PhosCo Ltd’s maiden drilling at the KH prospect within its Gasaat Phosphate Project in Tunisia has delivered wide, high-grade phosphate intersections close to the proposed plant, promising to enhance early project economics.
- Five drill holes at KH return consistent high-grade phosphate
- Best intercept: 19.4m at 20.66% P2O5 including 9m at 24.21%
- KH’s proximity and low strip ratio expected to boost early production
- Scout drilling underway at Sekarna North, Phase-2 planned at DOH
- Updated Gasaat Scoping Study targeted for Q3 2026
Strong Phosphate Intercepts at KH Prospect
PhosCo Ltd (ASX:PHO) has revealed robust assay results from its maiden drilling campaign at the KH prospect, the northernmost target within the Gasaat Phosphate Project in Tunisia. All five holes drilled returned wide phosphate intersections with significant internal high-grade zones. The standout intercept was 19.4 metres grading 20.66% P2O5, including a 9-metre section at an impressive 24.21% P2O5 in hole GADD-2026-35.
This new mineralisation lies just 3.5 kilometres from the proposed Gasaat processing plant, positioning KH as a strategic asset likely to improve the project’s early-stage economics due to its low strip ratio and proximity to infrastructure.
Geological Continuity and Structural Insights
The drilling program has confirmed the lateral continuity and geometry of the phosphate layer at KH, consistent with previous outcrop mapping and historic drilling. The phosphate horizon is hosted within an Eocene limestone block, dipping gently between 20° and 30° southeast, and structurally constrained by a fault to the north. This tabular and relatively simple structural setting bodes well for future resource estimation and mining.
PhosCo’s geological logging, aided by portable XRF analyses, has verified the phosphate unit’s thickness and grade variations, with typical thicknesses at Gasaat averaging 10–15 metres but reaching up to 53 metres at other prospects. The phosphate deposit is marine carbonate-hosted, featuring distinct layers that transition between mudstone, phosphate mineralisation, and limestone caprock.
Advancing Exploration and Project Development
With KH’s promising results adding to the existing resource base at KM and SAB prospects, PhosCo anticipates a boost to Gasaat’s overall economics, particularly in the early years of production. Managing Director Taz Aldaoud emphasised the opportunity to establish Gasaat as a major fertiliser source amid rising global demand.
The company is mobilising its drill rig to Sekarna North for scout drilling, preceding a second phase of drilling at the DOH prospect where a significant phosphate discovery was announced earlier this year. These activities aim to expand the resource inventory further and underpin an updated Scoping Study scheduled for release in Q3 2026.
PhosCo has also been progressing metallurgical test work, which has demonstrated that a simple, single-stage flotation process can produce commercial-grade phosphate concentrate with favourable impurity levels, an important factor for downstream fertiliser production.
Technical and Reporting Standards
The drilling and sampling protocols adhere to industry standards, with HQ diamond core drilling and rigorous assay procedures conducted at ALS Spain. While some assay results remain provisional pending full laboratory verification, core recoveries within the phosphate unit have been excellent, typically exceeding 90%. The company has also leveraged portable XRF to support geological logging and sample selection.
The Gasaat exploration permit, held 100% by PhosCo’s subsidiary Himilco Pty Ltd, remains valid until 2028. Historical data from 1968 drilling by CPG has been integrated, though details are limited.
PhosCo continues to build on its earlier resource expansions and processing breakthroughs, positioning Gasaat for a Bankable Feasibility Study by late 2026. The KH results add a fresh layer of confidence in the project’s potential to meet growing phosphate demand critical for global food security.
Bottom Line?
KH’s high-grade, near-plant phosphate could materially enhance Gasaat’s early production profile, but upcoming drilling and the Q3 Scoping Study will be key to confirming its full impact.
Questions in the middle?
- How will further drilling at DOH and Sekarna North shape Gasaat’s resource profile?
- What metallurgical characteristics will emerge from more comprehensive testing of KH mineralisation?
- How might phosphate market dynamics influence the timing and scale of Gasaat’s development?