Name of the Project
Dougou extension (DX) project.

Location
The DX deposit is located within Kore Potash’s Dougou mining permit, south-west of the company’s flagship Kola sylvinite deposit, in Congo-Brazzaville, which will be a separate development.

Project Owner/s
Kore Potash.

Project Description
A scoping study has demonstrated the low technical risk and attractive economics of the project.

The base case economic evaluation proposes a mine life of about 17 years based on solution mining of 52-million tonnes of indicated mineral resources grading 43.1% potassium chloride from a total indicated mineral resource base of 111-million tonnes grading 37.2% potassium chloride.

Total mineral resources are estimated at 232-million tonnes grading 38.1% potassium chloride.

The project proposes a selective dissolution mining method using vertically drilled dual-well caverns, which involves two single-well caverns that are solution-mined until the caverns merge. The project aims to produce 400 000 t/y of white granular muriate of potash.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has an after-tax net present value, at a 10% discount rate, of $221-million and an internal rate of return of 19.3%, with a payback of 4.25 years from first production.

Capital Expenditure
The project is estimated at $327-million.

Planned Start/End Date
The project is expected to take two years to construct.

Latest Developments
Innovare Technologies has been appointed as part of Kore’s owner’s team for the DX sylvinite deposit’s prefeasibility study (PFS).

Agapito Associates has been appointed as the Joint Ore Reserves Committee competent person for the mineral resources and ore reserves, and as general technical support consultants for the DX project, which is located near the Kola project.

Kore is reviewing proposals from several international consulting companies to select the engineering partner for the PFS.

Further, in line with the planned work programme, the company is mobilising drill rigs to the DX project site to prepare for the planned drilling programme. Drilling will start once the initial seismic results are available to ensure that the position of infill drill holes are optimally sited.

Line clearing for the two-dimensional seismic programme, meanwhile, is progressing in line with the plan. The seismic survey programme will start on arrival of seismic survey equipment, which is being shipped from Antwerp, in Amsterdam, to Pointe Noire and is expected to arrive in the first half of August.

Samples of the DX drill cores have been prepared and shipped to the Agapito laboratory, in the US, where dissolution tests are under way.

Key Contracts and Suppliers
Innovare Technologies (mining, drilling methodology, process design and owner’s team); Agapito Associates (mineral and ore reserves and general technical support consultants).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kore Potash, tel +27 11469 9144 or email info@korepotash.com.