Name and Location
Kola sylvinite potash project, Republic of Congo (RoC).

Client
Elemental Minerals.

Project Description
The Kola project has measured and indicated resources of 573-million tonnes at 20.9% potassium oxide (K₂O), and proven and probable reserves of 152-million tonnes at 20% K₂O.

In September 2012, Elemental issued a technical report compliant with Canadian National Instrument 43-101 for a prefeasibility study (PFS) on the Kola project. The PFS report presented a mineral resource and mineral reserve estimate and defined the mine, the process facility and infrastructure requirements, costs and economics for a production target of two-million tonnes a year of muriate of potash (MoP).

Subsequently, Elemental considered alternatives to the project configuration to reduce the initial capital requirements.

Elemental’s phased implementation update on its Kola project reconfigures the project to incorporate a phased production ramp-up and incorporates build, own, operate and maintain methods.

These changes include:
• a rescheduled mine plan, starting with a Phase 1 production of one-million tonnes a year of MoP for the first four years, whereafter Phase 2 will be completed to achieve a total nameplate capacity of two-million tonnes a year of MoP;
• a revised shaft configuration, with one 12-m-diameter main shaft and a secondary 4.5-m-diameter ventilation shaft for Phase 1;
• a refrigeration plant will be installed in the secondary ventilation shaft as part of Phase 2;
• an overland conveyor for run-of-mine ore transport, in place of the dedicated mine haul road and haul trucks in the PFS;
• the construction of the process plant in two separate one-million-tonne-a-year phases – this phased plant construction will also result in phased civil works and brine dilution and disposal infrastructure;
• the use of a containerised bulk transport solution to store and transport one-million tonnes a year of product to a commercial jetty during Phase 1 – a jetty is currently under construction, with expected completion in 2016 – and the construction of the product storage facility, jetty and loading system at Tchiboula is, therefore, moved to Phase 2;
• the replacement of the dedicated natural gas pipeline with trucking compressed natural gas to the process facility site; and
• the conversion of the construction camp into an operational accommodation camp for Phase 1 of operations.

Further, several ROC mining companies are pursuing the construction of an export facility at Pointe Indienne, 30 km south of the process plant area (Tchiboula), for the direct loading of bulk commodities such as potash, phosphate and iron-ore.

Net Present Value/Internal Rate of Return
The project has an unlevered, after-tax net present value at 10% of $1.836-billion and an internal rate of return of 24%.

Value
The phased implementation update estimates capital expenditure for Phase 1 at $907.7-million. Phase 2 is estimated at $683.5-million.

Duration
Phase 1 is scheduled to start in 2018 and Phase 2 in 2020.

Latest Developments
The project configuration developed in the phased implementation update will form the basis for the feasibility study.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Elemental Minerals investor contact Ilja Graulich, tel +27 11 469 9140 or email ilja.graulich@elementalmineralsltd.com.