PhosCo eyes more inventory growth with another discovery
ASX-listed PhosCo has made another discovery at its Gasaat phosphate project, in Tunisia, with drilling having intersected thick, shallow phosphate mineralisation at the KH prospect, just 3.5 km from the proposed plant site at Gasaat.
KH is the northern-most prospect at Gasaat. The five-hole drill programme returned intersections ranging from 16.5 m to 20.5 m down-hole.
The KH discovery follows the discovery at the DOH prospect at Gasaat, which was announced on June 3.
The company says both discoveries support PhosCo’s strategy to continue growing the resource at Gasaat, which is ideally positioned to capitalise on growing global demand for new fertiliser sources.
PhosCo says the shallow nature of the KH mineralisation, which outcrops in places, points to another discovery that could boost the overall economics of Gasaat, particularly in the early years of production.
“The drill programme at KH was designed to target a value-accretive discovery with the potential to underpin PhosCo’s high-margin production startup strategy. The appeal of the KH prospect is its simple tabular, outcropping mineralisation, and close proximity to the proposed plant.
“The drilling success at KH is highly complementary to the recent maiden resource estimates (MREs) at the nearby KM and SAB prospects, which have the potential to optimise the project economics ahead of the bankable feasibility study,” says MD Taz Aldaoud.
PhosCo says KH drilling has been submitted for laboratory assay and will be the basis for a maiden MRE for this prospect.
Multiple workstreams are progressing at Gasaat to inform an updated scoping study due for release in the third quarter of this year.
The company notes that the drill rig will soon mobilise to follow up on encouraging rock chip results at the King’s Eye prospect within PhosCo’s wholly owned Simitu base metals project.
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