Investors have smiled on Davenport Resources today after the potash play reported an inferred resource of over 1.1 billion tonnes in the southern portion of its wholly-owned Mühlhausen‐Nohra Mining licence in Germany’s South Harz region.
The inferred resource stands at 1.13 Billion tonnes at 11.10% potassium oxide comprising mostly sylvinite (834 million tonnes at 12.10% potassium oxide) and carnallitite (295.8 million tonnes at 8.2% potassium oxide).
This inferred resource covers the southern portion of the Mühlhausen‐Nohra mining licence and covers an area of 70.4 km2.
Mühlhausen‐Nohra is one of three perpetual mining licences in the South Harz Basin that Davenport acquired recently from German government agency Bodenverwertungs‐und‐verwaltungs GmbH (BVVG).
This new JORC compliant inferred resource covers only 13.5% of the licence area under Davenport’s control in Germany and lies adjacent to the Küllstedt Exploration Licence.
According to Davenport, it has already been demonstrated that the Mühlhausen resource extends well into the Küllstedt licence, and ongoing work may lead to the definition of further JORC resources in the near future.
Davenport now controls over 1.7 billion tonnes (grading 11.4% potassium oxide) of JORC inferred resources from the southern portion of Mühlhausen‐Nohra and Ebeleben, where it reported a maiden JORC inferred resource of 576.6 million tonnes at 12.1% potassium oxide in April 2018.
Davenport Managing Director Dr Chris Gilchrist said the project continues to get bigger all the time.
“This is the second of the areas where we have sufficient data to support a JORC Inferred Resource,” he said.
As with the Ebeleben licence area, Micon International Co Ltd has again confirmed an extremely large and high‐quality resource within the southern part of our Mühlhausen‐Nohra Mining Licence.
“This dramatic increase in our overall JORC Inferred resources means we are well on the way to declaring Europe’s largest potash resource.
“Equally important, is the significant quantities of minerals required for the production of high value multi‐nutrient fertilisers. Further work is still ongoing, and we believe we will have more significant announcements coming in the near future”.
Confirmation modelling work continues on the Nohra‐Elende sub‐ area, the results of which will be released in the coming weeks.
Davenport is planning a targeted programme to upgrade JORC Inferred Resources to Indicated Resources by carrying out confirmation and exploration drilling in selected target areas.
Shares in Davenport have climbed 0.7c or 14% to 5.7c in morning trade.