AMN - CONGO: Grade increase at Kola potash deposit

A new resource estimate for the Kola deposit of Kore Potash's flagship Sintoukola Potash Project in the Republic of Congo has increased the sylvinite grade by 7% to 35.4%. There is more than 500 million tonnes of sylvinite in the measured and indicated categories.

Kore says the grade is on par with the highest grade operating potash mines globally.

The update was completed to provide the basis for the Kola definitive feasibility study (DFS) which is under way. It confirms the significant size and high grade nature of the Kola deposit.

The resource estimate was completed by Met-Chem division of DRA Americas Inc, a subsidiary of the DRA Group.

A large amount of new data was used in the updated Mineral Resource interpretation and estimation. This includes 186km of re-processed seismic data and six new drill-holes for a total of 52 drill-holes.

The company says the increased grade may contribute to a lowering of the ‘unit cost’ for Muriate of Potash (MoP) production.

There was a 5% reduction reduction in contained potash compared to the 2012 measured and indicated sylvinite mineral resource which had a grade of 33.1%.

The deposit remains open laterally and is very shallow at less than 300 metres depth. The sylvinite seams are extensive and have a thickness and continuity of grade that are likely to be amenable to a high-productivity, low-cost mining method.

Kore says the sylvinite is of exceptional purity, with less than 0.2% insoluble material (typically >5% in comparable deposits globally) and less than 0.2% magnesium. These qualities are highly desirable characteristics in potash ores, supporting lower processing costs.

It says the resource provides a solid basis for an updated mine plan, underpinning the DFS which is well under way. An updated reserve estimate is due for completion in Q1 2018.

Kore's CEO Sean Bennett said, “We are delighted to report that the updated Kola mineral resource estimate has confirmed the deposit is truly world-class.

"With more than half a billion tonnes of sylvinite, Kola should support a long life-of-mine and at a grade of over 35% KCl, the deposit remains on a par with the world’s highest grading operating potash mines.

"We anticipate that this, coupled with the advantages offered by Kola’s location, shallow depth, seam thickness and continuity, will allow Kore to realise promising results from the DFS that is currently under way and due for completion in Q2 2018."

www.korepotash.com