Sirius Minerals' latest drill results have not managed to move its potash resources to "indicated" although the "inferred" resources have increased substantially.
The latest results from its SM9 drill were that "inferred" estimates of the mineral resources at its potash mine in York increased to 2.2bn tonnes of 82.4% polyhalite, a 70% increase over previous estimates.
Hope of improving the probability of the resource being actual by obtaining more data will have to wait until another drill in the first quarter of 2013. If that is successful, the find will become "indicated".
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Only when the resource is indicated will it move to develop a pre-feasibility study (PFS) in order raise funds for further development.
The delay knocked back the share price in early morning trading.
In addition, Sirius plans to submit a local planning application for the project by the year end, after which it should receive a decision within six weeks, unless it is referred to national level.
A possible inflection point for the share price is likely to be the December release of a 'project study update'.
Analysts at Liberum, which has a 'Buy' on the stock, chimed in saying that: "Beyond the PFS-style document, which will give a full update on capex and opex estimates, we view off-take agreements and approvals completion as the next catalysts to shares, and Sirius remains on course to complete pre-construction goals at York Potash by mid 2013."
At 12:04 shares of Sirius Minerals are down by 5.9% to 20p.
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