PhosCo Extends Gasaat Resource with New KH Phosphate Discovery

New Discovery Enhances Gasaat’s Resource Base

PhosCo Ltd (ASX:PHO) has added another chapter to its expanding Gasaat phosphate story with a fresh discovery at the KH prospect, situated just 3.5 kilometres from the proposed plant site in Tunisia. A five-hole drilling campaign has intersected wide, shallow phosphate zones ranging between 16.5 and 20.5 metres thickness, confirming the continuity and geometry of the mineralisation previously indicated by historical drilling.

The KH prospect stands out for its simple, tabular phosphate layer that outcrops in some areas, a geological setup that could translate into operational advantages, particularly in the early years of production. This discovery dovetails with recent maiden resource estimates at the nearby KM and SAB prospects, supporting PhosCo’s strategy to grow Gasaat’s resource inventory and improve project economics ahead of the Bankable Feasibility Study.

Drilling Confirms Structural Simplicity and Continuity

The drilling results at KH validate the lateral continuity and thickness of the phosphate horizon within an Eocene limestone block displaced by faulting. The mineralised block covers roughly 150,000 square metres and dips gently southeast at 20° to 30°, constrained to the north by an east-west fault. Vertical drill holes intersected phosphate from depths as shallow as 28.8 metres to over 100 metres, with intercepts including 20.5 metres from 102.5 metres and 20 metres from 80.5 metres.

The phosphate layer is hosted within a marine carbonate sedimentary sequence typical of Gasaat, comprising basal Cretaceous marls, the phosphate-bearing unit, and an overlying dolomitic limestone cap. The geological consistency across Gasaat suggests that KH’s mineralisation could integrate smoothly into the existing resource framework.

Pending Assays and Resource Estimate to Shape Next Steps

While assay results from the KH drilling are still awaited, the intercept thicknesses and geological continuity bode well for a maiden Mineral Resource Estimate (MRE) planned for this prospect. This will feed into an updated Scoping Study scheduled for release in the third quarter of 2026, which aims to refine the project’s economic outlook in light of the growing resource base.

PhosCo is also advancing metallurgical testing, following promising flotation results from the KM deposit that demonstrated the potential for producing high-quality phosphate concentrates suitable for fertiliser manufacture. Additional drilling at KH and the DOH prospect will supplement resource estimates for the broader Gasaat area, underpinning the company’s ambition to meet rising global fertiliser demand.

Meanwhile, the drill rig is set to move to the King’s Eye prospect within PhosCo’s Simitu copper/base metals project, where recent rock chip assays have shown encouraging copper and silver grades, highlighting the company’s diversified exploration portfolio in Tunisia.