The two hole Phase 3A program targets the western part of Kola and has good potential to intersect further high-grade sylvinite of the Upper and Lower Seams as well as additional extremely high-grade mineralisation of the Hangingwall Seam.
"At well over 50 percent KCl, the Hangingwall Seam presents an exceptional opportunity; if either of these boreholes are positive it would support substantial increase in ELM's resource target for this 'super-high-grade' sylvinite," chief executive officer Iain Macpherson said.
"Intersection of a sylvinite Upper and/or Lower Seam would also be a great result, opening up possibility for significant westward extension of these thick high-grade seams upon which the PFS is based."
EK_46 is located 1 kilometre southwest of EK_43, which had intersected 3.11 metres at 37.8% K2O, while EK_47 is 1.5 kilometres northwest of EK_45 that had intersected 3.75 metres at 34.2% K2O.
EK_46 is currently being drilled.
Results from the new boreholes will be incorporated into an updated Mineral Resource estimate for Kola which will be used to support the Bankable Feasibility Study due to start in the second quarter of this year.
EK_43 and EK_45 are the most recent holes that have intersect the Hangingwall Seam, which limited drilling has to date constrained the size and classification of resources of this seam (47 million tonnes at 34.75%K2O or 55.01% KCI) and has precluded its inclusion in the Pre-Feasibility Study.
Preliminary economic analysis suggests that even if a relatively small Hangingwall Seam Mineral Reserve is defined it could have a significant positive impact upon the already robust economics of the project.
To assist in the Mineral Resource upgrade, Elemental has reached agreement with an oil exploration company for the acquisition of an additional 12 kilometres of recent oil industry 2D seismic data covering the Kola Northwest area.
A Pre-Feasibility Study conducted on the Sintoukola project has indicated an after-tax NPV10 of US$2.97 billion (A$2.8 billion) and internal rate of return of 29.3%.
Production cash costs are tipped to be in the lowest quartile of global production costs at US$79.71 per tonne free-on-board.
There is also the potential to reduce the up-front capital costs by up to US$530 million with a corresponding increase in life of mine operating costs.
Sintoukola is expected to produce around 2 million tonnes per annum of muriate of potash from a conventional underground mine with a 23 year life of mine.
The project is located in a region with established infrastructure and is 90 kilometres from a deepwater port and industrial hub at Pointe Noire.
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