Spanish potash developer Highfield Resources (ASX:HFR) has drilled four more holes at its Muga Potash mine, finding high grade potash in two while the other geotechnical holes found no aquifers or adverse ground conditions.
Highfield's flagship Muga Potash Project is targeting the relatively shallow sylvinite beds in the Muga Project area that covers an area of around 80km2.
The drilling aimed to confirm geotechnical conditions for the two proposed decline routes at 100%-owned Muga in northern Spain.
This supports the company’s design approach using decline access to an underground conventional mine at the Muga Project.
Construction of the declines are due to start in Q4 2015.
Drill holes J14-12 and J14-13 were within close proximity to the evaporite horizon, drilling extended these holes to provide further information on resource continuity and grade for the purposes of mine planning.
Both J14-12 and J14-13 encountered potash mineralisation.
Hole J14-13 intersected 53 metres of potash mineralisation with an average grade of approximately 14.5% K20.
This result is likely to lead to an extension of mine life with additional tonnage and lift the grade of the mineral resource and reserve at Muga.
The samples from hole J14-12, which intersected 4.6 metres of potash mineralisation, are awaiting dispatch to the ALS laboratory in Ireland for geochemical testing.
Anthony Hall, managing director of Highfield Resources, said:
“This is another important step in ensuring we are ready to commence decline construction in Q4 of this Calendar Year for our flagship Muga Potash Mine.
"The commencement of decline construction is critical to ensure we meet are planned production timelines of the first half of 2017. We were also very pleased by the high grade potash mineralisation in J14-13 that is likely to enhance the Muga Mine´s grade and life.”
Muga
Mineralisation commences at depths from surface of less than 200 metres and appears ideal for a relatively low-cost conventional mine accessed via a dual decline as demonstrated in the recent Definitive Feasibility Study that was completed in March 2015.
Design and engineering and other development and contracting work are proceeding before full site construction start after final permitting which is expected later in 2015.
A total of 38 exploration drill holes (11 historic, 27 completed by Highfield Resources) have been completed within the Project area, providing a high level of confidence with respect to continuity of the evaporite horizon, decline access and mineralisation grade across the ore body.
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