Millennial Potash hits thick potash seams in key drillhole at Banio project

Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF) has wrapped up the extension of a key drillhole at its Banio Potash Project in Gabon, uncovering a thick section of interbedded carnallitite and halite that could meaningfully boost the project’s resource potential.

Drillhole BA-001-EXT, which was originally stopped back in 2017 at around 364 metres because of soft sediment issues, has now been re-entered and extended down to about 678 metres as part of Millennial’s Phase 2 drill program.

The extension revealed over 290 metres of potash-bearing layers between 364 metres and 657 metres, according to the company.

The original drillhole had been interpreted as intersecting a fault zone due to variable bedding orientations, but the company now attributes these features to soft sediment deformation limited to the upper evaporite cycles in the basin.

The updated interpretation allowed for the successful extension of the hole and identification of multiple evaporite cycles with carnallitite seams.

Millennial Chair Farhad Abasov told shareholders that the results “exceeded our expectations”.

“Extending drillhole BA-001 and drilling new hole BA-004 has the potential to significantly boost the project’s potash resources,” Abasov said in a statement.

He added that the results serve as the foundation for a feasibility study expected to begin in the coming months.

Following the completion of BA-001-EXT, the drill rig will be moved 3.7 kilometres east to begin drilling hole BA-004. That hole is designed to test the lateral extent of the potash horizons into a previously untested area, supported by seismic data suggesting continuity of mineralization.

Millennial said the Phase 2 program aims to expand the strike length of known potash mineralization to 8,000 metres and potentially upgrade parts of its current resource.

The Banio project hosts an Indicated Mineral Resource of 657 million tonnes grading 15.9% KCl and an Inferred Mineral Resource of 1.159 billion tonnes grading 16% KCl, according to a January 2024 estimate.

The Phase 2 drill program is expected to conclude in the second quarter of 2025, followed by an updated Mineral Resource Estimate.

Shares of Millennial Potash jumped 8.1% on Tuesday morning in Toronto, trading hands around C$0.94.