Name of the Project
Dougou extension (DX) project.

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

Project Owner/s
Kore Potash.

Project Description
A scoping study has demonstrated the low technical risk and attractive economics of the project.

The base case economic evaluation proposes a mine life of about 17 years based on solution mining of 52-million tonnes of indicated mineral resources grading 43.1% potassium chloride from a total indicated mineral resource base of 111-million tonnes grading 37.2% potassium chloride.

Total mineral resources are estimated at 232-million tonnes grading 38.1% potassium chloride.

The project proposes a selective dissolution mining method using vertically drilled dual-well caverns, which involves two single-well caverns that are solution-mined until the caverns merge. The project aims to produce 400 000 t/y of white granular muriate of potash.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
In the base case, the project has an after-tax net present value, at a 10% discount rate, of $221-million and an internal rate of return of 19.3%, with a payback of 4.25 years from first production.

Capital Expenditure
The project is estimated at $327-million.

Planned Start/End Date
The project is expected to take two years to construct.

Latest Developments
Kore Potash has bought two drill rigs and ancillary equipment from Equity Drilling for use in a prefeasibility study (PFS) drilling campaign at the DX project in Congo-Brazzaville.

As consideration for the acquisition, 22-million new ordinary shares in the company are being issued to the vendor at a deemed price of 1.23p each. The acquisition is in line with the company’s strategy to undertake its development plans in a cost-effective manner.

Commenting on the announcement, Kore CEO Brad Sampson has said that in addition to being the most cost effective way to complete the DX PFS drilling programme, this equipment may “also be used for any future project development related drilling”.

In October 2019, Kore reported that the PFS for the DX project was on track to be completed in April 2020, within budget and with potentially improved financial outcomes.

Key Contracts and Suppliers
Innovare Technologies (mining, drilling methodology, process design and owner’s team); Agapito Associates (mineral and ore reserves and general technical support consultants).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kore Potash, tel +27 11469 9144 or email info@korepotash.com.