|Davenport Resources (ASX:DAV) is an Australian listed Potash exploration and development company with world class assets in the heart of Germany’s South Harz Potash District.
The company holds three perpetual mining licences and two exploration licences covering 659km2 of prime Potash ground. All licences surround former underground Potash mines that were closed down after German reunification in the 1990’s. The South Harz Potash District has a history of over 120 years of potash production with an estimated 181.7 million tonnes of Potash produced since the 1890’s.
Davenport recently announced an increase to their JORC compliant Inferred Resources, which now totals over 1.7 billion tonnes grading 11.4% K2O. The resources under Davenport’s control contain over 194 million tonnes of K2O product. Further work is ongoing in Germany to increase and upgrade Davenports resource base, and the company expects this to become Europe’s largest unmined Potash resource within the coming year.
The current Potash market is slowly emerging from a period of oversupply with demand growing at around 3% a year. Global production is expected to exceed 67 million tonnes this year with Europe retaining its position as a net importer of potash. Prices for Potash have increased substantially during the past 6 months with realisations in excess of $300 per tonne being achieved in Brazil and SE Asia. Contract prices to China have been reported at levels of $60 per tonne higher than last year
Davenports South Harz Project is strategically positioned close to existing infrastructure and end markets. The project sits in a low risk jurisdiction in EU, with a supportive regional government and access to free trade with 27 countries.
Davenport is backed up by a strong board and management with many years of worldwide Potash exploration, evaluation, development and production experience.