jorc resource soon for their phosphate

This has been sent to me...which is worth sharing.

Today Krucible announced the second batch of their drilling results from their PHM south project, just south of Phosphate Hill mine run by Incitic Pivot.

So now we can make some back of the envelope calculations as to how much phosphate rich rock they have in the ground. If you take the minimum width of 200m and length of 3.6 kms and an average thickness of 7m then you arrive at 15m tons of phosphate bearing rock. But it would appear that their highest grade material is also their deepest.

At $150/ton (rock phosphate Jan2009) that phosphate bearing rock would be worth $2.25b at market prices, but obviously KRB are now working on their costs of production as well as 100 other calculations.

They have also said that in 2 or 3 months time they will come up with a JORC resource for the above.

With a railway and gas line within 5kms they have excellent infrastructure. Until they calculate the costs of production we don`t know whether or not it is profitable but with a the largest phosphate mine in Ausralia next door, the chances do look good.