PhosCo (ASX: PHO) announced breakthrough metallurgical test results for its Gasaat Phosphate Project, indicating a single-stage flotation process that could significantly reduce processing costs.
These encouraging results pave the way for an updated scoping study targeted for Q3 2026.
First-pass metallurgical tests for the KM prospect revealed a simplified flowsheet that achieved commercial-grade phosphate concentrate up to 31.4% P2O5 with 75.1% to 83.7% recovery.
Three silica flotation steps have been eliminated, potentially reducing capital expenditure, operating expenditure, and technical risk.
Saline Gasaat bore water can likely be used with minimal or no cleaning, further reducing costs.
Scoping Study Update Expected Q3 2026
The new metallurgical findings will be incorporated into an updated Scoping Study, targeted for completion in Q3 2026.
These results build upon recent maiden JORC 2012 Mineral Resource estimates for the KM and SAB deposits, which totalled 20.2 Mt at 20.5% P2O5.
The Gasaat Project's global resource now stands at 166.6 Mt at 20.6% P2O5, with 92% in Measured and Indicated categories.
Earlier exploration at the KM prospect confirmed thick, shallow phosphate mineralisation, supporting geological continuity.
Drilling at the DOH prospect identified significant scale mineralisation across a 1300m strike length and over 600m width.
These resource developments have been supported by previous financing, including a $5M placement in February 2026.
Project Risks and Next Steps
PhosCo's latest metallurgical results represent a significant technical advancement for the Gasaat Phosphate Project, potentially simplifying processing and reducing costs.
These positive developments, coupled with prior resource definition and funding, strengthen the project's pathway towards feasibility, although further optimisation and study work are required.
Quantified capital expenditure and operating expenditure reductions are not yet provided, pending detailed study outcomes.
Key next steps include bench-scale optimisation, PFS test work, and the updated Scoping Study.
