Davenport Resources now owns the largest potash resource in Western Europe after adding more inferred resources to its South Harz project portfolio with investors welcoming the news.
The stock (ASX:DAV) has shot up 0.7c or 9.3% to 8.2c on Tuesday on news of a new JORC 2012 compliant Inferred Resource totalling 1,538 million metric tonnes grading 10.7 % potassium oxide (K2O) from the eastern portion of the Küllstedt exploration licence in Germany’s South Harz region.
The new resource has boosted Davenport’s resource inventory to 4.94 billion metric tonnes grading at 10.6 % K2O, which represents the largest potash resource in Western Europe.
Importantly, the inventory contains 1.6 billion tonnes of the higher-grade Sylvinite grading at 13.1% K2O and 3.3 billion tonnes of Carnallitite at 9.4% K2O, totalling 524 million tonnes of K2O.
Davenport Managing Director Dr Chris Gilchrist said the Küllstedt Licence always had the potential to host a significant potash resource.
Davenport has now amassed a substantial JORC compliant resource for its South Harz Potash Projects, in the heart of Germany, totalling nearly 5 billion tonnes of JORC Inferred Resources grading 10.6% K2O,” he said.
“Further work planned this year will focus on adding value to our project portfolio through a combination of confirmatory drilling and further early stage technical and economic studies”.
Davenport is now progressing with its programme to upgrade JORC Inferred Resources to Indicated Resources with confirmation drilling sites selected and progress being made to obtain permission to drill.
Drilling within the Küllstedt licence will assist in upgrading JORC Inferred Resources to JORC Indicated Resources.
Work will shortly commence on combining the Küllstedt Inferred Resource with the Mühlhausen-Keula sub-area Inferred Resources while systematically looking at the spatial and grade distributions for valuable sulphate bearing minerals in addition to Sylvinite.
Meanwhile, discussions are ongoing with internationally renowned consultants with regards to commencing economic studies on the most prospective areas within the Davenport licence portfolio in which several stand-alone potash extraction projects have been identified.
Davenport expects to release an update on these work plans for 2019 shortly.