Phosphate Australia keeps the high grade hits coming at Highland...

Phosphate Australia keeps the high grade hits coming at Highland Plains
by Andrew McCrea

Nothern Territory company Phosphate Australia (ASX: POZ) has released further strong phosphate assay results from drilling at the Highland Plains project in the Northern Territory.

Results from Phase 2 are notable, for the continued high grade phosphate intersections at shallow depth.

High grade hits included 10 metres at 24.7% P2O5 from 8 metres; (with 4 metres at 31.1% from 11 metres) and 5 metres at 24.7% P2O5 from 34 metres.

What does this mean for POZ? Plenty, in terms of potentially developing a near term, low (CAPEX) cost, starter mining operation at "Western Mine deposit" at Highland Plains, around 500,000 tpa. Given, the high grade, surface mineralisation discovered at the project.

Andrew James managing director of Phosphate Australia said an updated resource estimate is likely to be upgraded in late October, from the current 56mt at 16% P205, after these assay results.

The project has not received alot of publicity to date, but the company has been working diligently away toward a pre-feasibility study, including an update on the all important metallurgical test work for a pilot plant, also due in October.

The project is located within EL 25068, 500 kilometres east of Tennant Creek and abutting the NT border with Queensland. There are also transport options to port, either to Queensland or ports in NT, as well as a rail option via the Tennant Creek Railhead.

Fresh from a capital raising, POZ is cashed up, with $8m cash on board.