PhosCo Ltd has expanded its Gasaat phosphate resource to 166.6 million tonnes at 20.6% P2O5, unveiled new discoveries, and achieved a metallurgical breakthrough that simplifies processing, positioning the project for a Bankable Feasibility Study in late 2026.
- Gasaat resource grows to 166.6Mt at 20.6% P2O5
- New phosphate discoveries at KH and DOH prospects
- Single-stage flotation process reduces costs and complexity
- A$5.9M cash on hand supported by €1M EBRD grant
- Updated Scoping Study due Q3, BFS planned for Q4 2026
Gasaat Resource Expansion and New Discoveries
PhosCo Ltd (ASX:PHO) has significantly expanded its footprint at the Gasaat Phosphate Project in Tunisia, now boasting a total JORC-compliant resource of 166.6 million tonnes grading 20.6% P2O5. This milestone includes maiden resource estimates for the KM and SAB deposits, adding 20.2Mt at 20.5% P2O5 with notably low strip ratios, 0.4:1 for KM and 2.6:1 for SAB, both situated close to the proposed processing plant. These deposits are expected to enhance early production cashflows and underpin a long mine life.
Further bolstering Gasaat’s scale are recent discoveries at the KH and DOH prospects. KH, located just 3.5km from the plant site, yielded wide phosphate intersections of 16.5 to 20.5 metres, with mineralisation outcropping in places, potentially boosting early project economics. Meanwhile, DOH drilling confirmed a substantial phosphate horizon averaging 13 metres thickness over a strike length of 1.3km and width exceeding 600 metres, reinforcing Gasaat’s emergence as a world-class phosphate resource.
Metallurgical Breakthrough Simplifies Processing
PhosCo has also reported a metallurgical breakthrough at Gasaat that could materially improve project economics. Testing demonstrated that a simple, single-stage flotation circuit can produce commercial-grade phosphate concentrate with grades up to 31.4% P2O5 and recoveries between 75% and 84%. This approach eliminates the need for the previously planned three-stage silica flotation steps, reducing both capital expenditure and operational complexity.
The single-stage flotation uses a reverse flotation method to simultaneously remove carbonates and silica in one rougher and cleaner stage. An added advantage is the ability to use the saline bore water from Gasaat with minimal or no water treatment, avoiding costly reverse osmosis typically required in phosphate processing. This breakthrough was achieved with support from the European Bank for Reconstruction and Development (EBRD), which is also providing funding for the project.
Funding and Development Milestones
PhosCo ended the June quarter with A$5.9 million in cash, bolstered by a €1 million grant from the EBRD, of which €0.65 million has been received with the balance expected subject to milestones. Early exercise of options by shareholders contributed an additional A$0.6 million. The company plans to incorporate the expanded resource base and metallurgical results into an updated Scoping Study targeted for release in Q3 2026, which will pave the way for a Bankable Feasibility Study (BFS) commencing in Q4.
The BFS is a critical step toward PhosCo’s goal of first production by mid-2028. Concurrently, the company is advancing exploration at other prospects, including drilling at the King’s Eye prospect within the Simitu Project, following promising copper, antimony, silver, and zinc assays. At the Sekarna permit, reconnaissance exploration is planned in the northern section, avoiding areas designated as a proposed nature reserve.
Strategic Position Amid Global Fertiliser Supply Challenges
The timing of Gasaat’s advancement is notable against a backdrop of global fertiliser supply disruptions. The U.S. declared a fertiliser emergency in June 2026, citing severe shortages and price volatility exacerbated by geopolitical tensions, including the closure of the Strait of Hormuz. With U.S. phosphate production having halved over 25 years and imports now comprising 15% of consumption, supply chain security has become a strategic priority. PhosCo’s Gasaat project, with its large-scale resource and competitive cost potential, is well positioned to benefit from these structural market shifts.
Bottom Line?
PhosCo’s Gasaat project is transitioning from exploration to development with a strengthened resource base and streamlined processing, but execution of the BFS and securing of further financing will be pivotal over the next 12 months.
Questions in the middle?
- How will the updated Scoping Study quantify the economic benefits of the single-stage flotation process?
- What are the timelines and capital requirements for the Bankable Feasibility Study and subsequent project financing?
- How might ongoing global fertiliser supply disruptions influence offtake agreements and project valuation?