ASX AND PRESS RELEASE
ROCK PHOSPHATE PRICE ROCKETS TO US$200/TONNE FEASIBILITY PLANNING INITIATED ON THE WONARAH PROJECT, NORTHERN TERRITORY
9 January 2008
Rapidly rising global demand for rock phosphate, which has driven world prices from US$50/tonne a year ago to US$200/tonne today, has had a strongly favourable impact on Minemakers’ (ASX:MAK) Wonarah project in the Northern Territory.
The drive into biofuels production by countries, such as the United States, is pushing demand for phosphate fertilisers, with predictable impact on prices.
Minemakers’ Wonarah phosphate project, near Tennant Creek in the Northern Territory, which has previously been assessed and drilled by Rio Tinto Ltd, is poised to become a substantial beneficiary of these recent rises in phosphate rock prices.
An independent cost scoping study for Wonarah in early 2007 indicated that, depending on various mining, transportation and exchange rate scenarios, a price of almost A$100/tonne was required for economic viability. Current world prices appear to indicate potential for a highly profitable, large and long-term operation at Wonarah with a short payback period.
At Wonarah, in only the Northern sector of the known mineralization, a JORC compliant 1.95 billion tonnes at 14.4% P205 was estimated by Rio Tinto. In the main zone, the most intensely drilled to date, there were JORC compliant estimates of between 72 and 115 Mt at 22-23% P205. This zone is adjacent to the Barkly Highway which gives direct bitumen road access to the
standard gauge rail link at Tennant Creek.
Wonarah is Australia’s largest known undeveloped rock phosphate deposit. It is 100% owned by Minemakers except for some sub-areas, including the ones containing the 72-115 Mt deposit, for which there is a 10% clawback provision in favour of the previous owner.
The Company has begun to assemble data for commitment to a bankable feasibility study, a decision on which will be made by the Board as soon as all information is available. More details will be provided in the forthcoming quarterly report.
Minemakers’ Managing Director, Andrew Drummond, said:
“This is what Minemakers is all about – acquiring major mineral deposits with
large and expensive databases, and then capitalising on commodity price
increases. The rocketed phosphate price gives potential for great benefit to
the Company and its shareholders”.