Name of the Project
Dougou Extension (DX) solution mining project.

Location
Sintoukola basin, Congo-Brazzaville.

Project Owner/s
Kore Potash.

Project Description
The DX sylvinite deposit is part of Kore Potash’s Sintoukola potash project, which includes Kore’s Kola sylvinite deposit.

The mining target is the DX sylvinite mineral resource, a sylvinite deposit with an exceptionally high potassium chloride grade.

The project has probable reserves of 17.7-million tonnes grading 41.7% potassium chloride and 0.06% magnesium, and indicated and inferred mineral resources of 145-million tonnes grading 39.7% potassium chloride and 0.05% magnesium.

The updated November 2020 prefeasibility study (PFS) proposes the development of a low-cost potash operation producing about 400 000 t/y of K60 muriate of potash.

Selective solution mining and processing technology will be used, resulting in minimal waste brine that will be disposed of into the sea. Solution mining is the most effective means of exploiting an underground potash resource at a reduced scale, and the method has been proven across other operations globally.

The life of the project has increased from 18.4 years to 30 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s after-tax net present value has increased from $319-million in the May 2020 PFS, at a 10% discount rate, to $412-million in the updated PFS. The internal rate of return has increased from 22.9% in the May 2020 PFS to 23.4%. The project has a post-tax payback of 4.3 years from production.

Capital Expenditure
The updated PFS estimates the capital cost of the project at $285.9-million.

Planned Start/End Date
Not stated.

Latest Developments
Updated information from Kore Potash has confirmed that the DX project is a financially attractive, low capital cost project with a shorter construction period than Kola.

Kore remains focused on completing the financing of Kola and moving forward to construction of Kola as soon as possible, with this strategy aligned to the government’s expectations.

Recognising the government’s desire to accelerate the production of potash in Congo-Brazzaville, Kore has agreed to now consider the strategic options available for the DX project that can bring value forward for all stakeholders and allow for more rapid development of the project to contribute to the economy.

The Ministry of Mines is working cooperatively with the company to fully explore all strategic options. These options may include forming a joint venture for the development of DX with a third party or a sale of the DX project, Kore has said.

Key Contracts, Suppliers and Consultants
Agapito Associates Inc (production target estimate).

Contact Details for Project Information
Kore Potash, email info@korepotash.com.