African Potash stock up on fresh potash finding in Congo
Shares in Sub-Saharan Africa-focused African Potash (LON:AFPO) climbed over 5% Tuesday after the miner announced it has intersected multiple potash seams at the second exploration drill hole at its Lac Dinga potash project, in the Republic of Congo.
The latest drill hole, which was completed at one of two delineated target locations, intersected a 112-m-thick salt sequence that confirmed laterally extensive salt and potash mineralisation typical of the Congolese coastal basin.
The company’s chief executive, Edward Marlow, said the successful intersection of multiple potash seams at Lac Dinga was an “exceptional endorsement” for African Potash’s exploration concept as it supports his confidence that the project has the potential to host a large-scale commercial potash mine.
In addition to proving up the value potential of Lac Dinga, African Potash plans to identify other projects in the area to establish a solid portfolio of highly prospective potash assets.
Africa is one the most important markets for mineral fertilizers, having the potential to increase the value of its annual agricultural output of $ 280 billion in 2010 to $ 500 billion by 2020 according to the African Development Bank (ADB).