South Harz Potash Ltd (ASX:SHP) is making strides on the pre-feasibility study (PFS) for its Ohmgebirge Development Project in the South Harz Potash District in Germany.
The PFS, which is currently 50% complete, is on time and on budget to be delivered in December 2023.
South Harz COO Lawrence Berthelet said: "The combined PFS team is working studiously to deliver the optimal engineering solution for the project, region and German potash industry.
“Ohmgebirge is set to capture the benefits of historical mining in the area delivering it clear potential to become one of the most significant, lower quartile capital intensity potash developments.”
Site selection
One of the key aspects of the PFS is the selection of the final site for the project. South Harz is considering a brownfield option, which involves using neighbouring Bernterode shafts, just 1,500 metres from the Ohmgebirge tenement boundary.
This option has the potential to offer substantial savings in overall capital expenditure. The company is engaged in discussions with the owner of the Bernterode shafts, NDH-E/Deusa, to explore the viability of this highly capital-efficient development approach.
The engineering team, led by South Harz COO Lawrence Berthelet and global potash development leader HATCH, has achieved several key milestones in the PFS process.
A 3D geological resource model is complete, providing an accurate basis for developing the mine plan. The company has also shortlisted the site and shaft, with a focus on the Bernterode area because of its proximity to thick sections of the Ohmgebirge deposit.
Environmental studies in train
Baseline environmental studies are in progress and preliminary process design and plant layout have been ticked off.
The collection of a five-tonne bulk sample from the Bernterode underground workings has allowed for large-scale process design test-work, including grind size optimisation and backfill material design/engineering.
Further trade-off studies are in train, examining various factors such as power sources (steam, electrical, biogas, etc.), mining methods (drill and blast, continuous mining), and energy options (natural gas, grid electrical power, hydrogen).
These studies aim to identify the most efficient and economically viable approaches for the project.
The PFS also includes an analysis of options to limit peak capital requirements while ensuring attractive overall project economics. This encompasses not only the brownfield options at Bernterode but also alternative approaches to capacity design, including a potential phased approach to the capacity build-up.
Ohmgebirge, situated south and west of the historical potash mines of Bischofferoder, Bleicheroder and Sollstedt, offers significant potential as a potash resource.
The thickness of the deposit and the strength of exploration data supporting the resource modelling are evident from the plan and long section images provided.
"The Ohmgebirge PFS is proceeding on track and budget under the expert oversight of both industry leader Hatch and our deeply experienced COO Lawrence Berthelet,” South Harz CEO Luis da Silva said.
“Our work to date continues to affirm the world-class nature of the Ohmgebirge development and its strong capacity to leverage existing regional infrastructure and a genuine brownfield development pathway.
“We look forward to providing further updates as key outcomes are progressively concluded and the PFS advances towards targeted completion later this year.”