PhosCo’s Gasaat Project Faces SAB Resource Delay Amid Drilling Expansion

Strong Drilling Results at KM Prospect

PhosCo Ltd has announced outstanding drilling results from its Gasaat Phosphate Project in Tunisia, highlighting a 50.5-metre thick intersection of phosphate rock at the KM prospect. This latest intercept, from drill hole GADD-11, confirms the continuity of high-grade mineralisation previously reported, including a 53-metre intersection in hole GADD-03. The phosphate grades remain robust, with provisional pXRF measurements indicating similar tenor to earlier holes, reinforcing the prospect's potential.

Implications for Project Economics and Development

The thick and high-grade phosphate intersections at KM are particularly significant due to their proximity to the proposed processing plant and a lower strip ratio, factors that are expected to enhance the overall project economics. Managing Director Taz Aldaoud noted that these results could allow KM to be advanced in the production schedule, alongside other low-strip deposits such as the nearby SAB prospect. This strategic shift could accelerate early cash flow and improve the project's financial profile.

SAB Prospect Drilling and Resource Confidence

At the SAB prospect, additional drilling is underway to increase confidence in the maiden mineral resource estimate. Previous intercepts, such as a 21-metre intersection in hole GADD-10, have been encouraging, but the company is prioritising further drilling to ensure the resource can be confidently included in the revised Scoping Study mine plan. While this has delayed the SAB resource release, it underscores PhosCo's commitment to robust resource definition.

Next Steps and Metallurgical Testing

PhosCo aims to complete the maiden KM resource estimate by the end of the current quarter, supported by ongoing drilling and assay work. Concurrently, preliminary metallurgical testing is planned to identify optimal processing routes, with a focus on the amenability of the high-grade phosphate to washing and other beneficiation methods. These efforts are critical to refining the project's development strategy and unlocking value.

Geological Context and Project Outlook

The Gasaat Project's phosphate mineralisation is sedimentary and carbonate-hosted, with the KM and SAB prospects exhibiting thick, continuous phosphate layers. The geological setting, combined with the recent drilling success, positions Gasaat as a promising phosphate development in Tunisia. PhosCo's methodical approach to resource definition and project optimisation reflects a maturing asset poised for advancement.