Wrap Text
Confirmation Of Mineral Resource For Kola Deposit
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code: KP2
ISIN: GB00BYP2QJ94
CDI ISIN: AU000000KP25
("Kore Potash" or the "Company")
CONFIRMATION OF MINERAL RESOURCE FOR KOLA DEPOSIT
508 Mt Measured and Indicated Sylvinite Resource grading 35.4% KCI
Kore Potash Plc
("Kore Potash" or the "Company")
27 Feb 2025
This announcement is a restatement of the Mineral Resource estimate for the Kola deposit
("Kola" or the "Project"), located on the Company's 97%-owned Sintoukola Potash Project
(SP), in the Republic of Congo ("RoC").
The Mineral Resource estimate was originally released by the Company's wholly-owned
subsidiary, Kore Potash Limited, which was formerly listed on the ASX under the ticker
"K2P".
The original announcement was entitled 'UPDATED MINERAL RESOURCE FOR THE HIGH
GRADE KOLA DEPOSIT' dated 6 July 2017 (the "2017 Announcement").
This announcement contains additional information on pages 6 to 12 summarising the
material information set out in Appendix 1 relating to the Kola Mineral Resource in
accordance with ASX Listing Rule 5.8.1. No other material changes have been made to the
original announcement.
This announcement has been released alongside the Company's Optimised Kola DFS,
released today. The information in this document provides the basis for the information in
the Optimised Kola DFS.
Highlights
• More than half a billion tonnes of Sylvinite in the Measured and Indicated categories at a grade of
35.4% KCl, which is on par with the highest grade operating potash mines globally;
• Sylvinite of exceptional purity: less than 0.2% insoluble material (typically >5% in comparable
deposits globally) and less than 0.2% magnesium. These qualities are highly desirable
characteristics in potash ores, supporting lower processing costs;
• The deposit is very shallow at less than 300 m depth. The Sylvinite seams are extensive and have a
thickness and continuity of grade that are likely to be amenable to a high-productivity, low-cost mining
method; and,
• The Mineral Resource provides the basis for the Optimised DFS, announced today.
1|Page
Figure 1. Map showing the location of the Kola and Dougou Mining Leases within the Republic of Congo
Figure available at www.korepotash.com
André Baya, CEO of Kore, commented:
"From our 2017 MRE, we always knew that the Kola deposit is world-class. With this 2025 announcement,
our Competent Person only reconfirms that our data is accurate, reliable and rightly used as the calculation
basis for our Optimised DFS.
With more than half a billion tonnes of Sylvinite, Kola should support a long life-of-mine and at a grade of
over 35% KCl, the deposit remains on par with the world's highest grading operating potash mines. We
anticipate that this, coupled with the advantages offered by Kola's location, shallow depth, seam thickness
and continuity, could allow Kore to build one of the most profitable potash mines globally. Furthermore, the
Kola deposit remains open laterally in most directions, creating further opportunity for resource expansion
through further drilling during the production phase."
Table 1. Sylvinite Mineral Resource for the Kola deposit
Prepared by independent mining industry consultants, the Met-Chem division of DRA Americas Inc., a subsidiary of
the DRA Group, this table was first published in the 2017 Announcement and has not changed.
Table available at www.korepotash.com
Notes: The Mineral Resources are reported in accordance with The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the "JORC Code", 2012 edition). Resources are reported at a cut-off grade of 10% KCl.
Tonnes are rounded to the nearest 100 thousand. The average density of the Sylvinite is 2.10 (g/cm3). Zones defined by structural
anomalies have been excluded. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant
issues. Readers should refer to Appendix 1 for a more detailed description of the deposit and Mineral Resource estimate. The
Mineral Resources are considered to have reasonable expectation for eventual economic extraction using underground mining
methods.
2|Page
Sylvinite resource is 'open' laterally
The Inferred Sylvinite Mineral Resource stands at 340 Mt grading 34.0% KCl, mostly hosted by the Upper
and Lower Seam. Additional seismic data would be required to potentially upgrade this material into the
Indicated category. Beyond this, the deposit is 'open' laterally to the east, southwest and south.
The potash seams
The Measured and Indicated Mineral Resource is hosted by four seams which are flat to gently dipping
(mostly less than 15 degrees). From uppermost these are: The Hangingwall Seam (HWS), Upper Seam
(US) and Lower Seam (LS), as shown in Figure 2. The seams are hosted within a thick package of rock-
salt. The lower Footwall Seam (FWS) is an Inferred resource restricted to relatively narrow zones and will
not be considered for mining. Figures 24 to 27 of Appendix 1 show the distribution of the Sylvinite in plan-
view. The bulk of the Measured and Indicated Mineral Resource is hosted by the Upper Seam (representing
64% of the contained potash) which is largely continuous across the deposit and has an average thickness
of 4.0 metres. The Sylvinite HWS and LS have an average thickness of 3.3 and 3.7 metres, respectively.
The Sylvinite is present in broad zones with a dominant northwest-southeast orientation.
If present, Carnallitite occurs below the Sylvinite, within the seams. Contacts between the Sylvinite and
Carnallitite are always abrupt and the two rock types are not inter-mixed, supporting a clear distinction in
the resource model and ultimately in the mine plan. A large Carnallitite Mineral Resource estimate was also
prepared (Table 9 in Appendix 1) but is not considered for extraction.
The increased data available for the resource update enabled inclusion of 30 Mt of HWS into the Measured
and Indicated Mineral Resource. At more than 55% KCl, Sylvinite of the Hangingwall seam (HWS) is a
candidate for the world's highest grading potash seam.
Resource model and estimate
The Mineral Resource Estimate was prepared by independent resource industry consultants Met-Chem
division of DRA Americas Inc., a subsidiary of the DRA Group - and reported in accordance with The
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC
Code", 2012 edition). Appendix 1 provides the required 'Checklist of Assessment and Reporting Criteria'.
Kore undertook interpretation of the potash layers and other stratigraphic units and contacts in conjunction
with the MSA Group of Johannesburg.
The deposit modelling took advantage of the high quality of seismic data, acquired by the Company in 2010
and 2011 and subsequently re-processed to a high standard in 2016 by DMT Petrologic GmbH of Germany.
The new seam model and classification approach was driven by the drill-hole and re-processed seismic
data.
The Sylvinite model was developed by quantitative analysis of seam position relative to the top of the Salt
Member and to zones of relative salt disturbance (RDS). The resulting model is illustrated in Figure 2. The
small (<5%) reduction in contained potash in the Measured and Indicated Mineral Resource versus the
2012 estimate is primarily a result of a reduction in the extent of the Indicated Mineral Resource envelope
and by the application of a dip-correction to the seam model. Structurally anomalous areas have been
removed from the resource. Further description of the resource model and estimate is provided in Appendix
1.
3|Page
Figure 2. Typical Cross section through the Kola deposit showing the potash seams and main stratigraphic units.
Note: the 'S' or 'C' after HWS, US, LS, FWS denotes Sylvinite or Carnallitite.
Figure available at www.korepotash.com
The Mineral Resource is supported by a large number of cored drill-holes. In total, the Company has drilled
52 holes at Kola, of which 46 reached target depth, and 42 contained significant Sylvinite mineralization,
as listed in Table 6 of Appendix 1. Holes EK_46 to EK_52 were drilled after the effective date of the 2012
Mineral Resource estimate.
ADDITIONAL INFORMATION – MATERIAL INFORMATION SUMMARY – LISTING RULE 5.8.1
Geological Interpretation
Recognition and correlation of potash and other important layers or contacts between holes is straightforward
and did not require assumptions to be made, due the continuity and unique characteristics of each of the
evaporite layers; each being distinct when thickness, grade and grade distribution, and stratigraphic position
relative to other layers is considered. Further support is provided by the reliable identification of 'marker' units
within and at the base of the evaporite cycles. Correlation is further aided by the downhole geophysical data
(Figure 18) clearly shows changes in mineralogy of the evaporite layers and is used to validate or adjust the
core logged depths of the important contacts. The abrupt nature of the contacts, particularly between the
Rock-salt, Sylvinite and Carnallitite contributes to above.
Between holes the seismic interpretation is the key control in the form and extent of the Sylvinite, in
conjunction with the application of the geological model. The controls on the formation of the Sylvinite is well
understood and the 'binary' nature of the potash mineralization allows an interpretation with a degree of
confidence that relates to the support data spacing, which in turn is reflected in the classification. In this
regard geology was relied upon to guide and control the model, as described in detail in Appendix 1, section
3.5. Alternative interpretations were tested as part of the modeling process but generated results that do not
honor the drill-hole data as well as the adopted model.
The following features affect the continuity of the Sylvinite or Carnallitite seams, all of which are described
further in Appendix 1, Section 3.5. By using the seismic data and the drill-hole data, the Mineral Resource
model captures the discontinuities with a level of confidence reflected in the classification.
• where the seams are truncated by the anhydrite
• where the Sylvinite pinches out becoming Carnallitite or vice versa
• areas where the seams are leached within zones of subsidence
Outside of these features, grade continuity is high reflecting the small range in variation of grade of each
seam, within each domain. Further description of grade variation is provided in Appendix 1.
Sampling Techniques
Sampling was carried out according to a strict quality control protocol beginning at the drill rig. Holes were
drilled to PQ size (85 mm core diameter) core, with a small number of holes drilled HQ size (63.5 mm core
diameter). Sample intervals were between 0.1 and 2.0 metres and sampled to lithological boundaries. All
were sampled as half-core except very recent holes (EK_49 to EK_51) which were sampled as quarter core.
Core was cut using an Almonte© core cutter without water and blade and core holder cleaned down between
4|Page
samples. Sampling and preparation were carried out by trained geological and technical employees. Samples
were individually bagged and sealed.
A small number of historic holes were used in the Mineral Resource model; K6, K18, K19, K20, K21. K6 and
K18 were the original holes twinned by the Company in 2010. The grade data for these holes was not used
for the Mineral Resource estimate but they were used to guide the seam model. The 2010 twin hole drilling
exercise validated the reliability of the geological data for these holes (see Appendix 1, section 1.7).
Sub-sampling techniques and sample preparation
Excluding QA-QC samples 2368 samples were analysed at two labs in 44 batches, each batch comprising
between 20 and 250 samples. Samples were submitted in 46 batches and are from 41 of the 47 holes drilled
at Kola. The other 6 drill-holes (EK03, EK_21, EK_25, EK_30, EK_34, EK_37) were either stopped short of
the evaporite rocks or did not intersect potash layers. Sample numbers were in sequence, starting with KO-
DH-0001 to KO-DH-2650 (EK_01 to EK_44) then KO-DH-2741 to KO-DH-2845 (EK_46 and EK_47).
The initial 298 samples (EK_01 to EK_05) were analysed at K-UTEC in Sondershausen, Germany and
thereon samples were sent to Intertek- Genalysis in Perth. Samples were crushed to nominal 2 mm then riffle
split to derive a 100 g sample for analysis. K, Na, Ca, Mg, Li and S were determined by ICP-OES. Cl is
determined volumetrically. Insolubles (INSOL) were determined by filtration of the residual solution and slurry
on 0.45 micron membrane filter, washing to remove residual salts, drying and weighing. Loss on drying by
Gravimetric Determination (LOD/GR) was also competed as a check on the mass balance. Density was
measured (along with other methods described in section 3.11) using a gas displacement Pycnometer.
Drilling Techniques
Holes were drilled by 12- and 8-inch diameter rotary Percussion through the 'cover sequence', stopping in
the Anhydrite Member and cased and grouted to this depth. Holes were then advanced using diamond coring
with the use of tri-salt (K, Na, Mg) mud to ensure excellent recovery. Coring was PQ (85 mm core diameter)
as standard and HQ (64.5 mm core diameter) in a small number of the holes.
Classification
Drill-hole and seismic data are relied upon in the geological modelling and grade estimation. Across the
deposit the reliability of the geological and grade data is high. Grade continuity is less reliant on data spacing
as within each domain grade variation is small reflecting the continuity of the depositional environment and
'all or nothing' style of Sylvinite formation.
It is the data spacing that is the principal consideration as it determines the confidence in the interpretation
of the seam continuity and therefore confidence and classification; the further away from seismic and drill-
hole data the lower the confidence in the Mineral Resource classification, as summarized in Table 2. In the
assigning confidence category, all relevant factors were considered, and the final assignment reflects the
Competent Persons view of the deposit.
5|Page
Table 2. Description of requirements for the maximum extent of the
Measured, Indicated and Inferred classifications
Drill-hole requirement Seismic data requirement Classification extent
Average of 1 km Within area of close spaced 2010/2011
Measured Not beyond the seismic requirement
spacing seismic data (100-200 m spacing)
1 to 2.5 km spaced 2010/2011 seismic Maximum of 1.5 km beyond the
data and 1 to 2 km spaced oil industry seismic data requirement if sufficient
Indicated 1.5 to 2 km spacing
seismic data drill-hole support
Seismic data requirement and
Few holes, none more than maximum of 3.5 km from drill-
Inferred 1-3 km spaced oil industry seismic data
2 km from another holes
Sample Analysis Method
Quality of Assay Data and Laboratory Tests
For drill-holes EK_01 to EK_47, a total of 412 QAQC samples were inserted into the batches comprising 115
field duplicate samples, 84 blank samples and 213 certified reference material (CRM) samples. Duplicate
samples are the other half of the core for the exact same interval as the original sample, after it is cut into
two. CRMs were obtained from the Bureau of Reference (BCR), the reference material programme of the
European Commission. Either river sand or later barren Rock-salt was used for blank samples. These QA-
QC samples make up 17% of the total number of samples submitted which is in line with industry norms.
Sample chain of custody was secure from point of sampling to point of reporting.
Table 3 - Summary of QA-QC sample composition.
Table available at www.korepotash.com
As confirmation of the accuracy of the API-derived KCl grades for EK_49 to EK_51, samples for the intervals
that were not taken for geotechnical sampling, were sent to Intertek-Genalysis for analysis. The results are
within 5% of the API-derived KCl and thickness, and so the latter was used.
Verification of Sampling and Assaying
As described in Appendix 1, section 1.6, 40 samples of a variety of grades and drill-holes were sent for umpire
analysis and as described, these support the validity of the original analysis. Other validation comes from the
routine geophysical logging of the holes. Gamma data provides a very useful check on the geology and grade
of the potash and for all holes a visual comparison is made in log form. API data for a selection of holes
(EK_05, EK_13, EK_14, EK_24) were formally converted to KCl grades, an extract of which is shown in
Figure 3. In all cases the API derived KCl supports the reported intersections.
Figure 3. Example of KCl % from laboratory analysis (bars) compared with KCl grades from API data.
Figure available at www.korepotash.com
Validation of historic drilling data
6|Page
As mentioned above; K6, K18, K19, K20, K21 were used in the geological modelling but not for the grade
estimate. K6 and K18 were twinned in 2010 and the comparison of the geological data is excellent, providing
validation that the geological information for the aforementioned holes could be used with a high degree of
confidence.
Estimation and Modelling Techniques
Table 4 and Table 5 provide the Mineral Resource for Sylvinite and Carnallitite at Kola. This Mineral Resource
replaces that dated 21 August 2012, prepared by CSA Global Pty Ltd. This update incorporates reprocessed
seismic data and additional drilling data. Table 10 and Table 11 provide the Sylvinite and Carnallitite Mineral
Resource from 2012. The updated Measured and Indicated Mineral Resource categories are not materially
different from the 2012 estimate and is of slightly higher grade. The Inferred category has reduced due to the
reduction in the FWSS tonnage, following the updated interpretation of it being present within relatively
narrow lenses that are more constrained than in the previous interpretation. There is no current plan to
consider the FWSS as a mining target and so the reduction in FWSS tonnage is of no consequence to the
project's viability.
Table 4. June 2017 Kola Mineral Resources for Sylvinite,
reported under JORC code 2012 edition, using a 10% KCl cut-off grade.
July 2017 - Kola Deposit Potash Mineral Resources - SYLVINITE
Million KCl Mg Insolubles
Tonnes
% % %
Measured - - - -
Indicated 29.6 58.5 0.05 0.16
Hangingwall Seam
Meas. + Ind. 29.6 58.5 0.05 0.16
Inferred 18.2 55.1 0.05 0.16
Measured 153.7 36.7 0.04 0.14
Indicated 169.9 34.6 0.04 0.14
Upper Seam
Meas. + Ind. 323.6 35.6 0.04 0.14
Inferred 220.7 34.3 0.04 0.15
Measured 62.0 30.7 0.19 0.12
Indicated 92.5 30.5 0.13 0.13
Lower Seam
Meas + Ind. 154.5 30.6 0.15 0.13
Inferred 59.9 30.5 0.08 0.11
Measured - - - -
Indicated - - - -
Footwall seam
Meas + Ind. - - - -
Inferred 41.2 28.5 0.33 1.03
Total Measured + Indicated 507.7 35.4 0.07 0.14
Sylvinite
Total Inferred Sylvinite 340.0 34.0 0.08 0.25
Notes: Tonnes are rounded to the nearest hundred thousand. The average density of the Sylvinite is 2.10. Structural anomaly zones
have been excluded. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
7|Page
Table 5. July 2017 Kola Mineral Resources for Carnallitite,
reported under JORC code 2012 edition, using a 10% KCl cut-off grade.
July 2017 - Kola Deposit Potash Mineral Resources - CARNALLITITE
Million KCl Mg Insolubles
Tonnes
% % %
Measured - - - -
Indicated 26.6 24.6 7.13 0.11
Hangingwall Meas. + Ind. 26.6 24.6 7.13 0.11
Seam
Inferred 88.3 24.7 7.20 0.12
Measured 73.6 19.4 6.19 0.20
Indicated 109.6 20.7 6.47 0.20
Upper Seam Meas. + Ind. 183.2 20.2 6.36 0.20
Inferred 414.2 21.3 6.41 0.12
Measured 267.7 16.9 5.37 0.16
Indicated 305.3 17.5 5.52 0.16
Lower Seam
Meas + Ind. 573.0 17.2 5.45 0.16
Inferred 763.9 16.6 5.20 0.12
Total Measured + Indicated
782.8 18.1 5.72 0.17
Carnallitite
Total Inferred Carnallitite 1,266.4 18.7 5.73 0.12
Notes: Tonnes are rounded to the nearest hundred thousand. The average density of the Sylvinite is 1.73. Structural anomaly zones
have been excluded. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
Cut-off parameters
For Sylvinite, a cut-off grade (COG) of 10% was determined by an analysis of the Pre-feasibility and 'Phased
Implementation study' operating costs analysis and a review of current potash pricing. The following operating
costs were determined from previous studies per activity per tonne of MoP (95% KCl) produced from a 33%
KCl ore, with a recovery of 89.5%:
• Mining US$30/t
• Process US$20/t
• Infrastructure US$20/t
• Sustaining Capex US$15/t
• Royalties US$10/t
• Shipping US$15/t
For the purpose of the COG calculation, it was assumed that infrastructure, sustaining capex, royalty and
shipping do not change with grade (i.e. are fixed) and that mining and processing costs vary linearly with
grade. Using these assumptions of fixed costs (US$60/t) and variable costs at 33% (US$50/t) and a potash
price of US$250/t, we can calculate a cut-off grade where the expected cost of operations equals the revenue.
This is at a grade of 8.6% KCl. To allow some margin of safety, a COG of 10% is therefore proposed. For
Carnallitite, reference was made to the Scoping Study for Dougou which determined similar operating costs
for solution mining of Carnallitite and with the application of a US$250/t potash price a COG of 10% KCl is
determined.
8|Page
Mining Factors and assumptions
For the Kola MRE, it was assumed that all sylvinite greater with grade above the cut-off grade except, for that
within the delineated geological anomalies, has reasonable expectation of eventual economic extraction, by
conventional underground mining. Geological anomalies were delineated from process 2D seismic data.
The Kola Project has been the subject of scoping and feasibility studies which found that economic extraction
of 2 to 5m thick seams with conventional underground mining machines is viable and that mining thickness
as low as 1.8m can be supported. Globally, potash is mined in similar deposits with seams of similar geometry
and form. The majority of the deposit has seam thickness well above 1.8m; the average for the sylvinite HWS,
US, LS and FWS is 3.3, 4.0, 3.7 and 6.6m respectively.
For the Mineral Resource Estimate a cut-off grade of 10% KCl was used for sylvinite. The average grade of
the deposit is considered of similar grade or higher than the average grade of several operating potash mines.
It is assumed that dilution of 20 cm or as much as 10-15% of the seam thickness would not impact the deposit
viability significantly. The thin barren rock-salt layers within the seams were included in the estimate as
internal dilution
Metallurgical Factors and assumptions
The Kola Sylvinite ore represents a simple mineralogy, containing only sylvite, halite and minor fragments of
other insoluble materials. Sylvinite of this nature is well understood globally and can be readily processed.
Separation of the halite from sylvite by means of flotation has been proven in potash mining districts in Russia
and Canada.
Furthermore, metallurgical testwork was performed on all Sylvinite seams (HWSS, USS, LSS and FWSS) at
the Saskatchewan Research Council (SRC) which confirmed the viability of processing the Kola ore by
conventional flotation.
- ENDS –
For further information, please visit www.korepotash.com or contact:
Kore Potash
Andre Baya, CEO
Andrey Maruta, CFO Tel: +44 (0) 20 3963 1776
Tavistock Communications
Emily Moss Tel: +44 (0) 20 7920 3150
Nick Elwes
Josephine Clerkin
SP Angel Corporate Finance - Nomad and Broker
Ewan Leggat Tel: +44 (0) 20 7470 0470
Charlie Bouverat
Grant Barker
Shore Capital - Joint Broker
Toby Gibbs Tel: +44 (0) 20 7408 4050
James Thomas
9|Page
Questco Corporate Advisory - JSE Sponsor
Tel: +27 63 482 3802
Doné Hattingh
Forward-Looking Statements
This news release 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 news release 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 in this announcement that relates to Mineral Resources is based on information compiled or
reviewed by, Garth Kirkham, P.Geo., who has read and understood the requirements of the JORC Code, 2012
Edition. Mr. Kirkham is a Competent Person as defined by the JORC Code, 2012 Edition, having a minimum of
five years of experience that is relevant to the style of mineralization and type of deposit described in this
announcement, and to the activity for which he is accepting responsibility. Mr. Kirkham is member in good standing
of Engineers and Geoscientists of British Columbia (Registration Number 30043) which is an ASX-Recognized
Professional Organization (RPO). Mr. Kirkham is a consultant engaged by Kore Potash Plc to review the
documentation for Kola Deposit, on which this announcement is based, for the period ended 29 October 2018. Mr.
Kirkham has verified that this announcement is based on and fairly and accurately reflects in the form and context
in which it appears, the information in the supporting documentation relating to preparation of the review of the
Mineral Resources.
10 | P a g e
APPENDIX 1 - JORC TABLE 1
Section 1: Sampling Techniques and Data
1.1 Sampling Techniques
Sampling was carried out according to a strict quality control protocol beginning at the drill rig. Holes
were drilled to PQ size (85 mm core diameter) core, with a small number of holes drilled HQ size
(63.5 mm core diameter). Sample intervals were between 0.1 and 2.0 metres and sampled to
lithological boundaries. All were sampled as half-core except very recent holes (EK_49 to EK_51)
which were sampled as quarter core. Core was cut using an Almonte© core cutter without water and
blade and core holder cleaned down between samples. Sampling and preparation were carried out
by trained geological and technical employees. Samples were individually bagged and sealed.
A small number of historic holes were used in the Mineral Resource model; K6, K18, K19, K20, K21.
K6 and K18 were the original holes twinned by the Company in 2010. The grade data for these holes
was not used for the Mineral Resource estimate but they were used to guide the seam model. The
2010 twin hole drilling exercise validated the reliability of the geological data for these holes (section
1.7).
KCl data for EK_49 to EK_51 was based on the conversion on calibrated API data from downhole
geophysical logging, as is discussed in Section 6. Subsequent laboratory assay results for EK_49
and EK_51 support the API derived grades.
Figure 1 - Whole PQ-sized core shortly after drilling, Sylvinite clearly visible as the orange-red rock type. The seam in this
example is the Hangingwall Seam Sylvinite comprised between 50 and 60% sylvite. The easily identifiable and abrupt
nature of the contacts is visible.
Figure available at www.korepotash.com
1.2 Drilling Techniques
Holes were drilled by 12 and 8 inch diameter rotary Percussion through the 'cover sequence',
stopping in the Anhydrite Member and cased and grouted to this depth. Holes were then advanced
using diamond coring with the use of tri-salt (K, Na, Mg) mud to ensure excellent recovery. Coring
was PQ (85 mm core diameter) as standard and HQ (64.5 mm core diameter) in a small number of
the holes.
1.3 Drill sample recovery
Core recovery was recorded for all cored sections of the holes by recording the drilling advance
against the length of core recovered. Recovery is between 95 and 100% for the evaporite and all
potash intervals, except in EK_50 for the Carnallitite interval in that hole (as grade was determined
using API data for that hole this is of no consequence). The use of tri-salt (Mg, Na, and K) chloride
brine to maximize recovery was standard. A fulltime mud engineer was recruited to maintain drilling
mud chemistry and physical properties. Core is wrapped in cellophane sheet soon after it is removed
from the core barrel, to avoid dissolution in the atmosphere, and is then transported at the end of
each shift to a de-humidified core storage room where it is stored permanently.
11 | P a g e
1.4 Logging
The entire length of each hole was logged, from rotary chips in the 'cover sequence' and core in the
evaporite. Logging is qualitative and supported by quantitative downhole geophysical data including
gamma, acoustic televiewer images, density and caliper data which correlates well with the
geological logging. Figure 18 shows a typical example geophysical data plotted against lithology.
Due to the conformable nature of the evaporite stratigraphy and the observed good continuity and
abrupt contacts, recognition of the potash seams is straightforward and made with a high degree of
confidence. Core was photographed to provide an additional reference for checking contacts at a
later date.
Figure 2 Left: logging the core. Right: Labelling the cut core, one half for analysis the other retained as a record
Figure available at www.korepotash.com
1.5 Sub-sampling techniques and sample preparation
Excluding QA-QC samples 2368 samples were analysed at two labs in 44 batches, each batch
comprising between 20 and 250 samples. Samples were submitted in 46 batches and are from 41
of the 47 holes drilled at Kola. The other 6 drill-holes (EK03, EK_21, EK_25, EK_30, EK_34, EK_37)
were either stopped short of the evaporite rocks or did not intersect potash layers. Sample numbers
were in sequence, starting with KO-DH-0001 to KO-DH-2650 (EK_01 to EK_44) then KO-DH-2741
to KO-DH-2845 (EK_46 and EK_47).
The initial 298 samples (EK_01 to EK_05) were analysed at K-UTEC in Sondershausen, Germany
and thereon samples were sent to Intertek- Genalysis in Perth. Samples were crushed to nominal 2
mm then riffle split to derived a 100 g sample for analysis. K, Na, Ca, Mg, Li and S were determined
by ICP-OES. Cl is determined volumetrically. Insolubles (INSOL) were determined by filtration of the
residual solution and slurry on 0.45 micron membrane filter, washing to remove residual salts, drying
and weighing. Loss on drying by Gravimetric Determination (LOD/GR) was also competed as a check
on the mass balance. Density was measured (along with other methods described in section 3.11)
using a gas displacement Pycnometer.
1.6 Quality of Assay Data and Laboratory Tests
For drill-holes EK_01 to EK_47, a total of 412 QAQC samples were inserted into the batches
comprising 115 field duplicate samples, 84 blank samples and 213 certified reference material (CRM)
samples. Duplicate samples are the other half of the core for the exact same interval as the original
sample, after it is cut into two. CRMs were obtained from the Bureau of Reference (BCR), the
reference material programme of the European Commission. Either river sand or later barren Rock-
salt was used for blank samples. These QA-QC samples make up 17% of the total number of
samples submitted which is in line with industry norms. Sample chain of custody was secure from
point of sampling to point of reporting. Figure 3 to Figure 5 provide examples of QA-QC charts.
12 | P a g e
Table 1 Summary of QA-QC sample composition.
Figure available at www.korepotash.com
Figure 3 and 4 available at www.korepotash.com
In addition, two batches of 'umpire' analyses were submitted to a second lab. The first batch
comprised 17 samples initially analysed at K-UTEC sent to Intertek-Genalysis for umpire. The
second umpire batch comprised 23 samples from Intertek-Genalysis sent to SRC laboratory in
Saskatoon for umpire. The results are shown in Figure 5 below and demonstrate excellent validation
of the primary laboratory analyses.
Figure 5. Left: K-UTEC K2O original vs Genalysis K2O umpire check. Right: Genalysis K2O original vs SRC K2O umpire
check
Figure available at www.korepotash.com
EK_49 to EK_51
Potash intersections for EK_49 to EK_51 were partially sampled for geotechnical test work and so
were not available in full for chemical analysis. Gamma ray CPS data was converted to API units
which were then converted to KCl % by the application of a conversion factor known, or K-factor. The
geophysical logging was carried out by independent downhole geophysical logging company
Wireline Workshop (WW) of South Africa, and data was processed by WW. Data collection, data
processing and quality control and assurance followed a stringent operating procedure. API
calibration of the tool was carried out at a test-well at WW's base in South Africa to convert raw
gamma ray CPS to API using a coefficient for sonde NGRS6569 of 2.799 given a standard condition
of a diameter 150mm bore in fresh water (1.00gm/cc mud weight).
To provide a Kola-specific field-based K-factor, log data were converted via a K-factor derived from
a comparison with laboratory data for drill- holes EK_13, EK_14 and EK_24. In converting from API
to KCl (%), a linear relationship is assumed (no dead time effects are present at the count rates being
considered). In order to remove all depth and log resolution variables, an 'area-under-the-curve'
method was used to derive the K factor. This overcomes the effect of narrow beds not being fully
resolved as well as the shoulder effect at bed boundaries. For this, laboratory data was converted to
a wireline log and all values between ore zones were assigned zero. A block was created (Figure 6)
that covered all data and both wireline gamma ray log (GAMC) and laboratory data log were summed
in terms of area under the curves. From this like-for –like comparison a K factor of 0.074 was
calculated. In support if this factor, it compares well with the theoretical K-factor derived using
Schlumberger API to KCl conversion charts which would be 0.0767 for this tool in hole of PQ
diameter (125 mm from caliper data. As a check on instrument stability over time, EK_24 is logged
frequently. No drift in the gamma-ray data is observed (Figure 7).
13 | P a g e
Figure 6. Extract from work by Wireline Workshop comparing assay KCl% (grey bars) with API data (brown line)
and the resulting API-derived KCl% (blue outlined bars) for previous drill-holes.
This work is for the determination of the K-factor for the conversion from API to KCl%, for drill-holes EK_49 to EK_51
Figure available at www.korepotash.com
As confirmation of the accuracy of the API-derived KCl grades for EK_49 to EK_51, samples for the
intervals that were not taken for geotechnical sampling, were sent to Intertek-Genalysis for analysis.
The results are within 5% of the API-derived KCl and thickness, and so the latter was used
unreservedly for the Mineral Resource estimation.
Figure 7. Gamma ray plots for 'check' hole EK_24 over time plotted super-imposed on each other as a check of tool stability
Figure available at www.korepotash.com
1.7 Verification of Sampling and Assaying
As described in section 1.6, 40 samples of a variety of grades and drill-holes were sent for umpire
analysis and as described, these support the validity of the original analysis. Other validation comes
from the routine geophysical logging of the holes. Gamma data provides a very useful check on the
geology and grade of the potash and for all holes a visual comparison is made in log form. API data
for a selection of holes (EK_05, EK_13, EK_14, EK_24) were formally converted to KCl grades, an
extract of which is shown in Figure 8. In all cases the API derived KCl supports the reported
intersections.
Figure 8. Example of KCl % from laboratory analysis (bars) compared with KCl grades from API data.
Figure available at www.korepotash.com
Validation of historic drilling data
As mentioned above; K6, K18, K19, K20, K21 were used in the geological modelling but not for the
grade estimate. K6 and K18 were twinned in 2010 and the comparison of the geological data is
excellent, providing validation that the geological information for the aforementioned holes could be
used with a high degree of confidence.
1.8 Location of Data Points
A total of 50 Resource related drill-holes have been drilled by the Company; EK_01 to EK_52. EK_37
and EK_48 were geotechnical holes. All of these holes are listed in Table 5. Table 6 provides details
of Sylvinite intersections or absence of for all holes. Of the 50 Resource holes, 4 stopped short above
the Salt Member due to drilling difficulties. Of the 46 Resource holes drilled into the Salt Member, all
except 4 contained a significant Sylvinite intersection.
The collars of all drill-holes up to EK_47 including historic holes were surveyed by a professional
land surveyor using a DGPS. EK_48 to EK_52 were positioned with a handheld GPS initially (with
elevation from the LIDAR data) and later with a DGPS. All data is in UTM zone 32 S using WGS 84
datum.
Topography for the bulk of the Mineral Resource area is provided by high resolution airborne LIDAR
(Light Detection and Ranging) data collected in 2010, giving accuracy of the topography to <200
mm. Beyond this SRTM 90 satellite topographic data was used. Though of relatively low resolution,
it is sufficient as the deposit is an underground mining project.
14 | P a g e
1.9 Data Spacing and Distribution
Figure 9 shows drill-hole and seismic data for Kola. Table 13 provides a description of the support
data spacing. In most cases drill-holes are 1- 2 km apart. A small number of holes are much closer
such as EK_01 and K18, EK_04 and K6, EK_14 and EK_24 which are between 50 and 200 m apart.
Figure 9. Map showing the Kola Mineral Resource classification 'extents' (for the US and LS), drill-holes and seismic lines
Figure available at www.korepotash.com
The drill-hole data is well supported by 186 km of high frequency closely spaced seismic data
acquired by the Company in 2010 and 2011 that was processed to a higher standard in 2016. This
data provides much guidance of the geometry and indirectly the mineralogy of the potash seams
between and away from the holes, as well as allowing the delineation of discontinuities affecting the
potash seams. The combination of drill-hole data and the seismic data supports geological modelling
with a level of confidence appropriate for the classification assigned to the Measured, Indicated and
Inferred sections of the deposit. The seismic data is described in greater detail below.
Seismic data and processing
Two sources of seismic data were used to support the Mineral Resource model:
1) Historical oil industry seismic data of various vintage and acquired by several companies,
between 1989 and 2006. The data is of low frequency and as final SEG-Y files as PreStack Time
Migrated (PreSTM) form. Data was converted to depth by applying a velocity to best tie the top-
of-salt reflector with drill-hole data. The data allows the modelling of the top of the Salt Member
(base of the Anhydrite Member) and some guidance of the geometry of the layers within the Salt
Member.
2) The Company acquired 55 lines totalling 185.5 km of data (excluding gaps on two lines) in 2010
and 2011. These surveys provide high frequency data specifically to provide quality images for
the relatively shallow depths required (surface to approximately 800 m). Survey parameters are
provided in Table 2. Data was acquired on strike (tie lines) and dip lines as shown in Figure 9.
Within the Measured Mineral Resource area lines are between 100 and 200 m apart. Data was
re-processed in 2016, for the 2017 Mineral Resource update, by DMT Petrologic GmbH (DMT)
of Germany. DMT worked up the raw field data to poststack migration (PoSTM) and PreSTM
format. By an iterative process of time interpretation of known reflectors (with reference to
synthetic seismograms) the data was converted to Prestack depth migrated (PSDM) form.
Finally, minor adjustments were made to tie the data exactly with the drill-hole data. Figure 10
provides an example of the final depth migrated data.
The Competent Person reviewed the seismic data and processing and visited DMT in Germany for
meetings around the final delivery of the data to the Company.
Table 2. 2010, 2011 Seismic Survey Parameters
Source Type IVI Minivibrator
Interval 8m
Sweep Length 16000ms 16000ms
15 | P a g e
Receiver Interval 8m
Recording System SERCEL 408 (2010), 428XL (2011)
Record Length 1000ms
Sample Rate 0.5 ms
Channels 200
Geometry Type Split Spread, roll on /off
Figure 10. Example of final Pre-stack depth migrated (PSDM) data with key reflectors identified. 1: top of dolomite 2: Top
of salt (base of anhydrite or SALT_R) 3: position of roof of the Upper Seam roof (US_R). 4: base of cycle 8 (BoC8) 5:
'intrasalt' marker 6: base of Salt Member
Figure available at www.korepotash.com
1.10 Orientation of Data In Relation To Geological Structure
All exploration drill-holes were drilled vertically and holes were surveyed to check for deviation. In
almost all cases tilt was less than 1 degree (from vertical). Dip of the potash seam intersections
ranges from 0 to 45 degrees with most dipping 20 degrees or less. All intersections with a dip of
greater than 15 degrees were corrected to obtain the true thickness, which was used for the creation
of the Mineral Resource model.
1.11. Sample Security
At the rig, the core is under full time care of a Company geologist and end of each drilling shift, the
core is transported by Kore Potash staff to a secure site where it is stored within a locked room.
Sampling is carried out under the fulltime watch of Company staff; packed samples are transported
directly from the site by Company staff to DHL couriers in Pointe Noire 3 hours away. From here
DHL airfreight all samples to the laboratory. All core remaining at site is stored is wrapped in plastic
film and sealed tube bags, and within an air-conditioned room (17-18 degrees C) to minimize
deterioration (Figure 11).
Figure 11. Kore Potash air-conditioned core shed in the Republic of Congo
Figure available at www.korepotash.com
1.12 Audits or Reviews
The Competent Person has visited site to review core and to observe sampling procedures. As part
of the Mineral Resource estimation, the drill-hole data was thoroughly checked for errors including
comparison of data with the original laboratory certificates; no errors were found.
Section 2: Reporting of Exploration Results
Only criteria that are relevant are discussed and only if they are not discussed elsewhere in the
report
16 | P a g e
2.1 Mineral Tenement and Land Tenure Status
The Kola deposit is within the Kola Mining Lease (Figure 12) which is held 100% under the local
company Kola Mining SARL which is in turn held 100% by Sintoukola Potash SA RoC, of which
Kore Potash holds a 97% share. The lease was issued August 2013 and is valid for 25 years. There
are no impediments on the security of tenure.
2.2. Exploration Done By Other Parties
Potash exploration was carried out in the area in the1960's by Mines de Potasse d' Alsace S.A in
the 1960's. Holes K6, K18, K19, K20, K21 are in the general area. K6 and K18 are within the deposit
itself and both intersected Sylvinite of the Upper and Lower Seam; it was the following up of these
two holes by Kore Potash (then named Elemental Minerals) that led to the discovery of the deposit
in 2012.
Oil exploration in the area has taken place intermittently from the 1950's onwards by different
workers including British Petroleum, Chevron, Morel et Prom and others. Seismic data collected by
some of these companies was used to guide the evaporite depth and geometry within the Inferred
Mineral Resource area. Some oil wells have been drilled in the wider area such as Kola-1 and
Nkoko-1 (Figure 9).
2.3 Geology
Regional Geology and Stratigraphy
Figure 14 provides a stratigraphic column for the area. The potash seams are hosted by the 300-
900 m thick Lower Cretaceous-aged (Aptian age) Loeme Evaporite formation These sedimentary
evaporite rocks belong to the Congo (Coastal) Basin which extends from the Cabinda enclave of
Angola to the south well into Gabon to the north, and from approximately 50 km inland to some 200-
300 km offshore. The evaporites were deposited between 125 and 112 million years ago, within a
post-rift 'proto Atlantic' sub-sea level basin following the break-up of Gondwana forming the Africa
and South America continents.
Figure 12. Simplified Geological Map of the Congo Basin showing the location of the Kola Deposit.
Figure available at www.korepotash.com
The evaporite is covered by a thick sequence of carbonate rocks and clastic sediments of Cretaceous
age to recent (Albian to Miocene), referred to as the 'Cover Sequence', which is between 170 and
270 m thick over the Kola deposit. The lower portion of this Cover Sequence is comprised of dolomitic
rocks of the Sendji Formation. At the top of the Loeme Formation, separating the Cover Sequence
and the underlying Salt Member is a layer of anhydrite and clay typically between 5 and 15 m thick
and referred to as the Anhydrite Member. At Kola, this layer rests un-conformably over the Salt-
Member, as described in more detail below.
Figure 13. Generalised stratigraphy of the Congo Basin, showing the Loeme Evaporite Formation with the Lower
Cretaceous post-rift sedimentary sequence. From Brownfield, M.E., and Charpentier, R.R., 2006, Geology and total
petroleum systems of the West-Central Coastal Province (7203), West Africa: U.S. Geological Survey Bulletin 2207-B, 52
p. Figure modified from Baudouy and Legorjus (1991).
Figure available at www.korepotash.com
17 | P a g e
Figure 14 provides a more detailed stratigraphic column for the Kola area. Within the Salt Member,
ten sedimentary-evaporative cycles (I to X) are recognized with a vertical arrangement of mineralogy
consistent with classical brine-evolution models; potash being close to the top of cycles. The Salt
Member and potash layers formed by the seepage of brines unusually rich in potassium and
magnesium chlorides into an extensive sub sea-level basin. Evaporation resulted in precipitation of
evaporite minerals over a long period of time, principally halite (NaCl), carnallite (KMgCl3·6H2O) and
bischofite (MgCl2·6H2O), which account for over 90% of the evaporite rocks. Sylvinite formed by the
replacement of Carnallitite within certain areas. Small amounts of gypsum, anhydrite, dolomite and
insoluble material (such as clay, quartz, organic material) is present, typically concentrated in
relatively narrow layers at the base of the cycles (interlayered with Rock-salt), providing useful
'marker' layers. The layers making up the Salt Member are conformable and parallel or sub-parallel
and of relatively uniform thickness across the basin, unless affected by some form of discontinuity.
Figure 14. Lithological log for drill-hole EK_13 illustrating the stratigraphy of the Kola deposit. In this hole the
Hangingwall seam (and overlying seams referred to as the Top Seams) are preserved and are of Sylvinite.
Ordinarily these seams are 'truncated' by the unconformity at the base of the Anhydrite Member, and the Upper
and Lower Seams are Sylvinite.
Figure available at www.korepotash.com
The potash layers
There are upwards of 100 potash layers within the Salt Member ranging from 0.1 m to over 10 m in
thickness. The Kola deposit is hosted by 4 seams within cycles 7, 8 and 9 (Figure 14), from
uppermost these are; Hangingwall Seam (HWS), Upper Seam (US), Lower Seam (LS), Footwall
Seam (FWS). Seams are separated by Rock-salt.
Individual potash seams are stratiform layers that can be followed across the basin are of Carnallitite
except where replaced by Sylvinite, as is described below. The potash mineralogy is simple; no other
potash rock types have been recognized and Carnallitite and Sylvinite are not inter-mixed. The
seams are consistent in their purity; all intersections of Sylvinite are comprised of over 97.5%
euhedral or subhedral halite and sylvite of medium to very coarse grainsize (0.5 mm to >- 5 mm).
Between 1.0 and 2.5% is comprised of anhydrite (CaSO4) and a lesser amount of insoluble material.
At Kola the potash layers are flat or gently dipping and at depths of between 190 and 340 m below
surface.
18 | P a g e
Table 3. Summary of grade and thickness of the potash layers.
KCl % Thickness m
Weighted
Average Range Average Range
Sylvinite Hangingwall Seam 54.8 48.5-59.9 3.3 2.5-4.1
Carnallitite Hangingwall Seam 24.6 24.6-25.0 1.0 0.8-1.1
Sylvinite Upper Seam 35.5 23.8-41.6 4.0 1.0-8.1
Carnallitite Upper Seam 20.4 18.2-26.1 6.5 1.4-9.5
Sylvinite Lower Seam 30.5 8.4-40.4 3.7 0.9-7.8
Carnallitite Lower Seam 17.4 13.6-20.2 8.4 0.9-18.4
Sylvinite Footwall Seam 27.7 19.3-32.2 6.6 2.5-13.2
The contact between the Anhydrite Member and the underlying salt is an unconformity (Figure 14
and Figure 17) and due to the undulation of the layers within the Salt Member at Kola, the thickness
of the salt member beneath this contact varies. This is the principal control on the extent and
distribution of the seams at Kola and the reason why the uppermost seams such as the Hangingwall
Seam are sometimes absent, and the lower seams such as the Upper and Lower Seam are
preserved over most of the deposit.
The most widely distributed Sylvinite seams at Kola are the US and LS, hosted within cycle 8 of the
Salt Member. These seams have an average grade of 35.5 and 30.5 % KCl respectively and average
3.7 and 4.0 m thick. The Sylvinite is thinned in proximity to leached zones or where they 'pinch out'
against Carnallitite (Figure 17). They are separated by 2.5-4.5 m thick Rock-salt layer referred to as
the interburden halite (IBH). Sylvinite Hangingwall Seam is extremely high grade (55-60% KCl) but
is not as widely preserved as the Upper and Lower Seam being truncated by the Anhydrite Member
over most of the deposit. Where it does occur it is approximately 60 m above the Upper Seam and
is typically 2.5 to
4.0 m thick. The Top Seams are a collection of narrow high-grade seams 10-15 m above the
Hangingwall Seam but are not considered for extraction at Kola as they are absent (truncated by the
Anhydrite Member) over almost all of the deposit.
The Footwall Seam occurs 45 to 50 m below the Lower Seam. The mode of occurrence is different
to the other seams in that it is not a laterally extensive seam, but rather elongate lenses with a
preferred orientation, formed not by the replacement of a seam, but by the 'accumulation' of
potassium at a particular stratigraphic position. It forms as lenses of Sylvinite up to 15 m thick and
always beneath areas where the Upper and Lower seam have been leached. It is considered a
product of re-precipitation of the leached potassium, into pre-existing Carnallitite- Bischofitite unit at
the top of cycle 7.
Figure 18 shows a typical intersection of US and LS along with downhole geophysical images and
laboratory analyses for key components. The insoluble content of the seams and the Rock-salt
immediately above and below them is uniformly low (<0.2%) except for the FWS which has an
average insoluble content of 1%. Minor anhydrite is present throughout the Salt Member, as 0.5-3
mm thick laminations but comprise less than 2.5% of the rock mass of the potash layers.
19 | P a g e
Reflecting the quiescence of the original depositional environment, the Sylvinite seams exhibit low
variation in terms of grade, insoluble content, magnesium content; individual sub-layers and mm
thick laminations within the seams can be followed across the deposit. The grade profile of the seams
is consistent across the deposit except for the FWS; the US is slightly higher grade at its base, the
LS slightly higher grade at its top (Figure 18). The HWS is 50 to 60% sylvite (KCl) throughout (Figure
1). The FWS, forming by introduction of potassium and more variable mode of formation has a higher
degree of grade variation and thickness.
Sylvinite Formation
The original sedimentary layer and 'precursor' potash rock type is Carnallitite and is preserved in an
unaltered state in many holes drill-holes, especially of LS and in holes that are lateral to the deposit.
It is comprised of the minerals carnallite (KMgCl3·6H2O), halite (NaCl) (these two minerals comprise
97.5% of the rock) and minor anhydrite and insolubles (<2.5%). The Carnallitite is replaced by
Sylvinite by a process of 'outsalting' whereby brine (rich in dissolved NaCl) resulted in the dissolution
of carnallite, and the formation of new halite (in addition to that which may already be present) and
leaving residual KCl precipitating as sylvite. This 'outsalting' process produced a chloride brine rich
in Mg and Na, which presumably continued filtering down and laterally through the Salt Member.
This process is illustrated in Figure 15.
The grade of the Sylvinite is proportional to the grade of the precursor Carnallitite. For example, in
the case of the HWS when Carnallitite is 90 percent carnallite (and grades between 24 and 25
percent KCl), if all carnallite was replaced by sylvite the resulting Sylvinite would theoretically be 70.7
percent (by weight) sylvite. However, as described above the inflowing brine introduced new halite
into the potash layer, reducing the grade so that the final grade of the Sylvinite of layer 3/IX is
between 50 and 60 percent KCl (sylvite).
Figure 15. The formation of the Sylvinite seam (2) is by a gradual leaching of Cl, Mg (and minor K and Na) from the
original Carnallitite seam (1); causing a reduction in thickness, change in mineralogy and an increase in grade.
Figure available at www.korepotash.com
Figure 16. Photograph of (PQ size) core from an intersection of Upper Seam in drill-hole EK_38. The seam is partially
replaced; the upper part of the seam (a to b) is Sylvinite (USS) and the lower part (between b and c) is Carnallitite (USC).
Classified as 'type B' seam (as per Table 4 below). The easily identifiable and abrupt nature of the contacts is visible.
Figure available at www.korepotash.com
Importantly, the replacement of Carnallitite by Sylvinite advanced laterally and always in a top-down
sense within the seam. This Sylvinite- Carnallitite transition (contact) is observed in core (Figure 16
and Figure 14) and is very abrupt. Above the contact the rock is completely replaced (Sylvinite with
no carnallite) and below the contact the rock is un-replaced (Carnallitite with no sylvite). In many
instances the full thickness of the seam is replaced by Sylvinite, in others the Sylvinite replacement
advanced only part-way down through the seam as in Figure
16. Carnallitite is reliably distinguished from Sylvinite based on any one of the following:
• Visually: Carnallitite is orange, Sylvinite is orange-red or pinkish-red in colour and less vibrant.
• Gamma data: Carnallitite < 350 API, Sylvinite >350 API
• Magnesium data: Sylvinite at Kola does not contain more than 0.1% Mg. Instances of up to
0.3% Mg within Sylvinite explained by 1-2 cm of Carnallitite included in the lowermost sample
where underlain by Carnallitite. Carnallitite contains upwards to 5% Mg.
20 | P a g e
• Acoustic televeiwer and caliper data clearly identify Carnallitite from Sylvinite (Figure 14).
Based on the 'stage' of replacement, 5 seam types are recognized (Table 4). The replacement
process was extremely effective, no mixture of Carnallitite and Sylvinite is observed, and within a
seam, Carnallitite is not found above Sylvinite.
Table 4. Type of seam based upon the thickness extent of the replacement of the Carnallitite by
Sylvinite and then leaching of Sylvinite.
Type Description
A No replacement. Full Carnallitite seam.
B Part replacement of the seam by Sylvinite, underlain by remaining
Carnallitite
C Full thickness of the seam replaced by Sylvinite, but no further volume
loss
D full replacement of the seam with continuation of out-salting and
further volume and K loss, giving a thinned Sylvinite seam
E complete or near complete loss of potash, residual Fe discoloration may
allow recognition of the original seam contacts, also referred to as a
'ghost' seam
It is thought that over geological time groundwater and/or water released by the dehydration of
gypsum (during conversion to anhydrite in the Anhydrite Member) infiltrated the Salt Member under
gravity, centred on areas of 'relatively disturbed stratigraphy' referred to as RDS zones (not to be
confused with subsidence anomalies, see section 3.5). In these areas the salt appears to be gently
undulating over broad zones, or forms more discrete strike extensive gentle antiformal features.
There appears to be a correlation of these areas with small amounts undulation of the overlying
strata and the Salt Member and thickening of the Bischofitite at the top of Cycle 7 (some 45-50 m
below the LS). The cause of the undulation appears to be related to immature salt-pillowing and
partial inversion in a 'thin-skinned' extensional setting.
Figure 17 is a cross-section through a portion of the Kola deposit and illustrates many of these
features. The process appears to have been very gradual and non-destructive; where leached, the
salt remains in-tact and layering is preserved. Brine or voids are not observed. Fractures within the
Salt Member appear to be restricted to areas of localized subsidence, as observed in potash deposits
mined elsewhere, and described in more detail in section 3.5.
Within and lateral to the RDS zones, brine moved downward then laterally, preferentially along the
thicker higher porosity Carnallitite layers, replacing the carnallite with sylvite (as described in
preceding text) 10s to 100's metres laterally and to a depth of 80-90 m below the Anhydrite Member.
Beyond the zone affected by sylvite replacement, the potash is of unaltered primary Carnallitite. In
the intermediate zone, the lower part of the layer may not be replaced supporting a lateral then 'top-
down' replacement of the seams. For the most part the US is 'full' (fully replaced by Sylvinite), and
the LS more often than not is Carnallitite especially within synformal areas giving rise to pockets or
troughs of Carnallitite (Figure 17). The HWS, being close to the anhydrite is only preserved in
synformal areas where it is always Sylvinite (being close to the top of the Salt Member), or lateral to
the main deposit where it is likely to be Carnallitite, relating to the broader control on the zone of
21 | P a g e
Sylvinite formation discussed below.
Figure 17. Typical Cross-section through the Kola deposit. The section shows the Mineral Resource model (I.e. it is not
schematic) Note the 4 x vertical exaggeration. Sylvinite shown in pink. Carnallitite in green. Explanation of the annotations:
a) centre of an RDS zone of the discrete antiformal type with development of FWSS at the top of the cycle 7 Bischofitite.
Within it, the US and LS are leached. Subsidence of the overlying strata is apparent and in this case the zone is also
recognized as subsidence anomaly excluded from the resource. b) broad pocket or trough where HWSS is preserved with
lateral truncation of the seam against the Anhydrite Member. Beneath the HWSS the US and LS are Carnallitite. c) broad
RDS zone, within which USS and LSS are well developed. The LSS is underlain by a thin layer of Carnallitite (LSC).
Figure available at www.korepotash.com
Deposit-scale structural Control
Some of the longer seismic lines show that the relative disturbance of the salt over much of Kola
relates to the 'elevation' of the stratigraphy due to the formation of a northwest-southeast orientated
horst block, bound either side by half-graben. The horst block referred to as the 'Kola High' and is
approximately 8 km wide and at least 20 km in length (Figure 12). Lateral to this 'high' Sylvinite is
rarely found except immediately beneath (within 5-10 m of) the Anhydrite Member.
Figure 18. Extract from a typical geological log with downhole geophysical data (left: gamma data, centre: acoustic
televiewer image). Grade (KCl %) bar chart on right with values. Photo cross-references: a) USS b) Rock-salt of the
'interburden halite' c) LSS. The red intervals in the geological column are Sylvinite and grey are Rock-salt.
Figure available at www.korepotash.com
2.4 Drill-Hole Information
All drill-hole collar information for holes relevant to the Mineral Resource estimate is provided in Table
6, including historic holes. Hydrological drill-holes are excluded as they were drilled to a shallow
depth. All holes except one were drilled vertically and deflection from this angle was less than 3
degrees for almost all holes. Holes were surveyed with a gyroscope or magnetic deviation tool to
obtain downhole survey data.
22 | P a g e
Table 5. Collar positions for recent holes. Projection: UTM zone 32 S Datum: WGS 84. All holes were
drilled vertically except for EK_37 geotechnical hole.
BH ID Depth East North elevation Azimuth Dip Collar survey
EK_01 609.35 797604.55 9547098.68 41.43 - -90 DGPS
EK_02 309 798211.65 9546225.64 53.99 - -90 DGPS
EK_03 271.4 798686.74 9545549.28 24.66 - -90 DGPS
EK_04 440.46 799721.78 9543865.33 34.45 - -90 DGPS
EK_05 315.15 799235.09 9544693.43 38.32 - -90 DGPS
EK_06 650.9 800284.11 9542829.85 49.4 - -90 DGPS
EK_07 342.1 796505.2 9548735.45 26.09 - -90 DGPS
EK_08 329.55 796493.94 9546975.9 30.42 - -90 DGPS
EK_09 309.2 797116.04 9547873.21 29.91 - -90 DGPS
EK_10 342.25 800424 9544635 45.1 - -90 DGPS
EK_11 318.2 799950.1 9545480.55 29.01 - -90 DGPS
EK_12 347.2 795852.49 9547881.26 19.64 - -90 DGPS
EK_13 636 798683.02 9543651.32 47.39 - -90 DGPS
EK_14 383.6 799337.27 9542686.57 43.83 - -90 DGPS
EK_15 336.33 797168.26 9546244.66 34.12 - -90 DGPS
EK_16 588 799441.27 9546375.17 24.53 - -90 DGPS
EK_17 337.6 797507.23 9546423.04 45.84 - -90 DGPS
EK_18 317.45 794976.62 9547596.23 17.33 - -90 DGPS
EK_19 302.06 798396.48 9548055.22 38.47 - -90 DGPS
EK_20 320.45 795322.6 9548799.75 25.12 - -90 DGPS
EK_21 209.88 795928.17 9547951.21 18.14 - -90 DGPS
EK_22 378.16 800876.83 9541992.75 31.92 - -90 DGPS
EK_23 362.45 801320.4 9542828.09 35.14 - -90 DGPS
EK_24 345.22 799462.12 9542814.67 38.77 - -90 DGPS
EK_25 287.3 797864.56 9541351.31 36.31 - -90 DGPS
EK_26 383.25 796908.88 9542686.81 37.31 - -90 DGPS
EK_27 365.35 803063.39 9542099.4 34.08 - -90 DGPS
EK_28 339.22 797998.95 9544406.69 37.17 - -90 DGPS
EK_29 368.4 801309.48 9541101.01 27.44 - -90 DGPS
EK_30 237.6 801888.23 9542032.48 14.91 - -90 DGPS
EK_31 344.25 797969.27 9548724.19 35.17 - -90 DGPS
EK_32 302.3 795475.7 9550547.55 18.2 - -90 DGPS
EK_33 332.3 794740.62 9548509.08 27.15 - -90 DGPS
EK_34 264.2 798987.28 9547333.75 53.08 - -90 DGPS
EK_35 278.3 795573.12 9546521.7 23.46 - -90 DGPS
EK_36 353.3 796814.83 9544913.12 34.2 - -90 DGPS
EK_37 257.5 799616 9544212 34 243 -72 DGPS
EK_38 335.3 793905.57 9547076.1 17.21 - -90 DGPS
EK_39 350.35 801914.25 9544206.86 42.46 - -90 DGPS
EK_40 343.25 799497.66 9541413.9 44.69 - -90 DGPS
EK_41 329.4 803046.56 9540983.55 11.4 - -90 DGPS
EK_42 353.4 794865.16 9545182.98 34.89 - -90 DGPS
23 | P a g e
EK_43 360.9 793004.43 9545808.29 20.11 - -90 DGPS
EK_44 317.25 792925.71 9547953.53 20.36 - -90 DGPS
EK_45 344.35 791897.51 9546839.83 25.72 - -90 DGPS
EK_46 260.37 792742.42 9544772.3 14.35 - -90 DGPS
EK_47 291.2 790593.2 9547860.11 26.08 - -90 DGPS
EK_48 217.5 798852 9545167 51 - -90 GPS and
LIDAR
EK_49 349.7 797950 9543242 48.3 - -90 GPS and
LIDAR
EK_50 322.8 798331 9545613 27.16 - -90 GPS and
LIDAR
EK_51 326.5 794805 9546190 21.6 - -90 GPS and
LIDAR
Table 6. Sylvinite intersections in all drill-holes drilled at Kola to date, also identifying holes where the
seam was absent or the hole stopped short of the target depth.
Thicknesses have been corrected for dip where necessary so that they are can be considered true thickness. For
explanation of seam abbreviations refer to Table 7.
Drill-hole Depth from m Depth To m True Thickness m Seam K2O % KCl % Mg % Insol %
EK_01 273.53 277.7 4.17 US 26.28 41.62 0.05 0.08
EK_01 281.07 283.9 2.83 LS 24.08 38.14 0.27 0.07
EK_02 274.77 276.32 1.55 LS 5.30 8.39
EK_03 hole stopped short of Salt Member
EK_04 285.97 290.5 4.53 US 21.42 33.92 0.03 0.10
EK_04 293.58 294.45 0.87 LS 23.01 36.44 1.13 0.08
EK_05 274.65 279.08 4.43 US 23.49 37.19 0.07 0.08
EK_06 275 282 6.18 US 24.47 38.76 0.03 no data
EK_07 238.44 243.64 5.20 US 21.46 33.99 0.03 no data
EK_07 248.66 249.85 1.19 LS 17.83 28.24 0.03 no data
EK_08 246.7 247.7 1.00 US 20.48 32.43 0.05 no data
EK_08 257.56 258.92 1.36 LS 14.10 22.32 0.57 no data
EK_09 246.31 252.61 4.45 US 21.72 34.40 0.03 no data
EK_09 257 258.5 1.27 LS 21.32 33.77 1.34 no data
EK_10 275.06 279.25 3.88 US 26.48 41.93 0.02 no data
EK_10 282.25 288.16 5.71 LS 19.39 30.71 0.10 no data
EK_11 293 302.07 9.07 FWS 15.96 25.27 0.04 no data
EK_11 233.12 236.03 2.44 LS 15.76 24.95 0.03 no data
EK_12 247.2 251.71 4.51 US 24.86 39.37 0.01 no data
EK_12 255.74 260.65 4.91 LS 18.13 28.72 0.04 no data
EK_13 258.74 262.47 3.73 HWS 34.35 54.41 0.11 no data
EK_14 294.71 299.05 4.34 US 21.91 34.69 0.13 no data
EK_15 265.83 269.8 3.21 US 22.56 35.72 0.03 no data
EK_16 298.39 300.92 2.53 FWS 12.08 19.13 0.03 no data
EK_17 326.42 329.1 2.68 FWS unsampled
EK_17 256.85 261.03 3.20 US 22.65 35.87 0.02 0.17
EK_17 263.93 269.07 4.21 LS 19.79 31.34 0.01 0.10
EK_18 286.59 299.82 13.23 FWS 19.24 30.48 0.08 1.77
EK_19 278.22 282.76 4.54 US 21.59 34.19 0.02 0.09
EK_19 285.9 288.29 2.39 LS 20.96 33.20 0.03 0.07
24 | P a g e
EK_20 245.85 249.96 4.11 US 23.90 37.85 0.05 0.11
EK_21 hole stopped short of Salt Member
EK_22 no Sylvinite seams
EK_23 296.32 300.36 4.04 US 23.51 37.24 0.02 0.08
EK_24 261.22 267.48 6.05 US 24.85 39.36 0.03 0.11
EK_25 no Sylvinite seams
EK_26 261.05 261.6 0.55 HWS unsampled
EK_26 311.25 313.68 2.39 US 17.93 28.40 0.04 0.15
EK_27 306.32 310.22 3.90 US 25.34 40.13 0.01 0.13
EK_27 313.15 318.09 4.94 LS 18.89 29.92 0.03 0.09
EK_28 241.68 249.82 6.75 US 22.17 35.11 0.02 0.12
EK_28 255.14 262.97 6.49 LS 20.03 31.72 0.03 0.11
EK_29 291.2 292.87 1.67 US 15.05 23.83 0.06 0.18
EK_30 hole stopped short of Salt Member
25 | P a g e
EK_31 no Sylvinite seams
EK_32 290.67 295.32 4.65 FWS 18.02 28.54 0.03 1.35
EK_33 214.9 217.79 2.89 HWS 33.61 53.22 0.02 0.14
EK_33 274 277.54 3.54 US 20.30 32.16 0.03 0.20
EK_34 hole stopped short of Salt Member
EK_35 264.03 269.3 4.95 FWS 17.86 28.29 0.04 1.21
EK_36 281.1 285.75 4.65 US 19.17 30.37 0.02 0.14
EK_37 geotechnical hole (stopped above Salt Member)
EK_38 209.6 212.06 1.77 HWS 30.60 48.46 0.03 0.17
EK_38 265.8 268.79 2.99 US 22.73 36.00 0.03 0.19
EK_39 342.08 344.92 2.84 FWS 13.10 20.74 0.33 1.36
EK_39 286.82 290.5 3.68 US 21.94 34.75 0.03 0.19
EK_39 293.49 298.63 5.14 LS 17.94 28.40 0.05 0.17
EK_40 279.14 286.11 6.97 LS 17.80 28.19 0.01 0.09
EK_41 319.85 325.8 5.95 FWS 20.30 32.15 0.03 1.43
EK_41 267.38 269.92 2.24 LS 14.42 22.84 0.02 0.11
EK_42 287.4 291.71 4.00 US 23.45 37.13 0.01 0.10
EK_42 294.96 298.37 3.16 LS 22.09 34.99 0.01 0.08
EK_43 222.58 225.69 3.11 HWS 37.82 59.89 0.04 0.14
EK_44 296 305.25 9.25 FWS 16.91 26.79 0.04 1.14
EK_44 231.65 235.5 3.46 LS 20.25 32.07 0.03 0.18
EK_45 196.48 200.23 3.75 HWS 34.22 54.19 0.04 no data
EK_46 218.95 220.03 1.08 US 16.90 26.76 0.03 0.16
EK_46 227 231.92 4.92 LS 23.60 37.38 0.02 0.09
EK_47 216.83 219.34 2.51 US 24.49 38.78 0.03 0.12
EK_47 224.33 226.26 1.93 LS 25.50 40.39 0.06 0.08
EK_48 geotechnical hole (stopped above Salt Member)
EK_49 255.85 259.91 4.06 HWS 37.19 58.90 no data no data
EK_49 318.3 319.57 1.27 US 16.23 25.70 no data no data
EK_50 252.57 254.43 1.86 US 17.01 26.94 no data no data
EK_51 267.45 272.35 4.72 US 23.26 36.84 no data no data
EK_51 276.1 281.63 5.34 LS 17.83 28.23 no data no data
EK_52 no Sylvinite seams
2.5 Data Aggregation methods
For the reporting of seam grades and thickness, the standard 'length-weighted' averaging method was
used to determine the grade of the full thickness of each drilling intersection: each sample grade is
multiplied by its length (in metres) then the sum of these is divided by the combined thickness.
The top and base of the seam is abrupt visually and in terms of grade and so the determination of the
interval from and to depth (and thus thickness) is straightforward.
Each seam is comprised of sub-layers that are either mineralised sylvinite (or carnallitite) or rock-salt
(halite). The sub-layers of high grade comprise over 70-80% of the seam being thicker than the narrow
sub-layers of rock-salt. The high grade intervals are relatively consistent in grade and can be correlated
hole-to-hole; there is no inappropriate inclusion of short high-grade material within reported intervals.
No capping of high or low grade material was carried out as it is not justified given the absence of
anomalously high or ow grade areas or intervals. The range of grades for each seam is relatively low
and consistent.
26 | P a g e
No metal equivalents were calculated.
2.6 Relationship between mineralisation widths and intercept lengths
Generally the seams have a low angle of dip and no correction was deemed necessary for reporting of
exploration results as the intersected length is not materially different from the true thickness. For the
Mineral Resource Estimate, because of the large volume informed by each drillhole, as a conservative
measure the few mineralised intersections where the dip of the seam is 15 degrees or greater were
corrected to obtain true thickness. The dip corrected thickness was used in the Mineral Resource
Estimate.
2.7 Diagrams
Maps, diagrams, cross-sections, and other images are provided in this document.
2.8 Balanced Reporting
Table 6 provides the intersections of the sylvinite seams for all drillholes.
2.9 Other Substantive exploration data
There has been a large amount of work completed to support the exploration results including downhole
gamma-ray logging and acoustic televiewer logging, 2D seismic surveys, mineralogical work, process
test work, bulk density work, hydrogeological test work, geotechnical test work, largely completed to
support the Pre-Feasibility and the Definitive Feasibility Study.
2.10 Further Work
If further conversion of Indicated resources to Measured and Inferred to Indicated Mineral Resource is
deemed important, additional seismic data would need to be acquired. Furthermore, the deposit is open
laterally, in places to the west and east (though in the case of the latter is limited by the Mining Lease
boundary) and probably to the greatest extent to the southeast, along the strike of the Kola High.
Additional drilling and seismic data may allow the delineation of additional resources in these areas if
results of the work are positive
Section 3: Estimation and Reporting of Mineral Resources
3.1 Database Integrity
Geological data is collected in hardcopy then captured digitally by data entry. All entries are
thoroughly checked. During import into Micromine© software, an error file is generated identifying
any overlapping intervals, gaps and other forms of error. The data is then compared visually in the
form of strip logs against geophysical data.
Laboratory data was imported into an Access database using an SQL driven software, to sort QA-
QC samples and a check for errors is part of the import. Original laboratory result files are kept as a
secure record. For the Mineral Resource model a 'stratigraphic file' was generated, as synthesis of
key geological units, based on geological, geophysical and assay data. The stratigraphic file was
27 | P a g e
then used as a key input into the Mineral Resource model; every intersection and important contact
was checked and re-checked, by visual comparison with the other data types in log format. Kore
Potash is in the process of creating an updated database, to include the most recent geology and
assay data.
For the process of setting up a Mineral Resource database, Met-Chem division of DRA Americas
Inc., a subsidiary of the DRA Group underwent a rigorous exercise of checking the database,
including a comparison with the original laboratory certificates. Once an explanation of the files had
had been provided, no errors were found with the assay or stratigraphic data, or with the other data
types imported (collar, survey, geophysics). The database is considered as having a high degree of
integrity.
3.2 Site Visits
The Competent Person visited the project from the 5-7 November 2016 to view drill-hole sites, the
core shed and sample preparation area. Explanation of all procedures were provided by the
Company, and a procedural document for core logging, marking and sampling reviewed. Time was
spent reviewing core and hard copy geological logs. All was found to meet or exceed the industry
standards.
3.3 Geological Interpretation
Recognition and correlation of potash and other important layers or contacts between holes is
straightforward and did not require assumptions to be made, due the continuity and unique
characteristics of each of the evaporite layers; each being distinct when thickness, grade and grade
distribution, and stratigraphic position relative to other layers is considered. Further support is
provided by the reliable identification of 'marker' units within and at the base of the evaporite cycles.
Correlation is further aided by the downhole geophysical data (Figure 18) clearly shows changes in
mineralogy of the evaporite layers and is used to validate or adjust the core logged depths of the
important contacts. The abrupt nature of the contacts, particularly between the Rock-salt, Sylvinite
and Carnallitite contributes to above.
Between holes the seismic interpretation is the key control in the form and extent of the Sylvinite, in
conjunction with the application of the geological model. The controls on the formation of the Sylvinite
is well understood and the 'binary' nature of the potash mineralization allows an interpretation with a
degree of confidence that relates to the support data spacing, which in turn is reflected in the
classification. In this regard geology was relied upon to guide and control the model, as described in
detail section 3.5. Alternative interpretations were tested as part of the modeling process but
generated results that do not honor the drill-hole data as well as the adopted model.
The following features affect the continuity of the Sylvinite or Carnallitite seams, all of which are
described further in Section 3.5 and are illustrated in Figure 17. By using the seismic data and the
drill-hole data, the Mineral Resource model captures the discontinuities with a level of confidence
reflected in the classification.
• where the seams are truncated by the anhydrite
• where the Sylvinite pinches out becoming Carnallitite or vice versa
• areas where the seams are leached within zones of subsidence
Outside of these features, grade continuity is high reflecting the small range in variation of grade of
each seam, within each domain. Further description of grade variation is provided in later in text.
28 | P a g e
Table 7. An explanation of seam and lithological nomenclature and abbreviations
Potash seams Seam (where Where Where
undifferentiated) Sylvinit Carnallitite
e
Hangingwall Seam HWS HWSS HWSC
Upper Seam US USS USC
Lower Seam LS LSS LSC
Footwall Seam FWS FWSS FWSC
Post-fix to identify roof or floor
Upper Seam (undifferentiated) roof US_R
Upper Seam (undifferentiated) floor US_F
Upper Seam Sylvinite roof USS_R
Upper Seam Sylvinite floor USS_F
Lower Seam roof LS_R
And application of _R or _F to other seams
Other stratigraphic units and surfaces
Salt Roof (base of Anhydrite Member) SALT_R
Base of cycle 8 marker BoC8
Cycle 7 Bischofitite Cy7B
Interburden halite (Rock salt between the US and LS) IBH
seams that are not underlain by Carnallitite full Sylvinite
seams that are not underlain by Sylvinite full Carnallitite
3.4 Dimensions
In its entirety, the deposit is 14 km in length (deposit scale strike) and 9 km in width. The shallowest
point of the upper most Sylvinite (of the HWS) is approximately 190 metres below surface. The depth
to the deepest Sylvinite (of the FWS) is approximately 340 metres below surface. The thickness of
the seams is summarized in Table 3 and the distribution of the seams in Figure 24 to Figure 27.
3.5 Estimation and Modelling Techniques
Table 8 and Table 9 provide the Mineral Mineral Resource for Sylvinite and Carnallitite at Kola. This
Mineral Mineral Resource replaces that dated 21 August 2012, prepared by CSA Global Pty Ltd.
This update incorporates reprocessed seismic data and additional drilling data. Table 10 and Table
11 provide the Sylvinite and Carnallitite Mineral Mineral Resource from 2012. The updated Measured
and Indicated Mineral Mineral Resource categories are not materially different from the 2012
estimate and is of slightly higher grade. The Inferred category has reduced due to the reduction in
the FWSS tonnage, following the updated interpretation of it being present within relatively narrow
lenses that are more constrained than in the previous interpretation. There is no current plan to
consider the FWSS as a mining target and so the reduction in FWSS tonnage is of no consequence
to the project's viability.
29 | P a g e
Table 8. June 2017 Kola Mineral Resources for Sylvinite, reported under JORC code 2012 edition,
using a 10% KCl cut-off grade.
July 2017 - Kola Deposit Potash Mineral Resources - SYLVINITE
Million KCl Mg Insolubles
Tonnes
% % %
Measured - - - -
Indicated 29.6 58.5 0.05 0.16
Hangingwall Seam
Meas. + Ind. 29.6 58.5 0.05 0.16
Inferred 18.2 55.1 0.05 0.16
Measured 153.7 36.7 0.04 0.14
Indicated 169.9 34.6 0.04 0.14
Upper Seam
Meas. + Ind. 323.6 35.6 0.04 0.14
Inferred 220.7 34.3 0.04 0.15
Measured 62.0 30.7 0.19 0.12
Indicated 92.5 30.5 0.13 0.13
Lower Seam
Meas + Ind. 154.5 30.6 0.15 0.13
Inferred 59.9 30.5 0.08 0.11
Measured - - - -
Indicated - - - -
Footwall seam
Meas + Ind. - - - -
Inferred 41.2 28.5 0.33 1.03
Total Measured + Indicated 507.7 35.4 0.07 0.14
Sylvinite
Total Inferred Sylvinite 340.0 34.0 0.08 0.25
Notes: Tonnes are rounded to the nearest hundred thousand. The average density of the Sylvinite is 2.10. Structural
anomaly zones have been excluded. Mineral Resources which are not Mineral Reserves do not have demonstrated
economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues.
Table 9. July 2017 Kola Mineral Resources for Carnallitite, reported under JORC code 2012 edition,
using a 10% KCl cut-off grade.
July 2017 - Kola Deposit Potash Mineral Resources - CARNALLITITE
Million KCl Mg Insolubles
Tonnes
% % %
Measured - - - -
Indicated 26.6 24.6 7.13 0.11
Hangingwall Seam
Meas. + Ind. 26.6 24.6 7.13 0.11
Inferred 88.3 24.7 7.20 0.12
Measured 73.6 19.4 6.19 0.20
Indicated 109.6 20.7 6.47 0.20
Upper Seam
Meas. + Ind. 183.2 20.2 6.36 0.20
Inferred 414.2 21.3 6.41 0.12
Measured 267.7 16.9 5.37 0.16
Indicated 305.3 17.5 5.52 0.16
Lower Seam
Meas + Ind. 573.0 17.2 5.45 0.16
Inferred 763.9 16.6 5.20 0.12
Total Measured + Indicated
782.8 18.1 5.72 0.17
Carnallitite
Total Inferred Carnallitite 1,266.4 18.7 5.73 0.12
30 | P a g e
Notes: Tonnes are rounded to the nearest hundred thousand. The average density of the Sylvinite is 1.73. Structural anomaly zones have
been excluded. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral
Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
August 2012 - previous Mineral Resource Estimates
Table 10. August 2012 Kola Mineral Resources for Sylvinite – now replaced by the June 2017 Mineral
Resource estimate
August 2012 - Kola Deposit Potash Mineral Resource -
SYLVINITE
Million Tonnes KCl
%
Measured - -
Indicated - -
Hangingwall Seam
Meas. + Ind. - -
Inferred 47 55.0
Measured 171 35.6
Indicated 159 34.9
Upper Seam
Meas. + Ind. 330 35.2
Inferred 96 34.5
Measured 93 30.4
Indicated 150 30.2
Lower Seam
Meas. + Ind. 243 30.3
Inferred 107 30.3
Measured - -
Indicated - -
Footwall Seam
Meas. + Ind. - -
Inferred 225 27.9
Total Measured + Indicated 573 33.1
sylvinite
Total Inferred sylvinite 475 32.5
Table 11. August 2012 Kola Mineral Resources for Carnallitite – now replaced by the June 2017
Mineral Resource estimate
August 2012 - Kola Deposit Potash Mineral Resource -
CARNALLITITE
Million Tonnes KCl
%
Measured 74 20.3
Indicated 151 21.0
Upper Seam
Carnallite Meas. + Ind. 225 20.8
Inferred 182 21.3
Measured 221 17.0
Indicated 298 17.5
Lower Seam
Carnallite Meas. + Ind. 519 17.3
Inferred 291 17.3
Total Measured + Indicated 744 18.4
Carnallitite
Total Inferred Carnallitite 473 18.8
31 | P a g e
Mineral Resource modelling
As described in section 3.3, the spatial application of the geological model was central to the creation
of the Mineral Resource model. Geological controls were used in conjunction with the seismic data
interpretation. The process commenced with the interpretation of the depth migrated drill-hole-tied
seismic data in Micromine 2013 © involving the following. Table 7 provides an explanation of
abbreviations used in text.
1. Interpretation of the base of anhydrite surface or salt roof (SALT_R) which is typically a distinct
seismic event (Figure 10).
2. Interpretation of base of salt, the 'intra-salt marker' and 'base cycle 8' (BoC8) markers. Based on
synthetic seismograms the latter is a negative event picking out the contrast between the top of
the Cy78 and overlying Rock-salt.
Using Leapfrog Geo 4.0 (Leapfrog) surfaces were created for the SALT_R and BoC8. In doing so,
an assessment of directional control on the surfaces was made; following the observation based on
the sectional interpretation a WNW-ESE 'strike' is evident. Experimental semi-variograms were
calculated for the surface elevation values at 10° azimuth increments. All experimental semi-
variograms were plotted; 100° and 10° produce good semi-variograms for the directions of most and
least continuity respectively (Figure 19). This directional control was adopted for the modelling of
surfaces, created in Leapfrog on a 20 by 20 m 'mesh' using a 2:1 ellipsoid ratio (as indicated by the
semi- variogram ranges).
Figure 19. Semi-variograms of BoC8 elevations for 100° and 10° azimuths
Figure available at www.korepotash.com
32 | P a g e
The following steps were then carried out:
1. The BoC8 surface was projected up to the position of the Upper Seam roof (US_R) by 'gridding'
the interval between these units from drill- hole data. On seismic lines, The US_R interpretation
was then adjusted to fit reflectors at that position (Figure 10), taking into account interference
features common in the data in the Salt Member close to the SALT_R
2. In all cases drill-hole intersections were honoured. In addition to USS and USC intersections, the
small number of leached US intersections (type D and E in Table 4, all within subsidence zones)
were used to guide the seam model.
3. The new US_R interpretation along seismic lines, was then 'gridded' in Leapfrog, also into a
mesh of 20 m by 20 m resolution making use of the 100° directional control and 2:1 anisotropy,
to create a new US_R surface.
The Mineral Resource model has two potash domains in order to represent the geology I.e. Sylvinite
or Carnallitite. A third non-potash domain areas of leaching and/or subsidence as described in the
following text. Using the reference horizons the Sylvinite and Carnallitite seam model was developed
as follows:
1. The US_R surface was fixed as the reference horizon for the modelling of the US, LS and
HWS. The US_R surface was imported into Datamine Studio 3 (Datamine), using the same
20 by 20 m cells as described above.
2. The US Sylvinite (USS) model was developed by analysing the position of the cell in relation
to the SALT_R and to the RDS zones. The latter were interpreted from seismic data. As
described in section 2.3 these attributes are the main geological controls.
3. To a lesser extent the dip of the seam and the relative elevation of each cell, relative to the
cells within a 100 by 100 m area were also considered, to further identify Sylvinite with the
understanding that areas of very low dip are more likely to be of Carnallitite.
4. Beyond the 2010/2011 seismic data (within the Indicated Mineral Resource area) the influence
of the distance from RDS zones was reduced and the proximity to the SALT_R and the dip and
relative elevation were assigned greater consideration.
5. Seam thickness of the USS was determined by gridding the drill-hole data of the full Sylvinite
intersections (excluding those that have a Carnallitite basal layer or are leached) using Inverse
distance squared (IDW2) and adjusting it to account for the influence of 2 and 3 above. The
Sylvinite thickness was then subtracted from the elevation of the US_R to create the USS floor
(USS_F), on the 20m by 20m mesh.
6. Only the true thickness of drill-hole intersections were used (i.e. corrections for any dip were
made) for the above. As the seam model thickness developed in a vertical sense, areas of the
model with a dip were corrected so that the true thickness was always honoured.
7. Even if the USS has zero thickness the surface for the USS_F was created, overlying exactly
that of the US_R to facilitate the creation of DTMs for each surface.
8. The same method (effectively the inverse) was applied to create the US Carnallitite model (USC)
below the USS. The roof of the USC (USC_R) is the same surface as the USS_F (Figure 20).
9. A number of iterations of the model were produced and assessed. The selected model was the
one that produced a result that ties well with the drill-hole data and honours the proportional
abundance of Sylvinite as intersected in the drill-holes.
Figure 20. Cross-section showing the construction of the USS and USC seam model
Figure available at www.korepotash.com
33 | P a g e
The Lower Seam model was created in a similar manner as follows:
1. The LS is separated by between 2 and 6 metres (Figure 21) of barren Rock-salt, also referred to
as the Interburden-halite or IBH. This layer is an important geotechnical consideration and so
care was taken to model it. The IBH thickness from drill-hole data was 'gridded' in Datamine
using IDW2 into the 20 by 20 cells. This thickness was then subtracted from the elevation of the
US_F to obtain the LS_R elevation from which a DTM was made.
2. Unlike the USS the LSS is more often than not underlain by a layer of Carnallitite (type B in Table
4). For the LSS model the thickness of the LSS from drill-hole data was gridded using IDW2 into
the 20 x 20 mesh without influence from distance to the SALT_R or RDS zones. However, based
on the geological understanding that LSS rarely occurs beneath USC the LSS model was cut
accordingly, based on the USC model. Reflecting the model and based on analysis the following
rule was also applied; that if the US is 'full' (type A in Table 4) then the LSS is also full but only if
the LS_R is within 30 m of the SALT_R. Finally, if the US_R is truncated by the SALT_R, then
the remaining LS is modelled as full LSS due to its proximity to the SALT_R.
For the US and LS Inferred Resources, the distribution of Sylvinite and Carnallitite was by manual
interpretation based on available drill-hole data and plots of the distance between the seam and the
SALT_R. The thickness of the USS and LSS was determined by gridding all USS drill- hole data.
The Carnallitite was then modelled as the Inverse of the Sylvinite model, in adherence to the
geological model.
Figure 21. Histogram for the thickness of the Rock-salt between the US and LS (the IBH)
Figure available at www.korepotash.com
The Hangingwall seam model was created as follows
1. The distance between the US_R and HWS_R in drill-hole intersection was gridded using IDW2
into the 20 by 20 m mesh. This data was then added to the elevation of the US_R to create a
HWS_R.
2. Being close to the SALT_R (within 30 m in all cases) there is less variation in domain type; in all
areas except for the zone labelled 'A' on Figure 24 the USS is full Sylvinite (not underlain by
USC). For all HWS outside of zone A the model was created by gridding the thickness using
IDW2 into the 20 x 20 mesh.
3. The HWS model was created without input from distance to the SALT_R or RDS zones for the
reasons stated above, by gridding of the drill-hole intersections.
4. Within the area labelled 'A' on Figure 24, the HWSS is underlain by HWSC and so this was
incorporated into the model.
5. Finally, the HWS was 'pinched' upwards from a distance of 4 m below the SALT_R to reflect the
geological observation that close to this surface the seam is leached.
34 | P a g e
Modelling of the Footwall Seam (FWS)
1. A different approach was adopted for the modelling of the FWS as the mode of
occurrence is different to the other seams as described in section 2.3. Only Sylvinite
(FWSS) was modelled as Carnallitite FWS is poorly developed or absent, and low grade.
2. Drill-hole and seismic data was used to identify areas of leaching of the Salt Member based
on subsidence of the overlying strata signs of marked disturbance of the salt, within which
FWSS is typically developed. These were delineated in plan view (Figure 27).
3. Where possible drill-hole data was used to guide thickness of the FWS, in other areas the
thickness was interpreted using the seismic data. The FWS was 'constructed' from the top of
the Cy7B upwards (Figure 17).
Subsidence Anomalies
As is standard practice in potash mining zones of subsidence which pose a potential risk to mining
were identified using seismic and drill-hole data (Figure 22 and Figure 23) and classified from 1 to 3
depending on severity where 3 is highest. Several drill-holes within or adjacent to these features
show that the Salt Member is intact but has experienced some disturbance and leaching.
The HWS, US and LS Mineral Resource models were 'cookie-cut' by these anomalies before
calculation of the Mineral Resource estimate. The FWSS model was not cut as that Sylvinite is
considered the product of potassium precipitation below the influence of the subsidence anomalies.
Truncation by the Anhydrite Member
Finally, all the potash seams were truncated (cut) by the SALT_R surface (base of the Anhydrite
Member) as it is an unconformity. Figure 24 to Figure 27 show the distribution of Sylvinite by seam
and a typical cross-section of the final seam model is provided in Figure 17.
Figure 22. An example of a class 2 and class 3 subsidence anomaly visible in seismic data cross-section, displayed with
a 2:1 vertical exaggeration. In both cases drill-holes are within are adjacent to the features.
Figure available at www.korepotash.com
Figure 23. Plan view showing the distribution of subsidence anomalies, cut out from the Mineral Resource before
estimation
Figure available at www.korepotash.com
Figure 24. Plan view of HWSS distribution. The entire seam is classified as Inferred except for portions of the areas
labelled A, B and C which are classified as Indicated.
Figure available at www.korepotash.com
GRADE ESTIMATION SECTION
Traditional block modelling was employed for estimating %KCl, %Na, %Cl, %Mg, %S, %Ca and
%Insols (insolubles). No assumptions were made regarding correlation between variables. The block
model is orthogonal and rotated by 20 degrees reflecting the orientation of the deposit. The block
size chosen was 250m x 250m x 1m to roughly reflect drill hole spacing, seam thickness and to
adequately descretize the deposit without injecting error.
35 | P a g e
Volumetric solids were created for the individual mineralized zones (i.e. Hangingwall Seam, Upper
Seam, Lower Seam, Footwall Seam) for both Sylvinite and Carnallitite using drill hole data and re-
processed depth migrated seismic data. The solids were adjusted by moving the nodes of the
triangulated domain surfaces to exactly honour the drill hole intercepts. Numeric codes denoting the
zones within the drill hole database were manually adjusted to ensure the accuracy of zonal
intercepts. No assay values were edited or altered.
Once the domain solids were created, they were used to code the drill hole assays and composites
for subsequent statistical analysis. These solids or domains were then used to constrain the
interpolation procedure for the mineral resource model, the solids zones were then used to constrain
the block model by matching composites to those within the zones in a process called geologic
matching. This ensures that only composites that lie within a particular zone are used to interpolate
the blocks within that zone.
Relative elevation interpolation methods were also employed, which is helpful where the grade is
layered or banded and is stratigraphically controlled. In the case of Kola, layering manifests itself as
a relatively high-grade band at the footwall, which gradually decreases toward the hanging wall. Due
to the undulations of the deposit, this estimation process accounts for changes in dip that are
common in layered and stratified deposits.
The estimation plan includes the following:
• Store the mineralized zone code and percentage of mineralization.
• Apply the density, based on calculated specific gravity.
• Estimate the grades for each of the metals using the relative elevation method and an inverse
distance using three passes. The three estimation passes were used to estimate the Resource
Model because a more realistic block-by-block estimation can be achieved by using more
restrictions on those blocks that are closer to drill holes, and thus better informed.
• Include a minimum of five composites and a maximum of twenty, with a maximum of four from any
one drill hole.
The nature and distribution of the Kola Deposit shows uniform distribution of KCl grades without
evidence of multiple populations which would require special treatment by either grade limiting or
cutting. Therefore, it was determined that no outlier or grade capping was necessary.
The grade models have been developed using inverse distance and anisotropic search ellipses
measure 250 x 150 x 50 m and have been oriented relative to the main direction of continuity within
each domain. Anisotropic distances have been included during interpolation; in other words,
weighting of a sample is relative to the range of the ellipse. A sample at a range of 250 m along the
main axis is given the same weight as a sample at 50 m distance located across the strike of the
zone. Table 13 summarize the search ellipse dimensions for the estimation passes for the Kola.
36 | P a g e
Table 12. Estimation Strategy for Kola
1st Rotation 2nd Rotation Max.
Maj Min 3rd
Semi- Angle Angle Min. No. Max. Sampl
Pass Rotati
or Major or Of No. Of es per
Azimuth Dip on
Axi Axis Axi Comps Comps Drillh
Angle
ole
s s
1 1000 1000 100 20 0 0 6 9 3
2 1500 1500 100 20 0 0 3 9 3
3 3500 3500 100 20 0 0 1 9 3
A full set of cross-sections, long sections, and plans were used to check the block model on the
computer screen, showing the block grades and the composite. There was no evidence that any
blocks were wrongly estimated. It appears that block grades can be explained as a function of: the
surrounding composites, the solids models used, and the estimation plan applied. In addition,
manual ballpark estimates for tonnage to determine reasonableness was confirmed along with
comparisons against the nearest neighbor estimate.
Check Estimate
As a check on the global tonnage, an estimate was made in Microsoft Excel by using the average
seam thickness and determining a volume based on the proportion of holes containing Sylvinite
versus the total number of holes (excluding those that did not reach the target depth) then applying
the mean density of 2.1 (t/m3) to determine the total tonnes. This was carried out for the USS and
LSS within the Measured and Indicated categories. A deduction was made to account for loss within
subsidence anomalies. The tonnage of this estimate is within 10% of the tonnage of the reported
Mineral Resource.
Figure 25. Plan view of USS distribution
Figure available at www.korepotash.com
Figure 26. Plan view of LSS distribution
Figure available at www.korepotash.com
3.6 Moisture
Mineral Resource tonnages are reported on an insitu basis (with natural moisture content), Sylvinite
containing almost no moisture and Carnallitite containing significant moisture within its molecular
structure. Moisture content of samples was measured using the 'Loss on Drying' (LOD) method at
Intertek Genalysis as part of the suite of analyses carried out. Data shows that for Sylvinite the
average moisture content is 0.076 % and the maximum value was 0.6%. Representative moisture
analyses of Carnallitite are difficult as it is so hygroscopic. 38% of the mass of the mineral carnallite
is due to water (6 H20 groups within its structure). Using the KCl data to work out a mean carnallite
content, the Carnallitite has an average moisture content approximately 25% insitu. It can be reliably
assumed that this amount of moisture would have been held by the Carnallitite samples at the time
of analysis of potassium, in a temperate atmosphere for the duration that they were exposed.
3.7 Cut-off parameters
For Sylvinite, a cut-off grade (COG) of 10% was determined by an analysis of the Pre-feasibility and
37 | P a g e
'Phased Implementation study' operating costs analysis and a review of current potash pricing. The
following operating costs were determined from previous studies per activity per tonne of MoP (95%
KCl) produced from a 33% KCl ore, with a recovery of 89.5%:
• Mining US$30/t
• Process US$20/t
• Infrastructure US$20/t
• Sustaining Capex US$15/t
• Royalties US$10/t
• Shipping US$15/t
For the purpose of the COG calculation, it was assumed that infrastructure, sustaining capex, royalty
and shipping do not change with grade (i.e. are fixed) and that mining and processing costs vary
linearly with grade. Using these assumptions of fixed costs (US$60/t) and variable costs at 33%
(US$50/t) and a potash price of US$250/t, we can calculate a cut-off grade where the expected cost
of operations equals the revenue. This is at a grade of 8.6% KCl. To allow some margin of safety, a
COG of 10% is therefore proposed. For Carnallitite, reference was made to the Scoping Study for
Dougou which determined similar operating costs for solution mining of Carnallitite and with the
application of a US$250/t potash price a COG of 10% KCl is determined.
3.8 Mining factors or assumptions
For the Kola MRE, it was assumed that all sylvinite greater with grade above the cut-off grade except,
for that within the delineated geological anomalies, has reasonable expectation of eventual economic
extraction, by conventional underground mining. Geological anomalies were delineated from process
2D seismic data.
The Kola Project has been the subject of scoping and feasibility studies which found that economic
extraction of 2 to 5m thick seams with conventional underground mining machines is viable and that
mining thickness as low as 1.8m can be supported. Globally, potash is mined in similar deposits with
seams of similar geometry and form. The majority of the deposit has seam thickness well above 1.8m;
the average for the sylvinte HWS, US, LS and FWS is 3.3, 4.0, 3.7 and 6.6m respectively.
For the Mineral Resource Estimate a cut-off grade of 10% KCl was used for sylvinite. The average
grade of the deposit is considered of similar grade or higher than the average grade of several operating
potash mines. It is assumed that dilution of 20 cm or as much as 10-15% of the seam thickness would
not impact the deposit viability significantly. The thin barren rock-salt layers within the seams were
included in the estimate as internal dilution.
3.9 Metallurgical factors or assumptions
The Kola Sylvinite ore represents a simple mineralogy, containing only sylvite, halite and minor
fragments of other insoluble materials. Sylvinite of this nature is well understood globally and can be
readily processed. Separation of the halite from sylvite by means of flotation has been proven in potash
mining districts in Russia and Canada. Furthermore, metallurgical test-work was performed on all
Sylvinite seams (HWSS, USS, LSS and FWSS) at the Saskatchewan Research Council (SRC) which
confirmed the viability of processing the Kola ore by conventional flotation.
3.10 Environmental Factors or assumptions
The Kola deposit is located in a sensitive environmental setting in an area that abuts the Conkouati-
38 | P a g e
Douli National Park (CDNP. Approximately 60% of the deposit is located within the economic
development zone of the CDNP, while the remainder is within the buffer zone around the park. The
economic development zone does permit mining activities if it is shown that impact can be minimised.
For these reasons, Sintoukola Potash has focussed its efforts on understanding the environmental
baseline and the potential impacts that the project will have. Social, water, hydrobiology, cultural,
archeological, biodiversity, noise, traffic and economic baseline studies were undertaken as part of
the ESIA process between 2011 and 2013. This led to the preparation of an Equator Principles
compliant ESIA in 2013 and approval of this study by the government in the same year.
Waste management for the project is simplified by the proximity to the ocean, which acts as a viable
receptor for NaCl from the process plant. Impacts on the forest and fauna are minimised by locating
the process plant and employee facilities at the coast, outside the CDNP. Relationships with the
national parks, other NGO's and community and government stakeholders have been maintained
continuously since 2011 and engagement is continuing for the ongoing DFS. All stakeholders remain
supportive of the project.
3.11 Bulk Density
The separation of Carnallitite and Sylvinite (no instances of a mixed ore-type have been observed)
and that these rock types each comprise over 97.5% of only two minerals (Carnallitite of carnallite
and halite; Sylvinite of sylvite and halite) means that density is proportional to grade. The mineral
sylvite has a specific gravity of 1.99 and halite of 2.17. Reflecting this, the density of Sylvinite is less
if it contains more sylvite. The same is true of Carnallitite, carnallite having a density of 1.60.
Conventional density measurements using the weight in air and weight in water methods were
problematic due to the soluble nature of the core and difficulty applying wax to salt. As an alternative,
gas pycnometer analyses were carried out (71 on Sylvinite and 37 on Carnallitite samples). Density
by pycnometer was plotted against grade for each, as shown for in Figure 28 and Figure 29. A
regression line was plotted, the formula of which was used in the Mineral Resource model to
determine the bulk density of each block. As a check on the pycnometer data, the theoretical bulk
density (assumes a porosity of nil) was plotted using the relationship between grade and density
described above. As a further check, a 'field density' was determined for Sylvinite and Carnallitite
from EK_49 and EK_51 on whole core, by weighing the core and measuring the volume using a
calliper, before sending samples for analysis. An average field density of 2.10 was derived from the
Sylvinite samples, with an average grade of 39% KCl, and 1.70 for Carnallitite with an average grade
of 21% KCl, supporting the pycnometer data. The theoretical and field density data support the
approach of determining bulk-density.
39 | P a g e
Figure 28. Density of Sylvinite samples, by gas pycnometer and by theoretical calculation,
plotted against KCl %.
Figure available at www.korepotash.com
Figure 29. Density of Sylvinite samples, by gas pycnometer and by theoretical calculation,
plotted against KCl %.
Figure available at www.korepotash.com
3.12 Classification
Drill-hole and seismic data are relied upon in the geological modelling and grade estimation. Across
the deposit the reliability of the geological and grade data is high. Grade continuity is less reliant on
data spacing as within each domain grade variation is small reflecting the continuity of the
depositional environment and 'all or nothing' style of Sylvinite formation.
It is the data spacing that is the principal consideration as it determines the confidence in the
interpretation of the seam continuity and therefore confidence and classification; the further away
from seismic and drill-hole data the lower the confidence in the Mineral Resource classification, as
summarized in Table 13. In the assigning confidence category, all relevant factors were considered
and the final assignment reflects the Competent Persons view of the deposit.
Table 13. Description if requirements for the maximum extent of the Measured, Indicated and Inferred
classifications, as illustrated in plan view in figures Figure 24 to Figure 27
Drill-hole requirement Seismic data requirement Classification extent
Within area of close spaced
Not beyond the seismic
Measured Average of 1 km spacing 2010/2011 seismic data
requirement
(100-200 m spacing)
1 to 2.5 km spaced Maximum of 1.5 km beyond
Indicated 1.5 to 2 km spacing 2010/2011 seismic data the seismic data requirement
and 1 to 2 km spaced oil if sufficient drill-hole support
industry seismic data
Seismic data requirement
Few holes, none more 1-3 km spaced oil industry
Inferred and maximum of 3.5 km
than 2 km from another seismic data
from drill- holes
3.13 Audits or reviews
No audits or reviews of the Mineral Resource have been carried out other than those of professionals
working with Met-Chem division of DRA Americas Inc., a subsidiary of the DRA Group as part of the
modelling and estimation work.
3.14 Discussion of relative accuracy/confidence
The Competent Person has a very high degree of confidence in the data and the results of the
Mineral Resource Estimate. The use of tightly spaced seismic that was reprocessed using state-of-
the-art techniques combined with high quality drill data formed the solid basis from which to model
the deposit. Industry standard best practices were followed throughout, and rigorous quality
assurance and quality control procedures were employed at all stages. The Competent Person was
40 | P a g e
provided all information and results without exception and was involved in all aspects of the program
leading up to the estimation of resources. The estimation strategy and method accurately depict
tonnages and grades with a high degree of accuracy both locally and globally.
There is no production data from which to base an opinion with respect to accuracy and confidence.
41 | P a g e
Glossary of Terms
Term Explanation
The uppermost subdivision of the Early/Lower Cretaceous epoch/series. Its approximate time
Albian
range is 113.0 ± 1.0 Ma to 100.5 ± 0.9 Ma (million years ago)
anhydrite Anhydrous calcium sulphate, CaSO4.
a subdivision of the Early or Lower Cretaceous epoch or series and encompasses the time from
Aptian
125.0 ± 1.0 Ma to 113.0 ± 1.0 Ma
assay in this case refers to the analysis of the chemical composition of samples in the laboratory
bischofite Hydrous magnesium chloride minerals with formula, MgCl2·6H2O and CaMgCl2·12H2O
brine Brine is a high-concentration solution of salt in water
carbonate any rock composed mainly of carbonate minerals such as calcite or dolomite
carnallite an evaporite mineral, a hydrated potassium magnesium chloride with formula KMgCl. 3· 6(H2O)
carnallitite a rock comprised predomiantly of the minerals carnallite and halite
clastic Clastic rocks are composed of fragments, or clasts, of pre-existing minerals and rock.
clay A fine-grained sedimentary rock.
collars (drill-hole) the top of the drill-hole
an interval of uniform length for which attributes such as grade are determined by combining or
composite (sample)
cutting original samples of greater or lesser length, to obtain a uniform support size
conformable refers to layers of rock between which there is no loss of the geological record
core (drill) the cylindrical length of rock extracted by the process of diamond drill coring
the last of the three periods of the Mesozoic Era. The Cretaceous began 145.0 million years
Cretaceous
ago and ended 66 million years ago
cross-section an image showing a slice (normally vertical) through the sub-surface
the method of extracting cores of rock by using a circular diamond-tipped bit (though may be
diamond coring
tungsten carbide)
in this case refers to the angle of inclination of a layer of rock, measured in degrees or % from
dip
horizontal
anhydrous carbonate mineral composed of calcium magnesium carbonate, ideally
dolomite CaMg(CO3)2. The term is also used for a sedimentary carbonate rock composed mostly of the
mineral dolomite.mineral form is indicated by italic font
a spatial zone within which material is modelled/expected to be of a type or types that can be
domain (mineral)
treated in the same way, in this case in terms of resource estimation
a hole drilled to obtain samples of the mineralization and host rocks, also known as boreholes
drill-hole
or just holes
euhedral crystals with well defined crystal form
evaporite Sediments chemically precipitated due to the evaporation of an aqueous solution or brine
A gamma ray or gamma radiation is penetrating electromagnetic radiation arising from the
gamma-ray
radioactive decay of atomic nuclei.
Refers to the physical behavior of rocks, particularly relevant for the Mine design requiring
geotechnical
geotechnical engineering
42 | P a g e
Gondwana or Gondwanaland, was a supercontinent that formed from the unification of several
Gondwana cratons in the Late Neoproterozoic, merged with Euramerica in the Carboniferous to form
Pangaea, and began to fragment in the Mesozoic
A graben is a basin bound by normal faults either side, formed by the subsidence of the basin
graben
due to extension
soft sulfate mineral composed of calcium sulfate dehydrate, with the chemical formula
gypsum
CaSO. 4·2H2O.
halite The mineral form of sodium chloride (NaCl), salt.
a horst is a raised fault block bounded by normal faults. A horst is a raised block of the Earth's
horst crust that has lifted, or has remained stationary, while the land on either side (grabens) have
subsided
An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape and physical characteristics are estimated with sufficient confidence to
allow the application of Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered through appropriate
Indicated Mineral Resource
techniques from locations such as outcrops, trenches, pits, workings and drillholes, and is
sufficient to assume geological and grade (or quality) continuity between points of observation
where data and samples are gathered. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and may only be converted to a
Probable Ore Reserve.
An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade
(or quality) are estimated on the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based
on exploration, sampling and testing information gathered through appropriate techniques from
Inferred Mineral Resource
locations such as outcrops, trenches, pits, workings and drillholes. An Inferred Mineral Resource
has a lower level of confidence than that applying to an Indicated Mineral Resource and must
not be converted to an Ore Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued exploration.
insoluble material in this report, refers to material that cannot be dissolved by water such as clay, quartz, anhydrite
Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia (JORC). JORC issues the
JORC
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves,
last updated 2012 (JORC 2012).
lithological refers to the observed characteristics if a rock type (or lithology)
A 'Measured Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape, and physical characteristics are estimated with confidence sufficient
to allow the application of Modifying Factors to support detailed mine planning and final
evaluation of the economic viability of the deposit. Geological evidence is derived from detailed
and reliable exploration, sampling and testing gathered through appropriate techniques from
Measured Mineral Resource
locations such as outcrops, trenches, pits, workings and drillholes, and is sufficient to confirm
geological and grade (or quality) continuity between points of observation where data and
samples are gathered. A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be
converted to a Proved Ore Reserve or under certain circumstances to a Probable Ore Reserve.
the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes
diluting materials and allowances for losses, which may occur when the material is mined or
Mineral Reserve extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that
include application of Modifying Factors. Such studies demonstrate that, at the time of reporting,
extraction could reasonably be justified
refers to any of various mined and manufactured salts that contain potassium in water-soluble
potash
form. In this report generally refers to the potassium bearing rock types
pycnometer A laboratory device used for measuring the density of solids.
refers to the amount of core recovered as a % of the amount that should have been recovered if
recovery (of drill core)
no loss ws incurred.
43 | P a g e
refers to the splitting apart of the earth's crust due to extension, typically resulting in crustal
rift
thinning and normal faulting
rock-salt rock comprising predominantly of the mineral halite
A naturally occurring material that is broken down by processes of weathering and erosion, and
sediment is subsequently transported by the action of wind, water, or ice, and/or by the force of gravity
acting on the particles.
in this case seismic reflection, a method of exploration geophysics that uses the principles of
seismology to estimate the properties of the Earth's subsurface from reflected seismic waves.
seismic
The method requires a controlled seismic source of energy, such as dynamite or Tovex blast, a
specialized air gun or a seismic vibrator
Stratigraphy is a branch of geology concerned with the study of rock layers (strata) and layering
stratigraphy
(stratification). It is primarily used in the study of sedimentary and layered volcanic rocks
refers to the direction of preferred control of the mineralization be it structural or depositional. In
strike
this direction it is expected that there be greater correlation of attributes
sylvinite a rock type comprised predominantly of the mineral sylvite and halite
sylvite an evaporite mineral, potassium chloride (KCl)
An unconformity is a buried erosional or non-depositional surface separating two rock masses or
unconformity
strata of different ages, indicating that sediment deposition was not continuous
44 | P a g e
Date: 27-02-2025 10:19:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
