Davenport Resources Limited (ASX: DAV) is into the exploration of minerals. The company has licenses for potash project in Germany through its wholly owned subsidiary. It also owns interest in iron oxide-copper-gold (IOCG) project called Southern Cross Bore Project located in Australia’s Northern Territory.
On 15 January 2019, the company announced about the estimation of an exploration target on its Nohra-Elende sub-area. It has a range of capacity between 638 million metric tonnes and 1,162 million metric tonnes with a grade of potash between 9.2% and 11.07% K2O.
However, the exploration target covers an area of approximately 13.9 km. It has about 66 million tonnes to 117 million tonnes of K2O. It is located between two areas of Inferred Potash Resources, which are held by the company. The results from the Nohra-Elende Exploration target adds to the current units of exploration target figures as per 2012, of 4.1 to 5.1 billion tonnes. The grading is however between 7.2% and 25% K2O from Küllstedt and 2.7 to 4.3 billion tonnes grading between 4.3% and 25% K2O from Gräfentonna. The company has a programme to upgrade JORC inferred resources going forward to indicated resources.
The Managing Director of the company Dr. Chris Gilchrist said that the results of the exploration target are a confirmation of the large scale of the potential potash resources located throughout the entire region from Mühlhausen to Nohra for which the company has a mining license. The results of the mineral resource estimates as per the releases on October 16, 2018, and November 13, 2018, for Mühlhausen to Keula and Nohra to Elende, adds to a combined total JORC Inferred Mineral Resource of 2,822 million tonnes, which is at a grade of 10.2% K2O.
A portion of the Nohra-Elende sub-area was excluded as an inferred mineral resource and was classified as an Exploration Target as per the quality and quantity of the available historical data used to create the geological model.
The company is moving forward to build the largest potash resource of Europe with a current total of over 3.4 billion tonnes of JORC Inferred Resources, and an additional 638 to 1,162 million tonnes of additional Exploration Target under the control of the company.
Additional review work of historical data from the Küllstedt license of the company is ongoing. The permission for drilling in 2019 is now at an advanced stage. Once the confirmation on drilling and economic studies are completed, 2019 can be regarded as a pivotal year for Davenport.
Now, let us quickly look at the performance of Davenport Resources Limited’s stock and the return it has posted over the last few months. The stock traded at $0.100 with an approximate 2.00% gain during the day’s trade. The current market capitalization is ~$14.03 million. The company posted returns of 46.27%, 60.66% over the last six months, three months respectively however it posted a negative return of 2.00% over the last one-month period. It has a 52-week high price of $0.145 and a 52-week low of $0.050, with an average volume of 145,077.