Phosphate Aust enters prefeasibility Thursday, 10 September 2009...

Phosphate Aust enters prefeasibility


Thursday, 10 September 2009 -- MINING NEWS --

JUNIOR explorer Phosphate Australia has kicked off prefeasibility studies at the Highland Plains project in the Northern Territory.

As part of the early stages of the study, drilling for groundwater will get underway with the mobilisation of a rig to site in late September.

The hydrogeology report and subsequent bores drilled will be a key component in the final PFS.

In early October, engineering consultants will conduct road surveys over the proposed haulage routes from the project to the Gulf of Carpentaria to refine the company’s capital expenditure and operating cost estimates.

Environmental consultants are expected to soon mobilise to the site to conduct a fauna and flora survey to support an application for a mining licence.

A weather monitoring station will also be installed at the camp.

The final results from the phase 2 reverse circulation resource drilling campaign are expected to be received shortly and will allow the company to update the ore body model to refine the grade and tonnage estimates.

The update resource model will be used to define open pit plans.

Phosphate said its recent fund raising, which added $A3.83 million to its war chest, increased the company’s confidence in being able to aggressively pursue the prefeasibility studies that will underpin the successful assessment of the resource and allow for rapid development of the project.

Phosphate’s cash position after the raising is about $8.5 million.

The Highland Plains project comprises a JORC inferred resource of 56 million tonnes at 16% phosphate.

Shares in Phosphate Australia remained unchanged from yesterday’s close of 24.5c.