PhosCo Ltd (PHO.AX) Eyes More Inventory Growth with Another Discovery

Melbourne, June 9, 2026 AEST (ABN Newswire) - PhosCo Ltd (ASX:PHO) (RVG0:FRA) announced that it has made another discovery at its Gasaat Phosphate Project in Tunisia.

Highlights:

- Drilling has intersected wide zones of phosphate at the KH prospect, which is the northern-most prospect at Gasaat.

- The five-hole drill program returned intersections ranging from 16.5m to 20.5m down- hole.

- The KH discovery follows the discovery at the DOH prospect at Gasaat which was announced last week (see ASX release date 3 June 2026).

- Both discoveries support PhosCo's strategy to continue growing the resource at Gasaat, which is ideally positioned to capitalise on growing global demand for new fertiliser sources.

- The shallow nature of the KH mineralisation, which outcrops in places, points to another discovery that could boost the overall economics of Gasaat, particularly in the early years of production.

PhosCo Managing Director, Taz Aldaoud said:

"The drill program at KH was designed to target a value-accretive discovery with the potential to underpin PhosCo's high-margin production start-up strategy. The appeal of the KH prospect is its simple tabular, outcropping mineralisation, and close proximity to the proposed plant. The drilling success at KH is highly complementary to the recent maiden resource estimates at the nearby KM and SAB prospects, which have the potential to optimise the project economics ahead of the Bankable Feasibility Study".

Drilling at KH Prospect

PhosCo's 5-hole drilling program at the KH prospect confirmed the geometry and continuity of the phosphate mineralisation as determined by outcrop mapping and historical CPG drilling data, which intersected 16.5m and 15.5m of phosphate of unknown grade (Figure 2). The drilling successfully confirmed lateral continuity and validated the thickness of the phosphate layer as indicated by the historic CPG drilling.

The results of the latest drilling (assays pending):

GADD-31 - 17m phosphate from 39m
GADD-32 - 20.5m phosphate from 102.5m
GADD-33 - 18.8m phosphate from 41m
GADD-34 - 16.5m phosphate from 28.8m
GADD-35 - 20m phosphate from 80.5m

The KH sector corresponds to an Eocene limestone block dislocated approximately 2,000m from the major Gasaat deposits by faulting. The block covers an area of approximately 150,000m2 and is truncated in its northern part by an east-west (EW) trending fault which forms the edge of the Rohia Graben. The mineralised block dips approximately 20deg to 30deg toward the southeast.

The interpreted cross-section (Figure 3) shows a phosphate layer hosted within the Eocene limestone block, dipping gently (20deg-30deg) toward the southeast. The phosphate horizon is constrained structurally to the north by the EW fault, which likely truncates mineralised body. The two historical drill holes confirm consistent thickness of the phosphate layer across the central part of the block. The geometry suggests a tilted tabular body, with limited structural complexity aside from the northern boundary fault.

Gasaat Geology

The geology at KH is identical to that observed across the Gasaat Project area, where phosphate mineralisation is widespread. The Gasaat phosphate deposit is classified as a marine carbonatehosted sedimentary phosphate deposit.

The phosphate unit within the Gasaat Project typically occurs as a single, laterally continuous layer that exhibits vertical variations in ore mineral grain size and lateral variations in thickness. The unit ranges in thickness from 1m to 53m, with an average thickness of 10-15m.

The sedimentary sequence hosting the phosphate mineralisation comprises, from base to top:

1. Basal Cretaceous marls and mudstones;
2. The phosphate-bearing unit; and
3. An overlying massive dolomitic limestone bed.

Internally, the phosphate unit can be subdivided (from bottom to top) into Layers C, B, and A, where:

- Layer C represents a transitional zone from mudstone to phosphate;
- Layer B contains the main phosphate mineralisation; and
- Layer A marks the transition from phosphate to limestone.

The rock phosphate unit and the limestone cap are both of variable thickness. The thickness of the phosphate generally reflects the depositional environment, while the thickness of the limestone reflects variation in surface erosion across the project area. The three main rock-types can usually be distinguished visually. Where the boundaries are less clear, pXRF is used to assist geological logging of the drill core.

Next steps

KH drilling has been submitted for laboratory assay and will be the basis for a maiden MRE for this prospect.

Multiple workstreams are progressing at Gasaat to inform an updated Scoping Study due for release in Q3 2026.

The drill rig will soon mobilise to follow up on encouraging rock chip results at the King's Eye prospect within PhosCo's wholly owned Simitu Copper/base-metals project.

To view PhosCo's latest ASX announcements, please visit:
https://www.phosco.com.au/investor-centre#ASXAnnouncements

About Phosco Ltd

Phosco Ltd (ASX:PHO) is mineral exploration and development company, focused on developing a district-scale phosphate portfolio in Tunisia's Northern Phosphate Basin to support a potential world-class fertiliser hub.

   

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