South Harz Potash Ltd (ASX:SHP), a potash exploration and development company with potential ‘world-class’ projects in Germany, has surged on signing a drilling contract for the first confirmatory hole at its Ohmgebirge Mining Licence area with deep drilling specialist company H. Anger's Söhne Bohr-und Brunnenbaugesellschaft (Angers).
This drilling is conditional on permit approval and the company has planned two holes within the Ohmgebirge Mining Licence area.
The first hole is planned for the current quarter to a depth of 665 metres and this is expected to fully penetrate the known potash horizon in the area.
Shares up 37.5%
Shares have been as much as 37.5% higher to A$0.165, a new high of more than four years.
Drilling is intended to collect potash core samples from depth to assist in the verification of historical drilling in the licence area by the former East German state in the 1980s.
The confirmation drill holes will be used to upgrade the company’s inferred resources to indicated, which will allow for the release of a Technical and Economic Assessment (otherwise known as a scoping study) in the first quarter of 2022.
“Significant milestone.”
The drilling program is a key step in developing the JORC-compliant resource at Ohmgebirge. Potash is a highly sought-after agricultural mineral, providing necessary potassium to crops in the form of easily distributed pellets and soluble solutions in fertiliser.
“Signing the drilling contract with Angers is a significant milestone in the project development as it enables the company to drill this first confirmatory hole at the Ohmgebirge Mining Licence with the objective of upgrading the JORC inferred resource to the indicated category,” SHP’s managing director Dr Chris Gilchrist said.
“Angers has a wealth of experience in drilling potash within the region and we have therefore appointed them with the highest measure of confidence.
"We are now on track to commence drilling following permitting which will allow us to progress unhindered with our development plans for Ohmgebirge.”
