ESIA approval extended for 25 years

6 April 2020

 

Kore Potash Plc

("Kore Potash" or the "Company")

Kola and Dougou ESIA approval extended for 25 years

 

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"), is pleased to announce that Certificates of Environmental Compliance ("Certificates") were issued on 31 March 2020 by the Ministry of Tourism and Environment of the Republic of Congo, each with a 25 year validity. These Certificates relate to the Environmental and Social Impact Assessments ("ESIA") for both the Dougou and Kola Mining Licences and relax the previous requirement for periodic compliance certificates.

 

Highlights:

·    The Minister of Tourism and Environment of the Republic of Congo issued certificates on 31 March 2020 granting 25 year approvals to the ESIAs for both the Dougou and the Kola Mining Licences.

 

·    The ESIA's for both licences previously required reapproval on an annual or 3 yearly basis.

 

·    The 25 year period of ESIA certification better aligns with the initial term of the mining licences and the Mining Convention.

 

·    The Company anticipates completion of the Preliminary Feasibility Study ("PFS") on the Dougou Extension ("DX") Project this quarter.

 

·    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.

 

Brad Sampson, Chief Executive of Kore Potash, commented:

"We are pleased with the continued support of the Government of the Republic of Congo. The 25 year ESIA period is now aligned with the timeframe of the Mining Convention between Kore and the Government of the Republic of Congo, which was passed into law. This offers improved certainty for all parties and stakeholders."

"As we progress the development of the DX project and move towards first potash production we will apply for amendments to the Dougou ESIA as part of the DX permitting process. We are particularly mindful of the Government's support during the difficult current global situation with covid-19. In response to covid-19 Kore has temporarily closed its office in the Congo and our staff are working productively from home and continue to progress our activities including the DX PFS in line with our planning."

 

Kola ESIA

The ESIA for the Kola Mining Licence was first approved by the Minister of Tourism and Environment of the Republic of Congo on 10 October 2013 and required annual re-approval until construction of a mine on the licence commences. The ESIA was subsequently re-approved in 2014 for 3 years until 10 October 2017.

During 2018 and 2019 the Kola ESIA was amended to include the full scope described in the definitive feasibility study for the Kola project.

On 31 March 2020, the Minister of Tourism and Environment of the Republic of Congo granted a 25-year approval of the ESIA, in accordance with the provisions of the Mining Convention formed between the Government of the Republic of Congo and Kore.

The approved Kola ESIA covers the planned mining and processing of the Kola sylvinite Deposit, in line with the scope of the Kola definitive feasibility study including:

·    Mine area

·    Plant area

·    High-voltage transmission line corridor

·    Gas pipeline corridor

·    Conveyor and service road corridor

 

Dougou ESIA Certification

The ESIA for the Dougou Mining Licence was first approved by the Minister of Tourism and Environment of the Republic of Congo on 13 July 2018. This ESIA approval was valid for one year and required annual re-approval until construction of a mine on the licence begins. On 31 March 2020, the Minister of Tourism and Environment of the Republic of Congo granted a 25 year approval of the ESIA, thus aligning with the provisions of the Mining Convention.

Approval of an ESIA is a prerequisite to beginning construction of a mining project in the Republic of Congo.

The ESIA approval currently covers the potential mining and processing of the Dougou carnallite Deposit.

The Company plans in the future to seek approval for amendments to this ESIA to include planned mining and processing of the DX sylvinite Deposit which sits within the Dougou mining licence.

The Company also plans to utilise the high-voltage power line, gas pipeline and conveyor and service road corridors, approved in the Kola ESIA, as service corridors for the DX project.

 

Project Development

The Company anticipates completion of the Preliminary Feasibility Study ("PFS") on the DX Project this quarter.

DX presents the quickest pathway to potash production and cash generation for the Company and the larger Kola project is planned for development subsequent to first production from DX.

The granting of a 25 year term of approval of the ESIAs by the Ministry of Tourism and Environment is indicative of the strong alignment between the Company and the Government of the Republic of Congo to realise the potential of the Republic of Congo potash basin for the benefit of all stakeholders.

 

ENDS

 

For further information, please visit www.korepotash.com or contact:

 

Kore Potash Brad Sampson - CEO		Tel: +27 11 469 9140
Tavistock Communications Jos Simson Edward Lee		Tel: +44 (0) 20 7920 3150
Canaccord Genuity - Nomad and Broker James Asensio Henry Fitzgerald-O'Connor		Tel: +44 (0) 20 7523 4600
Shore Capital - Joint Broker Jerry Keen Toby Gibbs James Thomas		Tel: +44 (0) 20 7408 4050

 

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.

 

Forward-Looking Statements

This report contains statements that are "forward-looking". Generally, the words "expect," "potential", "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature and whilst there is a reasonable basis for making such statements regarding the proposed placement described herein; forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, to differ materially from those expressed or implied in any of our forward-looking statements, which are not guarantees of future performance. Statements in this report regarding the Company's business or proposed business, which are not historical facts, are "forward looking" statements that involve risks and uncertainties, such as resource estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. 

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

Competent Person Statement

The information relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves in this report is based on, or extracted from previous reports referred to herein, and available to view on the Company's website www.korepotash.com. The Kola Mineral Resource Estimate was reported 6 July 2017 in an announcement titled 'Updated Mineral Resource for the High Grade Kola Deposit'. It was prepared by Competent Person Mr. Garth Kirkham, P.Geo., of Met-Chem division of DRA Americas Inc., a subsidiary of the DRA Group, and a member of the Association of Professional Engineers and Geoscientists of British Columbia. The Ore Reserve Estimate for sylvinite at Kola was first reported 29 January 2019 in an announcement titled 'Kola Definitive Feasibility Study' and was prepared by Met-Chem; the Competent Person for the estimate is Mr. Molavi, member of good standing of Engineers and Geoscientists of British Columbia. The Dougou carnallite Mineral Resource Estimate was reported 9 February 2015 in an announcement titled 'Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade for the Dougou Potash Deposit'. It was prepared by Competent Persons Dr. Sebastiaan van der Klauw and Ms. Jana Neubert, senior geologists and employees of ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH and members of good standing of the European Federation of Geologists. The Dougou Extension sylvinite Mineral Resource Estimate was reported 20 August 2018 in an announcement titled 'Maiden Sylvinite Mineral Resource at Dougou Extension'. It was prepared by Competent Person Mr. Andrew Pedley when he was a full-time employee of Kore Potash, a registered professional natural scientist with the South African Council for Natural Scientific Professions and member of the Geological Society of South Africa.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.