Aim-listed Kropz has announced an increase in the total phosphate resources to 106-million tonnes at the Elandsfontein phosphate project, in South Africa’s Western Cape province.
However, the company had to downgrade much of the previously measured resource to indicated status and also downgrade previously indicated resources to inferred status.
The total measured and indicated resource tonnage has reduced by about 76%.
The company has been undertaking infill drilling, relogging of historical cores and mapping of ore exposures to increase the company’s level of confidence in the project, and allow for accurate and efficient mine planning.
Based on current conditions and on-site learnings, as well as revised geological interpretations, in addition to new intersections of unknown and undefined indurated phosphatic lenses during mining activity, Kropz considered it prudent that the resource model be reclassified.
“The estimate needed to be brought in line with the level of confidence that reflected grade and physical properties and continuity (mining output and plant performance), as these aspects play a role in economic viability and, therefore, associated reserve determination,” the company explains.
The updated resource now considers core recovery, average drill hole spacing and sample count. The grade has improved, with the refined lithological contacts and improved estimates from the infill drilling and pit sampling.
The Elandsfontein project’s proven reserve sits at 7.31-million tonnes grading 10.71% phosphorous pentoxide.
CEO Mark Summers says that while the downgrade of the measured and indicated resource is disappointing, it enables Kropz to move forward with a significantly increased level of confidence.
The increase in total resource and, more importantly, the increase in grade, as well as continued drilling planned for the year ahead, will further increase confidence and support in increasing reserve tonnes.