Davenport Resources acquires three adjoining potash mining licenses in Germany
Published 25-OCT-2017 14:47 P.M.
2 minute read
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Davenport Resources (ASX:DAV) announced on Wednesday that it had secured final approval for the acquisition of three highly prospective potash mining licenses in Germany’s South Harz region.
The licenses were acquired from a German government agency (BVVG) and they were approved by the Thuringen State Mining Authority which has jurisdiction over the area in which the licenses are located.
The licenses will be held by DAV’s German subsidiary company, East Exploration GmbH. This is an important step for the company as it satisfies the remaining conditions on the BVVG transaction, ensuring the company and consultant ERCOSPLAN can proceed with a review of historic exploration data from the licenses that will assist in guiding cost-effective brownfields evaluation of the area.
Importantly, the three mining licenses adjoin DAV’s existing exploration licenses in the South Harz region. They have been extensively drilled, providing DAV with historic resource estimates dating back to when potash was actively mined in the region.
Management highlighted the fact that more than 100 deep drill holes were sunk on the licenses leading to the creation of an extensive exploration database that would currently cost more than €100 million to complete.
The review of historic exploration will cover all three new licenses, and the focus will be on areas of sylvinite mineralisation that extend to DAV’s adjacent tenements. Once the existing data has been analysed, management anticipates that carefully located confirmation drill holes can validate the entire drill program conducted in the 1970s, enabling it to establish a JORC 2012 resource.
It is early stages for DAV here so investors should seek professional financial advice if considering this stock for their portfolio.
Commenting on the likely timing of upcoming developments, DAV’s Managing Director, Chris Baines said, “Now that all formal approvals for the acquisition are complete, Davenport expects the first report on historic drilling within two weeks with more to follow progressively over the next three months”.
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