Dougou Deposit

Projects

DOUGOU PROJECT

The Dougou Deposit is 15 km southwest of Kola and is a large, thick carnallitite deposit with a Measured and Indicated Mineral Resource of 1.1 billion tonnes grading 20.6% KCl.

A Scoping Study was completed in February 2015 which indicated that a low capital, low operating cost, quick-to-production and scalable solution mine could be established.
The deposit is ideally suited to this method of mining (whereby ore is extracted by pumping heated water from surface to dissolve it and pumped to surface), due to abrupt geological contacts, low angle of dip, thickness, continuity, high carnallite content and low insoluble content.

Geology of Dougou
The Dougou Deposit comprises only of carnallitite, hosted by 4 horizontal or gently dipping (<5 degrees) seams, between 7 and 12 m thick, with a combined thickness of 30 to 40 m. The seams are between 400 and 600 m in depth and continuous across the deposit. Thickness variation is minimal and lateral grade variation within each seam is less than 10%. Of particular importance is the hanging wall seam (HWS) which appears to be unique globally in its purity of potash mineral content over such a significant thickness. At Dougou it is uniformly comprised of between 90 and 91% of the mineral carnallite and averages 10.0 m thick, grading 24 to 25% KCl.

Resources & Reserves
The combined Measured and Indicated Resource for the Dougou carnallitite deposit is 1.07 billion tonnes grading 20.6% KCl (13.0 % K2O) as estimated February 2015 by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (“ERCOSPLAN“) of Germany. The deposit is ‘open’ laterally to the North, South and East. The HWS contributes 311 Mt grading 24.7% KCl to the Measured and Indicated Mineral Resource.