Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF) has intersected over 100 metres of potash mineralization in its latest drillhole at the Banio potash project in Gabon, a result the company says could significantly enhance the project’s resource base.
The drillhole, BA-004, was completed to a depth of 667 metres and encountered the evaporite-bearing salt sequence from about 260 metres to the bottom of the hole, Millennial said in a statement.
Within this sequence, the hole intersected multiple potash seams characterized by interbedded carnallite and halite.
"Numerous thick potash seams, in carnallitite form, were intersected in BA-004 with a combined total of (over) 100 metres," said chair Farhad Abasov. "The potash mineralization found in the recently completed drillholes, BA-001-EXT and BA-004, exceeded our expectations and clearly demonstrates the potential of our project."
BA-004, located approximately 3.7 kilometers east of BA-001-EXT, was drilled as part of Millennial’s Phase 2 program to test the eastward extension of known potash zones. Preliminary logging indicates the hole encountered seven distinct evaporite cycles, with potash mineralization present in each.
The new drilling results have extended the strike length of known potash mineralization to roughly eight kilometers, the company said. The data could support a revised mineral resource estimate and contribute to a planned feasibility study, which is expected to begin in the coming months.
Millennial’s current resource estimate includes 657 million tonnes of indicated resources grading 15.9% KCl and 1.16 billion tonnes of inferred resources at 16% KCl.
The drill results were cheered by investors, with shares of the company up almost 16% mid-morning on Thursday.
In a separate announcement, the company said it granted nearly 3 million incentive stock options exercisable over five years at a price of C$1.28 per share.