resource estimate for arruwurra deposit

RESOURCE ESTIMATE FOR THE ARRUWURRA DEPOSIT
WONARAH PHOSPHATE PROJECT UPDATE


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Independent resource estimate at the Arruwurra Phosphate Deposit is an Inferred Mineral Resource of 130.8Mt @ 18.6% P2O5, reported at a 15% P2O5 lower grade cut-off.
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The total Inferred Mineral Resource at the Wonarah Phosphate Project, comprised of the Arruwurra and Main Zone Deposits, is now 202.8Mt @ 20.2% P2O5.
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A new estimate for the Main Zone Deposit, consequent upon Minemakers’ 2008 drilling, should be announced shortly. A previous operator’s resource estimate, based on less extensive drilling, was an Inferred Mineral Resource of 72Mt @ 23% P2O5, and was compiled in accordance with JORC Code guidelines. Minemakers is confident that the previous tonnage estimate will be surpassed.
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Drilling has not closed off the mineralisation at either deposit and the results provide flexibility for output type and for site selection for the processing plant.
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Minemakers holds 100% of the Wonarah Phosphate Project.
ARRUWURRA RESOURCE ESTIMATE
Coffey Mining Pty Ltd has provided the resource estimate for the Arruwurra Phosphate Deposit. At a 15% P2O5 lower grade cut-off, and using an in situ bulk density of 1.8t/m3, it has estimated an Inferred Mineral Resource of 130.8Mt @ 18.6% P2O5.
This was based on some 53 drill holes sited on an approximate 500m x 500m grid. Mineralisation is open in most directions. The mineralisation was delineated using a 10% P2O5 lower grade cut off.
The estimate includes all holes. The north eastern sector generally has better grade mineralisation which is closer to surface and that area will be the focus of 2009 infill drilling aimed at providing detailed data for mine planning and resource estimation.
MAIN ZONE RESOURCE ESTIMATE
The previous operator provided an Inferred Mineral Resource estimate of 72Mt @ 23% P2O5 for the Main Zone, based on about 110 holes. Minemakers has drilled within and beyond the limits of that previous drilling with a further 165 holes. Laboratory overload has delayed receipt of assays but they are now all in hand and a resource estimate is expected within weeks. Based on the extensive intersections of mineralisation, Minemakers is confident of a significant increase in the resources for the Main Zone, and that the Main Zone resource is expected to exceed that announced today for Arruwurra.
KEY ECONOMIC DATA PROVISION
The success of the Arruwurra drilling is having a major impact on the ongoing Wonarah evaluation studies. Its relatively shallow nature compared to the Main Zone renders it potentially more likely to be the initial focus for mining and site of the plant if significant beneficiation is needed. On the other hand, high grade mineralisation (35% or better) in the northern part of the Main Zone provides potential for an early Direct Shipping Ore (“DSO”) product. Both alternatives are now being evaluated.
Diamond drilling for further metallurgical testwork material at both Arruwurra and a richer part of the Main Zone will be carried out in a few weeks after all approvals are in hand.
Planning, permitting and contractor selection procedures have been commenced for both target alternatives for first quarter 2009 infill RC drilling programmes. The current Scoping Study has been enlarged and extended to include a full assessment of both Arruwurra and the Main Zone.
Study managers, Lycopodium Engineering Pty Ltd, in conjunction with Coffey Mining Pty Ltd and Minemakers, are currently working on estimation of the key economic parameters of operating and capital costs for a 3Mtpa output operation. The details are expected to be released next month and will form the basis of the economic evaluation of the Project and a platform for raising the capital required for mine construction late in 2009.
Managing Director, Andrew Drummond, said:
“It has been quite a slog in the desert this year and full marks to all involved. The numbers are starting to come in and are exceeding our expectations. Arruwurra has gone from exploration target to a major deposit with production potential for many years. We look forward to receiving the resource update for the Main Zone Deposit which should be considerably larger. The drilling successes vindicate the Board’s progressive decisions to advance programmes more usually associated with the development phase. We remain on track to be in production in late 2010.”
Andrew Drummond
Managing Director
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves in the Main Zone is based on information compiled by Andrew Drummond, a Fellow of The Australian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Drummond has sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Drummond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves for the Arruwurra Deposit is based on information compiled by Alex Virisheff and Troy Lowien, of Coffey Mining Pty Ltd. They are both Members or Fellows of The Australian Institute of Mining and Metallurgy or Members of the Australian Institute of Geoscientists. Messrs Virisheff and Lowien have sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Messrs Virisheff and Lowien consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.