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Sirius Minerals PLC Declares Probable Ore Reserve Of 250 Million Tonnes

The shares of Sirius Minerals (LSE: SXX) rallied 0.4p to 9.8p during early trade this morning after the miner said its York Potash project covered a ‘probable’ ore reserve of 250 million tonnes of polyhalite.

The AIM-traded favourite claimed the analysis included a mean grade of 87.3% polyhalite, which made the reserve “the thickest and highest grade in the world“.

Today’s update follows a resource statement in May that revealed the group’s site close to Whitby carried an indicated and inferred reserve of 2.6 billion tonnes of polyhalite.

Chris Fraser, the chief executive of Sirius, said today:

The scale and quality of the York Potash polyhalite deposit has now been confirmed as truly exceptional.

Defining such a significant high quality Ore Reserve is a vitally important step in the financing and development of the project.

The share price of Sirius has slumped about 65% since July after the miner requested the North York Moors National Park Authority to defer a planning decision on its mining application.

The company said the deferral was to allow additional time “to address issues relating to European habitat legislation and robustly deal with the questions over the work completed by consultants on the environmental assessments“.

New planning submissions for the mine will be made by July next year.

Mr Fraser claimed today that a “potential mine life of over 100 years” could put the additional time for the approvals process “into some perspective“.

Sirius currently sports a market cap of £138m, although whether the size of its polyhalite deposit and the prospect of gaining planning permission for a mine currently combine to make the shares a 'buy' right now is something only you can decide.

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> Maynard does not own any share mentioned in this article.