Project - Kola

Projects

KOLA PROJECT

Kola is Kore’s flagship project and it is the key focus of the Company development strategy, with a Measured and Indicated Mineral Resource of 508 Mt grading 35.4% KCl. Once operational it is anticipated to be one of the lowest cost MoP producers globally. The projected operating cost of approximately US$100/t cfr granular is supported by fundamental geological and geographical factors. The key factors that influence the OPEX are:

  • Shipping costs from export facility to Brazil are low due to directness of shipping route, resulting in the cheapest viable source of Potash to Brazil.
  • Lower mining costs due the comparatively shallow depth of the ore body (260 m to shaft bottom) and competitively high grade (35% KCL)
  • Lower mining costs limited roof support required (due to low insoluble in ore body)
  • Low insoluble content of the orebody reduces processing costs (0.3% insoluble content)
  • Proximity of the orebody to the export facility (35km)
  • Brine dispersal directly into  the ocean, negating the need for a surface tailings storage facility
  • Abundant water supply available at an attractive cost
  • Competitive gas and power costs due to local availability
  • Ease of doing business and attractive fiscal terms in RoC

The Kola DFS is in progress and is expected to be completed by early Q3 2018, with a complete EPC offer for project execution expected in 3 months after competition. Start of construction is forecast Quarter 2 2019. The scope of the DFS covers:

  • The underground mine design
  • A service and an intake air shaft
  • An ore hoisting and exhaust shaft
  • Mine surface facilities
  • A 35km overland conveyor from the mine to the process plant
  • A processing plant producing 2mt/a MoP
  • A product export facility
  • Dedicated product export jetty
  • A transshipment zone
  • Overhead power lines
  • Gas pipeline
  • Employee facilities
  • Road infrastructure upgrades

Geology of Kola

The Kola sylvinite deposit is hosted by flat or gently dipping seams at depths of between 180 and 300 m below surface, present over an area of approximately 12 km by 8 km. The most important seams at Kola are the Upper and Lower Seams which have an average grade of 36 and 31 % KCl respectively and are 4 m thick (average). These seams are separated by 3-4 m of rock salt. The Hangingwall Seam is less extensive but important as it averages 59% KCl, possibly the highest grading potash seam on earth. The deposit is open laterally, recent drilling suggests potential for expansion several km to the southeast.

For greater detail readers should refer the announcement dated 6 July 2017 titled ‘Updated Mineral Resource for the Kola Sylvinite Deposit’