Australian-listed PhosCo (ASX: PHO) has announced a major new high-grade phosphate discovery at its KM prospect in Tunisia, with maiden drilling returning what the company calls some of the highest-grade assays ever recorded in the country.
The drilling at the Gasaat project intersected broad, shallow zones of mineralization, including an impressive 53-meter interval grading 22.3% P₂O₅ (phosphate), with multiple samples exceeding 26% P₂O₅. The company reported that nine separate samples graded above 28%, a rarity in Tunisia that positions KM as a standout asset.
Managing Director Taz Aldaoud stated the results “exceeded expectations” and underscore KM’s potential to transform the project’s economics. “These are exceptional assays that confirm that KM is a discovery with the potential to significantly enhance the project economics,” Aldaoud said.
The discovery’s shallow depth is a key advantage, pointing to a low strip ratio and reduced mining costs compared to deeper deposits. This combination of high grade and low-cost potential significantly enhances KM’s development prospects. Furthermore, the prospect’s proximity to the proposed processing plant is expected to allow for a quicker and less capital-intensive path to production.
PhosCo said the discovery could provide valuable early cash flow, smoothing the ramp-up to larger-scale operations at Gasaat. The company has committed to immediate metallurgical testing and further drilling to define a maiden Mineral Resource Estimate for KM.
This discovery aligns with PhosCo’s strategy of prioritizing near-surface, high-margin resources to strengthen the overall project profile and attract financing. The company is also advancing a resource update at its SAB prospect, another shallow, high-grade deposit within the Gasaat project.
With KM now established as a cornerstone asset, PhosCo plans to accelerate studies with the aim of integrating the new discovery into the broader development pathway for the Gasaat project.
TunisianMonitorOnline (NejiMed – PhosCo (ASX: PHO))
