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KORE POTASH PLC - Dougou Extension (DX) Project Drilling results

Release Date: 29/04/2020 08:00
Code(s): KP2     PDF:  
Wrap Text
Dougou Extension (DX) Project Drilling results

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”)

                           Dougou Extension (DX) Project Drilling results

Kore Potash, the potash exploration and development company whose flagship asset is the 97%-
owned Sintoukola Potash Project (“Sintoukola” or the “Project”), located within the Republic of Congo
(“RoC”), is pleased to announce results of recent drilling at the Dougou Extension (“DX”) Potash
Solution Mining Project, as part of the DX pre-feasibility study (“PFS”).

Highlights:
    • Drilling of diamond drill infill holes for the DX PFS was completed during Q1 2020
    • Significant high grade sylvinite intersections include:
            o Hole DX_07 containing 4.2 m grading 56.4% KCl
            o Hole DX_09B containing 4.9 m grading 32% KCl
    • Results from these drill holes being incorporated into the DX PFS

Drilling results
The PFS drill programme was designed to obtain additional information on the two seams which host
the high grade sylvinite mineralisation at the DX deposit, the Top Seam and the Hanging Wall Seam.

    •   Three holes were drilled; DX_07, DX_08 and DX_09B
    •   The position of these holes is shown on figure 1 (available at www.korepotash.com)
    •   Drill holes DX_07 and DX_09B were drilled to the planned depth and intersected significant
        sylvinite mineralisation
    •   Drill hole DX_08 did not achieve planned depth and was stopped before intersecting the salt
        or potash layers. Drilling of this hole was halted following equipment failure
    •   Samples of the core from drill holes DX_09B were analysed at SGS Lakefield laboratory in
        Canada. The results of sample analyses have been received and are provided in Table 2. Both
        DX_07 and DX_09B intersected high quality, thick sylvinite seams with low insoluble content

Appendix A provides the JORC (2012 edition) Table 1 checklist and assessment of reporting criteria,
sections 1 and 2.

             Table 1. Positions of DX_07 to DX_09B. All holes were drilled vertically.
                            Projection/datum: WGS84 UTM zone 32S.

                                  Easting     Northing Elevation       Depth
                        BHID
                                    (m)         (m)        (masl)       (m)
                       DX_07     790559.2    9529112.8      61.40      486.0
                       DX_08     790550.6    9529982.8      52.40      323.0
                      DX_09B     791082.6     9530224       50.50      480.0
                 
Table 2. Results for sylvinite intersections in DX_07 and DX_09B.
                                   
   Drill-                           From          To   Thickness     KCl     Insoluble       Mg
               Sylvinite seam      depth       depth
   hole                                                    (m)        (%)     content %       (%)
                                    (m)         (m)

   DX_07       Top Seam            388.5       393.4        4.9       15.1       0.23         0.02
               including           388.5       391.2        2.7       25.6       0.29         0.02
               Hangingwall
               Seam                401.1       405.3        4.2       56.4       0.13         0.01

   DX_09B      Top Seam            358.7       369.5       10.8       21.6       0.14         0.23
               including           361.9       366.8        4.9       32.0       0.15         0.22
               Hangingwall
               Seam                379.3       381.0        1.7       53.8       0.13         0.03



            Figure 1. Map showing the DX area and location of DX_07, DX_08 and DX_09B
                                 (available at www.korepotash.com)


DX Pre-feasibility study

The results of this drilling programme are being incorporated into the DX prefeasibility study which
is nearing completion.


                                                ENDS
29 April 2020
JSE Sponsor: Rencap Securities (Pty) Limited


                For further information, please visit www.korepotash.com or contact:

  Kore Potash                                                     Tel: +27 11 469 9140
  Brad Sampson – CEO


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

  Canaccord Genuity – Nomad and Broker                            Tel: +44 (0) 20 7523 4600
  James Asensio
  Henry Fitzgerald-O’Connor
  Shore Capital – Joint Broker                                        Tel: +44 (0) 20 7408 4050
  Jerry Keen
  Toby Gibbs
  James Thomas




About Kore Potash’s Projects
Kore Potash is an advanced stage mineral exploration and development company whose primary asset
is 97%-owned interest in the Sintoukola project, a potash project located in the Republic of Congo.
The Sintoukola project comprises the Dougou Extension sylvinite Deposit, the Kola sylvinite and
carnallite Deposits, and the Dougou carnallite Deposit. These deposits are within the Dougou and Kola
Mining Licenses. The Sintoukola project also includes the Sintoukola 2 Exploration License.

Sintoukola is located approximately 80 km to the north of the city of Pointe Noire which has a major
port facility, and within 30 km of the Atlantic coast. Sintoukola has the potential to be among the
world’s lowest-cost potash producers and its location near the coast offers a transport cost advantage
to global fertilizer markets.

The Dougou Extension sylvinite Deposit contains a total sylvinite Mineral Resource Estimate of 232 Mt
grading 38.1% KCl, hosted by two seams. Dougou Extension is located 15 km southwest of Kola. The
deposit is open laterally; an Exploration Target for the northward extension of sylvinite was
announced on the 21 November 2018.

The Kola sylvinite Deposit has a Measured and Indicated sylvinite Mineral Resource Estimate of 508
million tonnes grading 35.4% KCl. The results of a Definitive Feasibility Study (“DFS”) were announced
on 29 January 2019, which determined Ore Reserves of 152 Mt with an average grade of 32.5% KCl.
The deposit is open laterally; an Exploration Target for the Southward extension of sylvinite was
announced on the 21 November 2018.

The Dougou Extension and Kola sylvinite Deposits are considered high grade relative to most potash
deposits globally and have the advantage of having very low content of insoluble material, less than
0.3% which provides a further processing advantage.


Competent Persons Statement:
All information in this report that relates to Exploration Results is based on information compiled by
Ms. Vanessa Santos, P.Geo. of Agapito Associates Inc. Ms. Santos is a licensed professional geologist
in South Carolina (Member 2403) and Georgia (Member 1664), USA, and is a registered member (RM)
of the Society of Mining, Metallurgy and Exploration, Inc. (SME, Member 04058318), a Recognized
Professional Organization (RPO) included in a list that is posted on the ASX website from time to time.

Ms. Santos has sufficient experience that is relevant to the style of mineralisation and type of Deposit
under consideration and to the activity she 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). Mrs. Santos consents to the inclusion in this report of the matters
based on the information in the form and context in which it appears.

Ms. Santos is full time employee of Agapito Associates Inc. and 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. 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.
                        APPENDIX A
JORC CODE Table 1 Checklist of Assessment and Reporting Criteria -
                           sections 1-2
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
                                           Section 1 - Sampling Techniques and Data
 JORC Criteria                  JORC Explanation                                                               Commentary
 1.1 SAMPLING                      • Nature and quality of sampling (e.g. cut channels, random                    • Sampling of Kore’s holes was carried out according to an
 TECHNIQUES                            chips, or specific specialised industry standard measurement                 industry standard operating procedure (SOP) beginning at the
                                       tools appropriate to the minerals under investigation, such as               drill rig.
                                       down hole gamma sondes, or handheld XRF instruments, etc.).                • Core drilling was used to provide core samples. Sample intervals
                                       These examples should not be taken as limiting the broad                     were between 0.1 and 2.0 metres and sampled to lithological
                                       meaning of sampling.                                                         boundaries where present. Minor lithological intervals (~20cm or
                                   • Include reference to measures taken to ensure sample                           less) were generally included within a larger sample.
                                       representivity and the appropriate calibration of any                      • In all cases, core was cut along a ‘center-line’ marked such that
                                       measurement tools or systems used.                                           both halves are as close to identical as possible.
                                   • Aspects of the determination of mineralisation that are Material             • All were sampled as half-core and cut using an Almonte© core
                                       to the Public Report. In cases where ‘industry standard’ work                cutter without water, and blade and core holder cleaned
                                       has been done this would be relatively simple (e.g. ‘reverse                 between samples. Samples were individually bagged and sealed
                                       circulation drilling was used to obtain 1 m samples from which 3             in boxes.
                                       kg was pulverised to produce a 30 g charge for fire assay’). In            • At the laboratory, samples were crushed to 90% passing 2 mm
                                       other cases, more explanation may be required, such as where                 then riffle split to derive a 250 g sample for pulverizing to 85%
                                       there is coarse gold that has inherent sampling problems.                    passing 75 microns
                                       Unusual commodities or mineralisation types (e.g. submarine                • Further discussion on sampling representivity is provided in
                                       nodules) may warrant disclosure of detailed information.                     section 1.5.
                                                                                                                  • Downhole geophysical data including gamma-ray data were
                                                                                                                    collected provides a useful check on the depth and thickness of
                                                                                                                    the potash intervals.
 1.2. DRILLING                      •   Drill type (e.g. core, reverse circulation, open-hole hammer,             • Holes were drilled in two phases by rotary percussion through
 TECHNIQUES                             rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core        the 'cover sequence' (Phase 1 between 9- and 12-inch diameter,
                                        diameter, triple or standard tube, depth of diamond tails, face-            Phase 2 between 5- and 8-inch diameter) stopping 3-5 m into in
                                        sampling bit or other type, whether core is oriented and if so, by          the Anhydrite Member and cased and grouted to this depth.
                                        what method, etc.).                                                         Holes were then advanced using diamond coring with the use of
                                                                                                                    tri-salt (K, Na, Mg) mud to avoid dissolution and ensure
                                                                                                                    acceptable recovery. All holes were drilled as close to vertically
                                                                                                                    as possible.
1.3. DRILL SAMPLE    •   Method of recording and assessing core and chip sample               •   Core recovery was recorded for all cored sections of Kore’s holes
RECOVERY                 recoveries and results assessed.                                         by recording the drilling advance against the length of core
                     •   Measures taken to maximise sample recovery and ensure                    recovered. Recovery is between 95 and 100% for the potash
                         representative nature of the samples.                                    intervals. A full-time mud engineer was recruited to maintain
                     •   Whether a relationship exists between sample recovery and                drilling mud chemistry and physical properties.
                         grade and whether sample bias may have occurred due to               •   Core was wrapped in cellophane sheet soon after it is removed
                         preferential loss/gain of fine/coarse material.                          from the core barrel, to avoid dissolution in the atmosphere, and
                                                                                                  was then transported at the end of each shift to a de-humidified
                                                                                                  core storage room where it is stored permanently.
                                                                                              •   There are no concerns relating to bias due to recovery or due to
                                                                                                  preferential loss of certain size fractions; the sylvinite and halite
                                                                                                  are of similar grainsize and hardness.

1.4. LOGGING         •   Whether core and chip samples have been geologically and             •   The entire length of Kore’s holes was logged geologically, from
                         geotechnically logged to a level of detail to support appropriate        rotary chips in the ‘cover sequence’ and core in the evaporite.
                         Mineral Resource estimation, mining studies and metallurgical            Logging is qualitative and supported by quantitative downhole
                         studies.                                                                 geophysical data including gamma and acoustic televiewer
                     •   Whether logging is qualitative or quantitative in nature. Core           images, which provide a useful check on the conventional core
                         (or costean, channel, etc.) photography.                                 logging.
                     •   The total length and percentage of the relevant intersections        •   Recognition of the potash seams is straightforward and made
                         logged.                                                                  with confidence.
                                                                                              •   Core was photographed to provide an additional reference and
                                                                                                  record.

1.5 SUB-SAMPLING     •   If core, whether cut or sawn and whether quarter, half or all        •   Kore’s samples were sawn as described above, into two halves.
TECHNIQUES AND           core taken.                                                              One half was retained at site as a record, and one half sent in a
SAMPLE PREPARATION   •   If non-core, whether riffled, tube sampled, rotary split, etc. and       batch of samples to the laboratory
                         whether sampled wet or dry.                                          •   Care was taken to orient the core before cutting so that the
                     •   For all sample types, the nature, quality and appropriateness of         retained and submitted halves were as similar as possible.
                         the sample preparation technique.                                    •   For at least 1 in 20 samples both halves were submitted, as two
                     •   Quality control procedures adopted for all sub-sampling stages           separate samples – an original and (field) duplicate sample. The
                         to maximise representivity of samples.                                   results of the duplicate analyses indicate no problematic bias,
                     •   Measures taken to ensure that the sampling is representative of          supporting the adequacy of the sample size and the sub-
                         the in situ material collected, including for instance results for       sampling procedures. This partially a reflection of the massive
                         field duplicate/second-half sampling.                                    layered nature of the mineralisation, with layering that is
                                                                                                  generally close to perpendicular to the core axis.
                        •   Whether sample sizes are appropriate to the grain size of the
                            material being sampled.
1.6 QUALITY OF ASSAY    •   The nature, quality and appropriateness of the assaying and          •   Analyses were carried out at SGS Lakefield in Canada. Water
DATA AND LABORATORY         laboratory procedures used and whether the technique is                  soluble K, Na, Ca, Mg and S were determined by ICP-AES. Cl was
TESTS                       considered partial or total.                                             determined by titration. Insolubles were determined by filtration
                        •   For geophysical tools, spectrometers, handheld XRF                       of the residual solution and slurry membrane filter, washing to
                            instruments, etc., the parameters used in determining the                remove residual salts, drying and weighing.
                            analysis including instrument make and model, reading times,         •   A full quality control and assurance (QAQC) programme was
                            calibrations factors applied and their derivation, etc.                  implemented, to assess repeatability of the sampling procedure
                        •   Nature of quality control procedures adopted (e.g. standards,            and the precision of the laboratory sample preparation and the
                            blanks, duplicates, external laboratory checks) and whether              accuracy of analyses.
                            acceptable levels of accuracy (i.e. lack of bias) and precision      •   This comprised the insertion of blanks, duplicates, certified
                            have been established.                                                   reference materials and internal (non-certified) reference
                                                                                                     material. QAQC samples make up 17% of the total number of
                                                                                                     samples submitted, which is in line with industry best-practices.
                                                                                                 •   The results of the QAQC data were assessed graphically and is
                                                                                                     acceptable. A QAQC report was written.

1.7. VERIFICATION OF    •   The verification of significant intersections by either              •   Sampling and other drilling data was captured into MS Excel,
SAMPLING AND                independent or alternative company personnel.                            then imported along with assay data into an MS Access
ASSAYING                •   The use of twinned holes.                                                database. On import, checks on data are made for errors.
                        •   Documentation of primary data, data entry procedures, data           •   All mineralised intervals used for the MRE were checked and re-
                            verification, data storage (physical and electronic) protocols.          checked an compared against lithology and gamma data, which
                        •   Discuss any adjustment to assay data.                                    provide a further check of grade and thickness.

1.8. LOCATION OF DATA   •   Accuracy and quality of surveys used to locate drill holes (collar   •   DX_07 to DX_09B were drilled at seismic survey stations which
POINTS                      and down-hole surveys), trenches, mine workings and other                had been surveyed prior to drilling by a surveyor using a DGPS.
                            locations used in Mineral Resource estimation.                       •   The drill-hole positions are given in UTM zone 32 S using WGS 84
                        •   Specification of the grid system used.                                   datum (Table in the announcement).
                        •   Quality and adequacy of topographic control.
1.9. DATA SPACING AND   •   Data spacing for reporting of Exploration Results.                   •   The figure in the announcement shows the location of the drill-
DISTRIBUTION            •   Whether the data spacing and distribution is sufficient to               holes.
                            establish the degree of geological and grade continuity
                            appropriate for the Mineral Resource and Ore Reserve
                            estimation procedure(s) and classifications applied.
                        •   Whether sample compositing has been applied.
1.10. ORIENTATION OF    •   Whether the orientation of sampling achieves unbiased             •   Intersections have a sufficiently low angle of dip and drill-holes
DATA IN RELATION TO         sampling of possible structures and the extent to which this is       were drilled vertically; a correction of thickness for apparent
GEOLOGICAL STRUCTURE        known, considering the deposit type.                                  thickness was not deemed necessary. Drill-hole inclination was
                        •   If the relationship between the drilling orientation and the          surveyed to check verticality, it ranged -88° to -90° for the
                            orientation of key mineralised structures is considered to have       potash intersections.
                            introduced a sampling bias, this should be assessed and
                            reported if material.

1.11. SAMPLE SECURITY   •   The measures taken to ensure sample security.                     •   The chain of custody of samples was secure. At the rig, the core
                                                                                                  was under full supervision of a Company geologist. At the end of
                                                                                                  each drilling shift, the core was transported by Kore Potash staff
                                                                                                  to a secure site where it is stored within a locked room.
                                                                                              •   Sampling was 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 there DHL airfreighted all samples to the laboratory, either
                                                                                                  in Australia or Canada. Samples were weighed before sending
                                                                                                  and on receipt of the results weights were compared with those
                                                                                                  reported by the lab.

1.12. AUDITS OR         •   The results of any audits or reviews of sampling techniques and   •   Kore’s sampling procedure has been reviewed on several
REVIEWS                     data.                                                                 occasions by external parties, for the MRE for the Kola, Dougou
                                                                                                  and DX Deposits.
                                                                                              •   The supporting data has been checked by the external CP, with
                                                                                                  inspection of logging sheets and laboratory analysis certificates.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)

                                                                       Section 2 - Reporting of Exploration Results
 JORC Criteria                 JORC Explanation                                                             Commentary
 2.1 MINERAL TENEMENT             • Type, reference name/number, location and ownership                     •   The DX Deposit is entirely within the Dougou Mining Licence which
 AND LAND TENURE                      including agreements or material issues with third parties such           is held 100% under the local company Dougou Mining SARL which is
 STATUS                               as joint ventures, partnerships, overriding royalties, native title       in turn held 100% by Sintoukola Potash SA RoC, of which Kore
                                      interests, historical sites, wilderness or national park and              Potash holds a 97% share. The Permit is valid for 25 years from 9th
                                      environmental settings.                                                   May 2017.
                                  • The security of the tenure held at the time of reporting along          •   There are no impediments on the security of tenure.
                                      with any known impediments to obtaining a license to operate
                                      in the area.

 2.2 EXPLORATION DONE               •   Acknowledgment and appraisal of exploration by other parties.     •   Potash exploration was carried out in the area in the 1960's by
 BY OTHER PARTIES                                                                                             Mines domaniales de Potasse d’ Alsace S.A. High quality geological
                                                                                                              logs are available for these holes. Hole K52 intersected HWSS and
                                                                                                              was the initial reason for Kore’s interest in the area, beginning with
                                                                                                              the twin-hole drilling of ED_01 in 2012 to ‘twin’ historic hole K52.
                                                                                                          •   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                           Deposit type, geological setting and style of mineralisation.     •   The potash seams are hosted by the 400-500 m thick Loeme
                                                                                                              Evaporite formation of sedimentary evaporite rocks. These 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,
                                                                                                              between 125 and 112 million years ago.
                                                                                                          •   The evaporites formed by cyclic evaporation of marine-sourced
                                                                                                              brines which were fed by seepage into 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. To precipitate the
    thick potash beds the system experienced prolonged periods within
    a range of high salinity of brine concentration.
•   Sylvinite is a rock comprised predominantly of sylvite and halite. The
    term ‘rock-salt’ is used to refer to a rock comprising of halite
    without appreciable potash. Sylvinite is typically reddish or pinkish
    in colour.
•   At DX the evaporite stratigraphy is slightly elevated and thinned
    relating to the presence of an underlying horst block forming a
    paleo-topographic high in the pre- and syn-rift rocks below the
    evaporite. This feature is referred to as the ‘Yangala High’ and was
    an important ‘large-scale’ control on the development of sylvinite in
    the DX area.
•   11 evaporite cycles have been recognised, of which most are
    preserved at DX. The ‘Top Seam’ (TS) and ‘Hangingwall Seam’ (HWS)
    potash seams are within the mid to upper part of cycle 9. Where
    sylvinite these are referred to as the TSS and HWSS.
•   The TSS is made up of several narrow high grade sylvinite layers
    with barren rock-salt layers between them. The individual layers
    within the TSS are numbered 5 to 9 from lowest to uppermost.
•   Capping the salt dominated part of the evaporite (Salt Member or
    ‘Salt’) is a low permeability layer of anhydrite, gypsum and clay
    (referred to as the ‘Anhydrite Member’) between 10 and 16 m thick
    in drill-holes to date. It is at a depth of between 290 and
    approximately 520 m at DX.
•   The Anhydrite Member is covered by a thick sequence of dolomitic
    rocks and clastic sediments of Cretaceous age (Albian) to recent.
•   The potash seams were originally deposited as carnallite but at DX
    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. The conversion from carnallite to sylvinite
    leads to a significant reduction of the seam thickness and a
    concomitant increase of grade. This process has taken place
    preferentially over the Yangala High, initiating from the top of the
    Salt Member. The process advanced on a laterally extensive ‘front’
    and was efficient; when converted to sylvinite, almost no residual
    carnallite remains within the sylvinite.
                                                                                                 •   The zone within which carnallite seams have been converted to
                                                                                                     sylvinite is termed the SYLVINITE zone. This laterally extensive zone
                                                                                                     starts a short distance below the SALT_R and extends down to
                                                                                                     typically 40-50 m below this contact, but rarely as much as 80 m. If
                                                                                                     the base of the SYLVINITE zone is part-way through the potash
                                                                                                     seam, un-replaced carnallite occurs immediately below the sylvinite
                                                                                                     part. In these situations, the contact between the sylvinite and
                                                                                                     carnallite is abrupt and easily identified in core.
                                                                                                 •   In the upper 5-30 m of the Salt Member, the sylvinite may be
                                                                                                     further ‘leached’, leaving pale reddish coloured halite with little to
                                                                                                     no KCl, referred to as ‘ghost’ seam and generally still identifiable for
                                                                                                     lateral correlation purposes. The zone within which the sylvinite is
                                                                                                     leached is termed the LEACH zone.
                                                                                                 •   With reference to the above features, the main control on the
                                                                                                     distribution of sylvinite at DX is the position of the seams (in vertical
                                                                                                     sense) relative to the SYLVINITE zone; if the seam is above or below
                                                                                                     this zone they are ‘ghost’ (halite) or carnallite respectively.

2.4. DRILL HOLE        •   A summary of all information material to the understanding of         •   The borehole collar positions of the holes are provided in the
INFORMATION                the exploration results including a tabulation of the following           announcement, along with the final depth.
                           information for all Material drill holes:                             •   Holes were drilled vertically, at the depth of the intersections the
                                • easting and northing of the drill hole collar                      hole dip was greater than -88°.
                                • elevation or RL (Reduced Level – elevation above sea           •   Positions of the holes in relation to other holes are shown in the
                                    level in metres) of the drill hole collar                        map in the announcement.
                                • 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 AGGREGATION   •   In reporting Exploration Results, weighting averaging                 •   For the calculation of the grade over the full thickness of the seams,
METHODS                    techniques, maximum and/or minimum grade truncations (e.g.                the standard length-weighted average method was used to combine
                           cutting of high grades) and cut-off grades are usually Material           results of each sample.
                           and should be stated.                                                 •   No selective cutting of high or low-grade material was carried out.
                        •   Where aggregate intercepts incorporate short lengths of high-       •   No metal equivalents were calculated.
                            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 RELATIONSHIP        •   These relationships are particularly important in the reporting     •   The sylvinite layers have sufficiently low degree of dip, and drill-
BETWEEN                     of Exploration Results.                                                 holes are close enough to vertical that a correction of intersected
MINERALISATION          •   If the geometry of the mineralisation with respect to the drill         thickness was not deemed necessary; the intersections are
WIDTHS AND INTERCEPT        hole angle is known, its nature should be reported.                     considered the ‘true thickness’.
LENGTHS                 •   If it is not known and only the down hole lengths are reported,
                            there should be a clear statement to this effect (e.g. ‘down hole
                            length, true width not known’).

2.7 DIAGRAMS            •   Appropriate maps and sections (with scales) and tabulations of      •   A map and tables are provided in the announcement.
                            intercepts should be 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 comprehensive reporting of all Exploration Results is not     •   Sylvinite intersections in all new holes are reported in Table 1 of the
REPORTING                   practicable, representative reporting of both low and high              announcement.
                            grades and/or widths should be practiced avoiding misleading
                            reporting of Exploration Results.

2.9 OTHER SUBSTANTIVE   •   Other exploration data, if meaningful and material, should be       •   DX_09B is named such as the first attempt to drill this hole failed.
EXPLORATION DATA            reported including (but not limited to): geological observations;       DX_09B was drilled successfully at the same location.
                            geophysical survey results; geochemical survey results; bulk
                            samples – size and method of treatment; metallurgical test
                            results; bulk density, groundwater, geotechnical and rock
                            characteristics; potential deleterious or contaminating
                            substances.
2.10 FURTHER WORK   •   The nature and scale of planned further work (e.g. tests for        •   The completion and reporting of the updated Mineral Resource
                        lateral extensions or depth extensions or large-scale step-out          Estimate for DX is the next step.
                        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.

Date: 29-04-2020 08:00:00
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