PhosCo Confirms Major Phosphate Discovery at Gasaat, Tunisia

PhosCo Confirms Major New Phosphate Discovery at Gasaat, Reinforcing World-Scale Project Ambitions

PhosCo Ltd (ASX: PHO) has announced a significant exploration breakthrough at its Gasaat Phosphate Project in Tunisia, with drilling at the newly confirmed DOH prospect returning outstanding assay results across multiple holes. The PhosCo Gasaat phosphate discovery in Tunisia not only establishes DOH as a discovery of genuine scale but also arrives alongside strong follow-up results from the KM deposit and initial intersections at the GS prospect — collectively reinforcing Gasaat's growing credentials as a world-scale phosphate development.

A New Discovery That Demands Attention

The DOH prospect — a down-faulted or slump block located to the east of the GK deposit — has emerged as a material new addition to the Gasaat inventory. Seven holes have been completed to date, revealing a phosphate horizon averaging 13 metres in thickness, extending over a strike length of 1.3 kilometres and a width of more than 600 metres.

The mineralisation is open in several directions, meaning the footprint of the discovery could expand further with infill and extension drilling.

"These results confirm that DOH is a significant discovery with potential to drive substantial growth in the inventory and mine life at Gasaat. There is also clearly scope to expand the discovery, with the mineralisation remaining open in several directions." — Taz Aldaoud, Managing Director, PhosCo Ltd

What Does the Geology Tell Us?

The geology at DOH is consistent with what has been observed across the broader Gasaat project — a sedimentary phosphate horizon sitting unconformably on Cretaceous marls, capped conformably by Eocene limestone.

The key distinction is that DOH dips at approximately 25 degrees to the east, in contrast to other deposits at Gasaat which dip to the west. This structural variation adds further geological interest to the broader project area.

The Numbers Speak for Themselves

The assay results from DOH are highly consistent and demonstrate strong phosphate grades across the prospect. The following table summarises the headline intercepts from the current drilling programme.

DOH Prospect — Key Drill Intercepts

What stands out is the consistency. Across every hole, the main intercept grades cluster tightly around 20% P₂O₅, with high-grade sub-intercepts repeatedly exceeding 24–25% P₂O₅.

This uniformity in grade over multiple holes spread across the prospect's width and strike is precisely the kind of geological continuity that underpins robust resource estimation.

KM Deposit Continues to Impress

Following the DOH drilling campaign, the rig returned to the KM deposit to complete three additional holes. The results there were equally impressive — and in some respects even more remarkable in terms of thickness.

KM Prospect — Key Drill Intercepts

The KM deposit already holds a maiden Mineral Resource Estimate (MRE) of 12.0 Mt at 20.5% P₂O₅ (Indicated + Inferred, JORC 2012), announced in May 2026. Furthermore, the latest three holes — which include intercepts of nearly 40.5 metres of continuous high-grade phosphate beginning at shallow depth — have the potential to support an upgraded resource estimate when incorporated into future modelling.

KM MRE Summary (May 2026, JORC 2012, 8% P₂O₅ cut-off)

Notably, KM also benefits from a low average strip ratio of 0.4:1, meaning the overburden that needs to be removed to access the ore is minimal — a highly favourable characteristic for a low-cost open-cut operation.

GS Prospect: Phosphate Confirmed, Focus Shifts Elsewhere

Scout drilling at the GS prospect intersected phosphate mineralisation at depth, with hole GADD-2025-02 returning 20.2m @ 19.5% P₂O₅ from 164.9m, including 6.4m @ 23.9% P₂O₅.

However, because the mineralisation is situated at greater depth relative to other Gasaat prospects, the company suspended drilling at GS. The focus at this stage is on prioritising low-strip-ratio resources for early-stage production, and GS does not meet that threshold at present.

The result does, however, confirm that phosphate mineralisation extends into the GS area, adding to the broader geological picture at Gasaat.

Understanding P₂O₅: Why Grade Matters

For investors who are newer to the phosphate sector, P₂O₅ — or phosphorus pentoxide — is the standard measure used to express the concentration of phosphate in ore. It is the chemical form in which phosphorus content is reported and is directly relevant to the commercial value of the rock.

Why Does Grade Matter So Much?

Phosphate rock is used primarily to manufacture fertilisers, which are essential for global food production. Higher P₂O₅ grades generally mean more valuable ore, lower processing costs per tonne of final product, and better project economics overall.

Grades of around 18–22% P₂O₅ are considered commercially meaningful for sedimentary phosphate deposits. The consistent grades being returned across the PhosCo Gasaat phosphate discovery in Tunisia — regularly exceeding 20% P₂O₅ in the main intercepts, with sub-intercepts reaching 24–25% P₂O₅ — represent solid, commercially relevant mineralisation.

Key Terminology Explained

• P₂O₅: Phosphorus pentoxide — the standard measure of phosphate ore grade
• MRE (Mineral Resource Estimate): A JORC-compliant estimate of the quantity and grade of mineralisation in the ground
• Strip ratio: The ratio of waste material that must be removed to access each tonne of ore — lower is better
• Indicated Resource: A higher-confidence resource classification based on sufficient drilling data to assume geological and grade continuity
• Inferred Resource: A lower-confidence classification where geological continuity is assumed but not yet confirmed by close-spaced drilling
• Flotation: A processing technique used to separate phosphate minerals from waste rock using differences in surface properties

What Comes Next: A Busy Exploration Calendar

The pace of activity at Gasaat shows no signs of slowing. In addition, PhosCo has outlined several near-term priorities:

1. Infill and extension drilling at DOH to better constrain the mineralisation and define its extent ahead of a formal mineral resource estimate.
2. Further drilling results from Gasaat are expected to be announced shortly, with the programme described as ongoing.
3. Mobilisation to the King's Eye prospect within PhosCo's wholly owned Simitu Copper/base metals project, following encouraging rock chip results — adding a new exploration angle for investors to monitor.
4. Expansion of the broader resource inventory through additional drilling at KM, GS, KEL, and SAB prospects within Gasaat.
5. Sighter metallurgical test work planned to better understand the mineralogy and metallurgical characteristics of phosphate across the different ore layers.

The company has also recently progressed its metallurgical understanding significantly. In May 2026, PhosCo announced a breakthrough Single Stage flotation flowsheet for KM ore — a simplified processing approach that applies the same key steps as the previous Two Stage flotation method but with materially reduced complexity. This development has positive implications for capital and operating cost estimates going forward.

The Investment Case: Scale, Grade, Location, and Timing

The PhosCo Gasaat phosphate discovery in Tunisia is shaping up as a genuinely multi-deposit phosphate project, with discoveries continuing to expand the overall resource inventory. Consider the key attributes coming into focus:

Project Overview

Managing Director Taz Aldaoud has pointed to the broader market context framing Gasaat's development:

"Gasaat is emerging as a world-scale phosphate project as global fertiliser markets come under growing pressure, due mainly to the heavily concentrated nature of the supply chain. Gasaat's location in Tunisia on the Mediterranean Sea is a distinct strategic advantage, meaning the project stands to offer valuable supply diversity at a time of severe global tailwinds across fertiliser markets."

The phosphate supply chain is notably concentrated globally, and projects capable of offering scale, quality, and logistical access to key markets are relatively rare. Gasaat's position on the Mediterranean, combined with the geological consistency being demonstrated across multiple prospects, gives the project a credible pathway toward becoming a meaningful contributor to global phosphate supply.

Why Investors Should Keep Watching PhosCo

With the DOH discovery now confirmed and open for expansion, the KM deposit growing beyond its maiden resource, and an active drill programme delivering results across multiple fronts simultaneously, the PhosCo Gasaat phosphate discovery in Tunisia is demonstrating the kind of consistent exploration execution that builds genuine project value over time.

The next resource estimate at DOH, further drilling results expected shortly, and the planned move to the Simitu Copper project all represent near-term newsflow that investors should track closely.

The combination of ongoing resource expansion at multiple prospects, metallurgical optimisation work, and Tunisia's strategic Mediterranean location creates a compelling investment thesis for investors seeking exposure to phosphate supply diversification.

The PhosCo Gasaat phosphate discovery in Tunisia is systematically building a multi-deposit, world-scale phosphate project, with the newly confirmed DOH discovery adding meaningful scale to an already growing resource inventory. With consistent high grades, a low-strip-ratio flagship deposit, a simplified processing flowsheet, and further drilling results imminent, the company offers investors a compelling combination of near-term catalysts and long-term project scale.

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