South Harz Potash Ltd

South Harz Potash (ASX: SHP) through its wholly owned German subsidiary, Südharz Kali GmbH, holds potash project licences, in Germany's South Harz Potash District. The South Harz Potash District, in the heart of Germany, was one of the world's most important Muriate of Potash (MOP) producing regions, with a history of mining going back over 120 years. Prior to the re-unification of Germany in the 1990's, the former German Democratic Republic produced approximately 3.3 million tonnes of K2O annually from mines within and around the South Harz Potash District. Historically, both Sylvinite and Carnallitite potash ores have been mined in the South Harz Potash District by conventional underground room and pillar mining. Davenport's South Harz Project comprises three perpetual mining licences, Ebeleben, Mühlhausen-Nohra and Ohmgebirge and two exploration licences, Küllstedt and Gräfentonna, covering a total area of approximately 659km². Davenport's licences surround five former underground potash mines that were closed down after German reunification in the 1990's. The three perpetual mining licence areas and the exploration licence area Küllstedt have been extensively explored for Potash by the former GDR and a vast database of drillholes and technical studies exists to support the geological model. Davenport's three perpetual mining licences, Ebeleben, Mühlhausen-Nohra and Ohmgebirge, are unique and valuable. Over the past year Davenport has focused work on evaluating the vast archive of exploration data with the aim of defining JORC 2012 compliant resources. Davenport now controls over 5.25 billion metric tonnes of potash grading at 10.8% K2O, the largest potash resource in Western Europe. Positive scoping studies for three of Davenport's projects in Germany have recently been completed. The future looks bright for Davenport as the company aims to restart the old East German potash industry in a green, sustainable and environmentally friendly way.