Wednesday, February 10, 2010Minemakers Confident About Future Of...

Wednesday, February 10, 2010
Minemakers Confident About Future Of Wonarah Rock Phosphate Project

Melbourne-based Minemakers (ASX: MAK) is confident that the objective of locating sufficient high grade phosphate for a 10 year Direct Shipping Ore operation at the Wonarah Rock Phosphate Project has been achieved as a result of the latest drilling programme at the Northern Territory project.

At a 25% P2O5 cut-off, the Main Zone Deposit has an estimated Indicated plus Inferred resource estimate of 66Mt @ 28% P2O5, while at a 27% P2O5 cut-off, it is 38Mt @ 30% P2O5.

During the morning trade, shares in the company increased 2.5c to 43c.

The high grade areas in the Main Zone Deposit have not been closed off by drilling and mineralisation extends right up to the Barkly Highway the current northerly limit of the drilling undertaken to date by Minemakers.

With only ~20% of the deposit tested and strong mineralisation areas identified, further resource increases are confidently anticipated and underpin Wonarahs potential multi-decade minelife.

At the Arruwurra Deposit, the high grade core has an Indicated and Inferred resource at a 15% P2O5 cut-off, estimated at 4.7Mt @ 30.2% P2O5. This is the likely first production area as access to site and exposure of the mineralisation was established during the recent bulk sampling and trial mining programme.

The independent resource estimation consultant has advised that its 2009 Main Zone Deposit resource estimate had an error in the reporting of grade for estimates reported at a 0% and 10% P2O5 cut-off.

It was advised to Minemakers as 969Mt @ 19% P2O5 across Indicated and Inferred categories, and has now been estimated as 1117Mt @ 11% P2O5. At Arruwurra there is a further 141Mt @ 16% P2O5 cut-off.

The total combined Main Zone and Arruwurra resource estimate at a 0% P2O5 cut-off is 1258Mt @ 12% P2O5.

The reported estimates for Arruwurra and the Main Zone at 15% P2O5 cut-off grade were not affected by the error.

As previously announced, one of the principal objectives of the 2009 drilling programme was to drill and delineate sufficient high grade mineralisation for a 10 year mining operation. This has now been achieved.