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 short construction period of 21 months.
Latest Developments
Kore Potash announced a $7-million capital raise on August 26 to fund the first phase of a definitive feasibility study (DFS) for the DX sylvenite project, which will include resource and reserve drilling, and restarting the production target and economic modelling to incorporate the updated mineral resource and ore reserves.
The placement is being conducted through an accelerated bookbuild, with the shares priced at 0.65p a share.
Kore told shareholders that the company had received indications from several of its biggest existing shareholders and its chairperson David Hathorn, that they would participate in the proposed fundraise.
Meanwhile, Kore is also proposing to enter into a conditional technical services agreement with shareholder Sociedad Quimica y Minera de Chile, or SQM, to provide certain services in connection with the first phase of the DFS for $540 000, which will be satisfied by the issue of Kore shares.
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.