Gasaat Project Boasts 146Mt Resource and $1.8M EBRD Funding Boost

PhosCo Advances Gasaat with Impressive Drilling Results

PhosCo Ltd has made significant strides in developing its wholly owned Gasaat Phosphate Project in Tunisia, underscored by exceptional drilling outcomes at the KM prospect. The maiden drilling program revealed thick, high-grade phosphate intersections, including a standout intercept of nearly 53 metres grading 22.3% P2O5. These results not only exceed initial expectations but also highlight the potential for a low-strip, cost-effective mining operation near the proposed processing plant site.

The KM prospect’s mineralisation is characterised by coarse yellow apatite and multiple high-grade zones, some exceeding 26% P2O5, positioning Gasaat as a globally significant phosphate resource. With a JORC-compliant resource of 146.4 million tonnes at an average grade of 20.6% P2O5, the project promises a long mine life and robust production profile.

Strategic Funding and Leadership Commitment

In a major boost, PhosCo secured a €1 million ($1.8 million) grant from the European Bank for Reconstruction and Development (EBRD) to accelerate project optimisation efforts. This funding is earmarked for technical work aimed at enhancing the project’s economics by focusing on low-strip ratio deposits early in the mine life. Complementing this, Managing Director Taz Aldaoud demonstrated strong confidence in the project by investing $1.1 million through early exercise of options.

Further cementing the partnership, PhosCo and EBRD have agreed to issue 150 million options to the bank, subject to shareholder approval, providing EBRD with the right to invest up to A$7.5 million following the release of an updated scoping study. This arrangement is expected to underpin the forthcoming Bankable Feasibility Study (BFS), slated to commence in early 2026.

Robust Project Economics and Community Engagement

The Gasaat project’s economics are compelling, with a 46-year mine life, a post-tax net present value of US$657 million at a 10% discount rate, and an internal rate of return of 54%. Operating costs are projected at a competitive US$79 per tonne of phosphate concentrate, with a rapid payback period of 1.5 years. PhosCo is also prioritising community participation, aiming to provide local stakeholders with a 10% project interest, aligning with Tunisia’s social agenda and fostering strong local support.

Exploration activities continue beyond KM, with confirmatory drilling underway at the SAB prospect and initial work progressing at the Simitu copper-gold permit. However, permitting challenges persist at the Sekarna exploration permit due to environmental overlays, which PhosCo is actively addressing through engagement with government authorities.

Outlook and Next Steps

PhosCo’s immediate focus is on completing the updated scoping study incorporating the KM discovery and advancing the BFS. The company is also reassessing processing options to optimise recovery and cost efficiency, including evaluating single-stage flotation and alternative beneficiation techniques. With strong institutional backing, promising exploration results, and a clear pathway to development, PhosCo is positioning itself as a future low-cost supplier in the global fertiliser market.