Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF)'s latest drill results from its Banio project in Gabon could significantly enhance the asset’s resource potential, according to Fundamental Research.
The firm highlighted that Millennial’s ongoing Phase 2 drill program intersected more than 290 metres of potash seams in the recently extended hole, deepening it from 364 metres to about 678 metres.
The hole, previously abandoned in 2017 due to soft sediment issues, revealed interbedded carnallitite and halite zones that the company believes extend mineralization at depth.
“We believe this will positively impact an upcoming resource update and feasibility study,” Fundamental Research analysts said in a note.
Analysts pointed to the 259% increase in Millennial’s share price since their last report in December 2024 as a reflection of growing investor confidence.
Fundamental also cited the project's 2024 Preliminary Economic Assessment (PEA), which returned an after-tax net present value of US$1.1 billion and an internal rate of return of 33%, based on a 25-year average price of US$387 per tonne of granular Muriate of Potash.
By comparison, the current spot price stands at US$351 per tonne. Despite this, Millennial is still trading at just 6% of its AT-NPV10%, the analysts said.
Millennial Chair Farhad Abasov said the latest results “exceeded our expectations,” noting that the drillhole extension, along with a new hole set to be drilled 3.7 kilometres to the east, could “significantly boost the project’s potash resources.”
The Banio project currently hosts an Indicated Mineral Resource of 657 million tonnes grading 15.9% KCl and an Inferred Resource of 1.159 billion tonnes grading 16% KCl, based on a January 2024 estimate. The company expects to complete its Phase 2 drill program by the end of Q2 2025, with an updated resource estimate to follow.