TIDMKP2
RNS Number : 0344L
Kore Potash PLC
28 April 2020
28 April 2020
Kore Potash Plc
("Kore Potash" or the "Company")
Review of Operations for the Quarter ended 31 March 2020
Kore Potash, the potash exploration and development company
whose flagship asset is the 97%-owned Sintoukola Potash Project
("Sintoukola" or the "Project"), located within the Republic of
Congo ("RoC"), provides the following quarterly update, for the
period to 31 March 2020 (the "Quarter").
Quarterly Highlights:
-- Detailed work continued on the Dougou Extension ("DX")
Pre-feasibility Study ("PFS") and the Company anticipates
publication in May 2020.
o Technical studies, design and costing have been delivered to
Company for review.
-- Extensions of environmental approval period to 25 years for
Kola and Dougou Mining licences were received on 31 March 2020.
-- The Company continued to engage with the RoC Government on
the implementation of specific commitments contained within the
Mining Convention.
Corporate Highlights
-- At 31 March 2020, the Company held USD 4.7 million cash at bank.
-- The Company published its 2019 annual report on 24 March 2020.
Brad Sampson, Chief Executive of Kore Potash, commented:
"We are excited to be nearing completion of the DX
Pre-feasibility Study. The DX project with its very high grade and
shallow potash, and close proximity to the coastline and the major
port of Pointe Noire is ideally placed to produce potash at low
cost for supply into the nearby and growing markets in Africa and
South America."
Operational activities
Dougou Extension Sylvinite Pre-feasibility Study
During the Quarter, t he Company progressed the Pre-feasibility
Study ("PFS") on the Dougou Extension ("DX") project. The Company
reports the following progress:
-- All technical and trade off studies, design and cost
estimation planned for the pre-feasibility study have been
delivered to Kore for review.
-- The Company drilled 3 infill diamond drill holes at the DX
deposit as part of the PFS scope of work. The results of these
holes are currently being assessed and will be released as soon as
they have been compiled and verified.
-- The Company anticipates release to shareholders of the
pre-feasibility outcomes during May 2020.
There were no mining production or construction activities
during the Quarter.
Environmental and social impact assessment for Kola and Dougou
("ESIA")
The Minister of Tourism and Environment of the RoC issued
certificates on 31 March 2020 granting a 25-year approval period
for the ESIAs for both the Dougou and the Kola Mining Licences.
This approval aligned with the provisions of the Mining
Convention in place between the Government and Kore and eliminated
the previous requirement for annual re-approvals.
The Company plans in the future to seek approval for amendments
to the ESIA for the Dougou Mining Licence to include the planned
mining and processing of the DX sylvinite Deposit which sits within
the Dougou Mining Licence.
Mining Convention and Research Convention
The Company continues to engage with the RoC Government on the
implementation of specific commitments contained within the Mining
Convention. This includes the government's approval for the
intra-group transfer of the Dougou Mining License from Sintoukola
Potash S.A. to the operating entity Dougou Potash Mining S.A. and
the transfer of a 10% shareholding in Kola Potash Mining S.A. and
Dougou Potash Mining S.A. to the Government.
The Company further progressed discussion with the Government on
terms and conditions for a Mining Research Convention covering the
Sintoukola 2 exploration licence. This convention is required to be
negotiated in advance of any exploration activity.
Covid-19 response
In response to the Covid-19 situation t he Company has closed
its offices and management and office staff are all working
remotely from home, with little disruption to the normal
workflow.
The Koutou exploration camp and core yard remains guarded and
secured. The Koutou camp manager and mechanics remain on site to
ensure the condition of assets.
Provision of assistance to local communities and stakeholders
near our project area in the ROC continues, via support for the
Covid-19 response strategy of the Local Health Department, and the
local clinic at Koutou village and through working in conjunction
with the chiefs of local villages, to distribute essential food
aimed at alleviating the impact of the crisis on vulnerable
people.
Quarterly cashflow report
The Company will also today lodge its cashflow report for the
quarter ended 31 March 2020. Included in those cashflows are
non-executive directors' fees and CEO salary of approximately
USD182,000 settled in cash. The Company also settled outstanding
directors' fees for the quarter ended December 2019 through the
issue of 3,811,398 ordinary shares, as announced on 21 January
2020.
The Company invested USD1.35 million in exploration in the
Quarter and ended the Quarter with USD 4.7 million of cash at
bank.
ENDS
For further information, please visit www.korepotash.com or
contact:
Kore Potash Tel: +27 11 469 9140
Brad Sampson - CEO
Tavistock Communications Tel: +44 (0) 20 7920
Jos Simson 3150
Edward Lee
Canaccord Genuity - Nomad and Tel: +44 (0) 20 7523
Broker 4600
James Asensio
Henry Fitzgerald-O'Connor
Shore Capital - Joint Broker Tel: +44 (0) 20 7408
Jerry Keen 4050
Toby Gibbs
James Thomas
About Kore Potash's Projects
Kore Potash is an advanced stage mineral exploration and
development company whose primary asset is 97%-owned interest in
the Sintoukola project, a potash project located in the Republic of
Congo. The Sintoukola project comprises the Dougou Extension
sylvinite Deposit, the Kola sylvinite and carnallite Deposits, and
the Dougou carnallite Deposit. These deposits are within the Dougou
and Kola Mining Licenses. The Sintoukola project also includes the
Sintoukola 2 Exploration License.
Sintoukola is located approximately 80 km to the north of the
city of Pointe Noire which has a major port facility, and within 30
km of the Atlantic coast. Sintoukola has the potential to be among
the world's lowest-cost potash producers and its location near the
coast offers a transport cost advantage to global fertilizer
markets.
The Dougou Extension sylvinite Deposit contains a total
sylvinite Mineral Resource Estimate of 232 Mt grading 38.1% KCl,
hosted by two seams. Dougou Extension is located 15 km southwest of
Kola. The deposit is open laterally; an Exploration Target for the
northward extension of sylvinite was announced on the 21 November
2018.
The Kola sylvinite Deposit has a Measured and Indicated
sylvinite Mineral Resource Estimate of 508 million tonnes grading
35.4% KCl. The results of a Definitive Feasibility Study ("DFS")
were announced on 29 January 2019, which determined Ore Reserves of
152 Mt with an average grade of 32.5% KCl. The deposit is open
laterally; an Exploration Target for the Southward extension of
sylvinite was announced on the 21 November 2018.
The Dougou Extension and Kola sylvinite Deposits are considered
high grade relative to most potash deposits globally and have the
advantage of having very low content of insoluble material, less
than 0.3% which provides a further processing advantage.
Tenement Details and Ownership
The Company is incorporated and registered in England and Wales
and wholly owns Kore Potash Limited of Australia. Kore Potash
Limited has a 97% holding in SPSA in the RoC. SPSA is the 100%
owner of Dougou Potash Mining S.A. which will hold the Dougou
Mining Lease upon the transfer from SPSA to Dougou Potash Mining
S.A. through the issue of a Presidential Decree. In addition, SPSA
were recently awarded the Sintoukola 2 Exploration Permit. The Kola
Deposit is located within the Kola Mining Lease. The Dougou Mining
lease hosts the Dougou Deposit and the Dougou Extension
Deposit.
Table 1: Schedule of mining tenements (Republic of Congo) *
Project & Tenement Issued Company Interest Title Registered
Type to
Kola Decree 2013-412 100% Kola Potash Mining
Mining of 9 August potassium rights S.A.
2013 only
------------------ ------------------- -------------------
Dougou Decree 2017-139 100% Sintoukola Potash
Mining of 9 May 2017 potassium rights S.A.
only
------------------ ------------------- -------------------
Sintoukola2 Decree 2018-34 100% Sintoukola Potash
Exploration of 9 February potassium rights S.A.
2018 only
------------------ ------------------- -------------------
* these remain unchanged from the quarter ended 31 December
2019.
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END
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