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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