Kore Potash plc (ASX:KP2) is an advanced stage mineral exploration and development company that is incorporated in the United Kingdom and is in the process of an AIM listing. The primary asset of KP2 is the 97%-owned Sintoukola Potash SA (SPSA) in the Republic of Congo. SPSA has 100% ownership of the Kola Mining Lease within which the Company’s lead project, the Kola Sylvinite Deposit (Measured and Indicated Potash Mineral Resource of 508 million tonnes grading 35.4% KCl) is located. SPSA also has 100% ownership of the Dougou Mining Lease within which the Dougou Carnallitite Deposit (Measured and Indicated Potash Mineral Resource of 1.1 billion tonnes grading 20.6% KCl) and the Dougou Extension Sylvinite Prospect are situated.
The Definitive Feasibility Study (DFS) to build and commission a new Potash mine is in the design phase nearing completion. The focus of the study is on construction cost and the execution schedule. Rothschild & Co (London) have been appointed as the Advisors for financing the debt to build and commission the plant and associated infrastructure of the Sintoukola Permit.
The Kore Potash logo depicts our purpose; the production of potash. K2O is the formula for potassium oxide. “Kore” (phonetically) is representative of the core of rock extracted by the core drilling process that is an essential part of our exploration and resource work. In Greek mythology, Kore is the daughter of Zeus and the personification of vegetation, associated with spring as well as the fertility of vegetation.
“From the ground up…” our slogan references the mining process of extracting the ore as well as the benefit that crops derive from the application of potassium.
Kore Potash has been awarded the Sintoukola 2 Exploration Permit dated 9 February 2018. This permit is valid for 3 years and can only renewed twice thereafter.
The Kore Potash Group re-domiciled to the United Kingdom, and Kore Potash plc, a holding company incorporated on 25 August 2017 in England & Wales with company number 10933682, became the new parent company of the Group effective 20 November 2017.
An Updated Mineral Resource for the Kola Sylvinite Deposit was completed in July, with a combined Measured and Indicated Mineral Resource of 508 Mt grading 35.4% KCl.
Mining Convention for the Kola and Dougou areas was ratified by the government of the Republic of Congo, defining the terms under which Kore Potash will operate.
Rothschild & Co (London) have been appointed as our Advisors for Financing of debt.
A Mining License for the Dougou area was approved in June, which covers the Dougou Carnallitite Deposit and the Dougou Extension Prospect.
US$ 5m was raised from Summit, a Private Equity firm.
The DFS contract for the Kola Sylvinite Project was signed on 28 February 2017 with a consortium of world class engineering and construction companies led by Technip FMC of France. The study is scheduled to be completed in Q2 2018.
In March, exploration drilling commenced at the Dougou Extension Prospect.
Elemental Minerals changed its name to Kore Potash. Kore raised US$ 40m from the State General Reserve Fund (SGRF); a Sovereign Wealth Fund in Oman and Soceidad Quimaica y Minera (SQM); a New York listed Chilean lithium & potash Company to further progress these projects.
In February, a Resource estimate was completed for the Dougou Carnallitite Deposit, with a combined Measured and Indicated Resource of 1.068 billion tonnes grading 20.6% KCl. A Scoping Study for Dougou was completed in the same month.
Kore announced exceptional intersection in ED_03, the 2nd hole drilled at the Dougou Extension Prospect (previously referred to as Yangala) Completion of a Phased Implementation Study on the Kola Project
A Mining License and ESIA approval for Kola was granted in August 2013. The Kola project land take was gazetted by the government in a declaration of public utility (declaration d’utilité publique – DUP)
A Mineral Resource Estimate for Kola was issued in August, with a combined Measured and Indicated Resource of 573 Mt grading 33.1% KCl. A Pre-Feasibility Study led by SRK Denver was completed in September 2012 and defined Proven and Probable Reserves of 152 Mt of sylvinite ore with an average grade of 31.7% KCl as reported in the NI43-101 by SRK. These reserves are now considered historical in nature and will be replaced by those of the current DFS.
Maiden Mineral Resource announced for the Kola Sylvinite deposit
Exploration started, with drilling and seismic surveys
SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES
Our projects are located in a part of the RoC where socio-economic and development indicators are persistently lower than the national averages. Consequently, our partner communities are generally poor and vulnerable. Mining projects are usually able to deliver real benefits to communities only once they enter the production phase. Notwithstanding this, we have implemented exploration and construction phase SER initiatives to alleviate some of the more pressing challenges faced in our project area.
Assisting the Communities to Collect Water
In the Sintoukola area, few have access to high quality water sources, with most people replying on distant boreholes or small streams. We have installed water boreholes with pumps in the villages of Koutou and Yanika to compliment a government-sponsored water scheme. In 2016 Kore Potash provided 288 ‘hippo-roller’ 90 litre water drums which allow the relatively easy movement of water. These were distributed to 11 villages which represents approximately 38% of households in the area prioritizing vulnerable people (handicapped), schools and hospitals, as well as large families or families living far from the boreholes. These rollers have also been used in innovative ways by local communities, with some being used to transport locally produced palm wine for sale in distant villages.
In the district of Madingo-Kayes in Kouilou, and elsewhere in the RoC, cassava crops are subject to numerous diseases that significantly reduce crop yield. To reduce this threat to a staple food source, we distributed higher yielding, disease resistant cultivars of cassava to 11 villages (763 families). Communities were supported by relay facilitators who provide education and training on how to improve the quality and productivity of their fields. For this programme Kore works in partnership with the Program for Support to the Development of Agricultural Sectors (PADEF) in Congo and we are advised by the Congo Agricultural Research Centre (IRA). This ongoing program has delivered excellent results and is helping communities generate additional income (through increased yields) and become more self-sufficient.