South Harz Potash (ASX:SHP) has secured permission from landowners and tenants for the first of two planned drill holes at the Ohmgebirge potash mining licence area in Germany and has applied for regulatory approval with regulatory authority Thüringer Landesamt für Umwelt, Bergbau und Naturschutz (TLBUN).

Discussions with landowners and tenants on further drilling sites are at an advanced stage, with permission anticipated shortly.

Work on the Ohmgebirge scoping study is continuing in parallel with regulatory dialogue and completion of the study remains on track for the end of 2021.

Ohmgebirge has an Inferred resource of 325 million tonnes grading 13.1% K2O and it is intended the two confirmatory holes will lead to a revised mineral resource estimate including upgrading inferred resources to the indicated category.

“Level of local support”

Managing director Dr Chris Gilchrist said: “This represents the culmination of a massive effort on the part of the operations team, not only to complete the technical design for the deep, large diameter holes but to conduct a successful public relations exercise from which the company has won a significant level of local support.

“I look forward to a continuation of this successful start to our program.”

Site works to begin in July

South Harz is working with contract drilling companies in Germany to prepare a detailed drilling plan with site works expected to begin in July.

The company has also finalised scopes of work for components of the Ohmgebirge scoping study, which is on track for completion by the fourth quarter of 2021.

South Harz’s project portfolio comprises three perpetual potash mining licences – Ohmgebirge, Ebeleben and Mühlhausen-Nohra – and two potash exploration licences – Küllstedt and Gräfentonna – covering a total area of around 659 square kilometres.

Shares have been as much as 7.6% higher to A$0.010, equal to the high of more than two years.