phosphate at balla balla, page-4

Foyle,

I agree whole-heartedly that this kind of phosphate rock mineralisation is fairly srappy and unexciting by itself. I invite you to go back and look at the cross section and note that this phosphatic gabbro occurs immediately above a magnetite horizon which forms an ore body which is being mined in its own right.

So, yes, while true that it takes an inordinate amount of effort to ugrade the phosphate to a 30% specification, the fact is that it is a zone of what is waste rock produced in the effort to extract magnetite. Therefore, its mining has already been paid for, leaving the equation on the phosphates immensely better off.

So...it will be interesting to see how this goes. All Aurox needs to do is make $5 a tonne margin after paying for processing it, and it'll be a huge boon to the profitability of the operation because suddenly you are making the mining of the magnetite cheaper by reducing the waste strip ratio of the deposit, and you are adding extra profit into the company.

Nex we will hear about their plans to recover the interstitial chalcopyrite from the gange material within the magnetite. Then it'll get ridiculous.