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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Emmerson Plc | LSE:EML | London | Ordinary Share | IM00BDHDTX83 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.20 | -7.69% | 2.40 | 2.30 | 2.50 | 2.65 | 2.40 | 2.60 | 2,947,059 | 10:10:36 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Crude Petroleum & Natural Gs | 0 | -3.2M | -0.0031 | -7.74 | 24.64M |
From Apr 2019 to Apr 2024
TIDMEML
RNS Number : 8179X
Emmerson PLC
15 August 2018
Emmerson Plc / Ticker: EML / Index: LSE / Sector: Mining
15 August 2018
Emmerson Plc ("Emmerson" or the "Company")
Exploration Target Demonstrates Large-Scale Potash Potential at Khemisset Project
Emmerson Plc, the Moroccan focused potash development company, is pleased to announce it has defined a significant JORC-compliant Exploration Target* at its 100% owned Khemisset Potash Project in Northern Morocco ("Khemisset" or "the Project"). The Exploration Target, covering an area of approximately 87km(2) that sits within the recently granted Research Permit area, ranges from 264-616 million tonnes and at the upper end of the scale is more than double the current JORC (2012) Inferred Mineral Resource of 311.4 million tonnes 10.2% K(2) O and indicates the significant upside within the Project area. To view the press release with the illustrative maps and diagrams please use the following links:
http://www.rns-pdf.londonstockexchange.com/rns/8179X_1-2018-8-14.pdf
http://www.rns-pdf.londonstockexchange.com/rns/8179X_2-2018-8-14.pdf
Highlights
-- Exploration Target* of 264-616 million tonnes at an average grade of 5.0-14.0% K(2) O has been established immediately to the north east of the existing 311.4 Mt @ 10.2% K(2) O JORC (2012) Mineral Resource at Khemisset
-- Initial indications of a large-scale project with strong potential to increase the current targeted +20 year mine life
-- Exploration Target covers an area of approximately 87km(2) within the recently granted Research Permits which total 239km(2) (see RNS 8 August)
-- Exploration Target* is supported by historical drilling and assays, geophysical surveys and geological modelling of the Khemisset Potash Basin
-- Drilling targeting confirmation of potash thickness and grade is scheduled to start in H2 2019
The Exploration Target* is summarised as follows:
Hot Features
Premium
Prospect Seam Thickness Area Tonnage Range Grade Range
Range (m) (Ha) (Mt) (K(2) O %)
Exploration
Target 1.5 - 3.5 8,675 264 - 616 5.0 - 14.0
---------------- ------ -------------- ------------
* Disclaimer: A formal Mineral Resource Estimate in the area of the Exploration Target has not been prepared at this time. The potential quantity and grade of the Exploration Target expressed in this release is conceptual in nature, there has been insufficient exploration to estimate a JORC (2012) Mineral Resource and it is uncertain if further exploration will result in the estimation of Mineral Resource.
Hayden Locke, CEO of Emmerson, commented:
"The Khemisset Potash Project already has a large inferred JORC Mineral Resource of 311.4 million tonnes @ 10.2% K(2) O, which covers only a small portion of the broader Khemisset Potash Basin.
"We believe our existing JORC-compliant Mineral Resource Estimate is sufficiently large to support a mine life of over 20 years. Successful exploration in the area of the Exploration Target will only strengthen the overall fundamentals of the Project and its multi-decade, multi-generational potential.
"We will seek to test this Exploration Target with drilling beginning in the second half of 2019. In the meantime, the Scoping Study for Khemisset is well underway and we're confident of delivering it by Q1 2019. We continue to be excited by Khemisset's potential to be a low capital cost, high margin, potash project delivering outstanding returns, regardless of the potash price."
Exploration Target
The Exploration Target is summarised as follows:
Prospect Seam Thickness Area (Ha) Tonnage Range Grade Range
Range (m) (Mt) (K2O %)
Exploration
Target 1.5 - 3.5 8,675 264 - 616 5.0 - 14.0
---------------- ---------- -------------- ------------
Table 1: Exploration Target at Khemisset Potash Project
The Exploration Target is located immediately to the North East of the existing JORC Mineral Resource Estimate. Based on available information, including historical oil drilling and seismic lines, it is believed that potash mineralisation continues in this area. The Exploration Target has been limited to areas where it is believed the potash mineralisation is likely to exist at depths amenable to conventional underground mining. Although the available existing information supports this Exploration Target, it is not considered sufficient to support a JORC (2012) Mineral Resource Estimate at this stage. The Exploration Target will be tested with future exploration as detailed further in this document.
Historical Exploration
The Exploration Target is in the south western section of the Saiss Plain, in northern Morocco. Approximately 30 oil wells were drilled between 1939 and 1954 by Société Chérifienne des Pétroles ("SCP") and large amount of seismic reflection profiles were also completed covering the Saiss Plain south of the Prerifaine. Four of these historical wells; HH-4, OF-2, AY3 and NS1, two of which are known to have intersected potash, provide insight to the potential endowment of the basin.
A gravimetric study completed by the SCP in the 1950s shows a well-defined NE-SW negative Bouger residual gravity anomaly which defines the extension of the Khemisset Basin for at least 30km to the north east of the current MRE all the way to the Prerifaine Front where oil well hole NS1 intersected potash.
Potash mineralisation as defined in the current 2018 Mineral Resource Estimate as open to the northeast along strike. Historic drill holes PZ116 and PKB-1 located in the far northeast of the Oued Beht sub-basin all intersected significant grade and thickness of potash mineralisation which are summarised in Table 2.
Drill From (m) To (m) Thickness Grade (K2O Mineralogy
Hole (m) %)
PZ116 1,022.96 1,024.80 1.84 10.20 Sylvinite
--------- --------- ---------- ----------- ---------------------
PKB-1 1,066.80 1,069.39 2.59 11.39 Sylvinite/Carnallite
--------- --------- ---------- ----------- ---------------------
Table 2: Historic Drill holes in the region of the Exploration Target
Area of Exploration Target
The 8,675 Ha (86.8 km(2) ) Exploration Target (refer Figure 1) which extends for about 7 km to the north east from the existing Mineral Resource Estimate is restricted to areas where the potash seam is modelled at less than 1,500m below the surface. Emmerson believes 1,500m is the upper depth limit for conventional, underground, room and pillar potash mining. Potash mining at this depth currently occurs at the Boulby Potash Mine in the United Kingdom and has historically occurred at the Sierra del Perdón mine in Spain. The Woodsmith Mine, owned by Sirius Resources, is proposing to mine polyhalite at a depth of 1,500m below surface.
The depth to potash estimate is derived from base of basalt contour model using information from drill holes PKB-1, PZ116 and HH4. It is constrained by the NW and SE basin boundaries determined from historical drilling and seismic surveys.
Seam Thickness Range
The lower seam thickness of 1.5m is defined by the assumed minimum mining width of conventional underground mining. Although some seams have been narrower, with higher grades, the tonnage for Mineral Resource Estimate purposes (which requires a reasonable prospect of economic extraction) would be bulked out to this minimum thickness.
The upper seam thickness is set at 3.5m, which is slightly lower than the widest seam thickness observed in the Oued Beht sub-basin as reported in the Competent Persons Report completed by SRK in June 2018. The mid-point seam thickness of 2.5m corresponds with the average seam thickness for the north eastern Khemisset deposit as documented in the JORC (2012) compliant Mineral Resource Estimate.
Density
The Exploration target is based on the previous data with the expected mineral composition of 75% Sylvinite and 25% Carnallite in the potash seam. Although PZ116, which is the closest drill holes to inform the exploration target, is majority sylvinite, Emmerson believes there is the potential for some carnallite mineralisation.
A bulk density of 2.03t/m(3) , which factors this mineralogical composition, was used in evaluating the potential tonnage range.
Tonnage Range
The tonnage range is based on a model of 30,450 tonnes/Ha for a 1.5m thick potash seam and 71,050 tonnes/Ha for a 3.5m thick potash seam.
Grade Range
Grade ranges observed in the north eastern extent of the mineral resource estimate range from a low of 5% K(2) O up to highs of around 20% K(2) O. Historical drill hole PZ88, which is located on the southern edge of the Oued Beht basin intersected 70cm @ 23.1% K(2) O. Once bulked out, this would give a 1.5m intercept of over 14% K(2) O. PZ81, which is located in the centre of the Oued Beht region included intercepts which, when taken in average, show approximately 1.5m @ 17% K(2) O over three distinct intercepts.
As a result, the Company believes it is reasonable to assume that grades encountered in the mineralised zones, once internal dilution is taken into account, would range from a low side of 5% up to a high side of 14%.
Programme to Test Exploration Target
The proposed exploration programme to test the Exploration Targets will:
-- Acquire the historical SCP and ONAREP drilling and seismic surveys data within the EML permit areas;
-- Integrate the historical data into a 3-D geological model incorporating the results of the recent seismic survey completed in the Oued Beht sub-basin;
-- Drill initial 1 to 3 diamond drill hole programme to test the most prospective parts of the Exploration Target as determined by the review of the historical data. This is expected to occur as part of the second drilling programme at Khemisset, which would commence in the second half of 2019.
Competent Persons' Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Christiano Santos Goncalves, a Competent Person who is a Member and Chartered Professional (CP_Geo 306 079) of The Australasian Institute of Mining and Metallurgy. Mr. Christiano Santos Goncalves is employed by Golder Associates, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a CP as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results and Mineral Resources and Ore Reserves. Mr Christiano Santos Goncalves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
**S**
For further information,
please visit
www.emmersonplc.com,
follow us on
Twitter (@emmerson_plc),
or contact: Emmerson Plc Tel: +44 (0) 207 236
Hayden Locke 1177
Edward McDermott
James Biddle Beaumont Cornish Limited Tel: +44 (0) 207 628
Roland Cornish Financial Adviser 3396
Jeremy King Optiva Securities Limited Tel: +44 (0) 3137 1904
Broker
Lottie Wadham St Brides Partners Ltd Tel: +44 (0) 20 7236
Susie Geliher Financial PR/IR 1177
Notes to Editors
Emmerson's primary focus is on developing the Khemisset Potash Project located in Northern Morocco. The project has a large JORC Resource Estimate (2012) of 311.4Mt @ 10.2% K(2) O and significant exploration potential with an accelerated development pathway targeting a low capex, high margin mine. Khemisset is perfectly located to capitalise on the expected growth of African fertiliser consumption whilst also being located on the doorstep of European markets. This unique positioning means the project will receive a premium netback price compared to existing potash producers. The need to feed the world's rapidly increasing population is driving demand for potash and Emmerson is well placed to benefit from the opportunities this presents.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.
APPIX
JORC TABLE
Section 1 - Sampling Techniques and Data
Criteria Commentary
Sampling techniques
* Samples were obtained by core sampling with all
drilling of the potash unit fully cored.
* The PKB drillholes obtained core samples by double
tube core drilling or trepan drilling. Trepan
drilling is a technique used for large diameter holes
where a ring at the periphery of the hole is
destructively drilled, leaving a solid core centre
for sampling. The PZ drillholes and MSL drillholes
cored the potash by diamond drilling, MSL by HQ
double tube through the potash.
* Geophysical logging was completed for natural gamma
on the PKB drillholes and for density. The
geophysical logs for these drillholes are unavailable
and it is not stated if the PZ drillholes were also
geophysically logged. MSL logged the full drillhole
for natural gamma, and caliper. A smaller sub-section
containing the potash unit was then logged in detail
with the acoustic televiewer, and for resistivity and
self-potential. The geophysical logging was conducted
by International Geophysical Technology, S.L.
Resistivity and self-potential was not completed on
KMSL-3. The geophysical tools are calibrated off site
apart from the caliper which was calibrated on site
using the PQ drill rods. The consistencies of the
geophysical outputs indicate no material bias and are
seen to accurately characterise the individual potash
unit and potash seam correlation.
* Specific documentation of sampling and testing
objectives and procedures for the PKB and PZ series
(completed between 1955 and 1958 and 1962 and 1969
respectively) are unavailable. However, from analysis
of the sample intervals and drillhole logs it can be
deduced that the PKB drillholes were sampled to
lithological boundaries and/or the natural gamma logs
were used to guide the sample selection. The PZ
series indicates that samples were taken above and
below the main potash units in order to accurately
define them.
* All potash seams were fully sampled where they were
intersected. In the PZ drilling, where the potash
seam was partially intersected or the drillhole did
not reach the appropriate depth, a wedge was used to
drill a daughter hole in order to gain a full
intersection.
* The MSL drillholes were sampled to lithological and
mineralogical boundaries, with sample lengths varying
between 0.05 m and 0.93 m. The PKB sample lengths
vary between 0.1 m and 2.83 m, and PZ between 0.06 m
and 3.58 m.
* KMSL-1 was point sampled for semi-quantative XRD
analysis. The sample locations were identified to
represent all the different lithologies in, above and
below the potash horizon.
--------------------------------------------------------------
Drilling techniques
* The PKB series were cased through the Miocene and
alluvial sediments and open hole drilled by tricone
with drill bits ranging from 15.88 cm to 21.59 cm in
diameter. Salient intervals in this section were
selectively cored by double tube diamond drilling or
Trepan drilling in order to obtain intact rock
samples of the units. Deviations were drilled to
obtain full core samples of the potash unit where
these were not intersected in the initial hole. The
holes were drilled vertically.
* The PZ series were drilled vertically. There is no
available information on the drilling methods of this
series, but the potash unit is expected to be cored
for the intervals where there is sampling and
chemical analysis available.
* The MSL series was drilled vertically. Mud rotary
drilling was used to collar the hole through the
Miocene and alluvial sediments which was then cased
to between 20 m and 30 m depth. Mud rotary drilling
with fresh water was used to drill to the Basalt
Formation with selective use of PQ diamond drilling
to obtain core from the different geological
formations. The holes were then diamond drilled at HQ
diameter using a CaCl(2) saturated mud (250-280 g of
Cl/litre) to prevent dissolution of the salts and
enable maximum recovery. Once retrieved from the core
barrel the core was cut into 1 m pieces with a
diamond saw using a saturated CaCl(2) brine for the
salt units, photographed, then covered in plastic
wrap to prevent exposure to moisture.
--------------------------------------------------------------
Drill sample
recovery * Core recovery is summarised in the PKB logs, by
geological unit and drilling method, and is greater
than 90% within the potash salt unit. There is no
information in the PZ logs on core recovery. and it
was not recorded for the MSL holes. However, visual
inspection of the MSL core by SRK during the
completion of the re-admission Competent Persons'
Report indicates the core recovery through the potash
was between 95% and 100%.
* Deviations were drilled in the historical holes to
ensure the potash horizon was totally recovered where
it was not cored in the original drilling.
--------------------------------------------------------------
Logging
* The PKB drillholes have summary lithological logs of
the major lithological units, any significant changes
within these units and the boundaries of the potash
horizon including description of the main potash
minerals where they could be visually identified.
General dip measurements are recorded for the lower
salt unit. No drillhole logs are available for PKB-7,
PKB-8 and PKB-9.
* The PZ drillholes have summary lithological logs
recording the same information as the PKB series. No
drillhole logs are available for PZ45 and PZ116, and
there is incomplete information for drillholes PZ24,
PZ50 and PZ121.
* The MSL drillholes were photographed, and
lithologically logged. The logs were depth corrected
using the downhole geophysical information to ensure
they were as accurate as possible.
* Within the total database including the drillholes
outside of MSL's licences, approximately 98% of the
sampled intersections have been logged. Only PZ116 of
the 68 drillholes within the MSL licences does not
have a lithological log of the sampled intersection,
approximately 0.1% of the MSL sampled intersections
(188.43 m). PZ116 lies at the northeastern edge of
the deposit. Previous reports and maps by Touhami
show that this drillhole was barren, however, a list
of drillhole intercepts provided by ONHYM indicates
there is a potash horizon of approximately 1.8 m at
oer 10% K(2) O. This conflicting information needs to
be verified by future drilling.
--------------------------------------------------------------
Sub-sampling
techniques and * All drillholes were orientated vertically to
sample preparation perpendicularly intersect the sub-horizontal potash
horizon. This ensured that the samples represented
close to the true thickness of the potash unit and
are appropriate for characterising the grade and
mineralogical variability within the horizon.
* No information on further sample preparation is
available for the historical samples. In several
instances samples were combined after initial
analysis for %K(2) O. However, it is not stated if
full core or split core was sent for analysis.
* The MSL core was split in half by a diamond core saw
using a saturated CaCl(2) brine. The sample intervals
were then marked up on the core for further cutting,
then weighed and vacuum packed in a plastic sample
bag. The samples were sent for preparation at ALS in
Seville, Spain. The whole sample was dried and
crushed to 70% passing -2 mm then a 250 g fraction
was pulverised to 85% passing -75 um.
* MSL inserted three internal pulp duplicates, five
external pulp duplicates, three blank samples and
three standard samples into the sample stream to
assess the quality control of the analytical
laboratory.
* The sample techniques used in the MSL exploration are
considered appropriate for the type of lithologies
and mineralisation sampled. In addition, the quality
control samples provide a duplicate check on 15% of
the sample population with other control samples,
over 25% which is considered good. These techniques
have ensured samples representative of the potash
mineralisation have been taken in the MSL and
historical drillholes.
--------------------------------------------------------------
Quality of assay
data and laboratory * The PKB drillholes obtained 19 samples from six holes
tests which were analysed for %K(2) O at the M.Pellet BRPM
laboratory. The analytical technique is not specified
in the available historical information.
* The PZ drillholes analysed 522 samples for %K(2) O
through an unspecified technique. 141 of these
samples were also analysed for %Na(+) , %Ca(2+) ,
%Mg(2+) , %Cl(-) , and %SO(4) (2-) .
* The MSL samples were analysed by XRF (for metals and
other major constituents), ICP-OES (soluble elements)
and gravimetric analysis (insoluble residue) at ALS
in Loughrea, Ireland. SRC Geoanalytical laboratories
in Canada were used as a control laboratory and
analysed five pulp duplicate samples. The analysis
methods were soluble and insoluble digestion and
ICP-OES. Both laboratories are internationally
accredited.
* 10 MSL point samples were analysed by semi-quantative
XRD at the National Museum of Natural History, Madrid,
Spain, (CSIC)
* The results of the quality control samples from the
MSL data (blanks, standards and duplicates) show good
accuracy and repeatability in the analysis and
preparation of the samples with no contamination
being introduced in the process.
--------------------------------------------------------------
Verification
of sampling * No historical core from the PKB or PZ series was
and assaying available for sampling and assaying which meant
verification of the majority of the data was
difficult.
* Verification of the historical data and database,
which constitutes 98% of the data used in the
resource estimate, has been completed through MSL's
recent twin drilling of three historical holes,
resurveying of historical drillhole collars, and a
check between the scanned BRPM summary logs and the
digitised database for 10% of the data (14
drillholes).
* The MSL "twin" holes varied in distance from their
nearest historical collars but were positioned to
check drillholes in three strategic locations. KMSL-1
is 300 m east of PZ88 in the, KMSL-2 is 20 m
southwest of PZ111 located in the central Khemisset
sub-basin, and KMSL-3 is 90 m north of PZ3 in the
north central Khemisset sub-basin. Overall, the
general position and thickness of the potash horizon
in the three locations confirmed the historical
information and the presence of potash. The downhole
grade profiles can be easily correlated between the
twin drillholes and in all instances the mineralogy
and lithological logging is consistent. The only
exception is in KMSL-1 where carnallite, in addition
to sylvinite, was intercepted. SRK considers the
verification drilling and sampling has added
significant confidence to the historical database and
confirmed the presence of economic potash in the
north deposit, central deposit and northeast deposit
in the Khemisset basin.
* In 2016 MSL resurveyed all the drill collars that
could still be found over the Khemisset Basin.
Details of the results of this survey are described
in the following section. The results show that some
of the drillholes were found up to 1,670 m from the
original BRPM collar positions which gives low
confidence to the historical collars that could not
be found and resurveyed. However, 65 % of the
historical collars were located and 84 % of the
discrepancies were less than 300 m which is not
considered significant compared to the average
drillhole spacing across the MSL licences of
approximately 3 km.
* During completion of the re-admission Competent
Persons' Report, SRK randomly selected 14 drillholes
to compare the original scanned information with the
digital database. The collar co-ordinates, lithology
data and analysis results were checked, and in all
cases no discrepancies were found. This gives high
confidence to the compilation of the historical
database used for the resource estimate.
* The data verification has led to increased confidence
in the historical database upon which the Mineral
Resource Estimate is based.
--------------------------------------------------------------
Location of
data points * There is no information in the PKB summary drill logs
on how the drillhole collars were surveyed but these
documents do describe the co-ordinates are given in
the Merchich North Lambert Maroc system. The PKB
drillhole collars have several sources of information
collected from historical documents and through
recent surveying. The first set of co-ordinates
(BRPM-MDPA) are shown typed in the front of the
scanned drillhole log where it is available. The
second set of co-ordinates (ONHYM) were supplied to
MSL from historical drilling reports held by ONHYM.
The third set of co-ordinates are from handheld GPS
surveys completed by MSL in 2016 of collars that
could still be located. PKB-1, PKB-2, PKB-6 and PKB-8
were located and resurveyed by MSL, initially by
handheld GPS, and then by differential GPS. These
drillholes were located between 3 m and 547 m from
their original BRPM-MDPA positions and between 3 m
and 85 m from the ONHYM locations. Where drillholes
could not be found, the ONHYM locations were used
preferentially over the original BRPM-MDPA positions.
Of the four PKB holes in the MSL licences, only PKB-2
and PKB-6 were located and resurveyed.
* Similarly, there is no information in the PZ summary
drill logs on how the drillhole collars were surveyed
apart from a reference, in some cases, that the
collar elevations were estimated from the Khemisset
topographic map (1:50,000 scale). The co-ordinates
are also given in the Merchich North Lambert Maroc
co-ordinate system and the drill collars have various
different co-ordinates from different sources. The
sources for the co-ordinates are the three described
for the PKB series. A total of 83 of the PZ drillhole
collars were located and resurveyed. Of these, 41 are
within the MSL licences, which leaves 20 PZ collars
within MSL's licences that were not located. The
discrepancies between the original positions and the
resurveyed positions are between 1 m and 1,676 m and
between 1 m and 1,363 m discrepancy with the ONHYM
locations. The final co-ordinates for the drillholes
were determined the same way as for the PKB series;
where drillhole collars could not be found, the ONHYM
locations were used preferentially over the original
BRPM positions.
* The MSL drillhole collars were surveyed by handheld
GPS, then differential GPS in the Merchich North
Lambert Maroc co-ordinate system.
* The MSL drillholes were also surveyed for downhole
deviation. There is no information on the downhole
survey of the historical drillholes, so they have
been assumed vertical. The nature of deep drilling is
such that holes over a depth of 300 m are likely to
deviate significantly from the vertical. However,
relative to the space of the drillholes, between 0.5
km and 4 km, this will insignificantly affect the
location of the sample points.
* No detailed topographic surveys have been undertaken
across the Khemisset Basin. Therefore, publically
available Advanced Spacebourne Thermal Emission and
Refelection Radiometer (ASTER) data, year 2000, has
been use as the source of the topography for the work
completed to date.
--------------------------------------------------------------
Data spacing
and distribution * The combination of PKB and PZ drillholes are
distributed across the Khemisset basin, and in
particular the MSL licences, at an approximate grid
spacing of 3 km. A closer grid spacing of 1,500 m
covers the main potash body south of Khemisset town
and the drilling is as close as 500 m within the
north deposit under and around Khemisset town.
* The drill spacing has accurately defined the extents
of the potash mineralisation which into four deposit
areas, the central north Khemisset sub-basin, the
central Khemisset sub-basin, the Souk Jmaâ
(southwest) sub-basin and the Oued Beht (northeast)
sub-basin.
* The drilling has also defined areas of low and high
grade within the basin, and several potash layers.
These have not been correlated in the geological
modelling due to a lack of available historical
geophysical logging which could help map these
distinct layers between drillholes. However, these
layers are seen in all three MSL drillholes which are
up to 10 km apart, suggesting the mineralisation is
very consistent within and between the separate
sub-basins.
* Historical 2D seismic surveys completed across the
central Khemisset sub-basin suggest that the
drillhole spacing is not close enough at 3 km to
constrain major faults. Therefore, in order to gain
further information on the structure of the basin,
additional close spaced drilling or seismic surveys
are required.
* The current data spacing across the deposit is
considered to support the declaration of Inferred
Mineral Resources.
--------------------------------------------------------------
Orientation
of data in relation * The drilling was orientated vertically to intersect
to geological as close to the true thickness of the sub-horizontal
structure potash unit.
* There is one instance of known faulting intersecting
KMSL-2 which has displaced the top of the potash
horizon and decreased the thickness. It is not clear
if this has occurred in the historical drillholes as
it has not been logged. However, local variations and
faulting can have a big influence over the volume of
mineralisation cases such as this where it is thin
and extensive with wide spaced drilling. As KMSL-2 is
a twin, this will not expect to materially affect the
thickness or extent of the potash mineralisation.
--------------------------------------------------------------
Sample security
* No information is available regarding sample handling,
transport and security in the historical holes. As
the exploration was conducted by the state
organisation, Bureau de Recherches et de
Participation Minières (BRPM), there is limited
potential for disturbance or tampering of any kind.
* The MSL samples were stored in plastic drums in a
safe container at the MSL field offices. There is
24-hour security on the site. The samples are
couriered by DHL to the sample preparation laboratory
(ALS) in Seville, Spain. The pulps are then also
couriered to the analytical laboratories by DHL.
--------------------------------------------------------------
Audits or reviews
* SRK reviewed the sampling and logging as part of the
audit process for the re-admission Compentent
Persons' Report. Adam Wheeler also reviewed the data
collection in 2016. The procedures were set up
initially by Enrique Sanz, an Exploration Geologist
from Geomnia.
--------------------------------------------------------------
Section 2 - Reporting of Exploration Results
Criteria Commentary
Mineral tenement
and land tenure * The Khemisset Project is covered by a total of 54
status research licences and one mining licence held by
subsidiary or related companies of MSL Minerals
S.A.R.L and Mine de Centre S.A.R.L. The permits are
defined by reference number, the position of the
control point and the centre of the 4kmx4km square
for each permit.
* Some of the licences overlap, in which case the
earliest existing permit has priority.
* There are no active mining operations relating to the
salt mine located in the south of the mining licence.
* The renewal of research permits and the mining
licence will be required to progress the Project
through the stages of study (which is common to all
exploration Projects) and the renewal of the mining
licence is yet to be better understood, as the
Company is engaged in exploration works rather than
mining activities.
------------------------------------------------------------------------------
Exploration
done by other * The Khemisset basin was historically explored for
parties potash from the 1950s by Bureau de Recherches et de
Participation Minières (BRPM) in conjunction
with Mines domaniales des potasse d'Alsace (MDPA) and
then from the 1960s onwards by BRPM with assistance
from UNDP. The exploration works included surface
geophysical surveys, 2D seismic surveys and surface
drilling.
* Geophysical surveys across the basin were conducted
at a regional scale in the 1950s as part of a country
wide study done by the Societe Cherifienne des
Petroles Prérides. The survey was completed on a
coarse grid of >1 km spacing. The results of the
survey indicate a slight negative anomaly in the
Khemisset region but the resolution of the survey was
not high enough to define drilling targets. Further
telleric and magnetic studies were also completed at
the same regional scale, but the same resolution
problem exists in using this data for further
exploration.
* A 2D seismic campaign was performed by Bureau de
Recherches et de Participation Minières (BRPM)
jointly with Mines domaniales des potasse d'Alsace
(MDPA). The seismic survey was approximately 100 km
consisting of one longitudinal profile and three
transverse profiles in the central area of the
Khemisset basin and an additional transverse profile
in the Oued Beht Valley. The length of the profiles
total approximately 17.3 km and taken from "Mine et
Geologie Report, 1965" authored by the Royaume du
Maroc Ministere de l'Industrie et des Mines. The key
reflectors identified in this study were the base of
the Miocene, the top of the upper salt, and the top
of the basalt.
* There were two drilling campaigns completed across
the basin before 2016. The first is the Potasses
Khemisset Bataille (PKB) series drilled between 1955
and 1958, comprising 9 scout holes, drilled to
between 560 m and 1302 m depth and totalling 7,525 m.
Four drillholes in this series lie within MSL's
licences (PKB-2, PKB-3, PKB-6, PKB-9) of which two
(PKB-2, PKB-3) intersected potash. Three other PKB
drillholes intersected the prospective potash seam
outside the MSL licences, PKB-1, PKB-4 and PKB-5.
* The second drilling campaign, the Potasses Zemour
(PZ) series was completed between 1962 and 1969. This
comprised 124 drillholes totalling approximately
75,000 m. 61 of the drillholes lie in the MSL
licences comprising approximately 35,000 m. 35 of
these drillholes successfully intersected the potash
horizon. Another 44 drillholes intersected potash
outside the MSL licences. The PZ drilling has an
average grid spacing of 3 km over the majority of the
basin and MSL's licences. In the central area, the
basin has been infill drilled to approximately 1,500
m.
* The results of the historical drilling have been
evaluated in conjunction with the recent drilling for
the purposes of this evaluation.
------------------------------------------------------------------------------
Geology
* The Khemisset potash basin is a half-graben bounded
by Paleozoic uplifts of Moroccan Meseta, a highly
deformed quartzite schist. The basin is approximately
60 km long and 20 km wide and bounded by mainly
northeast-southwest oriented faults. The Late
Triassic deposits only outcrop in the southwestern
portion of the Khemisset Basin, dip gently (0-10
degrees) towards the northeast and are overlain by
Early Jurassic marine dolostones and dolomitic
limestones, or directly by Miocene marls and
conglomerates. The entire sequence has a maximum
thickness of 1,000 m in the axial part of the basin
* The Khemisset basin is split into three distinct
sub-basins; Souk Jmaâ (southwest), Central
Khemisset (central and north), and Oued Beht
(northeast). They are separated by sterile areas
where potash salts are absent or reduced to thin
millimetre or centimetre horizons.
* The southwest deposit (Souk Jmaâ sub-basin)
varies in thickness between 0.5 m and 5.5 m with an
average thickness of 2.5 m. The %K(2) O varies
between 7 % and 12 % with an average grade of 9%. It
covers an area of approximately 25 km2. The potash
horizon is generally flat-lying and occurs at between
500 m and 550 m below surface with no interpreted
faulting. The potash minerals in this deposit are a
central carnallite zone surrounded by sylvinite.
* The central deposit (Central Khemisset sub-basin)
varies in thickness between 0.7 m and 9 m with an
average thickness of 4.6 m. The %K(2) O varies
between 4% and 14% with an average grade of 10%. It
covers an area of approximately 28 km2. Several
faults orientated northeast-southwest have been
interpreted through the central deposit with vertical
displacements of between 5 m and 25 m with one major
fault showing displacement up to 80 m. The potash
horizon dips gently to the northeast up to 10 degrees
and occur at between 680 m and 980 m below surface.
The deposit contains a central carnallite zone that
gradually changes towards the southwest and northwest
to sylvinite. A mixture of sylvinite and carnallite
is present in the intermediate zone.
* The north deposit (Central Khemisset sub-basin)
varies in thickness between 0.7 m and 3.5 m with an
average thickness of 2.2 m. The %K(2) O varies
between 8% and 12% with an average grade of 11%. It
covers an area of approximately 3 km2. There are two
faults orientated northeast-southwest are interpreted
with vertical displacement of up to 25 m. The potash
horizon dips gently to the northeast up to 5 degrees
and occur at between 470 m and 560 m below surface
mainly under Khemisset city. The main potash mineral
in this deposit is sylvinite but at the southern edge
it changes to a mixture of carnallite and sylvinite.
* The northeast deposit (Oued Beht sub-basin) varies in
thickness between 0.5 m and 5.5 m with an average
thickness of 2.5 m. The %K(2) O varies between 4% and
18% with an average grade of 11%. It covers an area
of approximately 53 km2. There are no faults
interpreted in this area, although it is likely there
is some faulting parallel to other structures
(oriented northeast southwest) in this deposit. The
potash horizon dips gently to the northeast up to 10
degrees and it occurs between 520 m and 1,070 m below
surface. The distribution of potash minerals in this
sub-basin is more complex than the others with a
mixture of carnallite, rinneite and sylvite present.
The central area of the deposit contains a mixture of
carnallite and rinneite mineralization towards the
west and sylvinite and rinneite towards the east. The
northern area is characterized by a mixture of
carnallite and rinneite and the south and southwest
edges by zones of sylvinite and rinneite
respectively.
* The main potash minerals in the Khemisset deposits
are carnallite, sylvinite and rinneite. The relative
concentrations of these within the potash horizon
vary. The mineralisation is also characterised by a
very low insoluble fraction, rarely above 5%.
------------------------------------------------------------------------------
Drill hole Information
* This information is not applicable or included here
as this report concerns the reporting of Exploration
Targets and Mineral Resources and not only
Exploration Results.
------------------------------------------------------------------------------
Data aggregation
methods * This information is not applicable or included here
as this report concerns the reporting of Exploration
Targets and Mineral Resources and not only
Exploration Results.
------------------------------------------------------------------------------
Relationship
between mineralisation * This information is not applicable or included here
widths and intercept as this report concerns the reporting of Exploration
lengths Targets and Mineral Resources and not only
Exploration Results.
------------------------------------------------------------------------------
Diagrams
* This information is not applicable or included here
as this report concerns the reporting of Exploration
Targets and Mineral Resources and not only
Exploration Results.
------------------------------------------------------------------------------
Balanced reporting
* This information is not applicable or included here
as this report concerns the reporting of Exploration
Targets and Mineral Resources and not only
Exploration Results.
------------------------------------------------------------------------------
Other substantive
exploration * This information is not applicable or included here
data as this report concerns the reporting of Exploration
Targets and Mineral Resources and not only
Exploration Results.
------------------------------------------------------------------------------
Further work The proposed exploration programme to test the Exploration Targets will:
* Acquire the historical SCP and ONAREP drilling and
seismic surveys data within the EML permit areas
* Integrate the historical data into a 3-D geological
model incorporating the results of the recent seismic
survey completed in the Oued Beht sub-basin
* Drill initial 1 to 3 diamond drill hole programme to
test the most prospective parts of the Exploration
Target as determined by the review of the historical
data. This is expected to occur as part of the second
drilling programme at Khemisset, which would commence
in the second half of 2019.
------------------------------------------------------------------------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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