survey as indicated in Fig 1 in the
for the Mineral announcement.
Resource and Ore
Reserve estimation
procedure(s) and
classifications applied.
• Whether sample
compositing has been
applied.
1.10. • Whether the • The potash layers are massive and of relatively
ORIENTATION orientation of uniform grade distribution, being controlled by
OF DATA IN sampling achieves the original horizontally layered sedimentary
RELATION TO unbiased sampling of deposition of the potash mineral carnallite.
GEOLOGICAL possible structures and • Intersections have a sufficiently low angle of
STRUCTURE the extent to which dip, and drill-holes are vertically drilled; the
this is known, intersected thickness is assumed to be the true
considering the thickness.
deposit type.
• If the relationship
between the drilling
orientation and the
orientation of key
mineralised structures
is considered to have
introduced a sampling
bias, this should be
assessed and reported
if material.
1.11. SAMPLE • The measures taken to • The chain of custody of the dissolution samples
SECURITY ensure sample was secure. At the rig, the core was under full-
security. time supervision of Company geologists,
working around the clock. At the end of each
drilling shift, the core was transported by Kore
Potash staff to a secure site where it was stored
in a locked room.
• Sampling and packing of the samples were
carried out under the observation of Company
staff; packed samples were 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 the U.S.
1.12. AUDITS • The results of any • Kore’s sampling standard operating
OR REVIEWS audits or reviews of procedures for logging and sampling have been
sampling techniques audited on several occasions by external
and data. parties, for the completion of the MRE for the
Kola, Dougou and DX Deposits.
Section 2 - Reporting of Exploration Results
JORC Criteria JORC Explanation Commentary
2.1 MINERAL • Type, reference • The Dougou Extension Deposit is entirely within
TENEMENT AND name/number, the Dougou Mining Permit (issued on the 9th May
LAND TENURE location and 2017 under decree No. 2017-139) which is held
STATUS ownership including 100% by the local company Dougou Mining SARL
agreements or which is in turn held 100% by Sintoukola Potash
material issues with SA RoC, which Kore Potash holds a 97% share.
third parties such as • There are no impediments on the security of
joint ventures, tenure.
partnerships,
overriding royalties,
native title
interests, historical
sites, wilderness or
national park and
environmental
settings.
• The security of the
tenure held at the
time of reporting
along with any
known impediments
to obtaining a
license to operate in
the area.
2.2 • Acknowledgment • Potash exploration was carried out in the area in
EXPLORATION and appraisal of the1960's by Mines de Potasse d’ Alsace S.A.
DONE BY OTHER exploration by other Holes K52 and K62 are within the Deposit area.
PARTIES parties. 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 (SPAFE).
• Previous 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.
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. 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.
• 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
minerals/materials.
• 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 ‘Hanging wall 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 (less than 15
degrees).
• Where sylvinite, the TS and HWS have an average
thickness of 5.2 and 3.6 metres respectively.
• 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’
• 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.
2.4. DRILL HOLE • A summary of all • The drill-hole positions are as follows, given in
INFORMATION information UTM zone 32 S using WGS 84 datum. Holes were
material to the drilled vertically, and no significant deviation was
understanding of reported in drill-hole downhole surveys.
the exploration
results including a Final
BHID Easting Northing Elevation
tabulation of the Depth
following ED_01 791144.8 9529491 55.29 525.15
information for all ED_03 789848.8 9528941 62.94 492.15
Material drill holes: DX_01 787201.2 9529046 54.64 551.73
• easting and
northing of
the drill
hole collar
• elevation or
RL (Reduced
Level –
elevation
above sea
level in
metres) of
the drill
hole collar
• dip and
azimuth of
the hole
• down hole
length and
interception
depth
• hole length.
• 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 • No selective cutting of high or low grade material
AGGREGATION Exploration Results, was carried out as is not justified given massive
METHODS weighting nature of the potash mineralization and absence
averaging of localised high/low grade areas.
techniques, • No aggregation of grades was carried out for the
maximum and/or reporting of the dissolution samples.
minimum grade • No metal equivalents were calculated.
truncations (e.g.
cutting of high
grades) and cut-off
grades are usually
Material and should
be stated.
• Where aggregate
intercepts
incorporate short
lengths of high-
grade results and
longer lengths of
low grade results,
the procedure used
for such
aggregation should
be stated and some
typical examples of
such aggregations
should be shown in
detail.
• The assumptions
used for any
reporting of metal
equivalent values
should be clearly
stated.
2.6 • These relationships • The drill-core and acoustic televiewer images
RELATIONSHIP are particularly provide a reliable measurement of dip (and the
BETWEEN important in the latter provides azimuth). Seams have sufficiently
MINERALISATION reporting of low degree of dip, and drill-holes are vertical so
WIDTHS AND Exploration Results. correction of thickness for apparent thickness is
not warranted.
INTERCEPT • If the geometry of
LENGTHS the mineralisation
with respect to the
drill hole angle is
known, its nature
should be reported.
• 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 • Relevant diagrams are provided in the
and sections (with announcement including a map showing the drill-
scales) and holes from which the dissolution samples were
tabulations of collected and the location of the new seismic
intercepts should be survey lines.
included for any
significant discovery
being reported
These should
include, but not be
limited to a plan
view of drill hole
collar locations and
appropriate
sectional views.
2.8 BALANCED • Where • The integration of new seismic data into the
REPORTING comprehensive geological model is in progress and will be
reporting of all incorporated into the PFS which is currently
Exploration Results underway
is not practicable,
representative
reporting of both
low and high grades
and/or widths
should be practiced
to avoid misleading
reporting of
Exploration Results.
2.9 OTHER • Other exploration • Seismic data acquisition was done by DMT GmbH
SUBSTANTIVE data, if meaningful & Co. KG (DMT) of Germany utilising the
EXPLORATION and material, following energy source
DATA should be reported • Minivib 2EV
including (but not • Vibrator specifications IVI MiniBuggy
limited to): Minivib 2EV
geological • Hold down weight 16 500 lbs
observations; • Peak force 14 940 lbs
geophysical survey • Reaction mass weight 1 750 lbs
results; • Base plate weight 895 lbs (with pad)
geochemical survey • The energy reception used receivers with the
results; bulk following specification
samples – size and • Type: Geophone JF-20DX Sercel
method of • Shunt: 1000 Ohm
treatment; • Attenuation: 70 %
metallurgical test • Recording was performed using a SERCEL 428
results; bulk density, Version 5 Patch 31 central recording system. The
groundwater, raw data were correlated, stacked and stored on
geotechnical and shuttle NAS drives.
rock characteristics; • The sweep parameters used were
potential • Type linear
deleterious or • Sweeps per vibration position (VP): 1
contaminating • Band width: 12 to 180 Hz
substances. • Record length: 2 s
• Sweep length: 16 s
• Sample rate: 0.5 ms
2.10 FURTHER • The nature and • The dissolution test work results will be
WORK scale of planned incorporated into the ongoing PFS for the DX
further work (eg deposit
tests for lateral • The processed seismic data will be used as input
extensions or depth data into an updated Mineral Resource Estimate
extensions or large- for DX.
scale step-out
drilling).
• Diagrams clearly
highlighting the
areas of possible
extensions,
including the main
geological
interpretations and
future drilling areas,
provided this
information is not
commercially
sensitive.
Appendix C: Dissolution Sampling and Test Work results
KCl in
KCl in prepared Dissolution @ Dissolution @ Dissolution @
Sample Solvent 50 Deg C 70 Deg C 90 Deg C
Drill-hole Sample ID Seam From (m) To (m) (%) (g/l) Lithology (10-4 g/(cm2*s)) (10-4 g/(cm2*s)) (10-4 g/(cm2*s))
ED_01 ED_01_TSS_01 TS 400,61 400,72 53.04 100.00 sylvinite 1,286
ED_01 ED_01_TSS_01 TS 400,61 400,72 53.04 100.00 sylvinite 1,180
ED_01 ED_01_TSS_02 TS 400,83 400,94 53.04 120.00 sylvinite 1,327
ED_01 ED_01_TSS_02 TS 400,83 400,94 53.04 120.00 sylvinite 1,554
ED_01 ED_01_TSS_03 TS 401,46 401,62 51.89 140.00 sylvinite 1,255
ED_01 ED_01_TSS_03 TS 401,46 401,62 51.89 140.00 sylvinite 1,204
ED_01 ED_01_TSS_04 TS 404,06 404,16 60.29 160.00 sylvinite 1,222
ED_01 ED_01_TSS_04 TS 404,06 404,16 60.29 160.00 sylvinite 1,129
ED_01 ED_01_TSS_05 TS 404,52 404,68 42,16 100.00 sylvinite 1,144
ED_01 ED_01_TSS_05 TS 404,52 404,68 42,16 100.00 sylvinite 0,878
ED_01 ED_01_TSS_06 TS 405,21 405,31 52,47 160.00 sylvinite 0,753
ED_01 ED_01_TSS_06 TS 405,21 405,31 52,47 160.00 sylvinite 0,312
ED_01 ED_01_TSS_07 TS 405,60 405,70 52.47 120.00 sylvinite 0,883
ED_01 ED_01_TSS_07 TS 405,60 405,70 52.47 120.00 sylvinite 0,887
ED_01 ED_01_TSS_08 TS 408,53 408,63 66.59 140.00 sylvinite 0,394
ED_01 ED_01_TSS_08 TS 408,53 408,63 66.59 140.00 sylvinite 0,595
ED_01 ED_01_TSS_09 TS 408,78 408,88 66.59 100.00 sylvinite 1,449
ED_01 ED_01_TSS_09 TS 408,78 408,88 66.59 100.00 sylvinite 1,152
ED_01 ED_01_TSS_10 TS 409,04 409,14 66.59 120.00 sylvinite 0,776
ED_01 ED_01_TSS_10 TS 409,04 409,14 66.59 120.00 sylvinite 0,729
ED_01 ED_01_TSS_11 TS 411,26 411,36 48.65 140.00 sylvinite 1,019
ED_01 ED_01_TSS_11 TS 411,26 411,36 48.65 140.00 sylvinite 1,578
ED_01 ED_01_TSS_12 TS 411,88 411,98 48.65 160.00 sylvinite 0,438
ED_01 ED_01_TSS_12 TS 411,88 411,98 48.65 160.00 sylvinite 0,888
ED_01 ED_01_TSS_13 TS 406,81 407,15 sylvinite
ED_01 ED_01_HWSS_01 HWS 422,43 422,58 56.28 100.00 sylvinite 3,169
ED_01 ED_01_HWSS_01 HWS 422,43 422,58 56.28 120.00 sylvinite 0,867
ED_01 ED_01_HWSS_02 HWS 422,80 422,93 53.99 140.00 sylvinite 0,809
ED_01 ED_01_HWSS_02 HWS 422,80 422,93 53.99 160.00 sylvinite 0,698
ED_01 ED_01_HWSS_03 HWS 423,15 423,25 53.99 140.00 sylvinite 1,041
ED_01 ED_01_HWSS_03 HWS 423,15 423,25 53.99 160.00 sylvinite 1,677
ED_01 ED_01_HWSS_04 HWS 423,48 423,59 53.99 100.00 sylvinite 1,061
ED_01 ED_01_HWSS_04 HWS 423,48 423,59 53.99 120.00 sylvinite 1,974
ED_01 ED_01_HWSS_05 HWS 424,00 424,15 62.96 100.00 sylvinite 0,514
ED_01 ED_01_HWSS_05 HWS 424,00 424,15 62.96 120.00 sylvinite 1,586
ED_01 ED_01_HWSS_06 HWS 426,15 426,25 63.53 140.00 sylvinite 0,841
ED_01 ED_01_HWSS_06 HWS 426,15 426,25 63.53 160.00 sylvinite 1,544
ED_01 ED_01_HWSS_07 HWS 421,93 422,29 sylvinite
ED_01 ED_01_HAL_01 TS 400,09 400,21 rocksalt (halite)
ED_01 ED_01_HAL_02 TS 406,15 406,27 rocksalt (halite)
ED_01 ED_01_HAL_03 TS 408,26 408,37 rocksalt (halite)
ED_01 ED_01_HAL_04 TS 409,45 409,62 rocksalt (halite)
ED_01 ED_01_HAL_05 TS 410,98 411,10 rocksalt (halite)
ED_01 ED_01_HAL_06 HWS 421,62 421,75 rocksalt (halite)
ED_01 ED_01_HAL_07 HWS 426,40 426,55 rocksalt (halite)
ED_03 ED_03_HWSS_01 HWS 399,68 399,79 55.71 140.00 sylvinite 1,287
ED_03 ED_03_HWSS_01 HWS 399,68 399,79 55.71 160.00 sylvinite 1,463
ED_03 ED_03_HWSS_02 HWS 400,17 400,27 56.85 100.00 sylvinite 0,440
ED_03 ED_03_HWSS_02 HWS 400,17 400,27 56.85 120.00 sylvinite 1,212
ED_03 ED_03_HWSS_03 HWS 400,70 400,85 56.85 140.00 sylvinite 0,767
ED_03 ED_03_HWSS_03 HWS 400,70 400,85 56.85 160.00 sylvinite 1,341
ED_03 ED_03_HWSS_04 HWS 401,38 401,51 56.85 100.00 sylvinite 0,710
ED_03 ED_03_HWSS_04 HWS 401,38 401,51 56.85 120.00 sylvinite 0,882
ED_03 ED_03_HWSS_05 HWS 402,52 402,63 50.94 100.00 sylvinite 1,345
ED_03 ED_03_HWSS_05 HWS 402,52 402,63 50.94 120.00 sylvinite 0,982
ED_03 ED_03_HWSS_06 HWS 403,04 403,16 50.94 140.00 sylvinite 0,753
ED_03 ED_03_HWSS_06 HWS 403,04 403,16 50.94 160.00 sylvinite 0,945
ED_03 ED_03_HAL_01 TS 395,91 396,03 rocksalt (halite)
ED_03 ED_03_HAL_02 TS 396,43 396,53 rocksalt (halite)
ED_03 ED_03_HAL_03 TS 398,70 398,83 rocksalt (halite)
ED_03 ED_03_HAL_04 HWS 403,16 403,28 rocksalt (halite)
ED_03 ED_03_HAL_05 HWS 403,56 403,67 rocksalt (halite)
DX_01 DX_01_TSS_01 TS 424,78 424,96 41.00 100.00 sylvinite 1,152
DX_01 DX_01_TSS_01 TS 424,78 424,96 41.00 100.00 sylvinite 1,845
DX_01 DX_01_TSS_02 TS 425,17 425,29 41.00 120.00 sylvinite 0,968
DX_01 DX_01_TSS_02 TS 425,17 425,29 41.00 120.00 sylvinite 0,473
DX_01 DX_01_TSS_03 TS 428,84 428,97 50.34 140.00 sylvinite 0,421
DX_01 DX_01_TSS_03 TS 428,84 428,97 50.34 140.00 sylvinite 1,905
DX_01 DX_01_TSS_04 TS 429,04 429,18 50.34 160.00 sylvinite 0,369
DX_01 DX_01_TSS_04 TS 429,04 429,18 50.34 160.00 sylvinite 0,839
DX_01 DX_01_TSS_05 TS 430,81 431,00 36.31 120.00 sylvinite 0,977
DX_01 DX_01_TSS_05 TS 430,81 431,00 36.31 120.00 sylvinite 1,845
DX_01 DX_01_TSS_06 TS 432,14 432,25 33.94 160.00 sylvinite 1,274
DX_01 DX_01_TSS_06 TS 432,14 432,25 33.94 160.00 sylvinite 1,126
DX_01 DX_01_TSS_07 TS 434,77 434,86 52.25 140.00 sylvinite 1,189
DX_01 DX_01_TSS_07 TS 434,77 434,86 52.25 140.00 sylvinite 1,285
DX_01 DX_01_TSS_08 TS 435,16 435,27 52.25 100.00 sylvinite 0,806
DX_01 DX_01_TSS_08 TS 435,16 435,27 52.25 100.00 sylvinite 1,178
DX_01 DX_01_TSS_09 TS 436,93 437,04 51,68 100.00 sylvinite 1,005
DX_01 DX_01_TSS_09 TS 436,93 437,04 51,68 100.00 sylvinite 1,152
DX_01 DX_01_TSS_10 TS 437,26 437,37 51.68 120.00 sylvinite 1,624
DX_01 DX_01_TSS_10 TS 437,26 437,37 51.68 120.00 sylvinite 1,916
DX_01 DX_01_TSS_11 TS 437,48 437,59 51.68 140.00 sylvinite 0,441
DX_01 DX_01_TSS_11 TS 437,48 437,59 51.68 140.00 sylvinite 1,045
DX_01 DX_01_TSS_12 TS 439,63 439,74 61.02 160.00 sylvinite 0,586
DX_01 DX_01_TSS_12 TS 439,63 439,74 61.02 160.00 sylvinite 0,663
DX_01 DX_01_TSS_13 TS 439,17 439,47 sylvinite
A copy of this announcement including the diagrams, tables and schematics referred to in this
announcement are available on the Company’s website hosted at www.korepotash.com
Date: 30-12-2019 09:52:00
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