PhosCo Ltd has reported outstanding assay results from its KM Prospect within the Gasaat Phosphate Project in Tunisia, setting the stage for a maiden Mineral Resource Estimate this quarter. These high-grade phosphate intercepts promise to enhance the project's economics ahead of an updated Scoping Study.
- High-grade phosphate intercepts up to 27.6% P2O5 at KM Prospect
- Maiden Mineral Resource Estimates for KM and nearby SAB prospects expected this quarter
- Thick mineralisation with low strip ratio and proximity to proposed plant
- Metallurgical testing and infrastructure studies underway to refine project economics
- Gasaat project benefits from phosphate's critical mineral status amid global food security concerns
Strong Assay Results Highlight KM Prospect Potential
PhosCo Ltd (ASX, PHO) has delivered a promising update from its Gasaat Phosphate Project in Tunisia, announcing exceptional assay results from the KM Prospect. The recent drilling program, comprising 10 holes and trenching, revealed broad phosphate intervals with multiple high-grade layers, including intercepts such as 49.8 metres at 22.4% P2O5 and internal zones exceeding 27% P2O5. These results underscore the prospect’s potential to significantly boost the upfront economics of the Gasaat project due to its thick mineralisation, high grades, low strip ratio, and close proximity to the planned processing plant.
Towards Maiden Mineral Resource Estimates
The company is poised to release maiden Mineral Resource Estimates (MRE) for both the KM and nearby SAB prospects within the current quarter. These new resources will be integrated into an optimised Scoping Study, expected soon, which aims to refine the project’s development plan and economic outlook. The KM prospect’s thick phosphate layers, some exceeding 50 metres, are notably thicker than the project average, offering a substantial volume of high-quality ore.
Ongoing Metallurgical and Infrastructure Work
Alongside resource estimation, PhosCo is advancing metallurgical testing on representative drill core to determine the optimal processing route. Bulk samples from trenches have been retained for further assessment. Infrastructure studies are also progressing in parallel, supporting the upcoming Scoping Study update. These efforts aim to validate the processing assumptions and capital requirements, critical for project financing and development.
Strategic Importance of Gasaat Phosphate Project
PhosCo’s Managing Director, Taz Aldaoud, emphasised the strategic timing of Gasaat’s advancement, noting phosphate’s designation as a critical mineral by multiple governments. With global food security increasingly prioritised, phosphate’s role as a key fertiliser component elevates the project’s significance. The company’s focus on expanding low-strip ratio resources aligns with improving early-stage project economics, potentially enhancing investor confidence.
Looking Ahead
While the current assay results are preliminary pending full laboratory confirmation, they provide a strong foundation for the imminent resource estimates. The western lobe of KM, less explored due to access challenges, remains an attractive target for future drilling, potentially adding further value. Investors will be watching closely as PhosCo delivers these next milestones, which will shape the project’s trajectory and market perception.
Bottom Line?
PhosCo’s high-grade results at KM set the stage for a pivotal resource update, with the next quarter critical for defining Gasaat’s economic potential.
Questions in the middle?
- What will the maiden Mineral Resource Estimates reveal about the total size and grade of KM and SAB?
- How will metallurgical test results influence processing strategies and project costs?
- Could further exploration in the western lobe of KM unlock additional high-grade resources?