Name of the Project
Dougou Extension (DX) potash solution mining project.

Location
The project is located in Congo-Brazzaville.

Project Owner/s
Kore Potash.

Project Description
The DX sylvinite deposit is part of Kore Potash’s Sintoukola potash project, which includes Kore’s Kola sylvinite deposit. The project has ore reserves of 17.7-million tonnes of sylvinite grading 41.7% potassium chloride and mineral resources of 145-million tonnes grading 39.7% potassium chloride.

The prefeasibility study has confirmed a low tech­nical-risk operation using single-well selective solution mining – an efficient potash extraction method used at multiple potash operations globally.

The development of the DX project is expected to create a low-cost potash operation, which aims to produce an estimated 393 000 t/y of K60 muriate of potash over an initial 18.4-year mine life, based on the project’s reserves.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an attributable after-tax real ungeared net present value, at a 10% discount rate, of $319-million and an internal rate of return of 22.9%, with a payback of 4.3 years from first production.

Capital Expenditure
The project has a preproduction capital cost of $285.9-million, including contingency.

Planned Start/End Date
The project has a construction period of only 21 months.

Latest Developments
Kore Potash has started work on the first phase of a definitive feasibility study (DFS) for its DX potash project, following a recent equity fundraise.

Phase 1 of the DFS is scheduled to be completed in May 2021.

A drilling programme comprising the drilling and analysis of up to five new holes is planned to begin in October and is expected to improve confidence in the value of DX. The programme will be undertaken using company-owned drill rigs.

Several international consultants have been engaged to support the environmental and technical aspects of the DFS.

Lithium and potassium producer SQM, one of Kore’s major shareholders, is providing technical support for key aspects of the DFS.

Key Contracts and Suppliers
Innovare Technologies (solution mining, process and drilling consultants); Agapito Associates Inc (mine designers and competent persons for the mineral resource and ore reserve estimation); Engcomp (engineering services consultant); Change Energy Services (natural gas virtual pipeline consultant); and PRDW (port and coastal consulting engineers).

Contact Details for Project Information
Kore Potash, email info@korepotash.com.