Highlights:

  • PhosCo was trading at AUD 0.15, up 7.14% during the afternoon Trading session on 19 August 2026.
  • Maiden drilling at the KH prospect returned wide phosphate intersections with internal high-grade zones.
  • Best result included 19.4m at 20.66% P2O5, including 9m at 24.21% P2O5.
  • KH mineralisation is located approximately 3.5km from the proposed Gasaat processing plant site.
  • Further drilling is planned at Sekarna North and DOH as PhosCo advances its phosphate portfolio.

PhosCo Ltd (ASX:PHO) has reported high-grade phosphate assay results from its maiden drilling program at the KH prospect within its 100%-owned Gasaat Phosphate Project in Tunisia.

PhosCo shares were trading at AUD 0.15, up 7.14% during the afternoon trading session on 19 August 2026, while the company’s shares remained up 114.29% over the past year. The latest update highlighted further phosphate mineralisation at KH and its potential role in supporting the early-stage Economics of the broader Gasaat development.

KH Drilling Confirms Wide Phosphate Mineralisation

PhosCo completed a five-hole maiden drilling program at the KH prospect, with all holes returning wide phosphate intersections containing internal high-grade zones.

The best intercept came from hole GADD-2026-35, which returned 19.4 metres at 20.66% phosphorus pentoxide (P2O5) from 81.6 metres, including a 9-metre interval grading 24.21% P2O5 from 86.5 metres.

Other significant results included:

  • GADD-2026-31: 16.3 metres at 17.68% P2O5 from 39.7 metres, including 5.3 metres at 22.52% P2O5;
  • GADD-2026-32: 19.6 metres at 17.23% P2O5 from 103.4 metres, including 5.8 metres at 22.80% P2O5;
  • GADD-2026-33: 18.8 metres at 18.83% P2O5 from 41.1 metres, including 8.3 metres at 22.72% P2O5;
  • GADD-2026-34: 15.9 metres at 14.03% P2O5 from 29.9 metres.

The company stated that drilling confirmed the continuity and thickness of the phosphate layer identified through historical drilling and surface mapping.

KH Prospect Adds Development Potential to Gasaat

The KH prospect is located within the northern section of the Gasaat Phosphate Project and is approximately 3.5 kilometres from the proposed processing plant location.

PhosCo stated that the newly defined KH mineralisation, combined with existing resources at the KM and SAB prospects, could contribute to improving Gasaat project economics, particularly during the early years of production.

The company highlighted KH’s tabular mineralisation style, low strip ratio characteristics and proximity to planned infrastructure as key factors supporting its evaluation.

Geological Structure Supports Further Assessment

PhosCo reported that KH forms part of the wider Gasaat marine carbonate-hosted sedimentary phosphate system.

The phosphate unit typically occurs as a laterally continuous layer with variations in thickness and grade across the project area.

Across Gasaat, the phosphate unit ranges from 1 metre to 53 metres thick, with an average thickness of approximately 10 to 15 metres.

At KH, drilling confirmed a gently southeast-dipping phosphate horizon within an Eocene limestone block, with the mineralised body interpreted as a tilted tabular structure.

The company stated that geological interpretation indicates limited structural complexity apart from a northern boundary fault.

Gasaat Project Development Activities Continue

PhosCo continues advancing multiple workstreams at Gasaat as it prepares an updated Scoping Study expected in Q3 2026.

The company is also progressing exploration activities across its broader Tunisian phosphate portfolio.

Scout drilling is underway at Sekarna North, while a second phase drilling program is planned at DOH following a previously announced phosphate discovery.

PhosCo stated that these activities are aimed at expanding its understanding of the project’s resource potential.

Management Highlights Fertiliser Supply Opportunity

PhosCo Managing Director Taz Aldaoud said the KH drilling results support the company’s objective of establishing Gasaat as a potential source of phosphate fertiliser supply.

Mr Aldaoud highlighted the combination of high-grade phosphate results, low strip ratio characteristics and proximity to the proposed plant location as factors supporting further project evaluation.

He also noted that both Gasaat and Sekarna are located within Tunisia’s Northern Basin phosphate region.

Global Phosphate Demand Supports Project Focus

PhosCo is positioning Gasaat within the context of increasing global demand for phosphate fertiliser sources.

The company stated that phosphate is important for food security and mineral supply chains, with its projects located within an undeveloped phosphate belt in Tunisia.

The company continues to assess opportunities to advance its phosphate Assets through exploration, development studies and potential future production pathways.

Investor Takeaway

PhosCo’s latest drilling results from the KH prospect provide further information on phosphate mineralisation within the Gasaat Project and support ongoing development studies.

Investors may continue monitoring the updated Scoping Study, further drilling at Sekarna North and DOH, resource growth activities and progress towards potential development milestones.