phosphate found on land surrounding ipl

1. PHOSPHATE POTENTIAL (GEORGINA EAST SUB BASIN)
Background
Due to sharply increasing market value of phosphate for ammonium phosphate fertiliser over the last 12 months,
Krucible is actively investigating the potential for economic phosphate (P2O5) deposits within its wholly owned
tenements, Corella Bore �] EPM15572 and Merlin Tank EPM 15811.
One of the western world's largest producers, Incitec Pivot Limited, mines phosphate rock in the range of 15�]25%
P2O5 at the world class Phosphate Hill mine [PHM] near Duchess and 150 km SSE of Mt Isa. Krucible�fs tenements,
especially the Corella Bore tenement is known to have Cambrian age phosphate rich rocks in similar setting to
Phosphate Hill geology. (see Figures 2 & 3).
The phosphate rich rock is within sedimentary units that are beneath shallow cover and will require drill testing to
determine their extent and P2O5 grade
The Company plans to carry out a series of work programs, including drilling, in the next 6 months to determine the
possibility of an economic resource being discovered in the Corella Bore and Merlin Tank EPMs.
Following is a summary of results of research on previous work as well as results from limited follow up field
investigation carried out by Krucible thus far.
Previous Phosphate Exploration
A number of companies explored for phosphate in the Mt Isa�]NW Queensland region during the 1960's and 1970's.
In addition geological mapping programs were carried out by the Queensland and Australian Government to better
determine the conditions for phosphate deposition and enrichment and therefore the likely sites for ore grade
phosphate.
Mines Exploration Pty Ltd, in 1966�]68, detailed a number of P2O5 occurrences that are located within or close to
Krucible's Corella Bore EPM15572. At the D10 Prospect, channel sampling of surface outcrop returned 23metres @
12.5% P2O5, including 2m @ 26%. This D10 Prospect is within EPM15572 and located 11.5km north of PHM. In
addition drilling by Mines Exploration at Phosphate South returned intersections up to 7m @ 26% P2O5 �] this is
about 500m from the boundary of Corella Bore EPM 15572.
Mapping by the Geoscience Australia (de Keyser, BMR Bulletin 1968/67), located a phosphorite occurrence on the
east side of the Cambrian Georgina East Sub Basin at Pomegranate Creek (see Figure 3). This is close to the northern
boundary of Krucible's Merlin Tank EPM 15811.
Newmont Proprietary Limited drilled 14 shallow wide spaced holes with average depth 30 metres, south of
Pomegranate Creek in 1975. Sub economic phosphate was intersected in a number of holes within the phosphatic
Beetle Creek Fm., with intersections up to 2m @ 11.5% P2O5 (see Figure 3).
Sons of Gwalia Ltd (SOG) also drilled in the Merlin Tank area searching for copper& gold mineralisation in the
Proterozoic basement. Although they only analysed 10 of about 80 holes for phosphorous, these returned up to 5%
K R U C I B L E M E T A L S LTD
1/68 Railway Avenue PO Box 908
Railway Estate, Townsville, QLD 4810 Australia Castletown, Townsville QLD 4812 Australia
P2O5 from the Cambrian sediments in the prospective corridor (see Figure3). Field investigation by Krucible has
shown that drill chips remain around most of the SOG holes and a total of 49 old holes have recently been sampled
by Krucible and submitted for phosphate analyses. The analytical results are expected in 3�]4 weeks.
Mineral Discovery Company
A.C.N. 12 118 788 846
T +61 (0)7 725 880 F +61 (0)7 4772 4999 kruciblemetals.com.au E [email protected]
It is important to note that very little exploration for phosphate, outside of the PHM Mining Leases, has taken place
in this region over the last 30 years to 2007, due to the prevailing poor economics of phosphate mining and lack of
availability of acid and nitrate gas for enrichment for fertiliser use.
This has now changed with the infrastructure for PHM integrated phosphate fertiliser manufacturing facility.
Krucible�fs Phosphate Sampling
Some limited follow up field sampling has taken place and results of this are considered to be very encouraging.
4.79% P2O5 was returned from shale thought to be close to the D10 Prospect locality north of PHM and 5.16% P2O5
was returned from water bore (?) chips at PHM South, close to the abutting ground of the Corella Bore EPM 15572
and the Phosphate Hill Mining Lease. Details of the sampling are shown in the Table 1 below.
Table 1
CORELLA BORE ANOMALOUS PHOSPHATE SAMPLES
Sample Location / AGD 66
Anomalous Phosphate
Samples Comments
East North P P205
20863 394359 7591881 2.09% 4.79% Near D10 location 12km N of PHM
20873 394250 7594300 2.26% 5.16% Water Bore chips 2km S of PHM
Future Phosphate Work by Krucible
Compilation and interpretation of previous and current work will be carried out on the prospective corridors
outlined on Figures 3 & 4. This will be followed by lag and rock chip sampling as well as mapping over target areas.
When all results have been collated, drilling will be carried out to better define possible zones of phosphate
enrichment.
Before drilling commences native title clearance will need to be carried out by the traditional landowners�] this is
scheduled to take place in the next 3�]5 weeks and it is hoped that drill testing will commence in June 2008.
Should the Krucible exploration be successful this region is ideally situated for development because of the existing
power grid, gas pipelines and the operating Queensland Government railway link to Mount Isa.