Potash tests show minerals ‘highest quality’

In an announcement to the stock exchange, the company said it believes it may be able to mine 1.35 billion tonnes of high grade polyhalite, which is processed to create premium potash.

York Potash said that only 690 million tonnes of mineable polyhalite ore are needed to deliver 50 years of production.

The company took samples from three exploration holes covering two per cent of the company’s project area.

It said that the findings indicate the “national importance and global relevance” of the potash deposits under the Yorkshire coast.

Chris Fraser, managing director and chief executive of the company, said: “This maiden resource estimate is another key milestone in the development of the project.

“With just three drill holes, we have delivered the world’s largest and highest grade resource of polyhalite.

“Our focus continues to be on moving forward as quickly as possible and in the coming months we hope to be in a position to share more with the local community on the detailed plans about how this project could be built.”

The report estimated that the mine will be able to produce 1.35 billion tonnes of 88.7 per cent polyhalite, including 0.94 billion tonnes of 94.0 per cent polyhalite.

The report was prepared by specialist independent German consultants Ercosplan, which has experience of potash deposits around the world.

York Potash said its calculations did not take into account the extensive historical drilling and seismic information that exists in the area or future drilling results.

As a result the company expects the resource estimate will significantly increase in size and confidence level.

It added that this could mean a lifetime for the mine extending well beyond initial estimates.

Last month York Potash announced that up to £9m a year will be ploughed into a community fund to support local projects.

An initial ‘start-up fund’ of £2m will be paid into a foundation by York Potash once the main construction of the mine begins, with further annual payments once operations start.

A binding contract will ensure York Potash pays 0.5 per cent of annual revenue to the foundation.