ASX- and Aim-listed Kore Potash has received a new proposal from a French consortium of engineering companies (FC) that identifies opportunities to potentially reduce the capital cost of its flagship Sintoukola (Kola) potash project, in Congo-Brazzaville, by $415-million.
The company expects to continue discussions with the FC to “fully understand” its proposal for capital savings and to further explore additional options to reduce the capital cost and to shorten the construction schedule for Kola ahead of starting the financing phase.
In addition to the ongoing discussions with the FC, seven international engineering and construction groups have accepted invitations to provide comparative pricing against the Kola bill of quantities.
The company expects to receive this new pricing information during the fourth quarter and to incorporate this information into the Kola optimisation programme.
Moreover, Kore on Monday reported that Innovare Technologies had been appointed as part of Kore’s owner’s team for the Dougou Extension (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 and the seismic survey programme will start on arrival of seismic survey equipment, which is currently being shipped from Antwerp, in Amsterdam, to Pointe Noire and 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.
Kore CEO Brad Sampson, commented on Monday that Kore’s two potash projects – Kola and DX – and their close proximity to target markets created a “permanent competitive advantage” for the company, especially compared with potash projects in the northern hemisphere.