Davenport Resources acquires three adjoining potash mining licenses in Germany
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”.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.