Mühlhausen-Küllstedt

The massive Mühlhausen-Küllstedt area combines the southern portion of the Mühlhausen-Nohra Mining Licence (Mühlhausen-Keula Sub Area) with the Kullstedt exploration Licence.

The total combined land surface area of Mühlhausen-Küllstedt is approximately 311km². The combined Inferred resources from these two licence areas exceeds 2.6 Billion tonnes, making it potentially the second largest undeveloped potash deposit globally after the Jansen potash project held by BHP.

This is a geographical map illustrating areas of mining interest. It displays the Mühlhausen-Keula Sub-Area and Nohra-Elende Sub-Area, both outlined as distinct zones. The Küllstedt town and Mühlhausen city are shown, with a focus on mining activities like SHP (South Harz Potash) mining and exploration licenses. Important map details include the inferred resource area (marked in a grid pattern), the distribution of potash seams, and historic drill holes (marked with green dots). Infrastructure elements such as cities, motorways, federal roads, and railroads are highlighted. A scale of 0 to 10 km provides distance measurement.

JORC Resources

The total mineral resource area for the Mühlhausen-Keula sub-area is approximately 70.4 km² and the total Inferred Mineral Resources tonnage is 1.13 Mt. The average grades and thicknesses of each seam are as follows:

Upper Sylvinite = 5.2 m @ 12.69 % K₂O
Upper Carnallitite = 5.5 m @ 8.53 % K₂O
Lower Carnallitite = 2.6 m @ 6.88 % K₂O
Lower Sylvinite = 2.1 m @ 9.76 % K₂O

Mühlhausen-Keula Sub-Area JORC Mineral Resources as at 6th October 2018

Notes:
Mineral resources presented according to ore type (mineralogy) and not as per stratigraphy
Minimum seam thickness considered for resources is 1 m
Minimum cut-off grade ≥5% K2O
20% geological loss applied to account for potential unknown geological losses for Inferred resources
Data source: historical state records (BVVG) checked and verified
Inferred resources rounded down to nearest 100,000 t
Errors may exist due to rounding

The total mineral resource area for the Kullstedt Exploration Licence is 106.7 km² and the total Inferred Mineral Resource tonnage is 1.54 Mt. The average grades and thickness of each seam are as follows:

Upper Hartsalz (Sylvinite) = 2.20 m @ 13.57 % K₂O
Upper Carnallitite = 17.56 m @ 10.20 % K₂O
Lower Carnallitite = 4.50 m @ 5.89 % K₂O
Lower Hartsalz (Sylvinite) = 1.72 m @ 10.23 % K₂O

Notes:
Minimum seam thickness considered for resources is 1m
Minimum cut‐off grade ≥5% K2O
20% geological loss applied to account for potential unknown geological losses for Inferred Mineral Resources
Data source: historical state records (BVVG) checked and verified
Inferred Resources rounded down to nearest 100,000 t
Errors may exist due to rounding

Potash Facies Distribution – Küllstedt and Mühlhausen Projects

The resource area of Mühlhausen-Küllstedt also contains significant amounts of sulphate minerals. There is often elevated kieserite associated with both the carnallite and Hartsalz in the south of the Project area, plus varying amounts of polyhalite, langbeinite, glaserite, kainite, aphthitalite and syngenite. Sulphates are an important constituent of the local potash seam, and in Germany local operators have successfully exploited these sulphates to produce speciality fertilizers and Sulphate of Potash (SOP).

The Mühlhausen-Küllstedt area has the potential to produce in excess of 2 million tonnes per year of MOP plus additional speciality fertilizer products. The area has been targeted by SHP as the flagship deposit in our portfolio and work is ongoing to fully evaluate the sulphate content of this area before proceeding to the technical and economic evaluation phase.

Exploration Potential

Küllstedt Exploration Licence

Geological data and assay data from historic drill holes show that almost all the Küllstedt licence is underlain by potash. The JORC Inferred Resource for Kullstedt covers only 44% of the Küllstedt exploration licence area, with the remaining area designated as an Exploration Target. The Exploration Target area has the potential to add further potash to SHP’s JORC resource inventory following additional exploration drilling.