17th May 2016 08:25
LONDON (Alliance News) - Sirius Minerals PLC, the company developing a multi-billion pound potash mine in the North York Moors National Park, Tuesday said the amount of ore and the grade of the ore estimated to be lying within the project has increased.
Sirius is currently progressing its plans to build a substantial project to produce different products that can be used as fertiliser. The York potash project is the first new mine of its kind in the UK for over 45 years, and Sirius claims it will be the biggest potash mine in the world once built.
The probable ore reserve at the project has now been updated and estimates there is 280.0 million tonnes at an average grade of 88.4% compared to the previous estimate of 250.0 million tonnes graded at 87.8%, which was originally made back in September 2013.
The increase in reserves follows on from the completion of the definitive feasibility study for the project, which was completed slightly later than planned back in March.
The new estimate means the probable ore reserves within the shelf of the project is thought to contain around 247.7 million tonnes of polyhalite to extract.
"This increase, in what was already the world`s largest and highest quality polyhalite reserve, adds further confirmation of the outstanding nature of this deposit," said Managing Director and Chief Executive Chris Fraser.
Looking at the resources in more detail, the indicated resources within the shelf seam of the project stands at 820.0 million tonnes of ore graded at 87.3% polyhalite to contain a total of 710.0 million tonnes of polyhalite whilst the inferred resource in the shelf stands at 840.0 million tonnes graded at 85.7% to contain a total of 720.0 million tonnes of polyhalite.
The inferred resource in the basin of the project stands at 1.00 billion tonnes of ore graded at 84.7%, containing an estimated 850.0 million tonnes of polyhalite.
"SRK (the firm to carry out the estimates) considers that there is a good likelihood that a proportion of the currently reported inferred mineral resource will be upgraded to the indicated mineral resource and ore reserve status once the mine has been established and the polyhalite horizons have been accessed and underground exploration and grade control drilling commences," said the company.
"[SRK] also considers that additional mineral resources and ore reserves are likely to be generated following ongoing exploration and assessment during the mine life," the company added.
Initially the mine will produce 10.0 million tonnes of polyhalite per year with the long-term ambition of doubling that. Initial production is expected to start in 2021, but the project is not set to reach that initial 10.0 million tonnes a year until 2023. After hitting the 10.0 million tonne mark, production will increase to 13.0 million tonnes a year before potentially rising to the 20.0 million tonne target.
Sirius shares were up 2.8% to 18.25 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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