South Harz Potash well-positioned to become a leading European supplier of choice

South Harz Potash Ltd (ASX:SHP) is well-positioned to become a leading European supplier of choice as it progresses its large potash resource in the South Harz region of Germany.

The company is building Western Europe's largest potash inventory and aims to become a world-class potash producer through the development of all or some of its projects.

SHP managing director Dr Chris Gilchrist said: "The company is on track to complete a short drilling program in advance of issuing an updated mineral resource estimate and technical and economic study by the end of 2021."

The company's portfolio of licences represents Western Europe's most significant potash resource, comprised of high-grade Muriate of Potash (MOP) inferred mineral resources (JORC 2012) and valuable potassium and magnesium sulphate minerals at relatively shallow depths.

SHP holds three perpetual mining licences - Ohmgebirge, Ebelebenand Mühlhausen-Nohra - and two exploration licences - Küllstedt and Gräfentonna - covering a total of around 659 square kilometres in the South Harz Potash District in north-western Thüringia, central Germany.

The three perpetual mining licences have no attaching rent or royalty conditions and these are in a region with an ingrained potash mining history and established infrastructure.

It has identified at least four potential project areas across its licences, with Ohmgebirge its flagship project due to its relative shallowness, high level of capital efficiency and potential to use existing proximate vertical shafts during construction.