Plymouth intersects multiple wide potash beds at Banio

Published at Jun 22, 2017, in Juniors

Finfeed presents this information for the use of readers in their decision to engage with this product. Please be aware that this is a very high risk product. We stress that this article should only be used as one part of this decision making process. You need to fully inform yourself of all factors and information relating to this product before engaging with it.

Plymouth Minerals (ASX: PLH) informed the market on Thursday that it had completed the third hole of its phase I drilling program at the Banio potash project in Gabon. The hole was drilled within the Alpha Target area approximately 2.1 kilometres east of the previous hole.

Management said that it had intersected multiple wide potash beds in the course of drilling the third hole, and given similarities of visible mineralisation with the second drill hole they are eagerly awaiting assay results.

To provide some background, PLH owns both the Banio and Mamana potash projects, both of which are drill proven, high grade, shallow potash deposits. Both projects are located in Africa and have good access to infrastructure, being located on the coast of Gabon and on major transport riverways with direct access to export ports.

While assay results are still pending, core samples demonstrated broad zones of visually identifiable carnallite (pinkish red). Of significance is the fact that these features were also observed in the second drill hole. Samples have been dispatched for analysis, the results of which should be available within approximately four weeks.

In the interim though, assay results from the second drill hole are imminent, and given the similarities in visible mineral characteristics between holes two and three, these results could see some assumptions made regarding the tenor of mineralisation prior to the return of assay results from hole three.

While geological inspection isn’t conclusive, PLH noted that its geologists have a positive stance on what they have viewed to date. Higher grade sylvinite is not readily identifiable as it can be either colourless or pink, and similar to carnallite.

Having defined a fault zone which is interpreted to be the boundary of potash mineralisation to the immediate south, and subsequently identified broad zones of potash mineralisation, PLH is now assessing data available and planning the next stage of exploration at Banio.

This will determine whether additional drilling will be conducted at Alpha or the larger Ndindi South Target.

Should PLH be able to bring one or both projects into production the company will benefit significantly from its location. Brazil is a major consumer of potash and South America is the largest consumer of seaborne potash in the world.

However, it should be noted here that this is an early stage play operating in a high risk region. So investors should seek professional financial advice if considering this stock for their portfolio.

However, much of the world’s potash is shipped from North America, which is significantly more costly than the much shorter route from Africa. Consequently, African and European producers are often more competitive from a pricing perspective.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). 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.

Publishers Notice

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.

Facebook
Twitter
LinkedIn