ASX potash plays are progressing European projects
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Europe-focused South Harz Potash (ASX:SHP) is pushing ahead with the drilling of the first of two planned holes to verify historical drilling results at its Ohmgebirge potash project in Germany’s South Harz region.
The company has already defined an initial inferred resource of 325 million tonnes grading 13.1 per cent potassium oxide (K2O) and the results of the two holes could upgrade the inferred resource to the higher confidence indicated category.
Indicated resources have sufficient geological certainty and grade continuity to support mine planning.
South Harz had secured permission from landowners and tenants for the first hole and has submitted an application to drill the hole.
Discussions are also underway with the landowners and tenants of other selected drilling sites with permission expected soon.
Additionally, the company is finalising scopes of work for the Ohmgebirge scoping study components.
Ohmgebirge is just part of South Harz’s portfolio of potash projects, which have total inferred resources of 5.3 billion tonnes at 10.8 per cent K2O.
Over in Spain, Highfield Resources (ASX:HFR) has been advised that the Mining Authorities of Madrid, Aragón and Navarra are satisfied with the Mining Concession documentation it submitted for its flagship Mega project.
It added that the final Mining Concession text has now been sent to the Government’s lawyer for a final legal review, which is understood to be the final step before its grant.
Muga targets relatively shallow sylvinite beds spread out over 60sqkm in the Provinces of Navarra and Aragón.
Once operational, mining is expected to be carried out at a depth of about 350m from surface.
The two-phase project is expected to produce 1 million tonnes of potash per annum at half the capital expenditure intensity of other potash producers.
Economics are similarly robust with net present value and internal rate of return of €1.97bn ($3.1bn) and 25 per cent respectively while earnings before interest, taxes, depreciation, and amortisation is estimated at €310m.