PhosCo Strengthens Gasaat Phosphate Development Plans with KM Prospect Results

PhosCo (ASX: PHO) has confirmed a major new discovery at the KM prospect within its Gasaat phosphate project, after maiden drilling returned some of the highest-grade assays yet recorded in Tunisia.

The program intersected broad, shallow zones of phosphate mineralisation including 53 metres at 22.3% P₂O₅ (phosphorus pentoxide, more commonly known as phosphate), with multiple intervals exceeding 26%.

Managing director Taz Aldaoud said the results underscore the potential for KM to transform project economics and to feature prominently in early development plans.

Standout Pipeline Addition

The latest assays revealed consistently thick mineralisation close to surface, with nine separate samples grading above 28% phosphate—rare grades in Tunisia that highlight KM as a standout addition to Gasaat’s pipeline of prospects.

Because the mineralisation occurs at shallow depths, the discovery points to a low strip ratio and reduced mining costs compared with deeper deposits.

This makes KM not only high-grade but also cost-competitive, a combination that significantly enhances its development potential.

PhosCo said the scale and tenor of the results exceeded expectations and firmly establish KM as a cornerstone for the company’s next phase of resource growth.

Strategic Location Supports Development

The discovery’s proximity to the proposed processing plant magnifies KM’s importance, allowing PhosCo to bring the project online more quickly and with lower capital intensity than more remote deposits.

The ability to integrate KM early into the mine plan could provide valuable cash flow at the front end of Gasaat’s production schedule, smoothing the ramp-up of larger-scale operations.

PhosCo has committed to commencing metallurgical testing to validate processing pathways, while further drilling will target extensions to the mineralisation in preparation for a maiden Mineral Resource Estimate.

The comapny is also advancing a resource update at the SAB prospect, another shallow deposit with strong grades, reflecting its deliberate strategy of prioritising near-surface resources that can deliver robust early economics.

This approach not only strengthens Gasaat’s overall project profile but also enhances PhosCo’s ability to attract financing partners who value low-cost, high-margin opportunities.

Significantly Enhanced Economics

“These are exceptional assays that confirm that KM is a discovery with the potential to significantly enhance the project economics,” Mr Aldaoud said.

He noted that the shallow nature of the mineralisation makes KM particularly attractive for low-cost development and earlier advancement than originally planned.

Mr Aldaoud also acknowledged the role of local and national stakeholders in supporting the company’s work in Tunisia, saying their contribution had been instrumental in enabling Gasaat’s progress.

With KM now firmly established as a high-grade discovery, PhosCo intends to accelerate its studies and integrate the deposit into the broader development pathway for Gasaat.