PhosCo Ltd advances its Gasaat Phosphate Project with robust drilling results at KM and SAB deposits, confirming thick, high-grade mineralisation. Imminent maiden resource estimates and a significant new discovery at DOH underscore the project's growing global significance amid supply chain disruptions.
- Drilling and trenching confirm thick, high-grade phosphate at KM and SAB
- Maiden resource estimates for KM and SAB deposits expected imminently
- DOH prospect drilling reveals significant new phosphate discovery
- $5M capital raise and undrawn €1M EBRD grant support development
- Geopolitical tensions highlight Gasaat’s strategic phosphate supply role
Robust Drilling Strengthens Gasaat’s Resource Base
PhosCo Ltd (ASX:PHO) is closing in on maiden resource estimates for its KM and SAB deposits within the Gasaat Phosphate Project in Tunisia, following completion of a comprehensive drilling and trenching program. The results confirm consistently thick and higher-grade phosphate mineralisation, with assays revealing intercepts such as 49.8m at 22.4% P2O5 at KM and 22.4m at 21.61% P2O5 at SAB. These promising figures are expected to enhance the upfront economics of the project, given the lower strip ratios and proximity to the proposed processing plant.
This progress builds on earlier successes, including the initial high-grade intercepts reported in recent months, and supports PhosCo’s strategy to establish Gasaat as a globally significant, low-cost fertiliser producer. The company’s focus on optimising the project is reflected in ongoing metallurgical test work aiming to simplify the processing flowsheet by leveraging a deeper understanding of the deposit’s geochemistry. These developments are being integrated into an updated Scoping Study, with a feasibility study slated for later in 2026.
PhosCo’s drilling campaign at KM and SAB, complemented by preliminary pXRF measurements, aligns with the company’s earlier announcements on resource growth and project optimisation. The drilling results and their incorporation into maiden resource estimates are a critical step towards defining the scale and development potential of these deposits within the broader Gasaat resource of 146.4Mt at 20.6% P2O5. The maiden resource for KM and SAB is anticipated imminently, marking a key milestone for the project’s advancement. These updates follow the company’s recent strong drilling results at the KM prospect and stellar phosphate assays at KM and SAB.
DOH Prospect Confirms New Discovery of Scale
Adding to Gasaat’s expanding footprint, drilling at the DOH prospect has confirmed a significant new phosphate discovery. Eight widely spaced drill holes intersected phosphate horizons averaging 13m thick over a strike length of 1,300m and a width exceeding 600m. While assay results are still pending, portable XRF readings suggest phosphate grades ranging from 10% to 28% P2O5, consistent with previous findings at DOH.
This discovery at DOH, a down-faulted block east of the main Gasaat deposits, underscores the project’s potential to support a long mine life with multiple high-quality deposits. The DOH results complement the KM and SAB resource growth and are expected to feature prominently in PhosCo’s development plans. The company’s ongoing exploration and drilling efforts at DOH follow earlier scout drilling and are part of a broader strategy to unlock additional value within the Gasaat tenement package. These findings reinforce the project’s position as a world-scale phosphate source amid tightening global supplies, as highlighted in the recent major phosphate discovery at DOH prospect.
Strategic Funding and Market Dynamics Support Development
PhosCo is well capitalised to advance Gasaat, having raised $5 million during the quarter through a strongly supported placement at $0.12 per share, bolstered by an undrawn €1 million ($1.6 million) grant from the European Bank for Reconstruction and Development (EBRD). Upon release of the updated Scoping Study, EBRD has options to invest a further $7.5 million to fund the feasibility study, providing a significant funding runway for the project’s next development phase.
The timing of this funding aligns with heightened global attention on phosphate supply security amid geopolitical disruptions. The ongoing conflict in Iran and China’s recent export bans on phosphate fertilisers have exacerbated a global fertiliser crisis, particularly affecting supply routes through the Gulf of Hormuz. These events have spotlighted the strategic importance of Gasaat’s location in Tunisia, which offers logistical advantages via Mediterranean shipping routes closer to European markets.
PhosCo’s positioning is further strengthened by strong local and government support, including community participation agreements and alignment with Tunisia’s social development goals. The project’s long mine life, low-cost potential, and proximity to key markets place it favourably in a tightening global phosphate market that is critical not only for fertiliser production but also for battery manufacturing, where phosphate is a key component.
With a cash balance of approximately A$5.7 million at quarter-end and funding facilities intact, PhosCo is set to continue its exploration, resource definition, and feasibility workstreams. The company’s focus on optimising processing, infrastructure, and downstream beneficiation aims to maximise value capture from Gasaat’s extensive mineral endowment.
Bottom Line?
PhosCo’s imminent maiden resource estimates and strategic funding position Gasaat to capitalise on a tightening phosphate market, but assay results at DOH and geopolitical uncertainties warrant close attention.
Questions in the middle?
- How will assay results from the DOH prospect influence Gasaat’s overall resource and mine plan?
- What impact will China’s phosphate export ban and Middle East tensions have on global fertiliser supply chains?
- Can PhosCo leverage its Mediterranean location and community partnerships to fast-track project development and downstream processing?