PhosCo (ASX: PHO) has reported the final drill results from its KM phosphate prospect, part of the wholly owned Gasaat Project in Tunisia.
Three drill holes were completed, with all intersecting thick, shallow phosphate mineralisation.
Notable drill intercepts include 42.5 metres from 37.5 metres, 40 metres from surface, and 28 metres from 1 metre.
These visual observations were validated with portable XRF (pXRF) sighter results that indicate expected intercept values of 10% to 30% P2O5, broadly consistent with earlier laboratory-confirmed results from KM.
These findings reinforce the geological continuity of the prospect and will directly feed into an optimised Gasaat Scoping Study.
Maiden Resources on Track for April
The company confirmed that maiden Mineral Resource estimates for both KM and SAB remain on track for completion in April 2026.
This is a crucial step towards understanding the full potential of the Gasaat Project.
KM has been highlighted as potentially improving upfront economics due to its proximity to the proposed plant, the thickness of the mineralisation, and a low strip ratio from its shallow nature.
Sighter metallurgical testing of KM drill core samples is currently underway.
This testing aims to identify the optimal processing route for the phosphate mineralisation.
Drill Rig Moves to DOH Prospect
Following the conclusion of the KM drilling program, PhosCo has redeployed its drill rig to the DOH prospect.
This move follows previous positive indications from DOH.
PhosCo has previously indicated a significant-scale discovery at DOH. Assay results from DOH are expected in the coming weeks, which could further expand the known phosphate inventory at Gasaat.
Previous drilling at DOH intersected phosphate mineralisation across a 1300 metre strike length and a width exceeding 600 metres.
Funding and Previous Exploration
PhosCo recently strengthened its financial position to advance the Gasaat Project, having secured commitments for a $5.0 million placement in February 2026.
This funding supports ongoing exploration, development activities, and studies.
Earlier exploration at DOH confirmed significant-scale phosphate mineralisation.
The current work on defining maiden resources at KM and SAB is integral to supporting an optimised Gasaat Scoping Study, building upon the existing Gasaat resource of 146.4 million tonnes at 20.6% P2O5.
Balanced Outlook on Gasaat Project
PhosCo's latest KM drilling results are positive, reinforcing the potential for maiden resource estimates and improving the economic outlook for the Gasaat Project.
However, the company must await final laboratory assays for confirmation, and the success of future development stages hinges on continued exploration success at DOH.
Successful progression through feasibility studies and potential future capital raisings are also going to be key moving forward.
