KORE, a potash development firm, said it had started work on the first phase of a definitive feasibility study which will assess the economics of its Dougou Extension Project (DX) project situated in the Republic of Congo (RoC).
This followed the successful raising of $7m via a book-build with investors in August. The DX project is scoped for production of 400,000 tons a year of muriate of potash. It would require 21 months of construction at a pre-production capital cost of $286m.
This was in terms of a pre-feasibility study which has planned for an 18-year life of mine for DX during which time EBITDA of $118m would be generated.
Brad Sampson, CEO of Kore, said in an announcement today a drilling programme consisting of the drilling and analysis of up to five new holes was planned to begin in October. This programme would improve confidence in the value of DX, he said.
As part of the definitive feasibility study, the company has also engaged a number of international consultants in respect of the environmental and technical aspects of the project. Completion of the first phase of the study is planned for May next year.
The company had initially scoped out Kola, a tier-1 project that is part of the Sinotoukola Potash Project (of which DX is also a part). Developing Kola however, comes with a hefty pre-production cost of $2.1bn.
Increasingly, the specialised resources sector has been turning its attention to the prospects offered by mineral fertiliser production.
In January, Anglo American bought Sirius Minerals for £405m for its Woodside polyhalite project, another source of fertiliser aimed at the food security market. In addition to these minerals, and Kore Potash’s proposed product, there is phosphate – a mineral that South Africa’s Kropz has been trying to mine and market.
