Regulatory Hurdles and Assay Results Loom Over PhosCo’s Gasaat Progress
PhosCo Ltd has unveiled a significant phosphate discovery at its KM Prospect in Tunisia, featuring thick, shallow mineralisation close to the planned processing plant. This breakthrough could fast-track development and improve project economics at the Gasaat Project.
- KM Prospect yields 34m thick phosphate intersections near surface
- Low-strip ratio mineralisation adjacent to proposed plant site
- Drilling ongoing with assays expected this quarter
- SAB prospect Mineral Resource Estimate underway
- Sekarna permit exploration delayed by proposed nature reserve overlay
Significant Discovery at KM Prospect
PhosCo Ltd has reported outstanding results from its maiden drilling program at the KM Prospect, part of its 100%-owned Gasaat Project in Tunisia. Initial drilling has intersected thick phosphate mineralisation; up to 34.6 metres from shallow depths; based on visual observations and portable XRF analysis. This phosphate is notably coarse and yellow, indicating a potentially low-strip, low-cost mining scenario.
The KM Prospect’s proximity to the proposed processing plant site is a strategic advantage, reducing haulage and mining costs and supporting a potentially accelerated development timeline. Managing Director Taz Aldaoud described KM as a "game-changer" that could underpin early production and cash flow.
Broader Exploration and Resource Development
Alongside KM, drilling continues at the GS and SAB prospects within the Gasaat Project. GS drilling has confirmed phosphate mineralisation but faces challenges due to thicker than expected overburden and mechanical issues. SAB is progressing with a topographical survey and a Mineral Resource Estimate (MRE) expected this quarter, which may allow it to be advanced in the mine plan given its shallow mineralisation.
PhosCo is also finalising a geochemical study with SRK Consulting to optimize processing economics and product quality, a critical step toward project optimisation. This comprehensive approach reflects the company’s commitment to advancing Gasaat’s development potential.
Regulatory and Environmental Considerations
PhosCo is actively engaging with Tunisian authorities regarding the Sekarna Exploration Permit, where approximately 15% of the area overlaps a proposed nature reserve. This has delayed forestry approvals necessary for exploration activities. The company is working to understand the implications and seek a viable path forward, highlighting the environmental sensitivities that can impact mining projects.
While the current drilling results rely on preliminary field analyses, laboratory assays are expected soon to confirm the grade and extent of mineralisation. These forthcoming results will be critical for validating the initial promising findings and refining development plans.
Bottom Line?
PhosCo’s KM Prospect discovery could reshape the Gasaat Project’s timeline, but upcoming assays and regulatory hurdles will be key to watch.
Questions in the middle?
- Will laboratory assays confirm the high-grade phosphate indicated by initial pXRF readings at KM?
- How will the proposed nature reserve overlay affect exploration and development timelines at Sekarna?
- Can SAB’s upcoming Mineral Resource Estimate accelerate its inclusion in the mine plan?
