Photo by: Bloomberg
London-listed potash project developer Emmerson has announced an updated mineral resource estimate (MRE) for its Khemisset potash project, in Morocco, indicating a 72% increase in total resource to 537-million tonnes, grading about 9.24% potassium oxide.
Based on a 2018 scoping study, the Khemisset project has a minimum mine life of 20 years and can deliver average yearly earnings before interest, taxes, depreciation and amortisation of $236-million.
A feasibility study is on track for completion in the first half of next year.
The company is examining the potential for a Phase 2 expansion to increase production by 50%, which would substantially improve economics.
Additionally, Emmerson is considering the potential to convert some muriate of potash to sulphate of potash, which could also enhance project economics.
“Following a successful drilling campaign, it is pleasing to see the overall MRE tonnages increase by over 70%, to more than half-a-billion tonnes. The recalculation of the economic cut-off grade for Khemisset shows the project can be profitable to a grade as low as 5.2% potassium oxide and, as a result, we continue to believe there is strong potential to increase the mine life at Khemisset.
“The updated MRE is a further validation of the world-class prospects for the project,” CEO Hayden Locke noted in a statement on Monday.
He added that the significant proportion of the MRE within the higher-confidence indicated resource category would support the company’s ongoing discussions with various potential debt financing institutions which included an indicative proposal for up to $230-million of project finance debt from a major European commercial bank.