The results of a scoping study, undertaken to assess the viability of producing 400 000 t/y of muriate of potash (MoP) from a portion of the sylvinite in Kore Potash’s Dougou Extension (DX) deposit through a solution mining method, indicate support for a low operational expenditure and strong cash generative operation with attractive estimated base case up-front capital costs of $327-million.

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

The scoping study has indicated a mine life of about 17 years based on solution mining of 52-million tonnes of indicated mineral resource at 43.1% potassium chloride (KCl) from a total indicated mineral resource base of 111-million tonnes at 37.2% KCl.

An estimated two-year construction period provides the company with near-term production options.

Several areas of the scoping study were completed to a higher level of confidence than is normal for a scoping study; therefore, the work required to complete a prefeasibility study, once started, is estimated to require only nine months, with the drilling of an additional four diamond drill holes being the item currently controlling the overall timeframe.

“The completion of the DX solution mining project scoping study confirms the district-scale development potential of this world-class potash basin,” Kore CEO Brad Sampson said in a statement published on Monday.

“We are incredibly excited at the prospect of accelerating the company into production and cashflow generation via the DX project, while we continue to optimise the flagship tier one Kola sylvinite project.”

The company believes the $327-million capital cost estimate to build the DX project makes the project attractive from a capital perspective and the successful completion of the scoping study allows it to rapidly progress to prefeasibility study stage, which will further define and derisk the project, he said.

“The development of the DX project will give advantages in terms of overlapping infrastructure, reducing the future capital cost of Kola.”