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South Harz Potash (ASX:SHP) completes scoping study at German Ohmgebirge deposit

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ASX:SHP      MCAP $19.85M
08 August 2022 11:40 (AEST)

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South Harz Potash (SHP) has completed a scoping study for the development of its flagship Ohmgebirge deposit within its namesake South Harz Potash project in Thuringia, Germany.

The scoping study suggests a mine capacity of 4.5 million tonnes of ore throughput per annum run-of-mine, with an initial life of mine of 21 years and a potassium oxide head grade of 13.5 per cent.

South Harz Potash expects the mine to produce around one million tonnes per annum of premium muriate of potash (MOP) product for sale mainly into the European fertiliser markets.

Pre-production capital spend is estimated at around US$620 million (A$897 million), with a post-tax net present value for the deposit of US$1.28 billion.

SHP Chairman Ian Farmer said the delivery of the scoping study was a “seminal” moment for the company and the South Harz region as a whole.

“This is the first time that the potash mining opportunities in the district, with its long, and sometimes tumultuous, history in mining, have been evaluated based on modern, internationally recognised standards and procedures.”

The SHP board has now approved the progression to a pre-feasibility study (PFS) of the Ohmgebirge development project, which is scheduled to be completed in the fourth quarter of 2023.

South Harz said the PFS would focus on the muriate of potash operation.

South Harz Potash shares were down 4.55 per cent to 10.5 cents per share at 11:36 am AEST.

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