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 received authorisation from the Congo-Brazzaville Department of Tourism and Environment to start with the planned drilling programme for the definitive feasibility study (DFS) for the DX project.
It now has all government approvals required for the planned DFS work programme.
Kore has received written authorisation for the drilling of up to five additional drill holes in the Dougou permit area, which encompasses the DX deposit. This authorisation also confirms that the conditions of the Environmental Conformity Certificate for the Dougou permit area, dated March 31, with a duration of 25 years, will continue to apply.
The drilling programme is designed to improve confidence in the mineral resources and ore reserves of the DX deposit. The drill holes are designed to intersect the targeted potash seams about 400 m below surface.
The drilling will be undertaken using drill rigs and equipment that the company owns and that are on site at the Sintoukola camp. Key personnel have been mobilised to site and the drilling programme remains on track for drilling to start before the end of October.
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.