The Zhilyanskoye Project is situated in the Aktobe Province approximately 10 km south east of the city of Aktobe, a major industrial hub of north western Kazakhstan. The property is secured by a subsoil use contract of 88 sq km, and is benefited by the well-developed infrastructure in the region, including the trans-Russia railway from Moscow through Aktobe and Almaty to Alashankou of Xinjiang, China.
Geological surveys over the Zhilyanskoye area were extensive between 1930s and 1950s. During the historical phase of drilling, a total of 148 vertical drill holes of between 450 and 850 m deep were completed, totaling some 96,000 m. In 2012, Batys Kali undertook verification and resource drilling for ten holes of 6,184 m and completed a 2D seismic survey on the property.
KPC’s Recent Drilling Campaign at Zhilyanskoye Deposit
Mineral Resource Statement
The Zhilyanskoye resource contains approximately 1.1 billion tonnes of potassium bearing salts including sylvinite (sylvite plus halite) and polyhalite (a potassium bearing multi-element sulphate). The Mineral Resource estimate prepared and reported under the guidelines of the 2012 JORC Code is provided in the table below:
|Rock Unit||Mineral Resource (JORC)||Tonnes (million)||Grade (% K2O Equiv.)||Cut-off Grade (% K2O Equiv.)|
The Mineral Resource Statement as of 6 August 2013 is prepared by SRK Consulting (Kazakhstan) Limited.
In November 2014, the company took receipt of the Feasibility Study on the development of the Zhilyanskoye Potash Deposit. The Feasibility Study was completed by China based, chemical engineering consultancy China Bluestar Lehigh Engineering Corporation (Bluestar). Bluestar has completed in excess of 230 projects in engineering design and surveying, research, development, EPC, and other related areas, including a number of potash production projects in Central Asia and Southeast Asia, most notably the Dekhkanabad potash project in Uzbekistan and Sino-Laos potash project in Laos.
The Bluestar feasibility study envisaged extraction of the potash resource by underground mining and hoisting via a vertical shaft. Under the Bluestar design, the ore would be processed on site to produce both Muriate of Potash (MOP) and Sulphate of Potassium-Magnesium (SOPM). MOP is the potash fertiliser with the most extensive application, and SOPM is a newer efficient potash fertiliser, especially used as water soluble complex fertiliser with high nutritional efficiency rate up to 80% with respect to conventional MOP (40%) and SOP (55%). It is envisaged that the products from the Zhilyanskoye project will be considered more favourable in markets like China, Kazakhstan and throughout Southeast Asia.
Bluestar sees production commencing at an initial production level of 600,000 tonnes MOP from the sylvinite resource base, completed in 3 years (Phase I), and increasing to 1,200,000 tonnes of MOP per year over an additional three year period (Phase II).
Additionally, Bluestar forecasts production of SOPM fertiliser ultilising the polyhalite resource within the deposit. Initial production would be at a rate of 1,200,000 tonnes of SOPM fertiliser per year, completed in 3 years (Phase I), which is envisaged to double to 2,400,000 tonnes over a following three year period (Phase II).
Plan of Zhilyanskoye deposit
Source: Mineral Resource Estimate Zhilyanskoye Potassium Deposit (Kazakhstan), SRK Consulting (Kazakhstan) Ltd