A year ago I tipped African Potash twice, first for an 84% gain in a few days and then again at 2.625p with a 5p view so whats happened during the last 12 months other than hitting a 52wk high of 4.88p.The company has gone away and drilled 2 holes returning extremely positive initial results whilst awaiting a formal notification from Dr Dorling on just how good these results are as the down-hole natural gamma profile confirms observations from geological logging of multiple thick (up to 11m thick) potash beds. Don’t let me teach you how to suck eggs but a revisit of the RNS from the 21st October here:
- LDDH_002 intersected a 112m thick salt sequence
- The salt sequence includes multiple potash seams totalling about 48m which represents 43% of the total interval
- The salt sequence in LDDH_002 confirms laterally extensive salt and potash mineralisation which is characteristic of the Congolese coastal basin – further underpins the Project’s potential to host a significant commercial deposit
- The salt sequence intersected in LDDH_002 shows internal similarity to that of LDDH_001 and suggest laterally extensive potash horizons at shallow depth
- About 250km2 of the licence area is interpreted to be underlain by salt-bearing strata and to occur at a depth of about 300m to 420m below surface
The company are hardly setting the scene of a dismissive nature, on the contrary I believe that Ed Marlow and Dr Dorling are quietly excited about their find at the Lac Dinga project. Whilst there has been a reduced interest for junior miners over the summer I now believe that the hunter gatherer instincts requires us to have a modest interest in actively managed mining stocks in preparation for the festive frolicking.
Buy at 2.125p up to 2.625p with a TP of 5p