Nothing boring about Sirius's bore-hole

published 28 November 2011

Shares in potash exploration company Sirius Minerals were on the up on Monday after the company confirmed the York site as "one of the world's most significant potash projects."

The results so far for SM1, the first bore-hole drilled by Sirius, have significantly exceeded all parameters used in the Joint Ore Reserves Committee Exploration Target.

The thickness of high-grade polyhalite of 22.1 metres is over four times greater than the assumed 5 metre thickness and the grade of the assayed sections of the high-grade beds average 95.7%, which is above the top end of the exploration target grade range.

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Managing director and chief executive officer Chris Fraser said: "While we await the second batch of assay results, what has been received to date indicates much thicker and higher grade material than expected. There have never been grades or thicknesses like this in any polyhalite deposit anywhere in the world, confirming the York Potash Project as one of the world's most significant potash projects.

"The quality of these drill results, if repeated at our next holes, will result in a positive reassessment of a number of project concepts such as scale of production, bulk-mining methods, and processing routes. As a result we are looking for ways to accelerate development of the York Potash Project even faster to fulfil the company's goal of becoming a major potash producer even sooner."

The share price rose 9.32% to 32.25p by 12:38.