Mining

South Harz Potash secures landowner approval for drilling at Ohmgebirge project

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By Imelda Cotton - 
South Harz Potash ASX SHP landowner approval drilling Ohmgebirge project

South Harz has submitted an application to drill two holes in the German mining licence area.

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Emerging producer South Harz Potash (ASX: SHP) has secured permission from landowners and tenants for the first of two planned drill holes within the Ohmgebirge potash mining licence area in Germany.

Drilling will aim to verify results from historic holes used to calculate the project’s current inferred resource of 325 million tonnes grading 13.1% potassium oxide.

That total sits within a portfolio of potash assets hosting an inferred resource of 5.3 billion tonnes and grading 10.8% potassium oxide.

It is expected the two confirmatory holes will lead to a revised mineral resource estimate upgrading inferred resources to the indicated category.

First drilling

South Harz – which officially changed its name from Davenport Resources earlier this month – is working with drilling contractors in Germany to prepare a detailed plan of works, with first holes expected to be drilled in July.

The company has submitted an application to the state’s regulatory authority Thüringer Landesamt für Umwelt, Bergbau und Naturschutz and is advancing discussions with landowners regarding other drilling sites.

South Harz managing director Dr Chris Gilchrist said the company is moving quickly towards drilling Ohmgebirge.

“[Securing permission to drill] represents the culmination of a massive effort on the part of our operations team in completing the technical design for the deep, large diameter holes,” he said.

“I look forward to a continuation of this successful start to our program.”

Dr Gilchrist said the company has also finalised components for the Ohmgebirge scoping study, funded by a $10 million share placement late last year.

German history

The South Harz project suite sits in a prolific potash district within the northern part of Germany’s Thuringia state, once considered one of the world’s most important muriate of potash (MOP) producing regions.

Prior to the re-unification of Germany in the 1990s, the district produced approximately 3.3 million tonnes of potassium oxide annually from its mines.

South Harz believes a strategic investment in the district could support modern day potash production rates similar to historic levels.