PhosCo’s maiden drilling at the KM prospect within Tunisia’s Gasaat Phosphate Project reveals record-thick phosphate layers near the proposed plant site, suggesting a faster route to production and improved project economics.
- Record 52.5m thick phosphate intersection at KM prospect
- Shallow mineralisation with low strip ratio near processing plant
- Assay results pending, maiden Mineral Resource Estimate imminent
- Nearby SAB prospect resource estimate progressing on schedule
- Plans underway for metallurgical testing and resource expansion
Significant Discovery at KM Prospect
PhosCo Ltd (ASX:PHO) has announced compelling results from its maiden drilling program at the KM prospect, part of its wholly owned Gasaat Phosphate Project in Tunisia. The standout highlight is a 52.5-metre thick phosphate intersection in drill hole GADD003, the thickest recorded to date at the site. Additional holes also returned substantial intersections of 36 metres and 34.6 metres, all from shallow depths.
This thick and shallow mineralisation is particularly noteworthy given its proximity to the proposed processing plant. The combination of these factors points to a low strip ratio, which is a critical metric indicating less waste rock removal per tonne of ore mined. This suggests potentially lower mining and haulage costs, which could accelerate the timeline to production and enhance the project’s overall economics.
Implications for Project Development
PhosCo’s Managing Director, Taz Aldaoud, emphasised the strategic importance of the KM discovery. He noted that the prospect could underpin an accelerated production start-up, delivering early, high-margin phosphate output. This aligns with the company’s broader strategy to prioritise low-strip ratio resources early in the project life to optimise economic returns.
Assay results from the KM drilling are expected later this month, which will provide definitive grades and confirm the visual and portable XRF (pXRF) observations reported so far. Following assays, PhosCo plans to commence preliminary metallurgical testing to better understand the mineralisation’s processing characteristics.
Progress at SAB Prospect and Resource Growth
Alongside KM, PhosCo is advancing a maiden Mineral Resource Estimate (MRE) at the nearby SAB prospect, which remains on track for release this quarter. The SAB resource will complement KM’s potential and contribute to a more comprehensive resource base for the Gasaat Project.
PhosCo’s ongoing drilling and exploration efforts focus on expanding and optimising resources with an emphasis on low-strip ratio zones. This approach is designed to enhance the project’s early-life economics and support a robust Bankable Feasibility Study (BFS) in the near term.
Looking Ahead
While the initial results are promising, the market awaits the upcoming assay data and resource estimates to fully assess the scale and grade of the KM prospect. The company’s ability to translate these thick intersections into economically viable reserves will be critical for advancing Gasaat towards production.
PhosCo’s methodical approach, combining geological mapping, pXRF validation, and rigorous drilling, positions it well to unlock value from this phosphate-rich region. The proximity of KM to the processing plant site is a distinct advantage that could set Gasaat apart in the competitive phosphate mining sector.
Bottom Line?
PhosCo’s thick phosphate intersections at KM could fast-track Gasaat’s production, but assay results will be the true test of economic potential.
Questions in the middle?
- What will the final assay grades reveal about the quality of KM’s phosphate mineralisation?
- How will metallurgical testing impact processing plans and cost assumptions?
- Can PhosCo maintain continuity of thick mineralisation across the KM prospect amid faulting?