African Potash (LON:AFPO) intends to press on with drilling at the Lac Dinga potash project in Congo Republic after the results of its first two holes.
How much drilling it does will depend on the availability of future funding, it added, but the aim is to delineate a mineable mineral resource.
The first two holes were ten kilometres apart but intersected very similar salt and potash mineralisation over a significant thickness, which delighted the company given the distance between them.
Ed Marlow, chief executive, said the deposit potentially combines significant sylvinite tonnage at attractive depths with solid infrastructure, and added he was also upbeat on the broader outlook for potash.
“Long-term outlook for potash remains strong and the strategic importance of potash as a commodity is clearly evident, particularly in light of global food production requirements.
“Consequently, with forecast low operational costs, proximal access to a deep water port, and excellent, high grade potash potential, the Lac Dinga Project has considerable strategic value.”
The company posted a loss of US$1mln in the year to June.