News: Centrex Metals to define initial resource at Oxley Potash Project

Centrex Metals (ASX:CXM) has started drilling to define resources at two small areas of its Oxley Potash Project near Geraldton, Western Australia.

The 50 hole program will underpin a Scoping Study due for completion in the first half of 2016 for an initial start-up operation.

Drilling will cover a strike length of about 3 kilometres out of the total 32 kilometre long outcropping and is expected to be completed by the end of 2015.

Testwork is already underway to analyse optimal conditions of individual salt blends to convert potassium into a leachable form for extraction from potash feldspar.

It recently completed a conceptual study that indicated a nitric acid plant at Oxley would produce potassium nitrate fertiliser at an operating cost range of between US$148 and US$331 per tonne.
   
Potassium nitrate has an assumed FOB price range in 2015 of between US$700 to US$1,100 per tonne.

Centrex is trading below cash backing with $28.2 million in cash as at 30th June 2015 with no debt and a market cap. of $23.92 million.