The Market Online speaks with Millennial Potash Chairman, Farhad Abasov as they're a TOP GAINER - MILLENIAL POTASH CORP.
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00:00Welcome to The Watchlist, I'm Lindsay Melchuk.
00:08Millennial Potash has officially announced the completion of Phase 1 of their Mengali port.
00:13As well, the company has provided an update on the ongoing construction of the thermal power plant near Mayumba, Gabon.
00:19Now, there's a lot to uncover, and to do just that, we have Farad Abazov, chairman of Millennial Potash, with us here today.
00:28Hello Farad, it's great to have you here with us.
00:31Hi, great to be here.
00:33Now, in your latest drill hole, you delivered nearly 290 metres of potash-bearing seams.
00:39That's some big noise right there.
00:41So how does this result stack up against what your team anticipated for Phase 2?
00:46And really, honestly, what does it suggest about the growth potential of your resource base?
00:52It is astonishing indeed.
00:53We were expecting about 70, 80 metres, in line with what we've discovered in the past.
00:59So last year, we did our first stage of drilling.
01:01That's what we had on average, about 70 metres of potash thickness.
01:04But here, you know, to have over 250, almost 290 metres of potash is just incredible.
01:11So this is going to have definitely a huge impact on the economics, obviously on the resource size itself.
01:18So it's a bit too early to kind of, you know, try to estimate how it's going to affect it.
01:23But the thing, you know, once both drill holes, we're actually drilling the second hole now, are done, we'll be able to revise our resource estimate.
01:32It's not going to be made anymore.
01:33It's going to be a resource estimate.
01:34And after that, we're going to start back with feasibility.
01:36So we'll know what kind of numbers we're looking at.
01:39Currently, we've got 1.7 billion tonnes of indicated inferred resource.
01:44We're originally planning to expand it, potentially double it with these two drill holes.
01:48And we'll see where we stand after we finish it.
01:51Okay, so then given your strong PEA results and a supportive government in Gabon,
01:56let us in on how this latest drill milestone furthers millennials' position as a leading contender in Africa's emerging potash sector.
02:04So a couple of things.
02:05First, the PEA was done last year, and we're looking again at 70 meters of thickness.
02:10Now, based on that, we're looking again at one of the lowest cost structures in the world, $61 of operating costs per ton.
02:18We're looking at about over $1 billion of MTV.
02:22I think, you know, again, once we do BFS, bankroll feasibility study numbers will probably improve from there,
02:28especially, you know, in light of the latest drill hole.
02:32Now, we're also getting significant support from the government.
02:35In terms of infrastructure development, you've already mentioned the first phase of the port has been completed.
02:41The second one will be done next year.
02:43And the power infrastructure is being built as well.
02:45So we think all of these infrastructure elements will be in place way before we get to construction, let alone, of course, production.
02:52My goodness, such exciting news coming down the pipeline for you guys.
02:56This has been a very informative conversation.
02:58Thank you again for joining us.
03:00Thank you so much.
03:02Again, that was Farad Abizov, chairman of Millennial Potash.
03:05Their website is millennialpotash.com.
03:09And to stay up to date on all of your market news, stay right here on stockhouse.com.
03:13I'm Lindsay Melchuk.
03:14Until next time.
03:15See you next time.