Potash asset developer MagIndustries (TSX:MAA) has announced that its subsidiary MagMinerals Potash, has completed a NI 43-101 compliant technical scoping report for its 1,111 square kilometer Makola exploration license on the Atlantic coast of the Republic of Congo.
The report estimated inferred resources of 9.2 billion tonnes of carnallitite at an average K2O grade of 12.1%, for a total inferred resource of 1.7 billion tonnes of potash (KCl).
The news sent the company`s stock up by 6% this morning, as investor`s reacted to the substantial size of the deposit.
The report, by Ercosplan Ingenieurgesellschaft Geotechnik und Bergbau mbH, also estimates inferred resources of 70 million tonnes of sylvinite at an average K2O grade of 20.7% for a total inferred resource of 23 million tonnes of potash. These sylvinite resources are located in the area of the past producing underground Holle Potash Mine, which lies within the Makola exploration license.
MagMinerals acquired the Makola exploration license in 2009 through the purchase of all of the shares of Potasse du Congo, a Congolese company. Potasse also holds the Tchizalamou and Loango exploration licenses, which are as well undergoing preliminary assessment.
The total area of its three licenses (Makola, Tchizalamou and Loango) is 2,056 square kilometers, all of which are underlain by multiple potash bearing horizons.
MagMinerals also owns the Mengo mining license, which is under preliminary development for a 1.2 million tonne per year potash operation.
The company filed an updated technical report in 2009 that concluded the property contains a proven and probable resource of 33.2 million tonnes of potash - sufficient to support a 26 year mine life - and an additional inferred resource of 209 million tonnes of potash.
MagIndustries is a Canadian-based company focused on the development of its potash assets in the Republic of Congo.
Disclosure: no position